1 00:00:00,049 --> 00:00:03,292 So if Bitcoin was adopted as a currency and coffee was being 2 00:00:03,332 --> 00:00:06,735 sold and you have these massive swings in the price of Bitcoin, then 3 00:00:06,835 --> 00:00:10,418 one day your coffee is 0.001 sats and the next day it's like quadruple 4 00:00:10,458 --> 00:00:13,961 that. You're like, what? I've got to put a Ford or a future contract on my tomorrow 5 00:00:14,001 --> 00:00:17,464 coffee. And that's where it fails as a currency. If you have a choice between 6 00:00:17,744 --> 00:00:21,047 buying an egg that goes up in value over time or the choice is 7 00:00:21,087 --> 00:00:24,990 to buy a goose that lays bitcoins, which 8 00:00:25,050 --> 00:00:28,192 one would you prefer? The egg or the goose? History shows us 9 00:00:28,472 --> 00:00:31,915 that businesses are the best way to generate long-term wealth. I'm 10 00:00:31,955 --> 00:00:35,117 certainly more inclined to buy a property, way more inclined to buy 11 00:00:35,137 --> 00:00:38,640 a property than I am to ever, ever, ever buy bitcoin because it's very difficult 12 00:00:38,680 --> 00:00:42,122 to see how productive it's going to be in the future. It's not going to be productive at all. And I'm all for 13 00:00:42,182 --> 00:00:45,884 it. Wait. I'm Lloyd James Ross, seven-figure investor 14 00:00:45,944 --> 00:00:49,564 and entrepreneur, and I've helped thousands of business owners and professionals turn 15 00:00:49,604 --> 00:00:52,885 financial stress into success. If you're stuck in old money 16 00:00:52,945 --> 00:00:56,426 habits, overwhelmed by investing, or unsure where to start, this 17 00:00:56,586 --> 00:01:00,227 is for you. I'll give you the mindset and strategies to take control, 18 00:01:00,527 --> 00:01:03,728 grow your wealth, and achieve financial freedom. It's time to 19 00:01:03,788 --> 00:01:07,950 make your money work for you. Should you turn to Bitcoin during 20 00:01:08,170 --> 00:01:11,253 uncertainty? Well, that's exactly what people are doing because the price of Bitcoin is 21 00:01:11,273 --> 00:01:14,376 going through the roof. The price of Bitcoin, not the value of Bitcoin. The 22 00:01:14,456 --> 00:01:17,859 price of Bitcoin is going through the roof. Price is what you pay, 23 00:01:17,979 --> 00:01:21,262 value is what you get. And so someone's asked me, or many people 24 00:01:21,302 --> 00:01:24,745 asked me in the comments over the last few weeks, what about Bitcoin? Give 25 00:01:24,785 --> 00:01:28,108 us your take on Bitcoin. If you've been following me for long enough, I really don't have 26 00:01:28,188 --> 00:01:31,292 one because it's not an area that I I spend any 27 00:01:31,332 --> 00:01:34,957 money on, I don't spend much time on it but because I'm in the financial education space, 28 00:01:35,418 --> 00:01:38,683 I owe it to people that follow me to give a position on it because 29 00:01:38,703 --> 00:01:42,168 I think it's important because it is drawing a lot of people in for various 30 00:01:42,208 --> 00:01:45,332 reasons, good, bad or indifferent and I know a lot of people that are 31 00:01:45,533 --> 00:01:48,799 effectively Lost money doing it, lost fiat doing 32 00:01:48,859 --> 00:01:52,280 it. They're wanting to know is it stable, what they do. 33 00:01:52,781 --> 00:01:56,542 And so I just thought I'd give a bit of a pros and a cons approach to BTC. And 34 00:01:56,582 --> 00:02:00,184 before you tell me to go do my research, I've read the Bitcoin 35 00:02:00,204 --> 00:02:04,166 standard in summary, and it absolutely, 36 00:02:04,206 --> 00:02:07,547 it aligned with exactly what I already thought. So 37 00:02:08,268 --> 00:02:11,469 it hasn't changed my position. And so please don't 38 00:02:11,489 --> 00:02:14,711 tell me to go do my research. I've done enough that 39 00:02:14,751 --> 00:02:17,904 I know that, I didn't need to do too much, 40 00:02:17,924 --> 00:02:21,888 because I already know it's being priced off the dollar, the very thing it's going to replace. And 41 00:02:22,088 --> 00:02:25,151 it's a volatile asset, so it can't be used as a currency. But I 42 00:02:25,211 --> 00:02:28,555 also know that the reason why it's been so popular is because of the fall 43 00:02:28,595 --> 00:02:32,298 of fiat currency. And so there's a bit of a cross-pollination of stories happening. But 44 00:02:32,359 --> 00:02:35,902 also, it's very similar to gold, and gold is a non-productive asset 45 00:02:35,942 --> 00:02:38,984 as well. It doesn't produce anything more. So it could be a store of 46 00:02:39,044 --> 00:02:42,065 value. Without a doubt, it could be. It's proven to be a 47 00:02:42,105 --> 00:02:45,566 store of value. Certainly better than putting your money under the mattress. 48 00:02:46,186 --> 00:02:49,306 But again, you have to deal with the volatility. And there's some other cons that 49 00:02:49,326 --> 00:02:52,727 we'll talk about. Certainly some pros to it compared to fiat. But how 50 00:02:52,767 --> 00:02:56,148 it will change how I build wealth, it won't. It really won't. I 51 00:02:56,168 --> 00:02:59,288 mean, I find it fascinating and interesting, and somewhat amusing for 52 00:02:59,308 --> 00:03:02,569 that matter, that some of my friends who go on all about it, 53 00:03:02,649 --> 00:03:05,890 like, ah, Bitcoin, you've got to get into it. I ask them, how did you make your money? 54 00:03:07,060 --> 00:03:12,002 Oh, business? Right. So it's 55 00:03:12,022 --> 00:03:15,344 the same as how a lot of people got wealthy with property. They didn't buy a property and get wealthy. They 56 00:03:15,364 --> 00:03:18,545 tended to build a business around property and then buy the property with the cash 57 00:03:18,565 --> 00:03:21,727 they made from their business. So just be careful when people say Bitcoin. Ask 58 00:03:21,747 --> 00:03:25,388 them how they made their millions first, right? And 59 00:03:25,448 --> 00:03:28,851 so I don't look at it as a place to put my 60 00:03:29,371 --> 00:03:32,494 funds because I invest in businesses, be it 61 00:03:32,534 --> 00:03:36,557 private small businesses, build my own businesses, or I buy shares, or 62 00:03:36,577 --> 00:03:40,160 an index fund which is a group of businesses. Because history shows 63 00:03:40,280 --> 00:03:44,083 us that businesses are the best way to generate long-term 64 00:03:44,103 --> 00:03:47,125 wealth, certainly in the markets. In Australia, we tend to have a 65 00:03:47,165 --> 00:03:50,508 religion around property, also a fine asset at the right time, does 66 00:03:50,528 --> 00:03:54,090 the same thing, grows in value, produces income, it's a productive asset. So I'm 67 00:03:54,110 --> 00:03:58,713 certainly more inclined to buy a property, way more inclined 68 00:03:58,733 --> 00:04:01,815 to buy a property than I am to ever, ever, ever buy Bitcoin or 69 00:04:01,895 --> 00:04:05,077 gold for that matter. It's because it's very difficult to see 70 00:04:05,117 --> 00:04:08,219 how productive it's going to be in the future. It's not going to be productive at all. And to see where 71 00:04:08,239 --> 00:04:11,321 it's going to go. Like, yes, it's had a 44% rise, but where will it 72 00:04:11,341 --> 00:04:14,723 go in the future? And it seems to be boiling down 73 00:04:14,803 --> 00:04:18,325 to fiat currency inflation. 74 00:04:18,985 --> 00:04:22,087 So let's go through the pros and the cons. And we'll start with the 75 00:04:22,107 --> 00:04:25,253 pros. why people are drawn to it. So let's 76 00:04:25,273 --> 00:04:28,876 look at it to start with. Firstly, there's limited supply. 77 00:04:29,056 --> 00:04:32,699 So with fiat currency, you can print it into infinite, which is terrible. 78 00:04:33,239 --> 00:04:36,802 Fiat currencies are terrible. Fiat currencies are terrible. I 79 00:04:36,822 --> 00:04:40,024 repeat, they are terrible, especially when they're not attached to like 80 00:04:40,065 --> 00:04:43,427 a gold standard. They're not attached to anything. You can print them, infinitesimally. It's 81 00:04:43,527 --> 00:04:47,330 not good. So I'm not a fan of fiat currency. I 82 00:04:47,370 --> 00:04:50,653 don't believe in fiat either. I hate it. I hate all 83 00:04:50,713 --> 00:04:53,834 currencies, seemingly. And so that's why I 84 00:04:53,875 --> 00:04:57,296 don't invest in currency. I don't invest in fiat currency. 85 00:04:57,396 --> 00:05:00,537 I invest in businesses. And at the worst case, I'd 86 00:05:00,577 --> 00:05:04,899 buy real estate because they are productive assets. They 87 00:05:04,919 --> 00:05:08,340 produce income and grow in value. But what's the 88 00:05:08,440 --> 00:05:11,670 pro with Bitcoin? Why are people drawn to Bitcoin? is 89 00:05:11,690 --> 00:05:14,873 a limited supply. If you have a limited supply, you 90 00:05:14,933 --> 00:05:18,476 can't just print it into oblivion, right? 91 00:05:18,716 --> 00:05:22,299 So there's 21 million Bitcoin caps, right? And 92 00:05:22,579 --> 00:05:26,502 this protects against things like inflation, right? So with inflation, the 93 00:05:26,542 --> 00:05:29,925 currency inflates or the price of things goes up, whereas with 94 00:05:30,005 --> 00:05:33,847 something like if If, and I don't mind if it is 95 00:05:33,887 --> 00:05:38,649 adopted, I care. I don't care if we have seashells, toilet paper, gold. 96 00:05:38,829 --> 00:05:41,870 I don't care if we use Bitcoin. I couldn't care less what the currency is. I 97 00:05:41,910 --> 00:05:45,131 don't care. What would be great about it if it was adopted as 98 00:05:45,171 --> 00:05:48,753 a currency is the fact that it doesn't inflate itself. In 99 00:05:48,833 --> 00:05:52,834 fact, it would cause deflation in prices because the economy 100 00:05:52,854 --> 00:05:56,076 would become more efficient, things would get cheaper, right? So it's the opposite of 101 00:05:56,136 --> 00:05:59,317 inflation effectively. It's a bit of deflation. Totally fine. And that 102 00:05:59,357 --> 00:06:03,119 happens because it in itself is capped. And 103 00:06:03,159 --> 00:06:06,401 so you've seen that happen in gold. Like in 1965, one ounce of 104 00:06:06,441 --> 00:06:09,623 gold was $20 an ounce in 1965. So what's that? 40, 60 years ago, 105 00:06:09,963 --> 00:06:21,072 $20 an ounce. Now it's $3,330 an ounce for gold. And 106 00:06:21,112 --> 00:06:24,574 so you see that in 60 years, gold hasn't 107 00:06:24,734 --> 00:06:28,336 done anything. It's the fiat currency it's measured against that 108 00:06:28,396 --> 00:06:33,018 has devalued. And people are betting their 109 00:06:33,058 --> 00:06:36,519 house, just about, on the devaluation of the currency. 110 00:06:36,960 --> 00:06:40,041 I think it's better to have a house than bet a house on something else, like a currency or 111 00:06:40,061 --> 00:06:43,282 gold, to fight inflation. I really do. But 112 00:06:43,362 --> 00:06:48,434 if you look at, since 1965, I did this thing the other day on my stories. Berkshire 113 00:06:48,454 --> 00:07:00,707 Hathaway A-class share in 1965 was $15. Gold was $20. Wind 114 00:07:00,727 --> 00:07:03,988 the clock forward to now, 60 years later, gold is $3,330 an 115 00:07:04,108 --> 00:07:07,289 ounce, and a Berkshire Hathaway A-class share is $717,000 per share. So what would 116 00:07:07,309 --> 00:07:20,772 you rather, $20 into $3,500 or $15 into $717,000? This 117 00:07:20,852 --> 00:07:24,255 is what I'm talking about. Businesses perform better. I know that the 118 00:07:24,695 --> 00:07:28,978 Berkshire Hathaway returns have been 5.5 million percent astronomical. 119 00:07:29,338 --> 00:07:33,361 But even the S&P 500 has produced 120 00:07:33,401 --> 00:07:36,823 far superior returns than gold. And so you can't 121 00:07:36,883 --> 00:07:41,067 just rely on the devaluing of a currency to produce Effective 122 00:07:41,127 --> 00:07:44,371 gains in the future because at some point like inflation if it really 123 00:07:44,431 --> 00:07:48,116 is two three four five percent It's just still not enough right so I think there's speculative 124 00:07:48,176 --> 00:07:51,581 moves in the space of crypto Well beyond 125 00:07:51,621 --> 00:07:55,025 inflation so you can't just rest your laurels on the fact that the currency going to do value so 126 00:07:55,486 --> 00:07:58,929 the first pro for Bitcoin would be its limited supply. 127 00:07:59,549 --> 00:08:02,830 So one Bitcoin is 100 million satoshis, a 128 00:08:03,050 --> 00:08:06,571 sat, a sat. So for example, 100 million sats. 129 00:08:06,971 --> 00:08:10,292 So if we go and take one Bitcoin and it was adopted as a currency, we 130 00:08:10,332 --> 00:08:13,653 have 100 million sats per Bitcoin. And if you're gonna go and buy a cup of coffee, if 131 00:08:13,693 --> 00:08:17,014 you looked at the fiat currency value of coffee today and the 132 00:08:17,074 --> 00:08:22,575 value of Bitcoin today, we've got a coffee at 0.001 sats. 133 00:08:22,915 --> 00:08:26,277 Now the challenge with that is, You only know 134 00:08:26,317 --> 00:08:29,579 the value of that coffee today because it's priced in fiat More on that later. 135 00:08:30,140 --> 00:08:34,223 So one limited supply two is decentralized supposedly 136 00:08:35,364 --> 00:08:39,027 Looks to me like the United States is trying to centralize it as much as they can But 137 00:08:39,167 --> 00:08:42,730 it's not controlled by any government or central bank, which is why it's attractive 138 00:08:42,810 --> 00:08:47,873 to certain countries like El Salvador where they've 139 00:08:47,893 --> 00:08:51,415 adopted that as their core currency because it is not controlled 140 00:08:51,435 --> 00:08:54,637 by any specific central bank and it can be adopted by countries all over the world. And a lot of 141 00:08:54,677 --> 00:08:58,399 people are finding it easier to deal in that particular thing than their current currency. 142 00:08:58,719 --> 00:09:02,881 If you look at something like Zimbabwe that's inflated their currency way, Bitcoin's 143 00:09:02,921 --> 00:09:06,244 a far better alternative than that, for sure. And I 144 00:09:06,284 --> 00:09:10,227 think it does work well as a currency in those circumstances. And 145 00:09:10,247 --> 00:09:13,670 by all accounts, too, I think it would work fine as a currency. 146 00:09:14,590 --> 00:09:17,773 The only issue with it is the volatility part. And that 147 00:09:17,813 --> 00:09:20,875 kind of destroys its chances of probably ever being adopted as a 148 00:09:20,915 --> 00:09:24,158 currency. So it's just a fun paradox you see between people that 149 00:09:24,178 --> 00:09:27,540 own crypto. They want it to pump in price and go 150 00:09:27,580 --> 00:09:31,463 up by 100%. But at the same time, they want it to be adopted as a currency. You 151 00:09:31,503 --> 00:09:34,745 can't have them in both. It's either a speculative store of value asset, like 152 00:09:34,786 --> 00:09:38,008 gold, or it's a full-blown currency, in which case it 153 00:09:38,068 --> 00:09:41,430 can't oscillate that much in value. The goods around it may shift, 154 00:09:41,811 --> 00:09:46,094 like what commodities do. For example, commodity prices 155 00:09:46,134 --> 00:09:49,816 can change, like coffee, wheat, wool, cotton, etc. They 156 00:09:49,856 --> 00:09:53,839 can all change in price based on supply, supply 157 00:09:53,859 --> 00:09:57,001 and demand at least. When that happens, you have 158 00:09:57,021 --> 00:10:00,283 to create forward and futures contracts with 159 00:10:00,323 --> 00:10:03,504 the suppliers of it to lock in a price because they oscillate so 160 00:10:03,544 --> 00:10:07,306 much. So if Bitcoin was adopted as a currency and coffee 161 00:10:07,706 --> 00:10:11,388 was being sold and you have these massive swings in the value or 162 00:10:11,468 --> 00:10:14,609 price of Bitcoin, then one day your 163 00:10:14,649 --> 00:10:17,751 coffee is 0.001 sats and the next day it's 164 00:10:17,771 --> 00:10:21,212 like, Quadruple that you're like what I've 165 00:10:21,232 --> 00:10:24,593 got to put a Ford or a future contract on my tomorrow coffee And 166 00:10:24,673 --> 00:10:28,694 that's where it fails as a currency, right? So whilst it's decentralized and 167 00:10:28,734 --> 00:10:32,575 has adopted well into those Countries that have very high 168 00:10:32,615 --> 00:10:36,897 inflation rates. I think it works fairly well there as a currency but 169 00:10:36,937 --> 00:10:40,438 I certainly if it is a currency then it can't be a speculative store value asset 170 00:10:40,458 --> 00:10:43,499 for you and just Pump as they say, right? That's where it's good. It's good to 171 00:10:43,519 --> 00:10:46,641 be tricky. So Second pro, global and borderless, so you 172 00:10:46,661 --> 00:10:50,063 can access it from anywhere, right? You can literally access it from 173 00:10:50,184 --> 00:10:53,286 anywhere. And so I think it's been super effective for 174 00:10:53,326 --> 00:10:56,548 people who are wanting to access money in 175 00:10:56,568 --> 00:11:00,051 multiple countries, wanting to buy certain 176 00:11:00,091 --> 00:11:03,613 things that can't be tracked, certainly, or tracked less effectively by 177 00:11:03,673 --> 00:11:06,956 governments. And so yeah, it's borderless and global which 178 00:11:07,296 --> 00:11:10,940 obviously is as many reasons why that's a good thing, right? Price 179 00:11:10,960 --> 00:11:14,302 history. There is now some form of price history like 180 00:11:14,443 --> 00:11:17,645 gold has a better For a hedging inflation. I 181 00:11:17,665 --> 00:11:22,389 think gold is superior because it's got thousands of years as 182 00:11:23,630 --> 00:11:27,190 Thousands of years of price history So it gives you a lot more confidence thinking, 183 00:11:27,210 --> 00:11:30,395 well, it's been around for the last 3,000 years, probably going to be around for the next 3,000 years. 184 00:11:31,236 --> 00:11:35,202 So there's a lot of that price history that's available. Bitcoin 185 00:11:35,222 --> 00:11:38,707 has a far less, you know, its history is probably really 186 00:11:38,747 --> 00:11:42,332 in the mainstream, probably been since 2000. Well, we call it 187 00:11:42,372 --> 00:11:45,915 2010 anyway, so 10, 20, 15 years. It's not that long, so 188 00:11:45,955 --> 00:11:49,278 it doesn't have the longest price history. Had massive growth 189 00:11:49,298 --> 00:11:52,721 in that time, too, so it's also very volatile. So I think the price history could 190 00:11:52,741 --> 00:11:55,944 also be not just a pro, but also a con, because it's not 191 00:11:56,024 --> 00:11:59,487 that long compared to gold, and it's also very 192 00:11:59,527 --> 00:12:02,790 volatile. So I'd say that's a pro and a con, right, the price 193 00:12:02,810 --> 00:12:06,601 history of that. Now, the other one, as 194 00:12:06,641 --> 00:12:10,222 a pro, seems to be a better store of value 195 00:12:10,762 --> 00:12:14,363 than putting your money under the mattress. And I 196 00:12:14,383 --> 00:12:18,664 would agree with that wholeheartedly, that 5% and 10% inflation 197 00:12:18,704 --> 00:12:21,924 rate on our fair currency is so stupid, and you wouldn't put 198 00:12:21,944 --> 00:12:26,245 your money under the mattress. By all accounts, as a store of value, it 199 00:12:26,285 --> 00:12:29,606 seems to be more effective. But again, because of 200 00:12:29,626 --> 00:12:34,705 the volatility, it can't be a store of value in a currency. It 201 00:12:34,785 --> 00:12:38,774 seems to be exclusively really 202 00:12:38,814 --> 00:12:42,041 good at one and exclusively really good at the other, but 203 00:12:44,472 --> 00:12:47,854 not mutually exclusively, like together, it looks terrible. And 204 00:12:47,894 --> 00:12:51,037 that's the problem with it, I think. And if you're reading through 205 00:12:51,057 --> 00:12:54,419 the Bitcoin standard, the objective is to adopt Bitcoin 206 00:12:54,459 --> 00:12:57,761 as the standard currency. And it doesn't 207 00:12:57,841 --> 00:13:00,943 seem to want to do that if it's a store of value. So whilst I say it's 208 00:13:00,983 --> 00:13:04,586 a pro, digital gold feels like a store of value, fights 209 00:13:04,626 --> 00:13:07,848 inflation, definitely a pro. The con is it 210 00:13:09,833 --> 00:13:13,457 it's unlikely to be adopted as a currency if it's still volatile. And 211 00:13:13,517 --> 00:13:16,661 you're probably hearing me say this again and again in this episode, like, Lloyd, you've said that, 212 00:13:16,981 --> 00:13:20,325 but I'm just wanting to, it's difficult to wrestle with because 213 00:13:20,866 --> 00:13:24,289 it wants to be one thing and it wants to be the other, and it 214 00:13:24,329 --> 00:13:27,812 seemingly can't be either. Because, one, it's priced 215 00:13:27,852 --> 00:13:30,994 off a fiat currency it's supposed to replace. So if all of a sudden, as an 216 00:13:31,034 --> 00:13:34,556 example, fiat currency disappeared, how much is your Bitcoin 217 00:13:34,596 --> 00:13:37,737 worth? And someone will say, $117,000. I'm like, well, how do 218 00:13:37,757 --> 00:13:42,100 you know that? Because fiat currency's gone. They say, well, it's worth one 219 00:13:42,380 --> 00:13:45,561 house. I'm like, okay, sure, that's fine. In which 220 00:13:45,601 --> 00:13:48,963 case, it's worth X amount of Satoshis. Great, that all works. That's 221 00:13:49,003 --> 00:13:53,105 a currency then. And that seems to work effectively. But 222 00:13:53,325 --> 00:13:56,826 once it forms into a currency, it doesn't pump 223 00:13:57,146 --> 00:14:00,607 beyond probably the price and efficiency growth 224 00:14:00,647 --> 00:14:03,888 of businesses, the real value accretion return of businesses, and 225 00:14:03,928 --> 00:14:07,089 real estate. So that's where the issue lies. You're just not going to 226 00:14:07,109 --> 00:14:10,409 have these massive pumps like you see now. So as it moves to one or the other, 227 00:14:11,370 --> 00:14:14,471 it starts to lose a piece of its former self with what people want 228 00:14:14,491 --> 00:14:17,731 it for, which is, in my eyes, it seems to be people 229 00:14:17,771 --> 00:14:21,012 want it for creating massive fiat wealth. Interestingly, right 230 00:14:21,132 --> 00:14:24,293 great paradox. Okay. They're the pros I know I gave him a bit of a con pro for 231 00:14:24,313 --> 00:14:28,394 the pros, but there's best I can do for the pros because I still think it's so Difficult 232 00:14:28,434 --> 00:14:31,655 to prove without a shadow of a doubt that the pros are there for a long term, 233 00:14:31,715 --> 00:14:35,016 but we'll see Now the cons getting 234 00:14:35,056 --> 00:14:38,757 back into that massive volatility There was a time in 235 00:14:39,437 --> 00:14:43,584 God, when was it? 2021 it might have been off the top of my head Was 236 00:14:43,624 --> 00:14:47,746 it 2023? It dropped from like 69,000 to 70,000. It 237 00:14:47,766 --> 00:14:50,967 dropped 75% in a year. So if 238 00:14:51,007 --> 00:14:54,109 you have this massive 75% fall in the value of the 239 00:14:54,249 --> 00:14:58,130 currency, your coffee is going to be 75% more 240 00:14:58,190 --> 00:15:01,392 expensive or less expensive throughout the year. Now, when you're 241 00:15:01,432 --> 00:15:04,694 in business and you have to buy goods, Let's say I'm in 242 00:15:05,355 --> 00:15:08,498 the business of I sell big pens, and 243 00:15:08,639 --> 00:15:11,962 I'm going to buy all these big pens and then resell them to Woolworths and wholesale. Well, 244 00:15:11,982 --> 00:15:15,487 if I buy the big pens for a dollar, well, not even a dollar, one Satoshi, and 245 00:15:15,507 --> 00:15:19,881 the pens Let's 246 00:15:19,921 --> 00:15:23,102 go back. If it's adopted as a store of value, see how 247 00:15:23,122 --> 00:15:26,543 confusing it is, and Bitcoin is 248 00:15:26,563 --> 00:15:29,684 bought in Bitcoins, and then the following year it's shifted, I've got to 249 00:15:29,724 --> 00:15:33,025 then sell my pens that I bought at X price for 250 00:15:33,165 --> 00:15:36,447 X minus 75% of the value price. and my business goes broke 251 00:15:36,467 --> 00:15:40,008 overnight. There is no price. Again, this 252 00:15:40,048 --> 00:15:44,311 happens in commodity markets and how they get around that is they 253 00:15:44,651 --> 00:15:48,053 sign futures and they sign forward 254 00:15:48,113 --> 00:15:51,375 contracts with the suppliers to make sure 255 00:15:51,395 --> 00:15:54,897 that when they sell it at that price, it's locked in for the delivery. 256 00:15:55,637 --> 00:15:58,739 They don't lose money when they're in the 257 00:15:58,839 --> 00:16:02,661 sales process to the end user. And 258 00:16:02,681 --> 00:16:06,923 there's a whole futures market on that, so you can buy and sell 259 00:16:06,983 --> 00:16:10,105 and swap futures and forward contracts in the commodities market. So that's how they've got around it. 260 00:16:10,145 --> 00:16:13,287 Now, having to do that with every single thing you buy in 261 00:16:13,307 --> 00:16:16,469 your business, every month or every year, you'd 262 00:16:16,489 --> 00:16:20,031 have to have futures and forward contracts on everything. Paper cups 263 00:16:20,071 --> 00:16:24,453 in your coffee shop, the machine, the 264 00:16:24,493 --> 00:16:27,795 staff, it'd be a nightmare. You get one staff coming and go, Well, you're 265 00:16:27,815 --> 00:16:31,577 going to pay me this much in crypto this week, and then next week it's 75% less. 266 00:16:31,617 --> 00:16:34,939 It's like, what? How can staff even get paid in oscillations of 267 00:16:35,819 --> 00:16:39,421 75%? But they'd go insane. So you see that the volatility that's 268 00:16:39,441 --> 00:16:42,703 getting the excitement is the very thing that kills it as a currency. Does 269 00:16:42,723 --> 00:16:46,108 that make sense? Just quickly, if you're ready to take control of your finances but feel 270 00:16:46,188 --> 00:16:49,792 stuck on where to start, I have a solution. My book, Money 271 00:16:49,852 --> 00:16:53,016 Bias Happiness, simplifies investing and wealth building with 272 00:16:53,116 --> 00:16:56,621 practical steps to help you achieve financial peace. Get 273 00:16:56,661 --> 00:16:59,825 your copy via the link in the show notes and let's get your money working for 274 00:16:59,865 --> 00:17:03,028 you. Now back to the episode. No yield, no cash flow. So 275 00:17:03,068 --> 00:17:06,649 obviously I've said this before, it doesn't produce any cash flow. And I've often thought 276 00:17:06,669 --> 00:17:09,891 this akin to if you have a choice between buying an 277 00:17:10,111 --> 00:17:13,832 egg that goes up in value over time or even stores value for 278 00:17:13,852 --> 00:17:17,454 that matter, like gold, one ounce is still one ounce, right? But 279 00:17:17,474 --> 00:17:20,736 the price has gone up because of the fiat decline. Your choice is 280 00:17:20,756 --> 00:17:24,437 to buy a block of gold or a golden egg or a Bitcoin, or 281 00:17:24,497 --> 00:17:28,679 the choice is to buy a goose that lays Bitcoins 282 00:17:29,319 --> 00:17:33,502 or lays gold Which one would you prefer? The 283 00:17:33,562 --> 00:17:38,224 egg or the goose? So 284 00:17:38,244 --> 00:17:42,145 here's an example for you. We have a laundromat business and 285 00:17:42,706 --> 00:17:46,327 without the foreign exchange part included, we 286 00:17:46,347 --> 00:17:50,349 bought that for 2.65 Bitcoin, okay? We 287 00:17:50,369 --> 00:17:53,670 didn't use Bitcoin but that's the current price of Bitcoin versus what would cost 288 00:17:53,710 --> 00:17:58,206 in Bitcoin. It cost us 2.6 Bitcoin. and 289 00:17:58,266 --> 00:18:01,629 it produces one Bitcoin a year. Now, 290 00:18:01,829 --> 00:18:05,312 I could have taken that money out and instead of buying the laundromat, 291 00:18:06,433 --> 00:18:10,237 we could have bought 2.16 Bitcoin. But 292 00:18:10,397 --> 00:18:14,369 in a space of a year, we've created a whole another Bitcoin. Okay, and 293 00:18:14,529 --> 00:18:17,710 what's interesting about that is that even if the price of Bitcoin, we're still 294 00:18:17,730 --> 00:18:21,112 producing them. Boom, boom, boom, boom, right? So if the currency was 295 00:18:21,132 --> 00:18:24,233 adopted that we do BTCs or Satoshis, SATs, and 296 00:18:24,253 --> 00:18:27,595 we bought the laundromat for XY SATs, it'd still produce SATs and grow in SATs. 297 00:18:28,335 --> 00:18:31,617 And it's just so much better to have a 298 00:18:31,717 --> 00:18:35,039 goose that lays eggs and rises in value than just having the 299 00:18:35,119 --> 00:18:38,540 egg. Does that make sense? No yield, no cash 300 00:18:38,580 --> 00:18:41,681 flow means you can only get one return format. It's just the supply and 301 00:18:41,721 --> 00:18:45,722 demand or the demand for it that's rising in price and it's just not enough. You 302 00:18:45,802 --> 00:18:49,584 have to have cash flow if you want any financial independence because 303 00:18:49,924 --> 00:18:53,285 the cash flow ultimately replaces your wage. Whereas 304 00:18:53,325 --> 00:18:57,126 if you're just depending on the capital growth of the egg, You 305 00:18:57,146 --> 00:19:00,309 don't know, you have to sell a piece of the egg to 306 00:19:00,349 --> 00:19:03,531 realize any cash flow to have any financial independence outside your job. So it's 307 00:19:03,612 --> 00:19:07,114 not a good vehicle for financial 308 00:19:07,134 --> 00:19:10,729 independence. The next one is regulatory risks. 309 00:19:11,349 --> 00:19:14,552 So when Bitcoin first 310 00:19:14,592 --> 00:19:17,974 came out, it was like, no capital gains tax, which is cool, right? I 311 00:19:17,994 --> 00:19:21,236 mean, that'd be so much more popular as no capital gains tax. Now all of a sudden, capital gains 312 00:19:21,276 --> 00:19:24,539 tax. And there's now 313 00:19:24,639 --> 00:19:28,001 tracking of Bitcoin. They can get into wallets and 314 00:19:28,021 --> 00:19:31,633 they can track it. It 315 00:19:31,673 --> 00:19:35,236 has less freedom now because the government's onto it, right? So regulatory 316 00:19:35,296 --> 00:19:38,558 risks is a con because once the government 317 00:19:38,578 --> 00:19:42,081 gets their hands on something, it wrecks it, right? So regulation, I 318 00:19:42,101 --> 00:19:45,163 think, is just going to get more and more and more the more it's widely adopted. And of 319 00:19:45,203 --> 00:19:48,925 course, if it becomes a reserve currency, like the Bitcoin standard suggests, then 320 00:19:48,985 --> 00:19:52,547 there will be a ton of regulation around it. And 321 00:19:52,727 --> 00:19:55,928 although they shouldn't be able to do too much because it is 322 00:19:56,008 --> 00:19:59,270 decentralized for that matter, no one controls it, but 323 00:19:59,330 --> 00:20:02,411 you know, with governments, they're very clever at, if they lose a level of 324 00:20:02,451 --> 00:20:05,733 control, they're very clever at exerting laws over things to disappear things. 325 00:20:06,933 --> 00:20:10,216 So there's always that risk. If 326 00:20:10,256 --> 00:20:13,499 you trust governments, then you haven't lived 327 00:20:13,519 --> 00:20:16,941 long enough. All right. Emotional trading and FOMO hype. 328 00:20:16,981 --> 00:20:20,144 So the challenge that people face if it's a store of 329 00:20:20,244 --> 00:20:23,707 value Then you're going to get seduced into 330 00:20:23,767 --> 00:20:26,928 big pumps, and you're going to buy at the top of the market. It's going to dump down. You're 331 00:20:26,948 --> 00:20:30,509 going to freak out. You're going to sell at the bottom, and you're going to lose fair currency. And that's mainly what's 332 00:20:30,549 --> 00:20:33,770 been happening to these poor people that are trying. And by all accounts, too, 333 00:20:33,810 --> 00:20:36,911 I don't blame people for kind of trying to moonshot crypto, because at 334 00:20:36,931 --> 00:20:40,672 the end of the day, what are governments giving anyone hope for? Because they've inflated the currency. They've 335 00:20:40,692 --> 00:20:44,254 made housing impossibly difficult for young people. They've 336 00:20:44,314 --> 00:20:47,435 really, oh, and I'd even hate to 337 00:20:47,475 --> 00:20:50,828 say it, There's a generation that's done that 338 00:20:51,148 --> 00:20:55,172 because of the absolute greed that's happened in 339 00:20:55,192 --> 00:20:58,655 the housing market even. I don't blame young people for trying to moonshot their 340 00:20:58,675 --> 00:21:02,338 way around getting in the market either. It makes 341 00:21:02,358 --> 00:21:05,721 sense. It's a very tricky field to be in, to 342 00:21:05,741 --> 00:21:09,025 be trading. When you buy something and you watch it 343 00:21:09,085 --> 00:21:12,347 fall 50, 60, 70 percent, The same can happen in stocks, which 344 00:21:12,407 --> 00:21:15,629 is why investing in individual stocks especially is 345 00:21:15,869 --> 00:21:20,752 not for the faint of heart, because you have to understand the difference between price and value. Whereas 346 00:21:21,072 --> 00:21:24,234 with businesses, for example, in the stock market, if a 347 00:21:24,254 --> 00:21:27,515 business is like, let's say for example, we're 348 00:21:27,535 --> 00:21:30,721 looking at Google as a business. Well, I know that 349 00:21:31,562 --> 00:21:35,424 if Google produces X amount of cash flow or revenue or income, then 350 00:21:35,484 --> 00:21:38,886 I know if I'm buying that for about 20 times annual income, it's 351 00:21:38,906 --> 00:21:42,208 fairly reasonably priced because I know that I'm going to buy it for this and 20-year 352 00:21:42,248 --> 00:21:45,530 payback period. I'd like a 10-year payback period but Google 353 00:21:45,550 --> 00:21:49,273 is a really good company, I'll do a 20-year payback period. But when 354 00:21:49,313 --> 00:21:53,255 you don't have any earnings or income to price it off, You 355 00:21:53,295 --> 00:21:56,837 don't know when you're getting your money back. So if I buy a Bitcoin today and I'm 356 00:21:56,877 --> 00:22:00,240 like, wait, it's $117,000 US dollars for one Bitcoin. Cool. 357 00:22:00,720 --> 00:22:05,843 When will I get my $117 back in my pocket? No 358 00:22:05,883 --> 00:22:10,186 one knows. So you can't with any level 359 00:22:10,246 --> 00:22:13,408 of science or 360 00:22:14,489 --> 00:22:17,771 any metric for that matter, figure out how much it's actually worth. 361 00:22:18,660 --> 00:22:21,822 Because to value cash flows, you take all the cash flows that 362 00:22:21,842 --> 00:22:25,484 are going to come into the future and you discount them back by 363 00:22:25,504 --> 00:22:28,765 an interest rate that you're prepared to have and it tells you the current value of 364 00:22:28,805 --> 00:22:32,127 a business today, right? It's like if you want to buy a coffee shop, I 365 00:22:32,147 --> 00:22:35,349 say to people, hey, is that coffee shop over there? How much do you reckon it's worth? 366 00:22:35,369 --> 00:22:38,590 They go, well, it depends on how much it's making. And you 367 00:22:38,630 --> 00:22:41,872 ask this question of any person who's not financially like even that literate and 368 00:22:41,932 --> 00:22:45,034 like, hey, how much to buy that coffee shop for? Instantly, they'll go, it depends on how 369 00:22:45,054 --> 00:22:48,545 much it makes. Because if it made 370 00:22:49,746 --> 00:22:52,988 $4 a year, they would probably pay $20 for it, 371 00:22:54,049 --> 00:22:57,592 right? So I'll use more reasonable figures. If 372 00:22:57,632 --> 00:23:01,355 that coffee shop produced $100,000 a year in income for them, I 373 00:23:01,395 --> 00:23:06,398 say to them, how much would you buy it for? And they say, $300,000. I'm like, 374 00:23:06,439 --> 00:23:09,621 cool, how did you arrive at that number? They say, well, if 375 00:23:09,681 --> 00:23:12,863 I'm laying out $300,000, I know that in the next few years, I'll at least get my 376 00:23:12,904 --> 00:23:16,045 investment back. I was like, correct. And they say, 377 00:23:16,065 --> 00:23:19,446 and it might grow in value a bit. So yeah, that's right. Now I said to them, what would happen 378 00:23:19,486 --> 00:23:22,727 if it was producing $100,000 a year and I had it for sale for 379 00:23:22,767 --> 00:23:26,088 a billion dollars? I said, what? I would never buy 380 00:23:26,108 --> 00:23:29,409 that. I said, why? They go, because it would take 381 00:23:29,429 --> 00:23:32,690 me so many years, decades and decades to get back my 382 00:23:32,710 --> 00:23:36,071 initial investment in the cash flow. I said, yes. So I say, what 383 00:23:36,091 --> 00:23:39,632 you're saying is when you buy a business, you're buying the propensity and certainty 384 00:23:39,672 --> 00:23:42,933 and expectation of your investment being paid back to you from the income 385 00:23:42,953 --> 00:23:46,115 from the customer, yes? Yes, it's a great that's how you assess whether 386 00:23:46,135 --> 00:23:49,398 you're buying getting a good deal buying a business or a shit deal buying 387 00:23:49,418 --> 00:23:52,821 a business And that is how you also buy stocks in companies. 388 00:23:52,881 --> 00:23:56,204 It's no difference because they're big just big businesses effectively And 389 00:23:56,264 --> 00:24:00,188 so you can't do the same thing with gold and you can't do the same with Bitcoin because 390 00:24:00,208 --> 00:24:03,671 there are no cash flows So you don't know if you buy it for a hundred seventeen thousand 391 00:24:03,691 --> 00:24:06,878 dollars. You don't know if you're getting a deal. I Oh, it's worth this. 392 00:24:07,018 --> 00:24:10,102 How do you know? Well, there's this many coins and this is 393 00:24:10,142 --> 00:24:13,385 how much fiat. How do you know? This is so uncertain. It goes 394 00:24:13,445 --> 00:24:16,709 in the too hard basket. And when you come across 395 00:24:16,749 --> 00:24:20,634 someone who is really all pro Bitcoin, my 396 00:24:20,694 --> 00:24:24,784 question to them with their Conviction 397 00:24:24,864 --> 00:24:28,125 is, do you have your entire net worth in it? The answer is no way. 398 00:24:28,465 --> 00:24:31,766 And so if you can't put your entire net worth in it, is it worthwhile playing 399 00:24:31,786 --> 00:24:34,907 in that space? And some people have put a little bit of their net worth in it to 400 00:24:35,347 --> 00:24:38,528 have one foot in one camp, one foot in the other, because they don't want to miss out, because it seems like 401 00:24:38,768 --> 00:24:42,029 a FOMO is driving this. We're still on number four, by the way. FOMO drives 402 00:24:42,049 --> 00:24:45,750 this behavior. They can't stand to miss out, so they need a little bit. And 403 00:24:45,790 --> 00:24:49,371 I even had a guy reach out to me on Instagram and say, hey, man, now it's up to 404 00:24:49,791 --> 00:24:53,112 $117,000 per Bitcoin. Have your position changed? I'm like, no. The 405 00:24:53,152 --> 00:24:56,395 price of something is irrelevant. Everybody knows 406 00:24:56,435 --> 00:24:59,657 the price of everything and the value of nothing. It has 407 00:24:59,777 --> 00:25:03,040 no value to me. Does that make sense? It 408 00:25:03,080 --> 00:25:06,563 has no value to me. None. Again, 409 00:25:06,943 --> 00:25:10,566 and I'm all for it, wait, being fully adopted 410 00:25:10,866 --> 00:25:14,549 as a currency. All for it. Hope it happens. Would 411 00:25:14,609 --> 00:25:18,647 love to make satoshis out of my laundromat. Would 412 00:25:18,687 --> 00:25:22,089 love to create Satoshis out of my education. Would love to create Satoshis out 413 00:25:22,109 --> 00:25:25,432 of, I don't care. Whatever one you want to adopt, I'll take 414 00:25:25,472 --> 00:25:28,814 it. As long as everyone else is using it and I can buy more businesses 415 00:25:28,834 --> 00:25:31,936 with my Satoshis, I'm all for it. Okay, but 416 00:25:31,956 --> 00:25:36,159 it's one or the other, right? You can't have both. You can't have your cake and eat it too. And 417 00:25:36,239 --> 00:25:39,855 people say, oh, but the deflationary, but. If you deflated everything, 418 00:25:39,895 --> 00:25:43,018 that means there'd be no value in starting businesses, which means businesses wouldn't exist, which 419 00:25:43,058 --> 00:25:46,361 means no businesses, no economy. All right, five, 420 00:25:46,621 --> 00:25:49,944 extreme dependency on infrastructure. That's true. You do need internet, you 421 00:25:49,964 --> 00:25:54,307 need a stable device, you need a private access key, you need security, you 422 00:25:54,347 --> 00:25:57,850 need power and energy to facilitate the mining. 423 00:25:58,611 --> 00:26:04,329 It is highly dependent on infrastructure. infrastructure, 424 00:26:04,810 --> 00:26:08,712 whereas gold as a store of value is not dependent on infrastructure. And 425 00:26:08,732 --> 00:26:12,094 it's quite interesting, too, because if you look at what the reserve currencies 426 00:26:12,134 --> 00:26:16,197 or the store of value is, the global world reserve currency, whilst 427 00:26:16,217 --> 00:26:20,419 people say it's the United States dollar, the USD is a global trade 428 00:26:20,919 --> 00:26:25,222 currency. So 60% of world trade is done in USD. 429 00:26:25,662 --> 00:26:29,685 So it's the leading global transaction currency. 430 00:26:30,325 --> 00:26:34,067 But the global world reserve currency seems to be gold, 431 00:26:34,528 --> 00:26:37,910 because China is buying up endless amounts 432 00:26:37,950 --> 00:26:41,191 of gold. And even gold. So I would say that 433 00:26:41,231 --> 00:26:44,653 if there's a world reserve currency, it would be gold. And 434 00:26:44,694 --> 00:26:48,436 if there's a world reserve trading or commercial 435 00:26:49,016 --> 00:26:54,689 trading currency, it would be the USD. Where 436 00:26:54,730 --> 00:26:58,174 does BTC fit in there? It would largely 437 00:26:58,194 --> 00:27:01,318 probably either be the store of value, online store of 438 00:27:01,338 --> 00:27:04,582 value, so all the infrastructure behind it, or it's fully adopted and 439 00:27:04,622 --> 00:27:07,846 implemented into the world, and it forms the 440 00:27:07,866 --> 00:27:11,042 currency. So it's either this one or it's that one, all right? But 441 00:27:11,062 --> 00:27:14,604 it seems to be the behavior of the world is suggesting that 442 00:27:14,705 --> 00:27:18,006 gold is a world reserve currency and that fiat currency 443 00:27:18,026 --> 00:27:21,548 is just transactional for now. But of course, again, I'm all for BTC 444 00:27:21,589 --> 00:27:25,391 becoming transactional currency. Couldn't care less, because I will still buy the goose. I'll 445 00:27:25,411 --> 00:27:28,593 still buy businesses. I'll still buy a public company. I would still, by and 446 00:27:28,613 --> 00:27:32,755 large, buy if the right price, the right reasons, I 447 00:27:32,795 --> 00:27:36,637 would also buy real estate. Because if I buy a piece of real estate, and 448 00:27:36,697 --> 00:27:40,539 I can lease it out to someone, they can pay me satoshis. I 449 00:27:40,559 --> 00:27:44,442 can take my satoshis and go buy shit. The 450 00:27:44,462 --> 00:27:48,104 vehicle and the asset is just so much better when you're getting income and 451 00:27:48,584 --> 00:27:51,846 value accretion. It just doesn't work when you're buying the egg. It's 452 00:27:51,866 --> 00:27:55,048 just so lame. The example I used earlier about the 453 00:27:55,088 --> 00:27:58,230 Berkshire Hathaway egg class share versus gold would just be a 454 00:27:58,310 --> 00:28:01,672 great example of why. It's not really decentralized. Number 455 00:28:01,692 --> 00:28:04,853 six, not really decentralized because government's got their hands all over it. Let's hope they don't 456 00:28:04,893 --> 00:28:08,195 wreck things when they touch things they tend to. Number 457 00:28:08,215 --> 00:28:11,476 seven is not proven economic collapse. And what I mean by that is we 458 00:28:11,496 --> 00:28:14,797 haven't really had, well, we haven't had a economic 459 00:28:14,897 --> 00:28:18,539 panic while Bitcoin's been around. So it hasn't ever experienced 460 00:28:18,579 --> 00:28:22,382 a true economic collapse. which would be very fascinating 461 00:28:22,402 --> 00:28:25,765 to see how it reacted and what would happen. Because Michael Saylor says, 462 00:28:26,566 --> 00:28:29,749 whatever you do, if you need to sell your kidney, sell 463 00:28:29,769 --> 00:28:32,872 your kidney, but just don't sell the Bitcoin. And so when 464 00:28:32,912 --> 00:28:35,975 there's a panic and people need to put their hands on money to go to the grocery, like if I 465 00:28:35,995 --> 00:28:40,479 went to the grocery store right now to buy groceries, I 466 00:28:40,699 --> 00:28:43,961 and I should do a little skit on this actually and I said hey cool. I've got 467 00:28:44,482 --> 00:28:47,824 these groceries I'd like to eat. Do you take Bitcoin? No, sorry. 468 00:28:48,044 --> 00:28:51,427 Oh shivers. Okay To my property manager. 469 00:28:51,447 --> 00:28:55,149 Hey, I'm gonna pay the rent this this week in Bitcoin. Is that alright? No 470 00:28:56,410 --> 00:28:59,733 So in a panic when people need the trade currency of 471 00:28:59,753 --> 00:29:03,781 the day Australian dollars or US dollars They 472 00:29:03,921 --> 00:29:07,385 would sell their Bitcoin to eat, 473 00:29:07,905 --> 00:29:11,408 to pay rent, to get to the needs, the shelter, rent, and water 474 00:29:11,448 --> 00:29:15,032 is not necessarily that needed because you can go to the park and drink, but food 475 00:29:15,592 --> 00:29:19,196 and shelter, they will definitely sell their Bitcoin to 476 00:29:19,376 --> 00:29:22,999 interfere, to trade into those commodities. They will. So 477 00:29:23,160 --> 00:29:26,583 if you look at the panic, we haven't experienced that 478 00:29:26,603 --> 00:29:29,807 yet. So let's see what happens. It could go the other way. I'm not sure because I 479 00:29:29,827 --> 00:29:32,971 haven't seen it through, but it hasn't experienced it yet. So you've got to watch. Would 480 00:29:32,991 --> 00:29:36,935 you want to buy assets that haven't really proven every season, right? So 481 00:29:36,955 --> 00:29:40,259 does that make sense? Again, 482 00:29:40,419 --> 00:29:43,634 I'm just trying to look at both sides of 483 00:29:43,674 --> 00:29:47,055 it so you don't think I'm just here to slam it. But having understood what 484 00:29:47,095 --> 00:29:50,276 the objective of the Bitcoin standard is, what it's being used for 485 00:29:50,376 --> 00:29:54,797 now, what it could possibly be adopted to for currency in the future, clearly 486 00:29:54,917 --> 00:29:58,158 shows me that it would not change how I approach wealth building, 487 00:29:58,178 --> 00:30:01,559 which is to buy and build productive businesses and 488 00:30:01,659 --> 00:30:04,780 buy with cash, whatever it 489 00:30:04,820 --> 00:30:08,481 might be of the day, seashells, toilet paper, buy productive assets 490 00:30:08,521 --> 00:30:11,762 like the goose. It just would not change. It just wouldn't. 491 00:30:12,302 --> 00:30:15,963 And I don't think the people that have money right now would also 492 00:30:16,043 --> 00:30:19,304 change how they got their money and take all their money and bought 493 00:30:19,344 --> 00:30:22,565 it all into Bitcoin. I think the only people that have really kind of done that were the Winklevoss twins, 494 00:30:22,605 --> 00:30:26,166 but I think that they had enough fear to risk everything on there without compromising their 495 00:30:26,206 --> 00:30:29,307 life. But all the people I know who got wealthy and continue to 496 00:30:29,327 --> 00:30:32,989 build wealth, they're business people. They're building and buying businesses. 497 00:30:33,789 --> 00:30:37,210 And some buying real estate assets, depending on the marketplace. And 498 00:30:37,250 --> 00:30:40,411 again, I'm not too sure about the long-term prospects of certain markets on that 499 00:30:40,491 --> 00:30:43,634 one. And Japan's a good example of what can go wrong there. But 500 00:30:43,735 --> 00:30:48,761 certainly, I do 501 00:30:48,861 --> 00:30:52,185 hope Bitcoin is adopted as a currency. I think it's far better 502 00:30:52,205 --> 00:30:55,492 than fiat. And if 503 00:30:55,532 --> 00:30:58,734 it happens to stay as a store of value, fine. But 504 00:30:58,774 --> 00:31:02,116 if it's very volatile, very difficult to play, it's outside the 505 00:31:02,136 --> 00:31:05,798 circle of competence for me. If it's outside it for me, it's probably outside it for you. And 506 00:31:05,838 --> 00:31:09,420 it's just better to say no and stay away. You don't have to play 507 00:31:09,540 --> 00:31:12,622 every game. Just find a game you're good at, you got a 508 00:31:12,642 --> 00:31:15,964 competitive advantage in, you're good at, and play the game. And by all accounts, there 509 00:31:15,984 --> 00:31:19,745 happens to be some people that do that with the trading of crypto. So, whatever 510 00:31:19,805 --> 00:31:23,146 game yours is, play the game that's 511 00:31:23,206 --> 00:31:26,447 most certain to give you your money back because investing at the end of the day is laying 512 00:31:26,487 --> 00:31:30,108 out money today to get money tomorrow. It's a bit like putting your 513 00:31:30,348 --> 00:31:33,568 hand – a bird in the hand is worth two in the bush. It's 514 00:31:33,668 --> 00:31:36,789 figuring out in investing, if I invest my money, how 515 00:31:36,829 --> 00:31:40,590 many birds are in the bush and what's the chance of me getting them out. And 516 00:31:40,770 --> 00:31:44,232 if you approach it like that, you'll realize that the chances and 517 00:31:44,272 --> 00:31:47,454 the odds of putting in to get out is so uncertain that 518 00:31:47,494 --> 00:31:50,595 you can't bet big on it. You can't build a life around it. It's 519 00:31:50,615 --> 00:31:53,637 just too uncertain. And that's why I 520 00:31:53,657 --> 00:31:59,953 think it fails the test of investment for me. If 521 00:32:00,013 --> 00:32:03,658 it's widely adopted as a currency, it may meet a better currency test, 522 00:32:03,779 --> 00:32:07,243 maybe, than fiat because 523 00:32:07,263 --> 00:32:11,008 of inflation. And so, if I had to choose which path Bitcoin 524 00:32:11,048 --> 00:32:14,173 went down, I would choose it to be adopted as 525 00:32:14,213 --> 00:32:17,515 the currency. Then to oscillate and play around as 526 00:32:17,555 --> 00:32:20,875 a as a random speculative asset because I think that does a lot of damage to people 527 00:32:21,315 --> 00:32:24,636 Whereas it was fully loaded as a currency. It probably couldn't do any more In fact, it'd 528 00:32:24,656 --> 00:32:28,117 be better for the world if it was because then people wouldn't have governments 529 00:32:28,157 --> 00:32:31,278 inflating the currency way on them It's a pernicious tax on people that 530 00:32:31,318 --> 00:32:34,699 would go away So I think if I had to choose definitely would 531 00:32:34,799 --> 00:32:38,139 prefer to be adopted as a currency and I hope it does but 532 00:32:38,179 --> 00:32:41,580 without a doubt I'll still be over here buying businesses and Bind 533 00:32:41,600 --> 00:32:45,222 the goose and hope you are too. I hope that makes sense. If you've enjoyed this episode, 534 00:32:45,902 --> 00:32:49,383 please go and hammer me in the comments. If you want to come and smash me 535 00:32:49,723 --> 00:32:52,925 in the comments, go for it. I'll come and fight back. I like the savage ones. 536 00:32:52,965 --> 00:32:56,566 Be as savage as you can. It doesn't bother me. This is my position. In 537 00:32:56,646 --> 00:33:00,027 life, if you say nothing, do nothing, then you'll be 538 00:33:00,107 --> 00:33:03,328 nothing. Have a position in your life. and tell people what you feel 539 00:33:03,348 --> 00:33:06,589 and what you think. I think it's better for the world if you do those things so you 540 00:33:06,869 --> 00:33:11,030 really impart your wisdom when you walk your own talk. This 541 00:33:11,170 --> 00:33:14,471 is why I think about this because I've walked this path. Come 542 00:33:14,511 --> 00:33:17,952 and play with me in the comments. If you also support this position 543 00:33:18,052 --> 00:33:21,753 or you like it, come and ask a question or pop a comment below. Again, 544 00:33:21,793 --> 00:33:25,214 I'll come and reply to you because I like to jump into the comments. on our YouTube 545 00:33:25,254 --> 00:33:28,475 channel. Of course, I do the same thing on our Spotify on our podcast too. So 546 00:33:28,495 --> 00:33:31,877 come and play in the comments and I'll see you down there. And 547 00:33:31,897 --> 00:33:35,458 of course, hit the subscribe button and share this with a friend and I'll see you in the next episode, the 548 00:33:35,478 --> 00:33:38,699 Money Grows on Trees podcast. Thanks for listening to Money Grows on Trees. If 549 00:33:38,719 --> 00:33:42,340 you enjoyed the episode, leave a five-star review on Apple Podcasts and 550 00:33:42,400 --> 00:33:45,781 Spotify and subscribe to us on YouTube so you never miss 551 00:33:45,821 --> 00:33:49,143 an episode. And if you're serious about building wealth, make sure to check out 552 00:33:49,183 --> 00:33:53,826 the links in the show notes and follow me on all social media platforms Lloyd