Tag: crypto

https://youtu.be/sbVbyAdbFqk

 Hey, simple passive cashflow listeners. Today, we have part two  of the crypto currency,  alternative Bitcoin, all things crypto and why this is, the big theme here is freedom, right? Professor for freedom, but this is taking the control out of governments and where monetary policy is going.

 

If you guys want to go back to the first podcast we did. I would go check that out first. We  also have a pretty nice slide deck here that Bob’s been presenting displaying on the screen. So your podcasts guys want to go over to the YouTube channel, or I will also put them@simplepassivecashflow.com slash crypto, but so we will start get rolling.

 

Picking up midway here with Bob Burnett. And here we go. Yeah. All right. Hey, thanks for having me back lane. As this is a topic we could probably do part  three through 12 too, but  we’re going to try to pack this in and get all the pertinent information to everybody here in today’s session.

 

A lot of what we talked about for those of you who maybe are a week or so from having listened to the part one was we talked a lot about freedom as lane said in the introduction, what is the ethos of especially Bitcoin? It’s about separating money from the control of government.

 

And a lot of the reason behind that is essentially history has shown that over time when government controls money. Either it has shown itself to be inept at doing so or corrupt in doing so and frequently both. It would be my opinion. And we’ll talk a little bit about it here further today that, we are in the midst of that very thing happening right now.

 

And maybe to apply this to those of you who are business owners or certainly managing your own wealth, we’re all doing that. There’s a great story. I want to start with today to talk about this. And the story is about a company called micro strategy. It’s run by a guy named Michael Saylor.

 

Michael is an aeronautical engineer. He founded a software company, a data analytics company called micro strategy. I think about 25 years ago. And  I find a lot of a kindred spirit with Michael I’m an engineer myself. And I think very similar to similarly to him and what Michael had to do was he had make a decision as a CEO starting about a year ago.

 

And his decision was this micro strategy is a public company. They had $500 million of cash on their balance sheet. And in March of 2020, And as we all know the world turned on its head. In March of 2020, Michael saw the fed pumping money into the system at unprecedented rates. And he realized what we talked about somewhat in the earlier conversation that growth in the money supply is actually the definition of inflation.

 

And he was seeing massive pumping of money into the system. And he said, Hey, I have $500 million in cash. If I don’t do something with this cash, it’s going to inflate. And again, he went through some very similar analysis that I went through and reached the conclusion that inflation. Was on the verge of being double digit.

 

And so even if we use the low end of that threshold, it meant that if he didn’t do something with the 500 million, which was sitting in cash and inflation was at least 10% in a year, he would have lost $50 million in purchasing power. And he felt a ethical, moral, legal obligation for his shareholders to go find a way of protecting that value.

 

So he went through all the standard exercises. Is there something happening in the bond market? Clearly 50 basis points returns on 10, 20 and 30 year treasuries. Doesn’t do it. He looked at gold. Gold was starting to become less and less appealing. It hadn’t performed well in 2008.  It was showing kind of its age.

 

He looked at equities and said there’s a bubble going on. I don’t have faith in equities. So he ended up surprisingly, at least to him at Bitcoin. And you can imagine the scene a fortune 1000 company, a very distinguished board, and Michael walks into the boardroom and says Hey guys, we have 500 million in cash.

 

And we need to protect it. I’ve gone and studied every possible angle for this. And I think we should put it in Bitcoin. And  I’m sure it was crickets at that moment. Just, dead silence. And I know overnight he wasn’t successful, but over the course of a couple of months, he continued to educate himself and the board about Bitcoin.

 

And ultimately he convinced them to take 275 million of the 500 million and buy Bitcoin now being a software company and being a smart guy, he said I’m not just going to go buy $275 million worth of Bitcoin. And he set up a bot with his team to buy $2,000 a Bitcoin. Every second, I believe it was for something like 40 days.

 

That’s how long it takes to buy. It was every second or every minute, whatever the math is. And so he deployed that and then he went to the marketplace after he had finished it and he announced to the world, Hey guys, I have purchased $275 million worth of Bitcoin with our 500 million and treasury.

 

The wall street analysts just crushed him instantly. But interestingly, the market didn’t, the market responded very favorably to his move, his company’s move and the stock price started to go up. And it Rose something on the order of 25 to 30% over the next month. And in parallel, Bitcoin kept rising and the faith of him and his board in this strategy started to increase.

 

So by the late June, he went back to the board and said, Hey guys, we really only need $25 million of operating cash. Let’s take the remaining 200 million we have and buy more Bitcoin. And the board passed the resolution and they went and did the same thing early July. He was back into the marketplace saying by the way that 500 million is now 475 million in Bitcoin.

 

But by that time, Bitcoin had already started arise. He was up several hundred million dollars on that purchase. And if you look at a Bitcoin price chart, you’ll see that through the summer, your thing was still increasing. So then he said, and made what I find to be a brilliant move.

 

He said, Hey, money is cheap right now, the Fed’s paying like 50 basis points on a 30 year treasury. So why don’t I go do a convertible note offering to the marketplace and raise another 500 million I’ll offer 50 basis points of return on a five-year convertible note. And he went in and I got the board approval for that raise $500 million  essentially for free, took that $500 million and bought more Bitcoin.

 

So he’s now in at $975 million, a Bitcoin purchases and micro strategy became somewhat of a superhero in Bitcoin circles and other people started paying attention. So it turned out that so many people wanted access to convertible note. He got oversubscribed. So he went and did it again. So it cut to the end of the story.

 

Now they’ve continued this strategy of taking any free cash coming into the company to buy Bitcoin. And they now own 91,000 Bitcoin. And at current valuations that means they have over $5 billion of Bitcoin. And so in the space of one year, Michael Saylor took the corporate treasury of $500 million in cash and turned it into $5 billion worth of Bitcoin.

 

And he has become champion of this cause telling other CEOs, public companies, private companies, big companies, small companies, basically saying if you have corporate treasury and you are not putting it in Bitcoin, you are doing an irresponsible thing with your company treasury and not basically performing your fiduciary duties to your shareholders.

 

So it’s a story that I think everybody, listening, whether it’s managing the corporate treasury of your personal wealth or the corporate treasury of a company that you may be influential in or run, this is something I think that we all have to seriously look at. I will share with the listeners that for my companies, which I run  three mining companies, some Bitcoin and Ethereum that we hold all of our corporate treasury just like Michael Stratton.

 

We’ve been doing it for several years. We hold our corporate treasury in cryptocurrency and it has been phenomenally successful for us in our little world. We’re not anywhere near the measure of micro strategy, but it’s been fantastically successful for us.

 

What Michael did not go unnoticed though. And so what people are latching on, right? Cause Ilan is, yeah. I don’t know if the it’s very high-profile right, but he’s basically doing the same thing. Yeah. And Elan did it because of Michael and so that’s, I think a lot of people are aware of what Tesla did.

 

But they did it because of what Michael did and taught them. And Ilan paid attention. Michael held a conference. Those videos are available still out on the internet. I would encourage you to look for like Michael Saylor corporate treasury conference. If you Google that you will find it.

 

And one of the groups that showed up by he had 8,000 participants over 20,000 people sign up for this conference and all of them were CEOs and CFOs of companies. That was a requirement to be in the meeting was to be part of that. Tesla did the same thing. They went out, put a billion and a half into it on January 1st, 2021.

 

And now less than four months later, they have basically doubled their money. And now sit on $3 billion of Bitcoin. And it’s successful as. Tesla is then they’ve made more money on that than they have in anything they’ve ever done in their history. So it’s just a phenomenal story to show the commitment of Ilan and Tesla to this though, I found this to be the most interesting news.

 

Not only did they put the billion and a half in, they said, we will now accept Bitcoin as payment for our cars. And if we do get payment in Bitcoin, for one of our cars, we will not sell the Bitcoin. They’ll cover the cost of the car  through other financing mechanisms. But if they get Bitcoin, they are not going to sell it.

 

They aren’t selling their corporate treasury and they won’t sell any money that they acquire. So that, to me, that speaks volumes of. How strongly they feel about Bitcoin now, don’t you think I’m a fan of Bitcoin, obviously you are, but for a publicly traded company to throw their cash reserves into something relatively new, like this, and that’s typically not what  publicly traded companies do.

 

It’s probably going to work out best for them at the end. Like how Steph pro jacks up at three from half court all pretty much goes in most of the time. But is it, that’s shot is obviously like a little out there, right? It’s the same thing here.  I understand what you say.

 

And I think that would be the initial impression of the vast majority of people,  elan may seem like a bit of a Maverick he’s not stupid. And he also, I think to turn that around I’ll pretend I’m them or I am them because my company does it, I would say, Hey, if I have a couple million dollars, let’s say in my corporate treasury, and I keep it in dollars.

 

If I keep it in dollars, then I am accepting 10% degradation and purchasing power year over year. And I think that’s the key thing, right? Yeah, I think we generally agree the crypto Bitcoin is going to go up, but there’s like that added fear that why you want to get out of right. And so it’s two prong, right?

 

Maybe it’s maybe this is not a great example, but it’s you want to go off and move off on your own. Cause it’s cool. But maybe your parents are driving you crazy, right? Yeah. The second reason why to move out well, yeah, 

 

so if I’m CFO of a company, or CEO of a company and I have a certain treasury that I’m managing, and there was a fictitious investment out there that I knew for a fact would slightly outperform inflation and it was guaranteed. Then I think my fiduciary responsibility would probably be to place my money there, but such a thing does not exist.

 

And cause if we go through it, we’ll gold offer that guarantee. No will treasuries. Absolutely not. Is some sort of basket of equity assets going to do that. Nope, Nope. That won’t do that. Can I put it in something like real estate? Maybe that might be the only thing, but  it doesn’t offer the liquidity.

 

And there are still some risk of course of booms and busts within that. Bitcoin certainly has that same variability as measured back in dollars, but the last 12 years show it to be the highest performing asset in history. Nothing in that 12 year history can match what Bitcoin’s done.

 

You might find individual things for six months or a year or two years, but you’ll find nothing. That grew like Bitcoin grew between inception and March of 2020 at 200% compounded annually. And now it’s accelerated. Normally  if you see some sort of investment opportunity that offers 200% compounded for some period of time, there’s a fall off Bitcoin is the fastest thing in history to reach a trillion dollars in market cap, and only a handful of things I’ve ever reached a trillion dollars in market cap.

 

And I think that trillion dollars, by the way, presents a phenomenal amount of stability to these organizations. So it’s almost like a positive feedback loop. Sometimes we talk about it that. Some people say Bitcoin is a speculative asset. Yeah, it is. It is. But almost everything is a speculative asset to some degree or another gold is primarily a speculative asset.

 

As an example, it has certain utility if we talked about its industrial usage or its uses in jewelry it would have a certain value that might be a couple of hundred dollars per ounce. Most of its value is its monetary value, which is purely speculative.

 

So a lot of goldbugs will say, there’s no intrinsic value in Bitcoin say and that’s one of those murky sort of things, but okay. Let’s say I agree with that argument. I would say most of gold is speculative. There’s only a tiny amount that is intrinsic value.

 

So the question is, as you pose at the beginning here, lane is, what do you do if you’re a company like these guys sitting  on hard cash, what do you do with it? It really presents a problem in today’s world. It’s one thing, even in the world where inflation, if you believe the fed and inflation is two or two and a half percent, even then you have something to think about is sitting on cash, a good deal, especially when treasuries are well below the rate of inflation.

 

Typically that’s been flipped, right? Typically you’ve had the ability with treasuries to get a fair value on it, and you could keep pace with inflation, but there are a lot of people now that say basically the bond market is dead. That’s a hundred trillion dollar market. And that money has to go somewhere, where’s it going to go?

 

I personally, I think it’s going to go to crypto currency. I think it will go into,  real estate as the primary two things, because I don’t think anything else we can really rely on. Yeah. And I think like I’m just playing devil’s advocate here, Bob I’m aligned with you on the book of those things.

 

But I think from the standpoint of just seeing dollar the dollar as a sinking ship, and that was the theme of our part one, right? Question the dollar. We don’t know what this other stuff is going to do. We don’t know, but we do know that dollar thing is sinking. And if you’re on a sinking raft, like you’re on a sinking boat, you might jump on a different boat that at least appears to be floating right now. Take your chance on that one. This one’s going down, maybe that’s a good analogy. And I think you made me think about like a way of thinking about your portfolio.

 

Like how, if you’re you have a real estate allocation, your portfolio, one way to look at it is just geographic. Like I personally like Arizona, Texas, Alabama, Florida, right? Like I just rattled off four or five States. Yep. I’m going to bet on those five States over the other 45, any day of the week, it’s like here, right?

 

You’re betting on real estate and crypto out in all these other asset classes. And, it’s just hitting the right side of the couch here and you’re probably gonna hit it and do well by having that strategy. Yup. Yup. I think that’s well said lane. Okay. Let’s personalize things a little bit too.

 

So we talked a little bit about the corporate side. I want to share a thought with you. It’s a concept I’m promoting within the cryptocurrency community. I call it the sat cap and it stands for Satoshis per capita. And the concept is this it’s summarized on this slide for those of you watching. But basically there are about 7.8 7.9 billion people in the world.

 

There are just over 18.6 billion Bitcoin in the world. If you remember, we mentioned earlier, Bitcoin is the visible by a hundred to the a hundred million place. And the smallest divisible unit of a Bitcoin one, 100000000th of a Bitcoin has called us to Toshi. So if you take that all the Bitcoins supply and you divide it amongst all the world’s population, you end up with this number 230, 6,000 Satoshis.

 

So that number  is what I call one sad cap, and it can be purchased for about $128.  So it means that you can purchase today, even if this whole concept of Bitcoin and cryptocurrency is new to you. And you look at everything I’ve said thus far, and maybe even what I will say with some degree of skepticism what I would encourage everybody to do is at least go buy this much Bitcoin.

 

Okay. This is your share, scrape together $128 and go buy 236,000 Satoshis okay. And at least now you’ve secured your place in this sphere.  Because one of the things that I’m going to tell you is I think that over the course of the next decade or so, there is a fair chance that the global reserve currency will become Bitcoin, not the U S dollar or at least they will co-exist.

 

And so if that happens and you say all the things in the world, all the real estate, all the equities all the cars, all the, everything is going to be valued in Bitcoin. It means that the value of the world there’s this, there’s a symbol, it’s says infinity over 21 million. And that’s common in the Bitcoin world where we say,  

 

everything maybe will ultimately be valued in Bitcoin. Right now there’s about 300 and $50 trillion in global assets. At least it’s the number  I’ve seen in somewhat believe if you do that, what you find out is that  each Bitcoin should be worth about $17 million. So I know that sounds like a completely wild ass number, but that’s what happens if Bitcoin becomes.

 

The global reserve currency, and we value things primarily through the optics of Bitcoin. And now  that might sound a little crazy. This Bob guys out there, but remember it was as recently as 1971, we valued everything in the world around gold. So the dollar, while it was the global reserve currency was still pegged gold.

 

And it came back to, Hey,  all the world’s wealth was ultimately the nominated in grams of gold. I’m not saying the U S dollar will go away, but what I’m saying is I believe there will be some sort of monetary system in the future where Bitcoin provides what I call the base layer of money, the ultimate settlement layer of money, and it’s all valued.

 

So if you’ve secured. Your piece of the world pie you, aren’t going to be left behind, right? So  if I’m wrong completely, you’re out 128 bucks. Hopefully everybody listening  would be able to survive that financial blow if that were to happen. But I think I know your theme often in what you talk with is  your passive cash flows and things like that lane.

 

And  I follow the same philosophical approach, but what’s also nice is when you have an investment that is so asymmetrical. So if the upside is growth from 54,000 to 17 million, if that’s your upside, but your downside is this, it 54,000 to zero that in the odds of zero of this thing, going to zero 

 

are almost infant testable. There’s never been a case in history where something reached a trillion dollars in market cap and then failed. It’s never happened if you don’t mind, if you could define like asymmetric risks because I find that a lot of, new investors, which typically are podcasts listeners they’re just skimming the surface a lot of times getting started.

 

And I do free investor calls for folks who sign up for the investor club. And I don’t know, I’ll get wound up a little bit and start naming these things off. And then I noticed that they just shake their head knocked. Yes. But they don’t know what I’m talking about. I think this is a good point for just their education.

 

Sure. So the asymmetric risk, it means that your risk of being successful. Is wildly greater than your risk of being unsuccessful. Now it could be the other way, by the way, I’m looking at this as a positive asymmetrical risk. So we’re saying, Hey, this thing has the possibility of 

 

somewhere on the order of a 350 X rate of return that’s the upside and the downside is a possibility of zero but very little downside opportunity. So the ability to scale up and the likelihood of scaling up on an order of magnitude. Is quite reasonable. And the likelihood of falling back down is very low.

 

We’ve actually seen. Just in the course, since we recorded a phase one and phase two of this podcast, we’ve seen Bitcoin soften a little bit, but it went down to 48,000 and it bounced back up to 54. It has some massive support levels at some pretty high numbers. No. So hopefully that helps.

 

Again, it talking a little bit more about money. We talked about freedom  lane led in on that, talked about freedom. And I like to look at, what happens with the poor and these big monetary systems? When you look at macroeconomic stuff and what you’ll see right now are some people like Janet Yellen, for instance, who’s the U S treasury secretary spouting frequently about doing things in a way to help the poor and lift people out of poverty and fight environmental issues.

 

And I’m going to call bullshit on that people in these political circles have learned the right words to say, but their actions don’t support the words. And this is a classic example because  there’s an economic principle. It’s called the Kantian effect. And I believe it is in hyper mode right now.

 

And this chart summarizes what happens. So let’s just look at high net worth people and low net worth people, as groups, high net worth people keep a very small amount of their holdings in cash. And you’ll see a lot in stock, a lot in real estate, some in collectibles, some in privately owned entities.

 

The poor on the other hand, keep the vast majority of their wealth in cash in savings account, or literally in cash, maybe up to 90% somewhere in the low 90%, they have a very small amount of stocks and bonds often through an employer 401k plan or something like that. Very few owned real estate, very few heaven collectibles, almost none have privately held businesses.

 

So what happens is when inflationary pressures come into the market and remember the fed by definition says, we are going to manage to 2%, even though it’s really 10, but even  they admit they are going to manage to an economy that has inflation. It does very little to hurt the rich. Why? Because the rich have very little in cash and they have things like real estate and stocks and in the future, a lot of cryptocurrency that are insulated and maybe even benefit from that inflation, but the poor are on the exact opposite end of the spectrum.

 

So what I’m saying is the politicians like to talk about taxation and using taxation to try to redistribute wealth and attack the wealthy. But the reality is if they really cared about that, they would completely change their monetary policy and help the poor people have a mechanism where they could have cash, they could save cash and eventually use those savings to get into better performing assets.

 

This is again, an important part of, why Bitcoin and the inflation policy that in an ax is very good for the world. And  this is not just the U S on a global basis the way things work now one other monetary thing that  I’ll walk you through.

 

Cause I talked about global reserve currency, and so the us has been the global reserve currency for something on the order of 80 years. Maybe a hundred depends.  It’s not like a declared thing. It happens. And the U S took over from the British pound somewhere between the end of world war one and the end of world war II.

 

So we’ve held this position for a long time. Now, history has shown that on 80 to 150 year cycles the global reserve currency has gotten replaced on this cycle, the Portuguese than the Spanish, then the Dutch, then the French, then the British and now us, right? So we’ve been on this for several hundred years.

 

We’ve gone through these patterns and on the surface you might say that’s a very powerful position and the us. Should fight to maintain it because as some of you may know, we use it somewhat as a weapon. We are able to put sanctions on countries like Iran and North Korea, and we use locking out the money supply.

 

And  that may be a good thing. That is a purpose of it, but here’s the problem. And it’s a sob effect of something called the Triffin dilemma. But to summarize the Triffin dilemma, it says for a country to be the global reserve currency, it must be a net importer of goods and a net exporter of money.

 

In other words,  if you want to be the global reserve currency or the world even declares you of the global reserve currency, the only way it will work is if there’s a whole bunch more money outside of your country than inside your country. And in the early days of this, let’s say in the post world war II period, the us was a massive percentage of the global economy.

 

And so it didn’t take as many dollars to be outside the us as inside the U S for this to work. And also the world still needed our manufacturing and production capability because a lot of it, especially in Western Europe and in Asia was destroyed, they didn’t have factories, but as they rebuilt and they brought those factories back up they now had the capacity to start building goods for the world.

 

And so I’m going to give you an example of the effects. Of this that you won’t hear from any politician. So then we’ll give an interesting example. I call it the potato example. Okay. So imagine we’re going to start all over  that there is no global reserve currency at a given point in time.

 

So we’re going level set. Okay. And the us is producing its goods and South America and Africa. And after they’re all producing their goods and their own little economies, and we decide we’re going to open the world up to commerce, but we need one of the currencies to be the global reserve currency.

 

So by decree that it’s decided that the us will be that currency. Okay. Now let’s say then that in Peru, There’s a decision by the government that they want to build a massive bridge and it’s a $5 billion project. Okay. And that they searched the world for the best team in the world to build this bridge.

 

And they find a team in Germany. That’s the best to do that. Now the Peruvians don’t have any euros and the Germans don’t want Peruvian pesos. So the decision logically would be well, let’s use us dollars, but it turns out the Peruvians don’t have any us dollars. So in order to build the bridge, they’re going to have to go get $5 billion.

 

And the only way for them to get dollars is of course, to sell something to the U S we’re $5 billion. So the Peruvians look at their economy and say what do we have? We have a bunch of potatoes. We’re really good at growing potatoes. So the Peruvian send one of their sales people over to the U S and they go to Walmart and they go to all the big grocery stores and they say, Hey, we have these beautiful potatoes.

 

We’d love you to buy potatoes from Peru. And all of the U S suppliers say why would I buy potatoes from you? I can buy perfectly good potatoes from Idaho. And they say they go back to the government, say nobody wants to buy our potatoes. And they say there must be some price at which they would buy potatoes.

 

So the salesman flies back over to the U S and he goes back and he says what price would it take for you to buy potatoes? And they go if you’re serious, it would take you under cutting the Idaho potatoes by 15% for us to buy the potatoes. So they go back and they sit in the proving us as well.

 

Okay. We’ll subsidize you the Peruvian potato farmers. So we can get these us dollars in our treasury to pay for the bridge. And so the proven guy calls up the Walmart buyer and the, Hy-Vee buyer and the Ralph Spire and wherever your grocery stores are and says, we’re in.

 

So suddenly they start buying a bunch of potatoes from Peru. Now there’s an outcry, of course, from the Idaho potato farmers who suddenly have seen their orders slashed. And they erupt saying my God the Peruvians, the government is subsidizing all the purchases of these potatoes and we can’t compete.

 

So they go to their Congressman and their Senator and they say, my gosh, we have a problem. We have to protect the Idaho potato farmer. Now, then the whole discussion of what we’ll do. We need a tariff  on Peruvian potatoes to protect the Idaho potato farmers. So I tell you this whole story, because in the end, this is what really happens.

 

We can boil it down. But when we talk about things like manufacturing jobs, being exported all over the world, a lot of it, and we talk about evil practices by the Chinese or the Vietnamese or these other countries about undercutting us production costs. We have to remember that a large part of this problem.

 

It’s self-imposed we want to be the global reserve currency, and this is a side effect of that. Now, no politician wants to talk about that, but the reality is we can’t move massive amounts of manufacturing, jobs, and production back to the U S and still be the global reserve currency. So interestingly, the path to refreshing and giving American manufacturing or any countries manufacturing, a level playing field upon which to participate is by having a currency, which is not managed by a government.

 

If you have  a currency not managed by a government, it doesn’t have the Triffin dilemma tied to it. It’s going to take a while I think for people to understand this. And hopefully I’ve explained this to you in a way that at least sinks in a little bit and maybe lane, you can help me a little bit here too.

 

And, if I’ve skipped over something or there’s a gap, let me know. But I find this to be a very important point that maybe being the global reserve currency is actually not a good thing for the U S in the long run. Why does the United States want to be the global reserve currency?

 

I think because of power because they can sit in the middle and they can dictate whether or not money can move. Cause it still has to clear through something  that the fed manages and it allows them to do things like freeze, the bank accounts of the Iranians and the Syrians and the North Koreans and the Venezuelans.

 

So it’s been used as a political weapon. And it’s a financial weapon as well. The strength of the dollar is in part because of its position as the global reserve currency, it creates demand for the dollar. And for instance, illustrated, in this example, it allows us to buy in this example, potatoes 15% cheaper than they should be.

 

So that’s a benefit to the U S as a consumer, but there’s always a price to pay. And the price to pay in this case is, yeah, you can use the dollars. You already have more efficiently as a consumer. But you can only do so by ultimately creating an environment in which jobs are harder and harder to maintain in the U S but as I said no politician wants to blame the Triffin dilemma on why jobs are being extorted.

 

They want to blame it on the other administration. The Republicans want to play in the previous Democrat administration and the Democrats want to blame the previous Republicans. And it’s neither. And by the way, neither can solve it. That’s the other thing is that they all say they can solve the problem and they can’t.

 

And I think finding a group of people that can look at this eyes wide open is difficult. And luckily I think we’re in a position where Bitcoin may force it regardless. So surely is a dilemma, right? We’re on team USA. Most of us listening. Yeah, I think maybe I’m just summarizing the way I see it, but it seems a little unfair that tactics that would fall, Hey, that’s the flag.

 

We also limited in the morning right. At school. Yeah, it’s a, out of a team, two things here. Yeah. So Bitcoin is going to disrupt this thing. What would be the smart thing for the United States to do a position themselves with this corrupt structure happening?

 

The smart thing for the U S to do would be to start acquiring Bitcoin, to allow people to pay taxes in Bitcoin, to use some of the resources of the U S government to mine, Bitcoin and start building, the U S treasury is no different than the micro strategy story or the Tesla story. Start building a reserve in Bitcoin.

 

And I don’t know. I think they’ll do it. In fact, I’ve got a few things here to show you that makes me believe that they should dang it. But it’s like the right thing to do. Yeah. But I will, I’ll say this, I try not to be political and I’ll share with your listeners. I don’t align myself with the Democrats or the Republicans.

 

I’m definitely independent. And if you put a gun to my head and said, you have to pick some party to be probably be with the libertarians. But I think like I said, I think political system, we won’t go down this rat hole far. I think the political system is set up around these two to six year cycles of reelection, and it forces a series of lines to just prepare actuate people in that cycle.

 

And the monetary system  is a very key part of politics. And if, and when the U S loses control of it, it forces a whole different kind of politics because  like right now, I gave that example of, building a bridge while they’re in the us. We wanted to build a $5 billion bridge.

 

We would have to handle it differently. We would either have to increase taxes or we’d have to print more money. And because the politicians never want to raise taxes, they always choose printing money, and there’s a limit to how much taxes you can raise, right? So our GDP as a country, It’s $28 trillion.

 

So annually. That’s the most, you could raise taxes too, right? You could, most you could do is tax at a hundred percent of GDP and capture all of it of course, way before you got to that point, GDP would drop off the cliff because people would say why am I working? I’m being taxed at a hundred percent level.

 

It presents this dilemma. I’m where we keep trying to add things in. Like I said, I’m not being political here. I’m just being matter of fact, whether that’s to build new bridges or add social programs or add UBI or, whatever it is, the price that we’re paying for that is inflation because there is no mechanism.

 

I don’t care what anyways, there is no mechanism to tax people to pay for that stuff. There is zero capacity for that. It won’t work. The only way for them to get there is to print money. And that’s just, paying tomorrow a much deeper price than you would pay today for something, I don’t know.

 

It’s that high time preference thing. It’s a kind of lighten the mood. You don’t blame them, it’s everybody knows this dilemma. What’s going to happen at some point. You’re in the sunset portion of your career. You just let it go right.

 

As the kids say these days, just let it air it out. Yeah. That’s a millennial term for you. Yeah, it is true.  It’s funny. I have I’m very active in, for instance, the Twitter community and In fact,  my moniker is a boomer BTC. And I acknowledge I’m in the boomer generation and I sometimes face some hostility from millennials and gen Y and gen X who say, Hey, 

 

your generation is to blame for the mess that we’re in and all of this debt and all these social problems are your fault, and so I’ve born the brunt of a lot of that venom, even though I believe I’m a voice trying to fight all that stuff, but still they just, boom, attack me out of my gray hair but I get it, but I get the anger.

 

I understand the anger because I have grandkids and I have kids and I worry about it. It’s why I’m so passionate. So I come on shows like this. I like to talk about this stuff because. Something has to change the way to make the world better, has to come from this grassroots system. And I think it’s the only way 

 

there’s not going to be a willing relinquishment of power from the existing base, whether that’s political or economic, it’s going to have to come from a movement to rest control. And I will say it’s a good segue to this slide. I have up that the fighting of this from. What I’ll call the establishment is starting to get very serious.

 

You can almost see and hear the fear and trepidation and the voices of some of these people. And we’re starting to hear, Hey, Bitcoin, it’s for criminals. Oh, it’s too volatile. Oh, it’s a bubble. Oh, it’s going to ruin the environment. They have all these mantras about why it’s bad. And this is all new and, but  they’re the classic sort of things.

 

By the way, many of them are very similar to the internet itself. If you go back those of you old enough to go back to the, say, the early and mid nineties. The same things were said about the internet, Oh, it’s too risky. Oh, it’s all criminals and pornographers. Oh, it’s gonna damage the youth.

 

And people will never stop, and what we need is more newspapers and we need better journalism and we need, there were mantras like that. And they went well into the early two thousands where people kept that up. As I mentioned, I’m often the brunt of it.

 

Even personally, for those of you who can see this, but I’ll read for the audio people. I got a tweet about a month ago. Directed at me because of my participation in Bitcoin mining. It said we need all the renewal bull energy. We can get. You’re taking these resources away from serving legitimate needs, without creating anything useful in return.

 

You’re part of the problem. So stop congratulating yourself. I’ve got to say that as Bob congratulations, man, you’ve made it. I was so happy when somebody like left A troll, posts on my YouTube channel, brought tears to my eyes because it seems like he made it right. But he actually cares the troll.

 

You. Yeah. Yeah. So they’re listening. Somebody’s listening. Somebody cares. I’m a threat now, my message is the fret and that’s wonderful. That’s why I’m proud to share it with you today. Hey, I’m okay with this and  I’m gonna play here just I did last time too.

 

 I’ll share a Janet Yellen. Who’s the us treasury secretary. From two months ago, February 23rd of 2021. I’ll share a little video clip of her.

 

I don’t think that Bitcoin, I said this before is widely used as a transaction mechanism, to the extent that you used. I fear it’s often for elicit. Finance. It’s an extremely inefficient way of conducting transactions and the amount of energy that’s consumed in processing. Those transactions is staggering.

 

That was on a CNBC interview and the interest of time, I’ve got a similar one from Christine Lagarde. Who’s the president of the European central bank. And  she calls Bitcoin funny business, a lot of funny business being conducted on Bitcoin, but I actually have some stats that I think are very interesting and that’s that because the Bitcoin blockchain is public and there’s a lot of analysis that can be done on that blockchain.

 

There’s an organization that tries to trace. Illegal or suspicious activity on Bitcoin. And it looks like about one to 2% of the money moved on. Bitcoin is in that category. It’s going to funky places. The current monetary system, though, it’s probably more like five to 8% is of this. And, to support that what I find very interesting is we’ll start with Christine, the guard, Christine, the guard used to be the head of the IMF international monetary fund. And at the same time she’s talking about Bitcoin being part of the funny business.

 

She’s actually a convicted criminal who was convicted of a massive illegal government payout through the IMF. And Janet Yellen who defends the banking system is remiss in overlooking  that last year there were $15 billion worth of fines to us banks for money laundering related offenses.

 

So  this is the point being that this is the pot trying to call the kettle black.  It’s a ridiculous inference for them to go after it. But as I said, I think there’s a lot of fear out there and these attacks are gonna keep on.   So let’s talk about one of the things that people say in fact, even Janet Yellen refer to it as well,  Bitcoin it’s not used in transactions today. And to keep this short, what I’ll say is Bitcoin was never designed to be what’s called a transactional part of the economy.

 

It’s it is a little more akin to the role that gold played when gold was in the gold standard, where it’s a store of value. If you want to infrequently move relatively large amounts of money around it’s phenomenally efficient and secure. If you want to buy a a cup of coffee or a happy meal from McDonald’s or something like that in its native form, it’s not the most efficient way.

 

But what it does have is it has this ability to sit at what’s called the base layer of money and work with large payment processors or organizations and move money. So what’s happened now is we have PayPal, Apple pay, MasterCard square American express MasterCard. They all now support crypto currency.

 

So think of it as the difference between, you can move money from inside the bank to cash. And so the cash kind of transactions are occurring at in Bitcoin, where we would call off chain, meaning they’re not tracked by the network they’re tracked inside MasterCard or visa or PayPal.

 

And then. At the end of the day, those organizations settle up with the main Bitcoin network, like a block fire or Jim or NY or point base. Those would all be exactly that they’re exactly the same. They’re sitting up a layer over the base layer. And so it, as you said, yeah, if you’re on Coinbase and you buy Bitcoin you’re buying it from Coinbase.

 

If you sell it, you’re selling it most likely to somebody else within Coinbase. And then at the end of the day, or on regular intervals, Coinbase will settle up back with the Bitcoin network. We’re seeing acceptance though. We talked about Tesla before, but home Depot and Starbucks has mechanisms and whole foods and Twitch, and you can buy Mavericks tickets, I think you can buy the Miami Marlins season tickets this way now.

 

 There is a slow momentum. I don’t think it’s fundamental to Bitcoin’s success, but it’s certainly I think they’re just doing it to be cool and hip, but that’s the. Yeah. It’s the early adopters. Yeah, I think so. I think there’s a certain panache to it because certainly the, these organizations, when they announced, they now accept Bitcoin, get that on the other hand, just yesterday, the CEO of PayPal said when they opened this up it was about four or five months ago.

 

Now he said it’s orders of magnitude more successful than they thought it would be. I just don’t know how successful they thought it would be. So that’s, maybe they didn’t think it was going to be successful at all. So maybe that’s another thing statement or maybe they thought it was going to be semi-successful and it’s wildly successful.

 

I really don’t know.  But regardless it’s here and it’s being used and it’s being accepted. We’re also seeing the more prevalent use of Bitcoin ATM’s. And a lot of the people listening might find keep your eyes open as you’re walking around, you go into a convenience or a shopping mall or someplace where ATM’s are.

 

You might see a box there that’s a Bitcoin ATM, not a traditional ATM. And what that allows you to do is it’s a two way transaction, mostly used for deposits. So you can basically take cash, go to the machine, the posit it and buy Bitcoin on the spot that you could cash it out. But it was interesting. My wife found one a couple of weeks ago, she went into some convenience store somewhere and said something.

 

So I saw it and it had an out of order sticker on it. And she said what’s wrong with your Bitcoin ATM? Are they going to get it fixed? And she said it’s actually not out of order. It’s just full of cash. Won’t accept anymore. I thought, wow. That was a very revealing state that’s here in South Florida, that’s happening.

 

So anyway, let’s th there are different ones to be involved in the cryptocurrency world. One way is mining. Another way is there’s a lot of opportunity in private placements right now. There are, of course, the alt coins. There are some companies that are directly involved in the industry, and then there are some funds, so we’ll dig a little deeper into each of those I’m going to come back to this one.

 

So first is the alt coins. There are something like 25,000 alt coins now picking the right ones is very difficult and I don’t have enough time in the day to examine all of them, as you can tell from what I’m talking about here to them, very. Bitcoin passionate, but I do have some money in a few other places.

 

And I’ll share that with everybody here today. But I do want to say that things like doge coin have gotten a lot of attraction lately.  I’d be surprised if some of the people involved haven’t at least heard of it if not even tried it, but, unfortunately I think those are the type of coins that are very dangerous because in essence, they don’t do anything.

 

They have no intrinsic value and they’re very subject to the boom and the boss. Yeah. And I think that’s important for people to know what that thing is. I’ve been calling it douche coy because that’s exactly like Bob said, it’s useless. It has really bad technology, essentially bad a perhaps management, but it’s a,  penny stock, a micro penny stock.

 

And it’s been doing pretty damn well, but that’s just indicative of the overall crypto. Right market. It’s like buying what’s a crappy retailer, like a Kmart or something like that. Yeah. Yeah. That’s a great analogy. Yeah. You could buy Kmart, stop game stop. But some take some crappy like company and it’s like actually doing really well, it’s a speech of garbage.

 

It’s like bowls out of its competitors. Yeah. And, you can sustain it for a while. It can rise up and, but it’s that greater fool philosophy of investing, hopefully you’re not the last one in, because the last one in is there, there is going to be somebody that buys at the top before it crashes this chart.

 

For those of you can see it plots the top 2,412 coins over the last dozen years. And you can see that beating Bitcoin is pretty hard to do. And why am I so strongly in Bitcoin? Because of this chart that at moments in time, there are going to be plenty at any moment in time, there’ll be examples of a handful of things that are outperforming it, but it has absolutely slayed the overall market.

 

 I think the same way, like in this world of digital companies you take your grub hub. I don’t know all the food delivery people or I know Uber and Lyft, right? Yeah. There’s always going to be one or two MI competitors or back in the old days. People didn’t research stuff.

 

There were so many different grocery store chains, different shopping mall , or, those companies that you go to, there were so many choices and many people could compete, but in this world where education was the best product, the best provider is so prevalent. You have a much more educated at SUMAR, normally there’s only one or two eats the cake, right?

 

And one could say that this is not good for having raising children, because if they’re not the best, they’re going to be the, just another loser out there where it used to be back where everybody could be successful. But it’s, I kinda got off my point there, but if you’re taking this with cryptos, that would mean that my thesis would be like only the top few are gonna probably be surviving, eating the cake.

 

All these other outgoings are going to go away. I don’t know what you think about that. Yeah. Yeah. I agree with you. And I think if you look at the internet which is, quasi analogous if you won back the clock 25 years, we all knew that there were going to be some form of E retail that would take off at that point in time, it would have been hard to identify to Amazon as the King.

 

But at some point, I don’t know when the exact year was, it may have been as early as 2001, 2002, it became pretty clear that they were going to be the King and they have continued to eat. And other people may have come out with other platforms that. For whatever reason, at least some group of people believe they were better technology, better user interface, better, this better that, but Amazon had too much momentum.

 

It had, we call it the network effect. The network effect was too strong of Amazon and all other solutions, even superior solutions. In theory, couldn’t overcome the advantage and Bitcoin’s at that point too, maybe you could say the same about Facebook. You could probably say the same about Google.

 

You could say the same about Apple. That they’ve all reached this point where, there’ll be other things, like Facebook’s success is massive and little things like, Instagram and Tik TOK and other social media platforms came out.  And same with Google.

 

But there’s other search engines, but there’s no doubt who’s a King is. And so when you come into this space, realize that there is a King and that there is only one project that is money that’s what Bitcoin’s job is to be a new form of money. Now, there are other projects. I’ll give you a couple that I like, because they’re not trying to be Bitcoin.

 

They have their own niche, they have their own thing. But I would also say that they’ll never be as big as Bitcoin. None of these other ideas can scale. There may be what’s a good example. While Amazon may exist, there may be somebody that specifically sells shoes or watches, or there was only going to be one line, right?

 

These other things we’ll get some scraps like the hiatus. Yeah, like we call this like the land grab  in modern day business. There’s always a land grab even the first and you can get out there and grab your land. You’re going to be the lion. And I think this is a great way to understand we work, right?

 

We work understood that they need to come on by clients. That’s essentially what they did. And they part it with stupid money, but eventually they realized that people actually wouldn’t jump on board on the scene unless they were spending a crap ton of money on advertising, which is why the thing ran into issues.

 

But if you out there have an idea, just power it with a lot of advertising and marketing. And maybe you’ll be the lion. Yeah. Yeah. And there’s nothing wrong with being, a scrappy or there’s some pretty big scraps out there. I’ll segue here, a theory com, which is by far the second largest cryptocurrency and has about a $250 billion market cap.

 

So it’s, a reasonable I have been a supporter of a theory from since 2017. I have a company that is involved in a theory of mining, but I will say that part of the Ethereum crowd, I think, is getting a little overcooked right now and starting to think that they have some chance of usurping Bitcoin.

 

And I think that’s actually dangerous for them  that. They need to keep their vision and their focus on the things that they do, which is support, decentralized, finance, support, tokenization of other assets. They are also known as the world computer. So you can tap into it if you want to do mathematical modeling or rendering or things like that.

 

 There’s a very powerful network there. So I do support them. I say it with an Astros right now that I’m getting a little bit of reservations about some of the direction of that one,  but I do own it. It’s my second biggest holding one that I really like though. That’s very exciting. It’s called file coin.

 

And again, I’m not here to be political, but I think hopefully everybody’s aware that there’s a massive cancel culture going on in the world today. And I’ll be honest. I even worry about myself being censored. I say some things that I’ve been critical of our treasury secretary here today. And so I worry about myself being canceled at some point.

 

One way to fight that is to move your storage. So if you have a blog, if you have a video stream, just like lane housing in his website, one way to protect yourself against getting canceled is to not use one of the big data center companies. One of the cloud providers, Amazon Google, Microsoft, they control 80% of all the data in the world is held by those companies file coin is a decentralized storage system that can’t be stopped or turned off.

 

So essentially it leverages hard disc space scattered all over the world. I have a laptop I’m using today to be with you and lane may have his desktop and we have some unused disc space. We contribute that to this file coin network, and it stores our web files or photos, our blog files, whatever in this distributed manner.

 

And it’s only the private key that we individually possess that can modify any of those files and delete or add to any of the files in our structure. I really liked that one. I think it’s a very important part of the coming world. There’s a complimentary coin called handshake. Handshake is the concept of unstoppable domains.

 

In brief terms for listeners, if you have a web addressed, let’s say yahoo.com.br for Brazil. Okay. yahoo.com. That BR what happens is when that, when you plug that into a browser, The browser looks at that address in reverse, it will say, it’ll look to the.br first it’ll look at basically a domain for Brazil, and then it will find the dot comes under that.

 

And then it will find Yahoo and then it will serve specific stories. So it goes in that tree. So that, that BR is administered through a group called ICANN and is essentially a group con controlled in a manner that an individual government in the, in that case, Brazil could say, I don’t like what’s going on@yahoo.com under my domain.

 

I’m not gonna let anybody go to that website anymore. Or somebody types that in, it’s not going to go to the files that Yahoo wants. It’s going to go to my government propaganda site. And that, by the way happens in several countries around the world, you can guess places like China and North Korea don’t use that, or they use that  as a weapon.

 

So what it also means is that if you had a website and even if you had the file scattered about, if you don’t have the domain also secured in the same way you, you are subject to being censored. So anyway, a combination of handshake and file coin allows the creation of websites that can not be stopped.

 

Nobody can stop the address and nobody can stop the file serving. So I think it’s an important part of, creating a culture  in the future world that gives people that have a message and have a voice a way of getting that out there. And then the final one I’ll talk about is coin a chain link.

 

So chain link is it’s a, it fits well with other coins, like Ethereum does in that it provides data feeds into what are called smart contracts. So the, one of the other advantages of Ethereum, I forgot to mention is the concept of a smart contract, very powerful mechanism, and in the real estate world, I think we’ll see a lot of changes in this way.

 

So things like title transfer can happen. The blockchain and chain link can be part of the data set that can provide those feeds. So anyway, those are for, if you decide you want to stray from Bitcoin, which I’m not really recommending that, but if you feel compelled to do that, be careful where you stray.

 

There’s a lot of landmines out there. These are four I’ve done research on. I have some money in all four of them. But the vast majority of money is still that I hold is in Bitcoin. And that would be my number one recommendation. Yeah. I think the investment thesis with those folks is they’re like Bitcoin is a household name.

 

Even like the 99% are talking about these days. They’re thinking it’s of the overheated and they think they’re going to get a little bit more bang for their buck with something less mainstream, whether it’s right or wrong. I think that’s what is people’s heads. Yeah. I know that we’re probably running close to where we probably got to wrap up lane.

 

So I just want to say couple other things here real quickly. So one is. There are ways of investing. If you’re not comfortable directly involved in cryptocurrency, there are ways to get it. So if most people have some exposure mechanism to invest in equities gray scale, QB, TC micro strategy marathon and riot.

 

Those are basically stock tickers, that you can go purchase and you’ll find that the performance of that stock is highly correlated to what goes on in Bitcoin. So it’s a nice way of getting involved.  Coinbase has already IPO mode. There are some others that I think will IPO in the next year, crack and block fi bit main bit fury and lightening labs.

 

All those, I think there’s probably something coming. But. Here’s some things to avoid, and I’m almost more important than what you do is what, you need the landmines. If you’re going to invest outside of Bitcoin or even in Bitcoin, hopefully we’ve given you enough education today that you have a basic understanding, but, make sure you understand it.

 

A lot of these coins don’t really solve a problem. Go read about it. And if the problem they claim that they’re solving, doesn’t seem like something’s, we’ll call it a hair on fire problem. Then it doesn’t matter, right?  Don’t get involved. There are three projects that I really don’t like, I don’t like the people behind them and I don’t like the economics of how they’re run ripple.

 

And then two Bitcoin derivatives, Bitcoin cash. And Bitcoin has fee. If you do decide to get into Bitcoin, buy the real Bitcoin,  with the symbol BTC don’t buy BCH or BSV BTC is the one you need to buy. These are I’ll essentially call them imposters be careful with those. So I want to go back here to this slide and maybe use this as a closing one.

 

I think when you step back and you look at everything we’ve talked about think about Bitcoin as having one of seven eventualities. Okay. The first one is. That let’s say you hate everything. I’ve said you believe it’s a complete basket case. And it’s going to implode my advice to you would be to take something on the order of one to 2% of your net worth and still put it into Bitcoin or a Bitcoin related asset, because  at a minimum, the sat cap I talked about before, but I think most of your listeners are a little more savvy and say, put one to 2% in if you hate everything I’ve said.

 

And if I’m right and you’re wrong, you’re going to be in a phenomenally good position 10 years from now. And if you’re right and I’m wrong, this shouldn’t hurt very bad badly. Okay. So second position is, let’s say it just is what it is. It’s reached a stability point. It’s not going to do much better call it the status quo position.

 

I believe it’s proven itself at the level that I would put at least 5% of my money into that level. Let’s say it’s going to tick up from there in a scenario, number three, where it’s used on large scale international commerce, it’s maybe used in remittances moving money from, one country to another.

 

That means it’s still has upside and I’d look at 7%, again, in the interest of time, I won’t walk through all seven, but we’ll see that as you get to like position number six, it’s now taken over gold as the major store of value asset in the world. And completely display.

 

If so, I view it as something where you justify something about 25% of your  portfolio. And if you think where I do that, it’s on a March over the next decade or so to essentially becoming the world’s currency, then I’d look at something around 30% allocation. Now I shared with you I’m over twice, that number myself,  this is not advice.

 

This is the way I’m looking at the world but I think, look at where you are in this spectrum and really sit back and think about it. And I’m not saying  even if you’re a person in scenario number five, which is that it becomes  a currency for maybe some second and third world countries and plays a major role in the world.

 

And that would equate to a 20% allocation. I’m not saying do that tomorrow.  Go sell some properties or go sell some gold tomorrow to do it, but set yourself a plan over the next 12 months over the next 18 months. How do you March your way to this position and whatever position you get there, do it in a dollar cost, average manner where  you’re going to do, if the, if that’s the case, if you’re at zero today and you want to get to 20, do 1% over the next 20 months and you’ll hit some peaks.

 

You’ll hit some valleys, but you’ll get there in a very manageable way without. Taking too much risk. Plus if you decide that you’re either over allocating and under allocating, based on where you sit on this slider, it gives you that chance to do it. So if you become more pessimistic while you just stop early, and if you become more pessimistic while then you keep going.

 

Or missing number eight Dodge Clayton to the moon, 100%, there you go. Yeah. You gave away my secret lane. Yeah. That’s the way you’re going to get financial freedom. Perhaps. That’s a different strategy. Yeah. So I’ll relay my thoughts and you and I aren’t getting any financial advice here.

 

Just a couple of guys talking, right? You guys are gonna take this as financial advice. You guys are idiots, listen guys, a podcast, but the investment level, I liked this. I liked how you outlined it here. Different levels of your thesis that somebody has, for the most part, I guess what you’re generally saying is like one to 10% ish, but then how does that change say if so, what I’m telling my guys and my family office, Ohana group is like part of this, you might be a three, right?

 

Which puts you at 7% of your assets. But if you have a Lord net worth  under a million dollars net worth, maybe you should do less. And if you’re higher, two, $3 million or more, you’d have more play money, even if that money is not needed to put food on the table and I think you would go higher.

 

Then the lower net worth guys, because you have more discretionary money. Yeah. And your time preference too. I’m 56 are obviously much younger than me lane. We have a different time preference and although I still view myself as even though I’m 56 I still think I’m going to live 40 more years of an active life.

 

And so I’m still thinking long-term, even though I’m at that age and I’m willing to wait. But I think that is important. So I think that’s a very Sage thing that you’ve said though, that, depending on where you are on this, move that investment level up or down.

 

 And hopefully it will change over time. I’ll tell you this though. I shared with you that I’ve got about two thirds of my net worth. In currency? The reason I have about two thirds of my net worth in crypto currency is I was at about the 30% this time, last year. And that portion of my portfolio did so well.

 

It’s now two thirds. So I didn’t lose anything in the other side that I met, but I had this massive multiple on this side. And that’s the other thing that can be going on is this could radically change where you plan for five and now you’re at 12.

 

Now that would be up to you to decide at that point, if you want to downshift or not. But  I do want to close with you,  that fought of taking things off the table is a little different in this world. Okay. Because. The only way to do what you’ve said is to move money back into the Fiat’s system.

 

And the reason I didn’t rebalance my portfolio is that I do not want, this is my philosophy. When I move money over, especially to Bitcoin, I don’t move it back. I’ll leverage it, but I won’t we’ll move it back. I think where you’re a little bit different. Bob is you actually spend a lot more time on this than the average cat out there.

 

80% of my portfolio is multifamily apartments because that’s what I do. So don’t pay attention to me guys out there, right? Yeah, everybody’s a little bit different. And I think that’s another way to look at  these numbers, if you’re going to play around with this stuff, Now it comes down to your best alternative.

 

If you are out there and you’re unable to build relationships and don’t have the time to go into real estate deals by rentals, then this is easy stuff to get into, and it’s a loan. Some people can say that is a bad thing. I generally am in that campus.

 

Something is easy. I’m a little hesitant. And that’s my only pause with this stuff. I want to be in stuff where that’s a $20 million asset that not any Brony can get into, to me, I like that unfair advantage, but I don’t know. Just different ways, just bringing out some different points cause not, we’re not giving you financial advice, but we’re just linked some ideas for, everybody’s got to pick their own path.

 

Yep. Absolutely. And I do what you’ve said lane. And I think that the one thing I’ll say is that, I’ve been deep into this space for four years, and I came into it with a pretty, let’s say advanced technical knowledge and knowledge of economics as well. And just like you and your world have a level of expertise, I have a certain level of expertise here and I think to get to my level of knowledge and confidence, you have to go down that rabbit hole that deep 10,000 hours, perhaps.

 

Yeah. Yeah. It is. It is a 10,000 hours and it may not. Seem like it on the surface, but, I can say I have my 10,000 hours in here in cryptocurrency, both directly. And so she, when you add in some of the indirect technical knowledge in economics studying that I’ve done. But I think, much like guys like you with what you do and what I do, hopefully for the listeners,  if you don’t have a chance to do that deep dive Hopefully we can shortcut you to some of the highlights and get you where you can at least get a taste and get started.

 

And I think what you’ll find is , I’m sure this happens with your folks lane, with what you teach them. Once you get in and you start using the system and understanding thing, and you have a little skin in the game, your incentive to go further down into the rabbit hole and dig deeper and acquire knowledge will go up and it becomes a positive feedback loop of the more successful you are, the more you want to learn the more money you make.

 

And it just feeds all on itself. And I think that’s what you and I, both advocates of whether it’s real estate or Bitcoin, like you’ve outlaid it here where it’s simple and it gets started. And this is what drives me crazy with wall street products. Is they try and make it maybe using, yeah.

 

You’ve outlay the starting point here and for people to dive into that rabbit hole and the truth is you don’t need to put in   10,000 hours, but there’s a certain minimal level, maybe call it 500 hours, a thousand hours, maybe less. I don’t know, but just like with real estate, there’s a certain amount of hours. Just do like you guys like talk about syndication deals a lot, just do my syndication. E-course just stop listening to all these random podcasts out and just do the freaking syndication e-course and 10 hours. You guys will know a lot more than most of these passive investors investing in my own payment.

 

Something like that is the minimum effective dose to getting a lot more bang for your buck. And I think with Bitcoin is no different, correct. Correct. I a hundred percent agree. That was my sales pitch your podcast. And I hope your listeners pay attention to that too, because I think, the funny thing is, I talked to a lot of people and I don’t just talk about cryptocurrency.

 

I talk about this concept of, I call it seceding from the financial system. And honestly, I believe there’s only three ways to do it. And I believe it’s cryptocurrency. I believe it’s the kind of the real estate and business ownership principles that you’re preaching about. And I believe there’s a mechanism through whole life insurance contracts to manage your money.

 

I think everything else you’re not in control, you’re very exposed and. Since these things are there for you, they’re right in front of you take advantage of them and use them. And it doesn’t matter whether you’re a young guy, like 20 years old, just getting started, or you’re an older guy like me, it’s not too late to get into any of this stuff.

 

I honestly didn’t learn about a lot of this stuff until well into my forties. And thankfully I did, I’ve said all the would’ve should’ve could’ve if I had started 20 years earlier, but can’t change that. So just do the best you can, where you are. And then start. All right. Bob, any parting words you want to people want to learn more about just like your stuff.

 

You’re welcome. I am on Twitter boomer underscore BTC.  I’m on there daily. I do have a YouTube channel under the same moniker. There’s a little bit of content there. I’ve got several videos. I’ll be shooting soon there. And then you know what I do in the whole life insurance, infinite banking world, you can find on create tale one.com.

 

Anybody wants to talk about any of those things. I’m happy to help, and you can DM me. You can reach out to me. I do a pretty good job of responding to everybody that takes the time to talk to me. You’ve heard it there, guys, as better go check it out before it gets bulls from the face of the earth is as things like certain drugs, once it works, they make it illegal and they get rid of it.

 

Yeah. That’s a joke for the person.  We’re just having fun. Not too serious. All right guys. Hope you guys enjoyed it again. You can check out this and part1@simplepassivecashflow.com slash crypto. And we’ll see you guys next time. Thank you.