Kingsview CIO Scott Martin discusses Chipolte’s Bitcoin promotion and the rise of alternative currency.
Program: Cavuto Coast to Coast
Station: Fox Business News
NEIL CAVUTO: Now that Chipotle is looking to give away up to a hundred thousand bucks in Bitcoin, which would be what not even, you know, to two of the coins. Right at the rate it’s going, nevertheless is getting enormous attention DR Barton is back with us – Woodshaw Financial Group principal there, Scott Martin, Kingview Asset Management CIO, Fox News contributor. Well, this is a little different. I mean, Chipotle does not join the normal crowd that we’ve seen of late, including Goldman kicking around the idea and Tesla with this sort of thing. I’m not quite sure what this means, though, for Chipotle. It’s an added boost, I guess, to get people in. But what do you make of it?
SCOTT MARTIN: Neil I love it. Why am I always the last one to know on Brito’s, though, that’s the question. I mean, look, Brito’s Taco’s, I love them all. Usually when Goldman gets involved in something like this, the funs over. But ironically, in this case, I think the fun just starting, you mentioned all the other companies that are talking about Bitcoin, even the PayPal’s, the Squares, the Visas, the MasterCard. So, what it means for Chipotle is they’re getting on that bandwagon to kind of catch that rise in the, let’s say, alternative currency. And it speaks to the fact that, you know, a lot of portfolio managers like ourselves, Neil, have bought gold in the past to hedge against, say, fixed income volatility or equity. Volatility in Bitcoin is becoming a real asset class for portfolios as far as choice.
CAVUTO: You know, for the time being, DR, they’re not saying you can buy your burritos with Bitcoin that might be coming down the pike. I know Tesla is offering that with the one and a half billion that a lot of us got, you know, bought of currency that buyers could do so. But where do you see this going?
DR BARTON: Well, I think it’s just really smart marketing, Neil, kind of pure and simple, if you look up if you look up Chipotle online, you’re going to find, you know, maybe 50 million hits, 50 million hits in Google. If you look up Bitcoin, you’re going to find six hundred and eighty-eight million. It is very hot. They want their name associated with something hot where they don’t have to pay royalties to the NFL or the NBA or someone like that to have a marketing campaign. So, they have an app that’s called Bitcoin or a burrito’s or Bitcoin. You play a game on there to see if you win some of the Bitcoin fractional Bitcoin or can win a burrito. And that’s and that’s it. So, it’s a really kind of interesting marketing ploy. I don’t think it has any legs in terms of Bitcoin being accepted at Chipotle any time soon.
CAVUTO: I’d probably still go for the burrito, but Scott, looking at this, bitcoin is serious now, isn’t it? It’s gone from now being, you know, sort of shunned, sort of like an odd investment to one being embraced by a lot of Main Street players. What do you make of that?
MARTIN: Bitcoin was a t shirt a few years ago of one which I bought, in fact, that I’m happy to wear out because people what’s so funny about that is like I mean, perfect example of the T-shirt. It’s an orange T-shirt has the Bitcoin symbol on it. Three or four years ago, Neil, nobody would stop and ask about it, but now they do. And it’s probably because they see me on the shows all the time. Right. But the reality is, and they watch Fox and everything like everybody else. But the reality is people want to talk about it and feel like they’re very interested in it. So, the fact that to the point where that’s at Chipotle or be able to use it on a Visa card or something like that, that’s making it part of society and part of society to come, I think.
CAVUTO: All right, gentlemen. Food for thought. See what I did there? Food for. OK, fine. It’s the best I could do on a whim. All right.