Money Monday!

It will soon be time to get ready for cocktail parties again, or maybe you will find yourself chatting with other parents at a little league game.  Next time the topic turns to finance, I want to make sure you are armed with some talking points around this subject.

QUICK TIP- When you are at the party, remember these are just talking points, and you are not an expert.  Be sure to acknowledge that when throwing out any of the information below.  It can be dangerous to throw out a high-level talking point and then be stumped by a follow-up question.

This week, I’m sharing some tips for talking about Bitcoin and inflation:

  • Bitcoin
    • Bitcoin is a type of Cryptocurrency, and Cryptocurrency is simply digital money. It is a very interesting technology, but there is still a tremendous amount that needs to be worked out before it would ever become mainstream.
    • If you refer to cryptocurrency as “crypto,” you will sound cooler.
    • Investing in crypto is highly speculative and can be extremely risky. Certain people have made a lot of money investing in Bitcoin, but we still don’t know how this will all play out in the end for them.
    • Bitcoin is just one of many different types of cryptocurrency. A few of the many other types of cryptocurrencies** include Litecoin, Etherium Tokens, and Bitcoin Cash which is similar to Bitcoin but is processed faster.
    • You can buy a Tesla with Bitcoin.
    • Coinbase is a leading mainstream cryptocurrency exchange in the US. It’s a place where people trade crypto.  Additionally, it includes a digital wallet which holds investors’crypto.
    • Crypto has a very large carbon footprint. According to a Bill Gates article in Forbes, one Bitcoin transaction can have the same carbon footprint as 750,000 credit card swipes.  Click here to read all of this very interesting article. 
  •  Inflation
    • First, what is inflation? It simply means that you won’t be able to buy as much with the same amount of money.
    • Many of the talking heads on TV are insinuating that inflation will get really bad because we just pumped so much money into the economy around the pandemic. This isn’t automatically the case for the following reasons:
      • According to Raymond James chief economist Scott Brown, large federal budgets do not cause inflation. We ran huge deficits (as a % of GDP) during the ’80s as inflation fell.
      • We will probably see reflation this year which is a bounce back in prices, and this will happen in areas of the economy that were particularly depressed as a result of the pandemic. Think about how cheap airline tickets got. They will get back to normal levels and possibly beyond.
      • We haven’t seen signs of widespread inflation, but it is something worth keeping an eye on as things develop.

For the Truly Savvy – While the information above may help you keep up in conversation with a colleague or another parent, the real key to being financially smart has nothing to do with the information above.  While the concepts below sound boring, this is what the people who are truly savvy about money will appreciate:

  • Having a smart financial plan that allows you to enjoy life now while keeping an eye on your future goals.
  • Owning a diversified basket of investments that is tailored toward your goals.
  • Making tax-efficient decisions.
  • Not trying to “time” the market.
  • Managing your own behavior around your spending, saving and investment management.

While you may not want to be boring at a party, in real money management, a boring strategy can be cooler than you think. 


Prior to making an investment decision, please consult with your financial advisor about your individual situation.  The prominent underlying risk of using Bitcoin as a medium of exchange is that it is not authorized or regulated by any central bank.  Bitcoin issuers are not registered with the SEC, and the Bitcoin marketplace is currently unregulated.   Bitcoin and other cryptocurrencies are a very speculative investment and involves a high degree of risk.  Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment, and a potential total loss of their investment.  Securities that have be classified as Bitcoin-related cannot be purchased or deposited in Raymond James client accounts.
You should discuss any tax or legal matters with the appropriate professional.
The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.  Any opinions are those of Wheeler Financial LLC and not necessarily those of Raymond James.  Expressions of opinion are as of this date and are subject to change without notice.  There is no guarantee that these statements, opinions or forecasts proved herein will prove to be correct.  Investing involves risk and you may incur a profit or loss regardless of strategy selected.  Past performance does not guarantee future results.  Future investments performance cannot be guaranteed, investment yields will fluctuate with market conditions.