I was watching a movie the other day and heard a phrase that it would do well for all of us to remember. A financial wizard was asked what principles he used and he said ,“A reasonable rate of return.” Most financial scams are built around the theory of “an extraordinary rate of return.” I remember old-timers used to say the fastest way to double your money was to fold it over and put it back in your pocket.
At work we were discussing investment in crypto currency of which the most well-recognized is Bitcoin and all of us attempting to understand more about it. It is created by computers crunching day and night on mathematical formulas called blockchain while eating tons of electricity and millions of gallons of water to keep them cooled while producing something you can’t see or touch. A bitcoin miner says it cost $30,000 to produce a coin that now sells for around $60,000. This seems like a way to make a quick fortune; however, I have no idea what you can use them for except extortionists seem to like to hide their ransoms gained from freezing the computers of operating companies.
I was raised going in and out of the Alderman’s country store at Cotton Gin and if you went in there and got a coke and a peanut patty and paid Mr. Jim Alderman with a bitcoin and he took it, then I would say it had some value.
