Super Bowl Ad Grows Interest In Cryptocurrency, But How Safe Is It?
ADDISON, Texas (CBSDFW.COM) — During the Super Bowl, an ad played out for millions of viewers promoting cryptocurrency with stars like Tom Brady and Matt Damon. Since then, those companies have reported a surge of new investors and interest.
However, many are still confused about the digital currency and how it works.
"If you take a look at what they've done it's just computers that have created a very complex mathematical problem to allow people to mine for cryptocurrency," said Cathy DeWitt-Dunn, CEO of DeWitt & Dunn Financial Services.
DeWitt-Dunn recently noticed more investors are asking questions about this cyber currency.
"There is a lot of interest but I mean people really need to understand what's all involved behind the scenes because sometimes if it sounds too good to be true, it might," DeWitt-Dunn added.
She warns there's risks involved and advises people to keep retirement accounts separate if people do choose to invest in cryptocurrency, as its value can fluctuate rapidly.
"Cryptocurrency was running between $27,000 and it went all the way up to $69,000 for a bitcoin and some days it has fluctuations of 12-16% but we've also seen many days where it's come down and consumers confidence is what drives things," DeWitt-Dunn said.
While investing in anything comes with risks and rewards, some are finding there's money to be made in Bitcoin mining, too.
And though this virtual currency is not regulated — that could change soon.
The U.S. Justice Department announced Feb. 17 that they are creating a National Cryptocurrency Enforcement Team to crack down on cyber attacks and scams related to this type of currency.
According to CBS News, 46 million Americans are invested in cryptocurrency.
"If you really have to go out there and you have to go mining for cryptocurrency, make sure you do it with just a little bit of money, not all of your money," DeWitt-Dunn said.