Roaming Returns

029 - You Need To Be Aware Of Crypto Technology Because It's More Than Just Currency

January 16, 2024 Tim & Carmela Episode 29
Roaming Returns
029 - You Need To Be Aware Of Crypto Technology Because It's More Than Just Currency
Show Notes Transcript

Most people think crypto is just digital currency, but it's so much more than that. The underlying technology is going to revolutionize the world much like the internet did. 

Even if you have no interest in owning cryptocurrencies yourself, you need to be aware of what's going on in this sector because it's going to impact a lot of other industries and change the way companies do business. 

Bitcoin halves every 4 years and 2024 is the next scheduled halving which is going to send crypto as a whole up like a rocket. That's why we're invested in it. 

There are several ways to invest in crypto to reap the rewards of what's to come.  

You can invest in the actual crypto coins (1000s to choose from):

  • BTC
  • ETH
  • XRP
  • ADA
  • LINK
  • SHIB
  • LTC
  • SNX
  • XTZ
  • OP
  • BTT
  • FET

Or in stocks that are part of the crypto sector.

  • COIN
  • PYPL
  • NVDA
  • SQ
  • HOOD

Our favorite way to profit from crypto in the stock market is through YieldMax ETFs that trade options in the stocks above that pay out big dividends. 

  • CONY
  • NVDY
  • PYPY
  • SQY

 There's even a stock that does Bitcoin futures, which we also own.

  • BITO

And if you're interested, the SEC approved 11 new Bitcoin ETFs. We're waiting to see what these do. But there are many other crypto ETFs in the works. 

Drop your comments or questions for this episode on one of our posts.  

If you're looking for a more detailed summary of this episode, click here.

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Welcome to Roaming Returns, a podcast about generating a passive income through investing so that you don't have to wait till retirement to live your passions.

Today's episode is all about crypto. Even if you're not interested in crypto from your own personal investment standpoint, you got to know about it. It's a tech sector that's going to revolutionize so many different industries. And there's quite a few ways that you can invest in crypto inside the stock route, especially since the SEC just approved 11 ETFs for Bitcoin. Check it out.
Yo, what's crakin peeps and Peepetts.
Welcome back to the crypto episode.
Yeah, this one here is gonna be quite timely considering that they literally just approved ETFs last week, Wednesday
last week they approved what would you say? 12 different ETFs
11 or 12? I don't I forget. I think it's 11. You're supposed to have the tickers. I do have the tickers.
1111 Crypto, ETFs.
They all Bitcoin they're all Bitcoin ETFs. So when they approve, Wow, that's crazy. They're not all Blackrock or they know that. None
of them are actually BlackRock. BlackRock was the one doing Blackrock thing but Blackrock ETF is not listed yet. That's interesting. If you're not familiar ETF, what they do is they pull all the resources together and they just buy shares of whatever the ETF is like, like for example, we're talking about Bitcoin ETFs and all these ones we mentioned here, we will mentioned today they pulled the resources from like venture capitalists and private lending everything and pull them all together and they bought Bitcoin and the more people to buy into the ETS, the more money the ETF will have and the more Bitcoin they'll buy, they did the same thing with like gold and silver and dividend aristocrats whatever ETF you go into that's what they do. They just it's a pooled, pooled resources and they buy the underlying thing that the ETF says they buy. But cryptocurrency The first thing I want to address with cryptocurrency is most people's thoughts of cryptocurrency is coins and it's they're literally not any coins. That's just something that they like they the publication show for like a visual Rob that visual representation so people are like, Oh, I'm actually going to own like a Bitcoin. Now it bitcoins numbers, it's not a coin, there's no coins. The
thing with digital currency is it's zeros and ones. It's essentially a program and
that's the second thing I was going to address like when you buy into cryptocurrency, you're you're buying into the program, the technology, the blockchain, not the actual monetary like if you buy into Bitcoin, you're buying into Bitcoin because it's scarce and the blockchain the Bitcoins on you're not buying into it for the financial aspect to me you will make money in it, generally, but that's not your view. You like the underlying technology. That's how you find the different crypto so
what I like to equate the cryptocurrencies to is if any of you have traveled abroad and you've needed to use a different kind of currency, you have a familiarity with the exchange rate from one say US dollars to British pounds or the euro.
We're gonna pay so don't forget about a Mexican Oh, the Mexican
pesos. But essentially what happens is if you pay attention on a day to day fluctuation, the value of each actual currency is fluctuating minute to minute but we don't really see that when you live in a country and you only use a specific currency you don't see the valuation change constantly. You only really are in an environment or in an economy where you $1 is $1 and whatever you're trying to buy tells you how much dollars it costs. When you get into crypto and you're in the currency exchanges, or any, you know, any currency traders. They have very, very acute awareness of the valuation shifts and the thing with cryptocurrency, it is technology, it is blockchain. The coins just represent pieces of their kind of like shares to be honest of a quote unquote technology versus a company in the stock market. And the valuation of that currency is what people are generally willing to pay to exchange that currency. So it's not a scam in itself. Like some people, a lot of people actually think cryptocurrency in general is a scam. Now there are a lot of scams in cryptocurrency don't get me wrong on that. But as a whole as a whole cryptocurrency itself, the technology the blockchain is not a scam and in actuality, it's more concrete because it has a tech unbreakable contract aspect of blockchains. Then it's let's just use American dollars. We used to be on the gold standard, we no longer on the gold standard. We're on a Who the hell knows what standard. So in actuality, cryptocurrency is more I think secure than actual currency of US dollars
can be, like, secure but
it's actually based on something that doesn't change.
cryptocurrencies are better because they have a finite quantity of cryptocurrency. other cryptocurrencies don't have a finite like they'll just produce more cryptocurrency like like the I was gonna say,
yeah, like the power Yeah, so like DOTA or Dogecoin is Dogecoin. Like that. Dogecoin
is a theory and like the big one, the big one is a theory of Aetherium there's not a set value. So like if they need to, they can create more Aetherium down the road, which will dilute the total number of theory which will drive the price down, whereas Bitcoin has a set finite amount of bitcoin that's why it's digital gold for people because there's only ever going to be 19 million or whatever Bitcoin.
Yeah, and the reason that it even has a bigger scarcity factor and this ties into the ETFs. We were just talking about so if you think about Bitcoin as digital gold, essentially, that you have to mine it and that's what these Bitcoin miners are doing. And every time one of these halvings happens, the people who are mining are getting so much mined per day. And when the halving happens, that ability to mine a quantity gets cut in half.
Oh, that's not it. No, they get paid half. Same thing. They're still mining the same amount of data. They're just getting paid half what they got paid prior to the heavy or what if you look at what bitcoins when they're mining they're not actually mining Bitcoin, what they're doing is they're verifying everything on the blockchain is correct. And they condense it into a layer of the big photo of the blockchain that then when they when they condense it into whatever the whatever the predetermined size of a layer is. That's one Bitcoin. Are they technically
getting paid out in Bitcoin so it would be half the coin at the end of it. That was kind of my understanding. Apparently, I need to brush up on my facts with that. I haven't really looked into that. So Tim probably is more on point with that whole thing. But essentially
in the same amount, they're just getting paid half as much. But you can start to see the problem if there's an unknown. There's not a pre defined supply and people are mining that variable that whenever that starts to become scarce, they'll just be like, Oh, we're gonna make a million more theory and work.
And isn't that similar to what we were talking about before with the companies that don't have the cap on shares? What the heck are we talking about in that one episode? closed
ended funds have an open ended funds right? Open funds, they'll actually create more shares of their, of their, whatever it is. We
said it was really hard to value those because the scarcity factor throws a monkey wrench into the whole thing. Whereas if you have a closed ended fund, you know exactly how many shares are available and they can't really monkey with that too much and that's where you know, you have that
discount premium now.
So that's really a lot easier to actually determine the valuation via the NAB. So Bitcoin because of that scarcity factor those ETFs it just happened. ETFs are required to own the thing that they're trading or the thing that they're using the Fund for, which means they're taking that much Bitcoin out of the actual tradable market from the general public and these big hedge funds and stuff
it's why I'm pretty sure bitcoins price is going to explode because you have the halving which generally leads to a Bitcoin bull market, but at the same time, you have humongous institutions buying Bitcoin and that just said that like Blackrock has 2600 Bitcoin, so that's if they took 2600 Bitcoin out of the, out of the circulation.
So that's why it's more of a hedge like a gold you're not really gonna like you can use Bitcoin to trade as like a currency but Bitcoin has more value as a storage of value that just like gold does. So that's kind of why we call it the digital gold
whoever like yeah, because of the reason I wanted to do the cryptocurrency thing was not so much ETF because I'm not like I'm not a huge Bitcoin person, but because everything else follows Bitcoin. So whenever Bitcoin leading up to the Bitcoin having like all the good cryptocurrencies are going to explode in price and I thought, if people and you should always diversify you should have some of your funds in two different things, whether it be real estate, whether it be cheese, whether it be art, whether it be cryptocurrency, you should have a diversification and the reason
we feel that that is important is because it's not really the coins that matter so much. It's the tech underlying technology like what they're doing innovation wise with some of this stuff. Like I think you guys will get really excited about this one thing. So you know how when you have access to Netflix, access to Hulu access to like some other online sewage payment system, access to all these different things, you need to have your own special ID to login, and then you have to have a special password and then you have to do this stupid two factor authentication thing for every single one of those and they make you change when they make you do all this crazy stuff. Well, part of the whole blockchain evolution of what they're changing, we are eventually going to have a specific identity that's going to be stored on a blockchain where we have the access to all of our information from a login perspective, that what that we actually connect each one of those external services. So say the Netflix or Hulu or whatever you want to every one of those. It literally just interfaces with that thing that you have one password and login for, and it connects you through the blockchain to verify that you're actually who you say you are. It's going to actually revolutionize private information for healthcare and social security and all that stuff. Because you're not going to actually have to give them your actual credentials, the blockchain and the smart contracts will validate through the actual network that you are who you say you are without actually exposing your information to the third party that is revolutionary. It's going to get rid of these scams that hijack your credit cards. Like there's a lot of things that are coming and one of the other examples I absolutely love is they're going to get rid of like the middlemen and a lot of ways like for a bank, the cryptocurrencies have a lot of peer to peer lending, because through smart contracts, they automatically have collateral setup and they automatically have the payments happen, whereas with a bank you have to go through It's a 30 day process to get the loan and all this other crazy stuff. That happens. But then like housing it's it's really going to get rid of that the need for them to go and do all the due diligence and legwork kind of like something out to AI and that's why I said I think crypto currency blockchain and a lot of ways kind of is very similar to the AI movement because the technology that's behind it is actually taking out human error and need to trust somebody else's handshake or like agreement. It's going to be locked into a smart contract that cannot be changed unless that's part of the contract. So that's really interesting. And this is also really, really good for the art community because it if you have some kind of art that you can incorporate into an NFT I'm sure you've heard about NF TS those those eight coins and stuff. It's not the eight coins themselves that are so interesting. It's the fact that art can be validated as authentic, and you can actually smart contract royalties indefinitely, no matter how many times that piece of art sells. So it's really, really going to help book writers validate that their books are only getting distributed to certain stuff that's going to validate the fact that they get royalties without needing to have that. That manager type person it's going to get rid of like it's going to have the authenticity aspect. It's going to get rid of a lot of like, of the sketchy underbellies of things. Well,
what you're getting at is why that we are about cryptocurrency even though our primary focus is income stocks, we're about cryptocurrency because you have to adapt because cryptocurrency is a technology so it's it's no different than when the internet came about when there's a lot of people that resisted the internet said, oh, there's no way that you can do payments on the internet. There's no way that you can do the taxes on the internet. There's no way you can do any of the things on the internet. Well, there's these people that didn't adapt, they're all gone. But from a company wise they might still be alive.
That's the thing like this is a tack you don't really look at it from a coin and how it's a feasibly able to work right now. It's just like any other technology it's going to improve as time goes by. They're going to get rid of all the kinks where it's a pain in the ass right now to exchange a fiat currency, which is like a normal physical dollar, British pound, a Euro, whatever. Those are considered fiat currencies for these digital currencies. And until that really happens, and it makes it easier for everybody like Coinbase is what Coinbase is, but it's still in my opinion, a pain in the ass. And the holding is
one of the crypto stocks that you should invest in, right. You don't want to invest directly into cryptocurrency investing into Coinbase. Yeah,
but it's the one that's the most, I guess, user friendly right now. And everybody's user interface to go from like,
it's user friendly, and it's this the easiest because it's already tied into everything that needs to be tied into. so if I go into Coinbase, and I trade I can I can I can link it to my bank, take funds from my bank, buy whatever cryptocurrency they want. when I sell the cryptocurrency for a profit, it'll like you'll tabulate that and at the end of the year it will send me a tax form and that's like the biggest bitch about cryptocurrency is that there's no way that the government's can actually determine how much tax you owe and that's what's taking so long for the governments to implement because they want their money. They're not saying cryptocurrency should be outlawed they're saying, if you're going to be encrypted currency we we. we want to make sure that we get our taxes like we do from your dividend stocks or like you do from your growth stocks. We want to make sure we get our cut and that's that's the huge hurdle that they keep up
and I think that's why it's getting misinterpreted as cryptocurrency is a scam.
Well it was the reason that back in the day when it first started the reason the because people haven't adapted and evolved back in the day that people the only people that use cryptocurrency were some shady fucking people. They were doing some shady Oh, absolutely. I mean, that's the thing. So it has so it has this mantra that the only people that use cryptocurrency are like human traffickers are drug dealers and are like, No, that's okay. That happened. Yes, we all accept that that happened. We were not saying it didn't happen. What we're saying is it's evolved beyond that to where every like, there's people, outstanding people, upstanding citizens that use cryptocurrency they're not trying to defraud anyone. They're not trying to trap anyone. So like,
yeah, absolutely. It's just a system. I mean, even if you look at the regular fiat currency system, the mafia was using a cash basis to do the exact same thing. So it's just like, No individual, like technology is evil in itself. It's who's using it for what purpose and the problem is, a lot of times to enable it for the good purposes. You have to also accept some of the bad shit that's gonna go down. It is what it is and the government's eventually gonna work on the regulation and all that stuff. So regulating is good in a sense,
regulation, the part that I think regulation is actually going to be my adoption standpoint. Super helpful. For millions more people get into it is if you recall, last year, there was a fiasco with FTX where like, they were embezzling money and they were putting they were doing some crazy shit with the money. And like when they when they went belly up and Celsius went belly up. We had stuff in Celsius, we're still trying to rectify that. And when I forget, which there's another one that went belly up, people had no way to actually retrieve any of their funds. And like with the regulation part that I actually like, is with the ETFs for example, like right now that we've just had the Bitcoin ones, but I'm sure in the next 10 years, you're gonna have an ETF. For probably the hot top 100 cryptocurrencies, if they go under, because of the ETF law, like you, you're entitled to get $250,000 of your money back from from the company that issued
the ETF. It's kind of like federal ID and FDIC insurance.
So from that aspect, that's why I'm super, I'm super thrilled that they've actually started to do the ETF thing, because now it's going to lead to mass adoption, because people don't have to worry about losing 20,000 or $50,000. They can actually just get that from the ETF issuing company well,
and it's also a way for people to actually exchange crypto in their fiat currency without having to worry about the constant vacillation or
the only difference is with the difference is an ETF you don't actually own the Bitcoin you just own shares of the company that owns the Bitcoin whereas if you just bought Bitcoin, you own the Bitcoin. So that's a huge that's that's a big difference that you have to weigh like if you own the Bitcoin, you don't have the assurance of if bitcoin ever goes to zero, you're gonna get be able to get your money back from the ETF company, you're just out the money, but at the same time, bitcoins not going anywhere. So it would make more sense to actually just invest in Bitcoin than the ETF but you can't really
speak to that because they're in there so no, what do you even know what what
what their what the reason they want the ETF so there was three main reasons they wanted the ETF one was for regulation purposes, so people wouldn't get scammed. The second one was for tax purposes. And the third one is because they want they wanted to make it easier for people to invest in credit for their
retirement. So the fact that the government's done this for their
retirement purposes, so now you can actually have part of your retirement in the cryptocurrency exposure,
but the fact that the government has done this is showing that they are not anti crypto, it's just the type of system that exists.
What happened with the government is they they were on the narrative that all cryptocurrencies were crooks cryptocurrencies for traffic honestly, they just they said Oh, it's here to stay so that so they had the to get my bring up narrative that would make people hesitant to buy crypto until the government actually have their government coin. Now the government coins out all of a sudden ETFs are being accepted. So it's it's not a coincidence. If you look at it. It is not like they got their government coin. The I don't know what it's called. The US DD or whatever. So once I got their coin now, like now, everything's fine. If you recall, like years ago, the title company was was El Salvador, El Salvador, one of the countries down in Latin America. I think it was El Salvador they just said, Screw it. We're going away. We're doing away with El Salvador currency. They just want to trade Bitcoin for Bitcoin. So their currency is Bitcoin so like if you have Bitcoin, you can go to El Salvador Costa Rica, I forget which one it is you have to look it up. And you literally can just use Bitcoin for everything down there. And that is like that is their national currency and that's awesome. It is
actually pretty cool. I want to go down there that can check that out to see how that's played out fresh and I've heard a couple people that said it's kind of hard to like integrate to get the exchanges to actually like, buy stuff while you're there.
But without like, okay, the purpose like that's an introduction to why it's awesome. Like, well,
I want to I did want to say we were talking about the internet internet being innovative. And again, crypto people associate cryptocurrency but they don't really talk about the blockchain as much and the blockchain itself. Like there's so many rumors going around that it's basically the internet 3.0. So it's keep that in mind when we're talking about crypto, that it's more the tech as as a thing than it is the currency. So from our perspective, as dividend investors, we're looking into ways to diversify into this thing. That is it's an evolutionary tech, in our opinion, that is going to become part of our portfolio and how do we actually invest in this
anchor as an income investor? It's very difficult to find anything that you can have a income coming from your investments. This is mainly growth related stuff, you're not going to get dividends from holding Bitcoin, that you could stake it if you want to, but then you'd actually have to own the cryptocurrency and staking is similar to getting
over staking and peer to peer lending in this episode because you need to actually set up crypto wallets and go into the programs and do all that stuff. And a lot of that a lot of that has changed since I've been doing that we're out.
What I'm saying is it's very difficult to actually get consistent income from cryptocurrency that like that's why you have to invest in stocks and
ETFs and we're gonna focus on just the stock side of things right now in this episode, where I
was going to tell a couple coins. Okay, so
we can give a couple points to the article you're interested in going that route and you're already in it.
So you can probably you're probably going to make 10x 20x through the halving and then you just get rid of them. So that's why you can get depreciation to that. And the beauty of the halving is it's every four years and so you have this is the fourth having so you have past charts and data to look at and you can see exactly what happens with the having it's
like a pre determined Bull Run. It's kind of leads
to a bull run and all crypto every time. So this is the three the three previous times that led to three bull runs. So the fourth one that I'm assuming is going to be the fourth Bull Run it has a thick the very it's almost eerily how similar the chart is for the cryptocurrencies during the halving so you like you can leave your chart with your charter, which i not i never have met your charter or you can look back and say oh five out here I'm going to have 400% game good it's eerily similar like Lego they charts pretty much are identical though the past three habits. So I'm fairly confident saying to recommend a couple coins to get into that you can make a lot of money on but from the stock perspective I was only able to find four made stocks like that are worthy enough to get into from our work but like they don't really like they don't really have much in the form of dividends. So this is literally just a appreciation through the bull run. The first one is Coinbase COI N Coinbase is like the biggest stock when it comes to directly to the crypto exchange on the New York Stock Exchange. It's it has its own mode because it's the only item that I don't know of another exchange that actually has a stock ticker ticker. So it has its own mode. It's the only one that you can invest in that actually
does the only option which means it's the one if anybody wants to invest in a crypto exchange it's literally the only one they get invested.
Now with like the one that's eerily similar to Coinbase is PayPal Pay Pal like you can use crypto Pay Pal and like the with these two you're they're really dependent on their revenue is fee based, if that makes sense like Coinbase stock is going to go up and down with the amount of fees they can collect.
So if we're going into a Bitcoin halving and there's going to be more money dumping into crypto and more trades happening Coinbase is going to be making more fees. So Coinbase in theory should go up
right Coinbase should go up pay balance would go up they both should go up because they're gonna be making more fees on each transaction that's Robinhood a ticker or is that just a Robin Hood is it's a ticker
so that also has some crypto availability
song but it's like very, very, very, very minimal.
I haven't Have you looked into what Pay Pal house yeah, I don't know nothing. I don't really like PayPal from a even just user front like they blocked my account and I literally spent two months trying to get it on retarded and they're just like, pulling teeth. So I am so anti looked at
it I'm I think all for the sidewalks will be brought up Robin Hood so it'll be five stocks for the five stocks actually have a yield s u of x ETF
that's what's that's what's interesting. That's fascinating,
right? Coinbase has acquired an ETF on yo Max. Pay Pal has an ETF on yo Max.
You don't know what we're talking about. Go back a couple episodes where we're talking about how to actually get excessive digit dividends from these yield Max ETFs
video is another one like people think of the video as mainly just a chip or gaming chip processor but like they have their hands on so much stuff. But they actually have created GPUs for crypto mining so they're they're actually have a pretty good had a fingerprint tampered with.
And I did look into the whole mining thing there for a while and the fact that the video is realizing that a lot of their gaming chips and CPUs and all that other stuff is being used for mining they're actually creating a sector specifically for that. So that's really really cool.
Like they pay a minimum of dividends. So you actually this is like by I think one of the
few actually, I think that video is going to be an amazing tech but
what they've done is they actually have they mainly they were just creating GPUs for gaming and they said oh, cryptocurrency is here to stay. So they that diverted started creating GPUs for crypto miners. These cards that they're making are anywhere between four and 5000 each so like it's going to their revenue is going to skyrocket as more people more places try to mind. So mining machine even though the video stock is ridiculously high, and I don't like their valuation, if you incorporate what the future has their valuation there. They're kind of undervalued, so you might be able to get I don't know maybe 100% game with the video.
I think the video might be the equivalent of an Amazon but in the tech sector
whereas Coinbase I pretty sure you get 200% and Pay Pal probably 152% game. Now the one that I really like at all these is block SQ basically accepts crypto payment payments. Yeah, and that's really good and we're not familiar with square block or square or whatever we call it some little stupid square thing when he goes in places and he like give me your card and they have this double block then it's on their phone and that's what square is.
I'm pretty sure most people are aware about except maybe us.
But that's like that's probably the best one. I think out of all the ones
more user friendly for like peer to peer exchange type stuff and small businesses
like because they make the actual block that people are going to be using.
That small businesses are like everybody's starting a small business these days.
So so like they're gonna make their money from the transaction. Yep. point of view, not the actual mining or the cryptocurrency but that's kind of like what you want. You want to think outside the box when you're thinking of different investments and that's one of them. And then she brought up Robin Hood Robin Hood. You can trade crypto on there. I think it's only like 21 or 21 or 20 Kryptos. So they're like a part of their revenues from crypto fees. So but it's not that great. Now, to me that I would fill in when I buy this would be square but then I wouldn't actually hold square because it's pretty pricey. So I would actually do get there's an ETF available at the yield max square wins. You're not actually not actually holding shares in the company but you're basically just you're getting that monthly monthly income with square options. So that's to me that that makes as an income investor more sensitive holy square.
And if you heard us mention before, we bought co n y which is the at your max ETF of Coinbase and we only had it for three months the price went up. We were at we were actually able to get all of our initial investment out and right now it's just right in full profit. Yeah, so a completely paid back on a free month to
go on drip. I don't care how high Coinbase goes. I can do it at once. I don't care and we're
still collecting present 3% A month 2%
A month something like it's almost four Okay, the last month we got to 86 per share of Coin Company that we own. That's pretty ridiculously high. That's fantastic. So that's the five stocks.
I don't see Kony coming down anytime in the next year
though. Like I don't think it's ever coming down again. Like I'm pretty sure like because of the what they're doing with ETFs and like this is just the first wave and then we're gonna have the theory and wave and then we're gonna have the Solana way of then we're going to have the Matic wave, then we're gonna have the Cardona wave like, there's just gonna be wave after wave after wave after wave of ETFs coming out. And so Coinbase has all these and Coinbase like is the only one on the block by Nance may at some point. Get on the stock exchange that happens in Coinbase might not be as valuable but it's the only one. The only one you can charge whatever fees you want
because they're eventually going to have competition. They will eventually have gradually Yeah, but for the for right now. Yeah, ride the ride the trend right the popular stuff.
Like we mentioned, there are now 11 ETFs for Bitcoin. I'm just gonna go through them real quick.

One is B it b One is a ar KBFBTCIBITB ar AR AR AR were like that one ver hodl H O DL easy BC BTC W BTC od FYI when I went to defy the fi and GBTC Okay,
so what's so interesting I just stumbled onto a book that's all about those cognitive biases and heuristics and I had no idea that's what it was saying. But the information it was saying is that as soon as these fees and stuff or funds get launched in the beginning, the ones that typically run the highest are the ones that are easy to remember. And if you're any like familiar with anything in the crypto run hodl hodl d phi d phi will be the two that I would guess will be the highest runners because they actually mimic terms in the crypto realm.
Now there are ETFs out there that have futures of Bitcoin and Aetherium and stuff like that. I didn't actually include those for this podcast but to get those you literally just go into your brokerage and you just type in Bitcoin and it'll bring up it'll bring up the it'll bring up ETFs that have Bitcoin but also bring up the future one. That was the only one that I'm in because bit o gives you a monthly dividend. The Ito
Yeah, we talked about Beto and a bunch of stuff.
My whole my whole purpose in any investment is to generate money every month and like so I
take advantage of sectors and Kryptos a sec with ETFs and
one thing you have to look out for is majority of them have fees that they'll waive if you hold your shares in the ETF for a certain period of time, I know like six months, three months, whatever. So that what that means is if you buy say you put $1,000 into any of those 11 that I just mentioned, not better but the other 11 prior to that. If you hold it for like say it shoots up and you sell it, you're gonna have to pay a fee of anywhere between point two zero and 1.5%. But if you hold for three months or six months or whatever the duration is the fees are waived and you can trade. You can then sell it without having to pay the fee. The fees are high. They're pretty high.
Yeah. So this is basically we're not planning to get in any of these, right?
No, we are in bid on your mom's in the Bitcoin and Aetherium futures.
So we're just putting this out there for your information. We actually aren't even going to play around with these as they sit and as they
take it's gonna have to take I need data and there's no data because it literally just came out like five days ago. So I it's gonna be a good six months before I even like consider this. So
take that for what you will we just I just wanted to be transparent. I want to
know if you want to invest in cryptocurrency, just point blank you you have to get like a Coinbase account or account or what's
another one? I have Kraken Kraken Kraken.
Kraken is the best of the three we just mentioned but can't even that has pitfalls. But if you wanted the best of crypto directly you actually have to get into one of those where you can set up your bank account to link up with with your your crypto exchange thing and then you just transfer money over and then they're going to take some fees because that's what they do. It's what everyone does. But if you're gonna invest in crypto by itself, you got Bitcoin, Bitcoins, probably gonna go up to I don't know 60 Some percent. You got a theory and my theory was probably going to go up a lot more than Bitcoin so five if I was you I would get into theory I'm not Bitcoin. The difference being obviously the Bitcoin has a finite amount of coins and coins and
so even if you're looking at the end price of Bitcoin essentially going to maybe 200,000 or whatever, that 200,000 doesn't mean profit for you. It's how far the differences from where it started to where it went. And the smaller coins have more room to like x if that makes any sense. The
problem that we've encountered when it comes to cryptocurrency is finding the coins that are trading for like point 00000002
Well, even if they're only a couple of dollars and they go to 10 That's a 10x gain Bitcoin would literally have gone like
that. That's why like we invest in okay with that, here's
that here's a phrase on the third gen
probably heard all coins, we invest in all coins that I like innovative they have to have a really good technology behind them and like like for example ripple I didn't invest it in her mom did it's basically they established a payment method for the medical community ripple trades at 50 Some cents, that's probably going to go up to 1213 $14 and like the next decade
so okay just won their lawsuit or whatever they had with the government. They're gonna actually
coined that I really, really like is Cardona ADA. Um, so I should tell him okay, bitcoins BTC Ethereum eth, ripples XRP Cardona as ADA Cardona is like that one there's probably be 20 or $30 that trades at 50 cents. It might even be more than 20 or $30. That one's gonna explode at some point and then when it explodes, it's going to just be crazy how many x's you're gonna get from that one? I really like polygon Matic and ATI see that one's at 88 cents and that one, there's another one that's going to be 20 3040 $50. I really liked chainlink li M K. Oh, that was really revolutionary. If you have time, you can go through what I'm recommending here. You can look at what the technologies do because this podcast would be one
of the biggest things a lot of these alt coins, they have their own specific networks, but some of them have their own network which is essentially their like system to actually transfer the coin on Aetherium and Bitcoin network is so expensive to move anything around on so that's why any of these extra apps and other coins that were on the Ethereum network and you saw that when you like we're playing around with NF T's if you looked in the NF T's and if T's were so expensive to trade until I think it was the was at the Solana network or the ADA network came on board might have been Matic I can't remember it's been I didn't really dabble around too much again O T's but ADA is like pennies on the dollar to trade versus like 15 to $30 for Aetherium for a trade. Same thing with Matic same thing with chain link. So it's like that's revolutionary in itself in the crypto world because it's creating something that was so needed because people were so annoyed with paying these high fees. So every crypto that's like really, really worth its salt is really going to disrupt you're looking for system disruptors in a very similar way as you were looking for stocks that are system disruptors like Amazon was a system disrupter. Uber was a system disrupter, we're looking for the Kryptos that are going to be third gen that are undervalued right now that are going to be system disruptors. Or creating technologies. I
have a couple that like ship, that's Shi B. Shiva, Shiva. He has a shit coin has nothing something to do with anything and it was created that as a joke, but like so many people are invested in they have so many like people with lots of money. Invested
that's the key so they're called meme coins or shit coins. Dogecoin was one of those and they're basically just run on trends
to ship is trading at point 0000001 That one that I can see be worth like a penny or two pennies someday and that one if you get into that you're gonna obviously have to hold it for like many many, many, many, many years, but we're talking like 1520 years now that'll be worth over a penny and you're gonna make a shit ton of money.
Well, what's crazy about a lot of those like when Elon Musk did his whole pumps were tweets on Dogecoin they just like shot to the moon for no apparent reason. So it's like if you're really good at like catching trends before they're really popular and getting the hell out before you get too greedy. Like looking at shit. Are you like coins? Do you
like Bitcoin and you can't afford Bitcoin? The best alternative would be Litecoin because they literally trade like, identical to each other. Like coin goes for 71 which is
LTC LTC. And that one actually has cheaper fees for transfer. So it's like that's why they call it white coin. It's less heavy on the network optimism
which is okay, that's what I just found recently. I like that one. That one has a lot of like that one's 380 right now that one's going to be worth like 100 200 hours in future. I think that's about it. Now there's one more I know I like synthetics but that one's kind of Sn X like it's capped out at like $30 this trade to 375 so that's only the minimal x I like tezo stays US dollar six I was kept out again and probably 20 or $30. You're only making 20 or 30x. And I don't like that anymore, man is garbage. I do like a one that we were in and then we got out for some reason. A bit torn, which is BTT. That one's literally like you use that to rip stuff. I've
always been it's basically for the torrenting network of people. And if you were part of the whole Napster thing or any of that stuff now Pirate Bay. I like what they're doing like the system aspect and if enough people follow that whole thing, the BTT crypto is going to be the currency of exchange for the torrenting realm. And I think that's actually kind of increase through the blockchain
is at point 000001. So that one and again that wouldn't be like one or two senses that like 1520 years down the road so that like like Shiva, but this one actually has a purpose so like, and the one that I liked the most that all of them that I've just like in the last year I've been doubling whatever extra money I have is that AI it's FET it literally is like a cryptocurrency that deals with AI and it's pretty good. That one's going to be worth probably 100 $200 But it's under $1 right now.
Well and we always talk all the time about how we have our brokerage account or that's those are only investment accounts we have. We're not actually I guess, being completely accurate about that. Back when I worked for the government, I had a tsp and when I left, I decided I can't touch this thing because it wasn't a traditional retirement account. So I knew I couldn't touch it till I'm like 30 years from now. So I was like, Screw it. I have $100,000 and we actually were looking at the ability to have a retirement account in crypto and I found what the heck is it called trust, I trust. I did some research and it's actually pretty credible. So I moved all of my money into that and to put it in pretty much at the peak of the last Bull Run and we dropped like 50 to 60% in value. We did something similar with a portion of my mom's my mom's actually back up to break even already and we haven't even really hit the big exponential
with her mom. Okay, like the this is like when we discussed it and like here's a prime prime illustration of it like her mom is 65 five so she's gonna be retiring relatively shortly and she's gonna need her money relatively shortly. So with her money, I put like 60% of Bitcoin and then like 40% and a bunch of other things whereas Carmela she's retiring 30 years from now. So I put like 50% of in theory, because it is a time to do it's going to do and then 50% and other things.
And I looked at it from the perspective of my government, the government matched 100% of what I put it up to 5% So I was on 5% to 5%. So in my opinion, I believe crypto and the technology behind crypto is going to do crazy stuff in the next 30 years. So my perspective was if I put it into crypto and it's even only worth half of what it what it's worth, right when I started. I'm essentially breakeven because I got 100% Free contributions from my employer. I don't think that's going to happen, but I was like, What is Simpson YOLO Griffin river let's see what happens because I knew I couldn't touch it. I was just annoyed by that.
Yeah, like so like that's a prime illustration, like her mom's is super conservative. It's majority of Bitcoins. I know bitcoin is within the next few years gonna cap out and then I can just sell it and then take the proceeds and do whatever, whereas Carmela is is more in Aetherium, which is gonna take a longer time.
What we're kind of hoping happens with my mom's is that we took so much out of her normal retirement account, and we're hoping that when crypto does its move, we're going to be able to actually take out the initial investment into crypto, put it back into the other investment account or stock account, and then just let the crypto one keep compounding through each one of these cycles.
I'm gonna read this I'm gonna read this it's gonna be boring. This is why I like that AI the most that anything we've mentioned today. It is an artificial lab building an open permissionless decentralized machine learning network with a crypto economy. That's AI that democratizes access to AI technology with a permissionless network upon which anyone can connect and access secure datasets by using the autonomous AI to execute tasks that leverage its global network of data. So basically, what it's doing is it's it's accumulating everything, and you can log into it using the AI coins and pay whatever the whatever their subscription fee is, and then you can view AI research on anything that you can think of as long as it's in their data. Well, I was
crazy about that is there's a prime example of what I was talking about before crypto merging with AI. That one has my vote to
Yeah, I really think that's gonna be like I'm not saying like I think in the next year or two, it's going to be Bitcoin and Aetherium blah, blah, like the usual suspects are going to give you the most money but I think like within if you have like a 15 year time period effect AI is the best token
Well, in fact, I might shit the bed, but some other company is going to see what they're doing and they're going to actually overtake them in the same actual like, sector but I'm just saying if this happens, so if you stumble onto these interesting, interesting little niches in technology, where you see they're going to fill a really interesting need or demand, and then some other company sees town to fix the gaps or fill in the gaps. That's where you get the second gen coin, the third gen coin of the same thing and you get those iterations, like how Amazon came in and they just completely blew up the whole online. Like,
we were just discussing Amazon. Think it was Amazon Amazon was a bookstore, that they said, Ah, but see, no one's coming into the actual physical bookstores anymore. So we're gonna put all the books online and they saw Oh, more people buy their books online. So then they branched out to like other like paper and pens and shit like that. And then they said, well, people are buying these online and then they became a bit of a branch that more and started selling a little bit more online and then once they determined that online was the place to be they basically just redid everything and they are what they are.
And that's that's what the determining factor. If these companies adapt as they get data that points them in specific directions, and they actually focus in those areas. That's when they become the
polluter flicks did the exact same thing. If you recall, Netflix was the bomb because you literally could rent
do you know about Netflix is story, any
DVD you want and with no late fees, they mail it to you you watch it one time two times burn it if you do, I mean if that's what you did, and then you send it back with only fees newbies pay like nine I think it was $10 a month and you get as many movies as you want per month. I when I used to work the turnpike I worked overnight and the toll booths so I was like always watching movies because there's Believe it or not, not a lot of traffic at night. So I had up I had like a stack of Netflix I would just watch and then I would burn the good movies and then I had to mail back and they only took about two days and when did the Netflix it Oh, so what we're going to do now is we're going to stop doing the mail thing and we're sure we have everything online so then you pay a fee and then you go on go on to their website and then you'd be able to watch the movies and what they did with that is then they created streaming now you can stream on Netflix. So what's
really interesting about Netflix, Netflix originally pitched their idea to Blockbuster and blockbuster shot them down and told them they were stupid told them it would never catch on well I
mean there's look what happened part of them to stop me kind of misses the whole going out to Blockbuster on Thursday or Friday. They
still have a blockbuster left so
we're gonna go visit that but like part of me is misses the whole you'd like you'd have to plan like for an hour to go to the video store and pick out what you're going to watch for the weekend.
I remember browsing the aisles forever then now it's like you can't even you can get the trailers like click on demand.
Yeah, of course you're like, stupid when
the Netflix branched out into creating their own movies and TV. They
have their own Netflix originals and have their own studio that produces. So when is Amazon Amazon actually branched out to their own stuff?
No, I know. They saw that that was the thing too. So the fact that Amazon adopted Netflix like pick the right sector so I'm just saying that
for like those of the companies like if you're a growth stock person, you want to look for those types of things and like I have one that I will probably bring up in the future in the near future. I have to watch it some more that it's it's a it's an AI company that deals with pharmaceuticals I have to watch this morning before I recommend it.
Yeah, but that one's pretty bad saying that's
like where the AI like people think AI is like all these machines that are going to take over the world and that's not even slightly. The biggest AI is programmed to go to a point and they can't go where they can't like exceed their programming so they'll never actually take over like for humans
like the biggest opportunity I don't know about never but the biggest opportunity unless someone unless it programs specifically but I
do programs. Personally though, we were discussing like oh like every time I bring up AI with people they bring up Terminator and it's like dude, you understand that? That's not how AI is. Seriously
when you look at what AI can do for a lot of these existing like sectors and technologies and like like healthcare is a prime example it you can literally put all of the medical research into a AI program. Put in symptoms, ask questions, and it can spit out what to do to fix cancer. It can spit out what did you
guys said the one that I'm not quite ready to recommend yet. But like what they do is they take a patient by patient case. They take your medical data, they input it into AI, the AI analyzes it and then recommend a solution for whatever they already knew. And like they have to have cancer treatments in the pipeline. They got diabetes, drug treatments. They have leukemia treatments they have I mean cancer, I shouldn't be specific. They have like four or five different cancers for different things. Like
and they're working right so they're working. They're doing better than what a doctor is
working so well that companies are pouring billions of dollars into this little tiny company.
We've been saying that people are worried about like the Terminator and all that other getting rid of the assembly jobs but to be honest, I would be more scared for the white collar specialty jobs. If AI can actually assimilate data and spit out answers better.
So I was while I was watching. I guess it was a pitch to buy some stupid subscription. And like one of the things I never even thought of the stuff they said what they have is they have they have Tesla has the end of in the works like they're called Tehsil robots. But basically there's multiple companies that have robots that do assembly line work. And they they noticed that every now every now and then there was an error or an imperfection in the assembly line work so they actually had to create a AI Foreman to monitor the AI line workers to make sure they're doing their job right. Now there's AI forming robots.
I do think it's going to end up where you're going to have a person actually like kind of co working with that Foreman robot because there's only certain things like a human can do. And then you can just utilize the AI to implement it and it gets rid of a lot of these mundane tasks that just bog people down and it gives people the opportunity to go pursue things and
this goes back to what I said last and last episode, and I said one of the reasons I'm super bullish about 2024 is because the AI revolution has literally just started and like is branching out into
again you crippled with crypto or the blockchain tech dude, I'm telling you like that's why I said I think that is actually its own thing that people don't really know.
I even went on a whim when I was talking to certain people I said you realize because they're like they keep bringing up like the smartphone. I'm like, dude, AI is going to be I don't know the number of times but it's going to be 100 or 200 or 500 times more innovative innovative than smartphone ever was an AI that's just incredible. Like I created the theme song for our podcast was
if you didn't looked at it that he absolutely did.
I don't know the first thing about musical anything and I created a song with AI and
if you're interested in that there's a link down in the show notes at the bottom that tells you like where you can go I think it's called loudly but you can go in there.
The trouble was because I created with AI I don't have like the rights to it. So
anyone can well a lot. Some of those are some of those you can pay to have the rights so that they can't like whatever but you can totally go in there
and tinker around for free it's just so many wants to steal they can steal I don't care. It is pretty cool. They is creating like a diagram like not diagrams but like our whatever that is
logos and she like Yeah, and that's that's the other thing. So I actually started an Etsy shop just because I have a creative thing. Like I was tinkering around with stuff from a travel perspective and this is something I'll probably like if you want to give back to us in any way shape or form but I'm basically using our travels as inspiration to create like print on demand using AI and I'm like integrating certain things. I haven't been working on it too much right now but I got really into it right around the Christmas season. I mean it's it's really neat what's available. Like I don't know if you've been into like you can actually use chat GPT to give you props for like some of these other photograph AI programs. Everything's very, very interesting.
Like and then in Japan, they have aI housekeepers and maids and chefs and they have aI partners.
I could see that one being bad, but I'd love to have an actual cooking person or a cleaning person because those are my least favorite things to do. I mean, I don't mind cooking if I have the bandwidth, but like I don't have time right now and like it's a bit like eat being able to eat healthy would be so easy. If you had a robot you're programmed to make only healthy food and it's like you have no excuse. There's
no There's no they're gonna facilitate
and I know they're just turned into an AI frickin whatever. But well a part of AI is it's crypto. I really think because again, crypto I think crypto is going to be essential for AI because of the smart contracts to be honest and like the blockchain aspect. I really do think they're going to integrate and I also have a sneaky suspicion that the stock market is actually going to merge into the blockchain or crypto realm you
actually define what blockchain was.
That's so hard to explain. It's essentially like digital, true and false computer program that cannot actually be fire awaited. gets
blocked into the simplify blockchain. It is literally like if you remember, if you remember proofs back when you were math like there's a true false and your proof like blockchain is so similar that like, that's true. It's true. There's no way to like actually falsify the trip. If it's false, it gets booted and they have to bring it back. Yeah,
so like hacking is less of a thing. It's very, very interesting.
If you look at that was one of the reasons why people were so like, hesitant about cryptocurrency because it was hacked all the time. And they actually weren't hacking the blockchain. They're hacking the exchanges. They
were hacking and they were happening there. Right now. They're hacking to the actual movement. So they're hijacking it in route.
So it's not the block blockchain itself is secure. It's other areas that they have to improve on. Yeah.
So that's interesting in
itself, that is, and that's and as
time goes, it's gonna get more and more safe, more and more user friendly, more and more applicable, people are going to start seeing how it's like able to track certain stuff I
was going to invest in AI. I wouldn't invest in a partner I would invest in a chef I wouldn't invest in a maid I'd invested in AI Robo trader.
Well, Robo traders are another one that I really want to look
at. From early I would invest in AI to say okay, because I've been watching like the results of the AI trading and it is kind of fucking spooky how close it is like it'll say this one's going to be worth this much and two weeks in four weeks and six weeks and like it pretty much
as possible. I will be really curious to see if that would stay at hold water of everybody was using bought traders because then you would take out the emotional aspect but then again, if everybody's programming their AI or whatever to go and trade, and they're telling them that I want to be an XYZ sector XYZ company. And then the AI is like, Well, I'm gonna buy and sell and then like they have these programs where you can I think it's called bot trading where it's like every it has all these like mini resistance and lines put in so it'll automatically sell and then it'll automatically buy with those micro dips. So you're actually accumulating like, quarters over time, and then they'd like snowball into these. Like it
takes us back to the whole a few just got one grain of sand. Like that whole story that there's playing chess and like that hasn't been beat the king and hasn't said I only want one. I want a grain of sand and worn board and I want to double every other square in the 64 boards. By the time it got to the 64th board. It was a 64th square it was like a billion so necessarily compounding were the same way with like the pen. Like if you can actually get an AI that would trade the money make you a quarter a day imagine how much a quarter of that would be 25 That'd be 50. That would be $1. That is crazy. But that's that's completely different.
So we're really again bullish on this whole crypto and crypto perspective holy shit the like
now if you did listen, I said read so I had to specify a real quick. It looks like Office. Least REITs are not the way to go. So you want to get avoid those. I just need to mention that because they had five I think in the last week had to cut their dividend because the office office rates are getting just smashed because no one's working anymore because they are working from home.
Well that makes a lot of freaking sense. So the next episode, we're going to do the three best REITs three best BDCs three best utilities. I'm not sure how to break those out into individual episodes or if I'm going to put them on the same one. It really depends on how long we'll go when we record. And then because I'm actually leaving for Greece in a while technically when you listen to this, I'll be leaving tomorrow. I'm not sure what our other episodes going to be. It depends on those unfold, but they're short episodes and even if I do them separate, I'll give you a couple on the same thing to listen to you so you can break them up and reference back easier. But we'll probably start talking about like using travel points with credit cards because that you can actually get cash back and roll that into your
world like whoa The objective of this is no nomadic lifestyle like one of the things that is often overlooked is you can actually use your dividends to pay off your credit cards that you use during the month your credit cards accumulate cashback that you use, like the grocery store to get gas and State Park passes and showers and whatever shit you spend money on put on the credit card accumulate points and at the end of the month use or dividends to pay off your credit card so that way you're actually using your dividends to pay for your travels but at the same time you're making money with
you're making free money that you wouldn't be making otherwise. So that's
that's a different episode but that's like the rationale behind the thinking behind
but I mean, we were just again the ways extra ways to make cash even if you're not traveling, you're still buying groceries.
Well that's another way but like I said it's geared towards the nomadic lifestyle but if there's other people that like like the income investing and they can use it to the I don't know pay their bills, pay their user credit card to pay like certain bills and then use their dividends to pay off their credit card and all the while be making money off with their credit card.
So that's what's in store for the next couple of episodes. You know, we got to get too far forward but we got a
lot to talk about. Now that we've got through all that good with the gun.
There's still a couple I want to do I want to try to do like one for which brokerage account to pick why we picked whatever. And then I want to do one on retirement accounts versus regular accounts. Because I think that's one I get a lot of requests
to do a tax will at some point but Jesus I mean, I still don't understand that we might wait till natives are able to do that. Um, I need to get a tax person on here but like do just start talking. And I'll ask questions as I see fit. Because like, I mean, do your god there's so many different rules and loopholes and nonsense.
All right. I will see you guys in the next episode
of REITs. I will be in Greece. I will be here starving.