Cryptocurrency Explained! Investing in Cryptocurrency and Bitcoin! – AMPM PODCAST EP 144 Part 2



hello everybody and welcome to the am/pm podcast my name is Manny coach and I will be your host and this is the show where we discuss all things Amazon private label and how to generate recurring revenue streams 24 hours per day during the a.m. and the p.m. hence the name of the show get it AM PM podcast as a matter of fact I just got back and I have all these little bug bites on my body and I think they must have been from bed bugs or something from the hotel not sure but if that's the case while those little monsters were making lunch out of my body I was making money how cool is that pretty cool I think what's up everybody Manny Coates here and I am here again with the famous Brad Mills Brad how you doing excellent great great so this is part two of our podcast the first one went pretty long we answered a lot of questions I should say Brad answered a lot of questions I was just here for the ride asking the questions but we're taking a little or changing we're diverting from the normal podcasts if you are just catching this one normally we're talking about Amazon Amazon private label and one of the things that I'm dabbling in now guys is cryptocurrency so I wanted to do an episode and it turned into two episodes here with Brett on how you can take some of the earnings that you generate with Amazon and then move those into something pretty exciting and I think this is one of those worlds one of those those new niches I guess you could say where it's kind of like if you could have invested in Amazon when it first came out nobody knew what the heck it was right or the Internet and all those coms back before anybody knew what a.com was and and hopefully it doesn't bubble explode like it like I did with a coms but that's what we're doing this episode and the previous episode for so that you guys can get informed and we gonna have Brad come on a somewhat regular basis to keep us all up to date on things so Brad that said the first one was pretty awesome you talked about what cryptocurrency is what forking is what all the different things are but there's a lot of different questions here that I have that I want to kind of jump through pretty quickly okay that cool with you yeah just a quick comment though from earlier when we did the first podcast it was earlier in the day in the a.m. portion of the am/pm podcast now we're in the PM portion there's already been a development coin base one of the largest exchanges for Bitcoin and aetherium has commented on that Segway 2.x debacle and they've cited on the side of Bitcoin so they're gonna keep the original chain as BTC and segue to X if it Forks is going to have its own ticker name so that's huge news for anybody that's on the no 2 X side or the original sort of like libertarian idealist philosophical side of Bitcoin because big business didn't wane in this case now it's still gonna be a battle but this this has just happened in the last couple of hours so I feel a lot more safe about people holding their coins that coin based now that they're actually gonna do the responsible thing and keep Bitcoin as BTC okay so for those of you that are wondering and the first episode we did with Brett he had mentioned that he was gonna be pulling he's already in the process of pulling his cryptocurrency Bitcoin specifically offline putting it in cold storage because of this fork that's coming up in November what was it November what it's gonna be around the middle of November there's no set date at the block number so depends on how many blocks you know what time they get mine all right so you he was saying get it on because a lot of crazy stuff could happen he was already doing it now you're saying if you're on coin base and you put you've got your coins let's say in their vault they're BTC vault right you would leave it there you're okay with that now they've come on and commented on the Segway 2x yes I would say it's it's okay to leave it there on on coin base but as a good general security practice with cryptocurrency if you don't own the Bitcoin unless you own the private keys which means unless it's offline on a treasure and cold storage and a wallet a hard wallet or software wallet where you only have the C key and you control the private keys it's not your Bitcoin okay and that was a big lesson I learned when I lost 90% of my cryptocurrency at mal Cox when I had it stored on the exchange and it went under yeah ninety percent did you cry that night you know what I felt I felt I didn't feel too bad because it was all pixels and that's the funny thing about this it's just all pixels yeah yeah it was pixels that you paid for it was paid for pixels yeah how much was it worth that 90% that you lost what was the value of that at the time at the time I think it was a few hundred thousand dollars something like that so I mean it was a decent chunk what would that be worth today had you not lost all that and you still had them that today would be worth about four million five million so ah yeah maybe now you want to cry maybe now you want to cross you know I'm I always think my bitcoins are worth what they're gonna be in a few years so at the time when I lost and I was treating it as if you know it was as if it was already a few million at least because I believe that Bitcoin is gonna go to like 25k hundred K in the next three to five years so if I lost my bitcoins now it would be like it would be like as if I lost them in five years yeah well you know what if you're right with your predictions you guys on the first episode he said hey I expect the Bitcoin now you were certain I think you should use the word certain that Bitcoin will hit a hundred thousand dollars within the next five years right I believe that's why sort of take this mod oh no this is the new shirt I'm wearing please stay calm yeah that's what you need to do in cryptocurrency because it's very volatile you could invest and then the next day you're down 20% okay so gotta stay calm and hold sortal it's called it's called but Hodel Hodel yeah Oh deal you'll see that a lot in the crypto chats and Twitter and stuff what are some of the terminology terms what are the terms people should be familiar with give us like five or six that people really need to know well if you're just investing in cryptocurrency I mean you're gonna want to know the basics like blockchain right so a blockchain is just the technology that drives a lot of these crypto currencies Bitcoin is the original blockchain and then a lot of them forked away from Bitcoin to create litecoin etc others that have their own block chains so you'll see a lot of people that are now using the buzzword blockchain technology expert or a blockchain expert or whatever and a lot of this is like businesses and people who are sort of marketers and stuff who are now trying to get into the space or don't really completely understand Bitcoin or don't want to align with Bitcoin but they want to get exposure to the space so you see blockchain everywhere but just know that bitcoin is the blockchain is the original blockchain and most of all other crypto currencies that are based on a blockchain are based on Bitcoin or at least the theory of the consensus mechanism that Satoshi Nakamoto came up with to make Bitcoin now the other term is distributed ledger so there's ripple is a really big cryptocurrency right now and that's a distributed ledger technology the other one is a dag so a dag is a directed acyclic graph that's iota and G bytes which is byte ball so there's these different consensus mechanism technologies that you'll hear the phrasing like oh this isn't blockchain this is ledge this is a dag or a tangle it's like that's like the technology speak but term trading terminology you'll hear a lot of things like drawdown or or capitulation or mark just different terms for market cycles so I'd recommend everyone that's listening to this if you want to get a good book go to an audible and get reminiscences of a stock operator it's a book about the turn of the century 1900s stock market this this guy the name slipping me but is this famous you know early turn of the century stock trader about how he came up from trading them small amounts of money in bucket shop to becoming like a market maker on Wall Street and it's full of terminology and it actually is very reminiscent to what we're going to right now with blockchain and Bitcoin and crypto currencies so that book reminiscences of a stock operator it's a really entertaining listen and it'll get you like up to speed on how to think about the current cycle that we're in which is the one of the greatest bull markets cycles of something that anybody can participate in in history where Brett where is Bitcoin right now what's the value we're closest is around 6,000 it's like fifty nine hundred I believe fifteen or when do you think it's going to correct people you know cuz it keeps going up well waiting for it to drop again and why would yeah well okay so that that's a good question and like that's kind of what I try to do from my personal portfolio and for alphabet is analyze the market kind of see if we're if we're gonna enter some kind of exhaustive move that ends up just correcting and coming back down and cooling off but if you look at a lot of the fundamental factors you I don't think there's gonna be anything in the near term for like a serious correction back to like a thousand dollars I feel like there's enough momentum happening and I've got people that analyze coin based sign ups and bit rack sign ups and the exchanges sign ups there's between 20,000 and 50,000 new users a day coming on to these exchanges so it's like it's massive growth like it's it's there's enough there's enough demand from new people coming in to keep putting my into cryptocurrency to keep like discovering it and allocating some other their their savings and their net worth into crypto that I don't think I don't think we're gonna see anything short-term but you got to always be prepared a lot of people that I've talked to that really don't know that much about cryptocurrency are saying well what makes this opportunity real versus you know a speculative market you know how is there value in something like this yeah I mean it for that question you got to kind of go back to the basic stuff like what is money you know when you're asked somebody what is money typically you're gonna get a response like either oh well it's a dollar backed by gold or it's just what it's what the government tells me I have to pay my taxes in and sometimes people just have never thought about that before so half the people that that think that the dollars worth something because it is because it's backed by gold don't even realize that the United States went off the gold standard like decades ago and that the dollar is backed by nothing so when you think about it from that sort of philosophical point of view I mean really there's there's nothing valuable about a dollar other than it's a Jason Hartman likes to say it's backed by the intercontinental ballistic missiles so like really you got to think what is what gives value to things that have value it's what people will give for it in return right so it's a it's a it's a sort of philosophical thing about like well I think it's worth this so it is worth this when we're talking about free markets and bitcoin is a decentralized trust ledger so it's the first time in history there's been a technology that allows you to store your value in something or you do not you don't have to trust anyone else you have to trust a bank you don't have to trust a government it's provable that you have what you tell me that you have right so that's that's a groundbreaking technology because there's never been something like that before there's always had to be someone in the middle to say yes right and then with that becomes regulation and control so the same way that they can't shut down BitTorrent because it's decentralized and period of beer they're not gonna be able to shut down Bitcoin they've tried and that's why it has value now because it's it's gone through this sort of trials and tribulations of governments trying to ignore it and shut it down and you know oh it's only used for dark markets and drugs and we've gone beyond that and now you're seeing a lot more institutional investors get on board so when people ask like what is it real I mean no it's not but neither are dollars and really like what is gold valuable for sure some people use it for like electronics and microchips but there's there's really like it's not like you're buying a gold brick to use you're just doing your valuing but with a dollar you know it doesn't go from a dollar to being worth 20 cents overnight and with Bitcoin you've got these massive fluctuations subside like you could go from 6,000 down to 1,000 at what point does it stabilize I mean is it just a certain number of people that need to be invested in this before it finally starts you know you're seeing small increments every day so if they if anybody wants to follow a really good guy that talks about this there's two guys I'd recommend there's a Willie Wu he's at one ohmic on Twitter and then there's Chris furnace if that's the way his name is Chris B C B insight says his is a twitter handle so these two guys are like smart economic on economists economists sorry you got it that that yeah I did it need more coffee that really dive into the data on this stuff so Willie's got this chart that I like to show people and it compares Bitcoin volatility to the volatility of other asset classes and yeah there's gonna be a lot of fluctuation for a long time once we start to approach the m1 sort of money supply where it's a words of like peer to peer money that is used just common every day it's not gonna be as volatile because there's gonna be a lot more like weight and stability now what do you think that's gonna be how many years from now that's probably fine that's that's what I'm thinking like five years in five years when that happens you'll get a really high price but it'll be a stable price because it's gonna be used for like not just store a value but also like transactions right right so I've got some questions we're gonna bang through these so that we can get there's a lot of them here so let's do this this is from our Facebook group we mentioned this in the last in the last episode if you guys want to join the Facebook group you can do that by going to am/pm podcast com4 slash bitcoin alright guys so Marion asks what type of strategies are there when it comes to managing your account should we treat them like CDs short term investments 401ks long term penny stocks you know doing day trading what do you recommend I think I know the answer to this well really the answer there is whatever you specialty is if you're familiar with trading if you know how to short turn swing trade if you're if you're familiar with managing your own accounts I'd say then you can apply those same strategies to the cryptocurrency markets there's over a thousand cryptocurrencies right now so you can be a swing trader if you're coming from the forex world or something like that you can swing trade Bitcoin because it's very volatile which means there's a lot to play with so people who are used to that sort of thing they can come in and swing trade if you're like a like a more of a I guess an entrepreneur and you're focused on your business and growing your business and you don't really have a lot of time to pay attention to these markets you just want to plug into it and get some exposure then you can like invest in say the gbtc on the on the stock market it's actually the grayscale Bitcoin investment trusts so you can get exposure to the Bitcoin gains without having to pay taxes on it when you take it out so a couple of friends of mine had invested in gbtc last year and they're up 10x on their on their Roth IRA account so you can do that or you can just buy and hold Bitcoin now there's also like if you're invested if you're used to investing in startups if you're an angel investor or whatever you can take the same approach and then you can just fundamentally look and say I like this because it's a privacy coin or XML or Manero I'm going to invest 5% of my portfolio there I would say another book if anybody wants to kind of get a primer on this if they're if they want to get in and more do like that management style whether they're taking more of an active approach then trend-following by Michael Covell is a really good primer on it and the complete turtle trader by Michael Covell those are two really good books that kind of will teach you some some safe rules to start off with that'll make sure that you're not going all in on one coin or you know somebody will be like right now there's this coin if it's it's being promoted all over Facebook by affiliate marketers and network marketers either it's like they're trying to rip off the name of cerium I don't know if you've seen it it's like I can't if the roni or something like that and like that can fool somebody in to say oh it's only a penny I'm gonna put all my Bitcoin and that because it's gonna go 10x and I mean any book that will help you come up with some fundamental rules to sort of stick by until you're more familiar do not just go all-in on random coins and I SEOs because you're gonna end up losing your money like I did in the beginning when I was going all-in on positions and then gotcha it'll hurt okay yeah perfect all right so if somebody wants to get into I coz they really don't know anything about the industry and they want somebody that's like you that studies this thing and just really knows what they're doing and want to manage something manage their entire account they got ten grand they just want to have somebody will do it somebody else do it well where do they go who do you recommend so right now for somebody that wants to put a small amount in there's not really a good option and that's kind of what I wanted to create a year and a half ago when I decided I wanted to serve algorithmic trading and stuff and then that led me to actually just partnering with alphabet and joining the alphabet team and helping with that but that's for a credit and investors like hundred thousand minimum so for a lot of like friends and family I do just recommend buy an old bitcoin and forget about it and just make sure it's safe and you keep your keys but like a couple of suggestions if you want to think about icos and follow the news or whatever I mean maybe we can start something Manny maybe we can help help people with some suggestions eventually maybe we can do this more more often but there's a couple of guys right now that are doing it there's a Carter Thomas and Ian ballina and if you just follow those guys on Twitter like they're currently doing that right now or they're always doing videos and like giving their thoughts on the latest and greatest icos so if you want to start small just find some influencers and follow them and then maybe we'll continue doing this and give some more tips on specific like I SEOs and I would love it alright so Brad badass and I mean we kind of answered this one in the first first episode it says I have 500 pounds should I choose Bitcoin aetherium or something else you said put it all in Bitcoin so I don't think you've changed your mind in the last four hours yeah I'd say if you really don't want to like think too hard about it just go to the top ten even the top five just split it up amongst those you know there's a top okay so you got Bitcoin aetherium litecoin who would be the other two Bitcoin cash and ripple and Manero and I mean Bitcoin cash I I just posted about this earlier today like I've been selling Bitcoin cash this whole time I held a little bit of it that was the one that hard forked in August and it was where the sort of like earlier more emotional more like less technically savvy Bitcoin people that wanted to push for the big blocks right away and couldn't get their way they split off and they've attracted a lot of like fundamentalists like almost religious followers to Bitcoin cash and that is probably gonna be worth something in in you know the next year or two like it's probably gonna go to a thousand two thousand or something like that it's only about three hundred right now but not gonna sell all my Bitcoin cash I'm gonna keep some of my Bitcoin cash but we got a coin base has half a million Bitcoin cash right now and that they're at three hundred dollars so what is that three hundred million dollars worth of Bitcoin cash or whatever however the zeroes however many zeros that is it's quite a lot that that's going to be dumped on the market when because most of the Bitcoin holders on coinbase are gonna sell their Bitcoin cash when they get it when they finally get it unlocked from coinbase that's gonna be a lot of sell pressure on on the market so the price is not going to go up you know a lot of people think that it's like the Chinese government and the big miners like the big Chinese miners like gee Honolulu owns bit Maine they're propping up the price of Bitcoin cash and they're they're the only ones mining Bitcoin cash like there's not a lot of natural miners on that block chain to secure it so that's true and that that's sort of speculation but I can see it being true so if you were them right and your mandate was to sort of replace Bitcoin with the Chinese Bitcoin which is Chinese or a Bitcoin cash right and you wanted to have this control over this cryptocurrency are you gonna like support the price while these three hundred million dollars worth of it's gonna get dumped on the market or you're just gonna wait for those people to get the cat to Bitcoin cache and dump it and let it go down to 100 bucks and then you buy it all and then you pump it to two thousand so that's the sort of theory you got to think about behind some of these things I wouldn't be buying Bitcoin cash at these levels because there's gonna be a tsunami of cells once coinbase opens it up and then once all the sellers are out you've got all those people that hate Bitcoin cash that are like motivated to dump it they're out of the market then you can buy some up and then it'll be less of a risk of it going to zero it'll it'll probably go back up to here or higher what do you think it's gonna drop drop – I mean I was predicting $80 113 300 to 80 it came out at 800 and I predicted 80 and I was wrong with 80 I started selling around 800 but I mean I sold like a good chunk of it at 800 and then I bought a little bit more at 350 because I was like maybe I made the wrong move here because the sentiment shifted around Bitcoin cash there wasn't as many people hating on it as it was before so I bought a little more but obviously I shouldn't know because the shit's continued to go down but hey such as light that's trading when it when are all these when are these coins going on the market you're talking about a big dump everybody's dumping when is that gonna have a think it's gonna be first corridor 2018 I have to research that coinbase hasn't set a specific date yet but they're the last holdouts really they hold the most amount of Bitcoin cash for customers and they're the last ones to put it available why are they holding it well there's been some speculation that Bitcoin that coinbase actually didn't have the reserves that they said they had so one way to prove your reserves for Bitcoin is to when there's these chain splits if you have 500,000 Bitcoin if you say you have 500,000 Bitcoin then you're also going to have 500,000 Bitcoin cash for your customers so if you can't give Bitcoin cash then some people think well that means you don't have 500,000 Bitcoin right because it's a one-to-one split so one of the theory that coinbase was sort of not they weren't holding all the bitcoins there claimed they were holding and therefore they can't give all the Bitcoin cash they need to give out so what they're trying to do is delay giving it out so they can acquire enough of it on the market so that they can meet the reserves now I don't know if that's true or not but it would make sense you know if Occam's razor suggests Rea like every other exchange has has been able to provide their Bitcoin cache of the clients well why hasn't coinbase they say it's because of technical difficulties and whatever like date they initially said that they weren't gonna even bother giving their customers Bitcoin cash because they didn't support it but then enough people threatened to sue them that they said okay we're gonna give it to you it's just gonna be a longer timeline holy figure it out so I don't know that's that's a good question and I don't know the answer to that one but giving you that answer kind of makes my earlier answer of saying oh it's okay to keep your money a coin base a little bit suspect because if they didn't have the bitcoins to you know maybe maybe take some of your bitcoins off there again every exchange I mean I don't know who I don't care who they are I don't trust any exchange anymore okay you know it's not your Bitcoin unless you control the private keys if you're just buying to invest long-term take it off the exchange let's talk about that ticking it off okay that's cold storage right you say tick it off put it into cold storage people don't know what that means can you explain cold storage well actually cold storage is even one step more secure than just taking it off the exchange and putting on your own computer so there's there's been a lot of like zero day exploit sleep this year just last week there is that Wi-Fi vulnerability found like there's constantly hacks and like NSA zero-day exploits being dropped from you know on the black market where then like hackers will be able to use this to gain access your computer or soup on your traffic or whatever so cold storage is a way of disconnecting your Bitcoin from the Internet so that's why it's it's called cold storage it's you you're taking the Bitcoin the private keys you're generating them on an offline computer that has never touched the Internet so you buy a brand-new computer straight out of the box and use a wallet like armory wallet and you're and you're actually like having a second sort of like layer of security by generating your wallet what's a wallet what's a while all it all is just that long string of numbers and letters that it represents your Bitcoin address so that's that's the Bitcoin address and the wallet is the actual file that your computer makes when you know you open up the program so like electrum is oh is a Bitcoin wallet armory is a Bitcoin wallet you can have SPV nodes which are like mobile wallets where it doesn't need to have the whole blockchain on it because the blockchain is like a hundred and fifty gigabytes now you can't put that on a phone you can put it on a computer but you know if you if you want to be like extremely secure you'll download a program that allows you to like generate a Bitcoin wallet offline off the internet air-gapped from from it's never touches the internet and then send your bitcoins from the exchange to that wallet and that's called cold storage so just in general like if you don't want to get that it's secure about it you can just go to treasure io TR e zero r TR e zero our treasured IO and get a hardware device I don't have I don't have it here but it's just like a little key it kind of looks like this and it's just a small little device that has like security built in so you can plug it in to your computer and even if your computer's infected with viruses and your a unsecured airport Wi-Fi or whatever you can still transact on Bitcoin you and your your like device is securing it from all that stuff so that's probably the safest like mid-ground way for someone to protect their cryptocurrency wealth is to use like a treasure or a ledger are those the ones you have to actually press a button or something to make it work as well so it shows you on the screen like sometimes what will happen with these malware is like you'll be sending it from your coin base account say to your wallet right and the the script will actually like change the the digits on your screen so that you think you're sending your bitcoins to your wallet but you're actually sending it somewhere so if you want to use these devices it shows the screen it shows the wall at address on the screen and it makes sure you can just double check to make sure that you're not being like man in the middle attack so the it's just an extra layer of security and they have some other neat features too like you know you can set up you can set up a other other coins you can you can store other coins on there like litecoin and aetherium and stuff like that so it's not just a Bitcoin wallet they also let you store that some of the elements do okay and I noticed that coinbase said something about 98 was at 98% or 99% of their customers do not store things online they stored int they have in store cold storage and they even say that it's like in security boxes or something do you I mean if you have this at your house on this key and your house burns down are you screwed well if you didn't backup the private keys and yes you are screwed but like so for instance this what coinbase is talking about is like they hold basically like a full reserve of all bitcoins and most like 99% of their customers don't access their bitcoins and then they don't require access to their bitcoins because they're just holding it there is a vault and they take not and they take that percentage of bitcoins and they store it in cold storage so have you ever heard the term run on the bank yes you know when in Venezuela or like any country where the economy is doing bad and banks hold fractional reserves of the money all banks do right so if you deposit a million dollars at the bank account they're allowed to then keep 10% fractionally in reserves and then issue the rest out in new loans and stuff so 1 million turns into 10 million and then you know if now if all 10 people come to take up to ten million dollars there's only 1 million in the bank so no but you know that's when the banks have to shut down because it's got to run on the bank like there's not enough money to back up the cash that's owed out so with Bitcoin you can verify that the exchange has that kind of money so like tether do is one of the you'll see us DT in some of the exchanges so like BitFenix if you trade on BitFenix or bit trucks there's markets that trade with the USD like Bitcoin $2 but they're actually using us DT and now that's a really interesting currency so that's Bitcoin that's cryptocurrency dollars so cryptocurrency dollars are dollars that trade on a blockchain and they're backed by dollars in a bank somewhere so tether the company has four hundred and twenty million dollars in a bank in bank accounts right and therefore there's four hundred and twenty million dollar are million dollars worth of USD T on the exchanges and floating so you can verify that there's the full you know the that there's the the amount of USD T available on the blockchain as they say they have in the bank's but you cannot verify that they have that in the bank right because there's there's no blockchain for banks yet that's what cryptocurrency hopefully you know solve one day so in the meantime there's these USD tethers that you can trade like bitcoins but they actually represent one to one dollars now with with cryptocurrency exchanges you can provably have a full reserve on the blockchain by verifying that you've got these coins in this address so I don't know if coinbase does that but there are some exchanges that will provably you know have the amount of bitcoins that they say they have and that way everything is all reconciled and you know that there's no Fanny fancy like fractional reserve Bitcoin banking happening if I download everything to this just key this this wallet are they sorry what's it called what's the card wallet a hard wallet okay yeah the wallet you would back it up somewhere else as well yeah so once you set up your treasurer they're gonna give you 24 words to write down on a piece of paper and you can write that down and put it in a safe where you can give it to your lawyer or you can put it you know with a bank at the safe or whatever but as long as you even remember those 24 birds you don't need to have files or anything but you can have a hundred million dollars just in 24 words in your head with Bitcoin now where do you use those words when you're going to restore your wallet you'll restore by entering those 24 words in sequence and that will that will regenerate your your wall for you on the blockchain because it's it's the private key to your public key your public key is your public wallet where people send you a Bitcoin right like that's the address that is generated when you want to receive Bitcoin and then the private key is the either the file or the 24 word seed phrase or password or whatever sort of like method you've used to back it up you can input that back into the wallet like either into the treasure or Exodus wallet or any of these wallets and then it'll restore your bitcoins for you so since they're storing these 24 words online somewhere doesn't that's make it susceptible to be anything it's not stored anywhere it's just through the through the algorithm so that's like the beauty of this encryption the sha-256 encryption algorithms and stuff right so like it's never stored anywhere it's just it's like if you forget your words there's nobody that you can contact to get the words back right if you forget your password your Bitcoin wallet there's no one you can call to get the password okay so it's all encrypted so just take it you at least today it would be impossible to to crack that encryption all right yeah right yeah I mean this the the fear is that like when quantum computing happens that it'll crack the Bitcoin sha-256 algorithm and then everybody will be able to generate the private key to all the public keys and then everybody like the confidence will be lost nobody will trust Bitcoin but that algorithm the sha-256 algorithm it's what runs the entire internet basically so like every bank account and like every internet service would all be screwed so like bitcoin is only a hundred and fifty billion 100 billion market cap thing right now like you imagine it's like everything thanks in the world suddenly got got their algorithms broken it would be a lot more to worry about so let's say somebody is buying Bitcoin they're linking their bank account they're doing everything do you recommend that they run some kind of malware checker or something on their system first there's so much to keep up with with with personal security and internet security and everything like I don't even know if I'm doing it right I don't know who's if you're not a security expert then you're probably not doing it right so that's why it's best to have like a treasurer because you don't need to be a security expert there's no way that they can like inject malware into your hardware device right like they'd have to get access to your hardware device open it up and install something like on the hardware so you're pretty safe if you can if you can get a treasure and use it that way then you don't have to worry about having malware and everything so get everything into a a hard wallet and then store that somewhere safe take that piece of paper that has your 24 words either memorize it or put it into a safe somewhere yeah I just you know I suggest just giving one to your lawyer if you have a lawyer or it's not just get an account at a bank or bury it in the backyard like it just it doesn't really matter what you do with it just as long as you back it up somewhere it's even better even though you shouldn't it's even better to store it in the password manager or something than to not back it up and not write it down like you shouldn't put it in the password manager because then if someone compromised that manager or has access to your system you know you're giving them the seed to your millions and millions of Bitcoin wealth so don't do that but it's better than not you know doing it so let's say I buy I get up to where I have you know a hundred Bitcoin right and it's now ten thousand dollars a pop okay okay so I've got what is that a million dollars a million dollars and bucks I'm a millionaire so how much can I sell out of time let's say I'm like oh man I want to get rid of all this right now in cash out can you cash all of it out at once yeah the market is trading at this point like four billion five billion dollars in a 24-hour period so to get rid of a million dollars is easy okay you can't do that like on coin based they have limits right like you can only do X amount per week or so yeah okay if you're gonna be selling a large chunk like that then you'd want to go with an OTC broker which is OT c stands for over-the-counter and it's just a type of trading where you're not actually selling on the market but you're using market prices and like an index of market prices to get a fair price between the ask and the and the bid so buying the sell so you'll use like there's a circle is one of them and Cumberland mining is another one and these are like reputable well-known Bitcoin OTC brokers and you can just kyc with them so it's you know you got you got to go through the KYC AML process so you get a verifying what's the KYC know your customer so it's like anti money laundering laws so in order for them to operate legally they have to know their customer and they have to have like passport and you know be able to report to the IRS if if they ask and just follow these these sort of like anti-money laundering like anti-terrorism laws that have kind of like are actually stifling a lot of money startups because it's very onerous to like our onus of whatever the word is it's like a very tough expense to have to sort of deal with like a lot of startups in FinTech or spending like hundreds of thousands of dollars in compliance so anyway you can do it it's just you got a you got a Docs yourself okay how quickly once you the money hits coinbase let's say I'm using coin base and it's now deposited there do you typically pull it and put it onto a hard wallet you do it like right away no so I'm trading a lot like I'm trading probably a few thousand times a month actually last the last two months I've been trading a lot less maybe like one or two times a day maybe five times a week so before I was trading when I was using the algorithms I was trading more like you know one hundred two hundred times a day so but regardless like I'm looking for liquidity and I'm going in and out of positions so I'm actually keeping a lot of my coins on exchanges now I you know I have this like working capital right that I'm using to trade my portfolio with and it's exposed to the counterparty risk of exchanges going down so if you're not gonna be trading like me then I'd recommend taking it off like as soon as you buy it just in the next day or whatever just take it off and put it on your wallet because you know you're not gonna need it okay what what are the and well let's kind of bang three sisters about five or six more questions I want to get through cool do it what are the top three wallets you'd recommend umm so electrum is a good wallet for a Mac and PC Exodus is a beautiful wallet that has the ability to swap to other cryptocurrencies natively in the wallet so you can put Bitcoin in your Exodus wallet it looks beautiful it's like if if Apple built a Bitcoin wallet then if you want to say buy some light corner it's yeoreum or whatever you can actually swap it straight in the wallet you don't even have an exchange account so Exodus is a really good one and then treasure itself is a wallet so I buy a treasure for sure and then if you want to have something on your phone you know I would I would normally recommend bread wallet but bread wallet sort of supports the 2x fork so I don't really trust recommending them anymore until they come out against the 2x fork because if if you have your coins on bread wallet and then all of a sudden they're claimed that you know they're saying that your bitcoins are tagged with 2x now but Segway 2x is only worth $50 a coin you're gonna be pretty pissed off when you're $6,000 bitcoin is now all of a sudden only worth $50 because they supported this Sigma 2 X fork so you gotta be careful about the wallets that you use I would I wouldn't use bread wallet in fact I probably wouldn't be using I mean green address is one and samurai wallet is one if you really want to have a Bitcoin wallet on your Google you know phone or whatever Sam your eyewall it's a good one they support Bitcoin Ricky ass what's the best cold storage wallets would be the top ones you recommend you already treasure you said was been coming up multiple times well treasure is not really a cold storage wow that's a hardware wallet armory is probably the best cold storage wallet and then I mean you can you can use any wallet you can use the Bitcoin org you know just Bitcoin core client on for cold storage cold storage is more about the method of generating your keys offline what is gonna be happening with Bitcoin ten years from now hopefully what's gonna happen is that the Bitcoin blockchain is either going to be just integrated into our financial lives at a protocol level where like you know you'll be at a bank account and you can have your money in dollars or Bitcoin or it will be dollars on the Bitcoin blockchain and you just don't even realize it so that's that's what I'm hoping but it's too far out to predict I mean yeah it's super far what are the current biggest risk to crypto right now you think I mean hackers are using bad wallets or linking your bank account to like I feel like Bitcoin as Bitcoin is just a big experiment it's a social experiment to see if we can evolve the concept of money to something that like works just same as the internet works right like a decentralized trustless money like to see if that actually worked that would be revolutionary right it's it's a hundred billion market cap right now we could get to a few trillion market cap before we even know if the experiment even worked but we're gonna have all these attacks along the way and now Bitcoin keeps getting attacked like one of the biggest threats the Bitcoin could be a hostile government so if a government really didn't want bit going to succeed they could 51% attack the network and all they need to do is acquire 51% of the total hash power and attack the network with that so what that means is like there's miners that secure the Bitcoin network right and at all blockchain networks and these miners run specialized hardware that like validate transactions and keep they'll keep the blockchain secure and like build blocks one on top of another to make sure that all the previous blocks have the same proper history right if you own 51% of that hash power you can start building blocks faster than the rest of the network and then you can start faking transactions and rearranging the previous transactions and it just basically renders the whole thing meaningless because you can start double spending where like you can send me one Bitcoin I get the Bitcoin but then you're so fast that you're you're control 51% of the network that you can then also spend that and send it to someone else so now two bitcoins went to two different people or one Bitcoin went to two different people so that's the biggest threat I think is a hostile government or somebody that has like a bad actor that acquires more than 51% of the Bitcoin network and decides to put all of that power towards breaking it now it's it's a massive undertaking to do that because at this point there's more computer power and and processing power securing the Bitcoin network then there are computer out program or computer processors and processing power for all of Google like the Bitcoin network is the biggest strongest processing network on the planet right now so what kind of country do you think has the ability to do this if they China China could do it the United States could do it I mean it's not gonna be easy and hopefully what we will see is like a hash war where it's like a where we'll see like a currency war but the currency will be Bitcoin just like we're seeing a gold currency war right now and a fiat currency war with like countries devaluing themselves against other currencies we'll see that with Bitcoin where it becomes like an arms race to like get the most amount of bitcoin hash power and get the most amount of Bitcoin reserves so we're already starting to see this happen with Russia invested 100 million dollars or is investing 100 million dollars they just announced last month into Bitcoin mining Japan just announced with GM all that they're in bet they're investing a hundred million dollars into mining and Vidya came out with like a Bitcoin initiative where they're gonna start investing more into Bitcoin mining hardware and China of course already has that they have more than 51% they're like the leader in Bitcoin chips right now so they sell the chips but it's not all controlled by the Chinese government or the Chinese companies it's like they're the leader in manufacturing Bitcoin chips but they sell them all over the world but now we're starting to see this arms race develop so hopefully that the free market effect you know free market economy sort of like philosophy wins of the day here and it just becomes competition and further decentralizes because more governments and countries want to get involved the other thing is like Sybil attacks and like what we're seeing with Segway 2x if the business community got together and were able to influence the direction of Bitcoin to censor Bitcoin in some way to control Bitcoin in some way that would totally destroy this experiment of decentralized money that has no influencers and nobody that can control it if some business guys are able to come together now with like their hundreds of millions in value and just say well we want Bitcoin to do this and this and this and if they win that's what Segway to X is so that will basically mean that this whole experiment was was kind of a failure sure blockchain technology is going to be valuable and we'll probably still see it be worth more and more but it would be varied disappointing to see that some group can influence the direction of Bitcoin to take away that decentralization which is what makes it so valuable you mentioned mining a few times for those of the listeners that do not know what mining is used in mine back in the day I remember you had a big set up what is it what does that mean so it's like with PayPal right there's there's money that works on the Internet and the only reason that works is because PayPal is is the central sort of like arbiter of of the transaction so PayPal processes the transactions with their centralized servers and they also can do refunds and charge backs and they have to sort of be the middle you know the control of PayPal and the transactions they process it all eegh old was another electronic currency back in the early 2000s where it was like a centralized electronic currency that was backed by gold and I was really interesting I used to use that as like a youngster I guess my in my late teens early 20s or whatever just adopted that technology to way before a Bitcoin because I liked it it was interesting it was like money on the internet but what happened there was that it got so much transaction volume that what they did was they actually stored gold in a in a vault that so they backed gold they backed the e gold by gold and a vault so you could like trade these fractional electronic units of gold as currency and it was centralized so once it got to a certain transaction volume and it grew large enough the FBI shut it down arrested everybody said they were using it for child porn and drugs and everything and whatever they're gonna try to do to like shut it off and they did they shut it down so that's like you know centralization is when a company controls the servers and controls the processes right like Napster was shut down because Napster controlled the servers right with Bitcoin you know they've Satoshi Nakamoto was able to come up with this consensus mechanism that has a game theory where you have enough incentive to act as a server to process transactions and earn Bitcoin for doing that that you're not going to also lie attack the network so it's like this delicate balance between minors acting in their own economic interest they're like earn money and because they're actually spending power like it's very expensive to mine a Bitcoin it costs about a thousand dollars and power to my a Bitcoin right now it's so somebody who was has this entire set up they have all these crazy servers and they were doing this you know a year ago um and now you got bitcoins that are worth three times as much are they making three times as much money as they were a year ago yeah so what happens is this cycle that always happens with Bitcoin it's this is this a profitability cycle so Bitcoin price goes up Bitcoin mining becomes really profitable and then more Bitcoin miners come on the system and like join up and buy Bitcoin mining equipment to become miners and then the difficulty goes higher so the algorithm changes as more and more mining processing power comes on the network and the cryptographic like equations get harder to solve so it just keeps competing process and then if there's a major correction well then the Bitcoin price goes way down it's no longer profitable for all these new guys that came in so most of them will drop off or they'll just continue mining until their hardware is not worth as much as it was because the algorithm will change based on how many people are mining so yeah the people that were mining last year like up 10x on the bitcoins they mined last year because it's worth 10 times as much and a lot of these miners are like they're paying their bills but they're also speculators like they're speculating that bitcoins going to be worth a lot more one day and now that's paying off with them as you mentioned several books some people to follow on Twitter you mentioned some guys that are you know social influencers to to follow anybody else or any places reputable sources that provide objective information about various kinds of cryptocurrency coined Escom has good information I I go to actually CNBC actually is broing running these fast money flips on YouTube where they've got different cryptocurrency investors those are really interesting CNBC Africa has the crypto trader show where they'll get different cryptocurrency investors on that's a really good resource and then coin market Capcom that's kind of where you can follow everything that's a really good resource I would stay away from Bitcoin calm because Bitcoin calm that's the one thing I would recommend like just don't don't listen to what Bitcoin calm says because Bitcoin calm thinks that their Bitcoin but it's really just Roger burrs website for Bitcoin cash and he was just disappointed that he got depreciated from Bitcoin so his conversation was censored and I understand that yeah he's a very emotional guy and one of the earliest investors in bitcoins some people think he has like 300,000 bitcoins so he's probably one of the wealthiest Bitcoin individuals there is but he wasn't being listened to and like the core developers and the community was sort of a started to ostracize him because of his views on the size of like upgrading the block limit he's not a developer so he should the theory was like he shouldn't be so vocal about that the code this is a free open-source project it's like you know one of the one of the major shareholders of Google or something trying to control how the Internet Protocol salts latency issues it's just like there's no correlation between how much money you have and like he was treating it more like a network marketing business like I introduced you to Bitcoin why are you listening to me you're my downline in my Bitcoin my Bitcoin network so don't listen to Bitcoin calm because they recently came out with this article saying that Bitcoin cash is Bitcoin and they're trying to rebrand Bitcoin cash as BTC tons and tons of ICO hundreds of them it sounds like in so far I think he said over a thousand different types of coins so money's coming in fast to fund all these do you think and faster as the news starts covering all the stuff when people want to jump in so they don't miss the you know the gold rush do you think there could be a risk of a bubble here well it's probably going to do this unfortunately so you know you have to happen within the first five years or after I do I do for sure yeah so so like you've got to be fully aware that this this could pop at any moment but that's why I recommend people don't go all into crypto currencies like the next hot ICO or something I talked to some people I said you take Bitcoin like usually I just ask that question or do you know what you have Bitcoin majore the people answer me like what's Bitcoin so you know I don't know what it is yet yeah people don't know what it is yet like sure we know what it is because we're like entrepreneurs and we're like plugged into the internet and internet marketing and we see ads that like advertisers are advertising towards us so we're kind of like being retargeted online to show us ads about Facebook or about a Bitcoin because that's what we're interested in but like the average person right now does doesn't really know what bitcoin is and they definitely don't know what aetherium is so if you ask somebody hey do you have Bitcoin they'll probably say either like oh what's Bitcoin or look all I heard of that but if you ask someone like do you have a theory um they're gonna they're gonna look at you like you're crazy because etherium is so that's it that's one bubble indicator so it's just a matter of like fundamentally researching and finding which which ones you think are gonna be are gonna be worth something here in ten years is it gonna be the ico for the strip club in Vegas or is it gonna be the the peer-to-peer money right like if you got careful what you put your money into and just follow proper risk management that's it that's what I'd suggest yeah don't put anything in that you're not willing to lose at this point cuz it is it's high reward high risk so final question for you Bret I asked this of all the guests that come on in your case it's not as relevant because I have a feeling I know what you're gonna say but if you can go back in time five years okay and you could talk to yourself what would be the advice that you would give yourself five years ago I would say you know five years ago it's a tough one because five years ago I I was kind of starting on this journey of like confidence in myself as an entrepreneur so I've had a lot of success in the past I've been in the right time at the right place I've like accomplished some dreams like I wanted to make a movie and I ended up going and making a movie and raise money from a Facebook thing to make a movie and then add Facebook games that were making multiple seven figures for me and a few other partners and like along all the whole time along this whole I thought I wasn't good enough as an investor I always needed a partner you know I always needed somebody to like help me succeed so it wasn't until I started following Tim Ferriss podcasts and started getting really into like gratitude and the morning journaling and meditation and stuff that I was able to start to let go of some of that and start to believe more in myself as a solo entrepreneur individual all right so I would have told myself back then to start you know get the 5-minute journal and start just doing that and start meditating and and then listen to like expose yourself to more philosophical books and stuff and and just sort of try to build up some confidence as an individual rather than thinking I'm gonna be needing so much help all the time yeah that's a great answer and and also take all your money invested in Bitcoin and hold it until 2017 take it offline don't leave it in this don't leave it in male cocky perfect so guys this was been this has been a super awesome I hope you guys have enjoyed Brad thank you so much for coming on the show we're gonna have you come on on a regular basis if people want to reach out to you you're in our Facebook group now the new one that we had set up guys I'm gonna mention it again you can get over to that Facebook group by going to am p.m. podcast calm Ford / Bitcoin and and for those of you that are Amazon sellers private-label that's why you typically listen to this podcast well I always want to mention that you guys head over to am/pm podcast.com ford slash resources and that's where you'll get all the resources we use to generate seven figures every single year all the tools and the tricks and techniques on how to rank stuff to number one and and so forth so but I'm not gonna talk about that too much because this is cryptocurrency not Amazon and but yeah Brad thank you so much and we'll yeah we're gonna have you come on maybe once or twice a month is that that's cool with you yeah it sounds great all right all right now what we'll talk to sue and thank you thank you bye bye make sure you slam the subscribe button give that video a thumbs up and share it one final thing if you want the most badass achill chrome extension for Amazon sellers download the helium 10 Chrome extension for free at helium 10 com the link is also in the description what other topics would you like us to cover write them below in the comments you've been listening to the am/pm podcast hosted by manny codes for more information insider cool and to get the resources mentioned in this episode visit am PM podcast calm you

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