How to Invest in Bitcoin and Cryptocurrency for Beginners – AMPM PODCAST EP 144 (Part 1)



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 from a conference in Florida and stayed at a hotel that had alligators in these little ponds all inside the courtyard of the hotel and while I was admiring those alligators I was making money how cool is that pretty cool I think hey guys Manny coats here and today we're gonna be doing something a little different with the podcast normally we talk about how to make money how to generate recurring revenue streams with Amazon right with private label but I want to flip it around a little bit right because hopefully a lot of you guys have been following my podcast for the last year or longer you're making money you're investing in your business but maybe you have some extra money that you want to invest elsewhere so one of the things that I'm doing now is I'm actually investing in cryptocurrency I think it's really cool really interesting I think the whole blockchain technology is amazing and I don't really know that much about it honestly just yet but I'm learning and so I wanted to do a podcast episode with my good buddy Brad Mills and he is a cryptocurrency monster an expert at this kind of stuff so we're gonna change it around a little bit we're gonna be doing two episodes ok back-to-back we're gonna release them at the same time so 2 podcasts related to cryptocurrency where I'm gonna drill Brad with as many questions as I can because this guy has taking small amounts of investments and turned them into multi-million dollars right big piles of cash so this guy knows more than just about anybody else but I know of in terms of cryptocurrency so yes what this episode and the next episode is gonna be about so a little bit different if you're into only Amazon stuff I still recommend you hang out and listen to what brad has to say listen to the questions that we're gonna be asking and getting answers on and I think it's gonna be really cool so let's get to it hey everybody I am here with my buddy Brad Mills I've known Brad for how many years is a bit now four or five four or five years it's been a while welcome to the show Brad Thank You Brad Brad is sporting the the night spirit I've seen you with long hair short hair the crazy you know massive beards all over the place yeah 2015/16 was my Bitcoin price Depression beard well Brad you've let me actually go back we met during a high-level conference it was the Apple League conference it was a $10,000 per seat event and then we became friends we went to Vegas together you come up to my house and then you shift it at some point before everybody else we were still doing mobile games that's what that conference was all about and you shifted over to Bitcoin at the time we were telling us about this stuff you know years ago and whatnot none of us got it like what the heck is he talking about this cryptocurrency fake money thing and you got into it so I'm gonna ask you a bunch of questions about this but why don't you give us like a one-minute intro of who you are what you're doing now and and how you got it sure so I guess I'm a serial entrepreneur and I'm an early technology adopter and investor so I'm always just going back and forth between different technologies and I got a passion for marketing as well so I first found out about Bitcoin in 2011 Bitcoin was ten dollars at the time when I first started mining bitcoins and I had a game company that was making games on Facebook so I was managing virtual economies for social games at the time and Bitcoin was a really exciting thing to me because it was a you know there's like a libertarian real money internet money evolution thing that got me excited price went crazy price dropped the $2 so I kind of couldn't focus on it at the time for for my full-time gig so then I got into games and marketing and that ended up getting into Amazon for a little bit as well had a bunch of different companies in different fields but I always had a passion to come back to Bitcoin and Bitcoin by far has been my most successful I guess financial onto enterprise as well so now I worked for a fund in bayson Dubai call the Alpha bit and I'm managing a portfolio of multiple seven figures Brad has been doing this for a while and anytime I've had a question you know this right I'm always blowing up your skype or your text message like bread what's up where should I buy this stuff and how much should I invest in should I get now I'm get in now is it going up is it going down he's like dude it's like 3:00 in the morning leave me alone but no that's really cool so you got into cryptocurrency or a Bitcoin specifically right you were saying yeah it was at $10 drop the to win when was it that you actually bought in what was the value the first time you got in so I actually heard first heard about Bitcoin in the summer of 2011 it was $5 when I first heard about it and this is what a lot of people nowadays are experiencing they'll hear about Bitcoin you know it's $1,000 they'll say oh well maybe I'll get some one drops and then it just keeps going and you hear about it again a couple of weeks or a month later it's $2,000 and you think oh man I'm gonna invest next time it drops and then you hear about it a couple months later it's $4,000 like what the hell okay so that was happening way back in 2011 as well it was $5 by the time I got in it was $10 and it was just a matter of a couple of months of like researching it going down the rabbit hole so I'm how much did you actually put in at $10 I put in 10,000 Oh invest about $10,000 and I also started a couple of businesses being an entrepreneur and a marketing guy I started like the first job site where you can get paid in Bitcoin to just do little micro tasks jobs for people and then also an affiliate marketing site where you could just do affiliate offers like sign up for Netflix or whatever and get paid in Bitcoin and it was like we were having to purchase Bitcoin and people were earning for doing jobs and stuff and you know they would earn one Bitcoin was ten dollars and then by the time we got the ran to buying the Bitcoin it was twenty dollars so just the model didn't really make sense so I showed all those businesses down and just became a miner and an investor okay all right so that's cool so you you're one of those few people that actually had you put 10,000 you had a thousand bitcoins that one I had a thousand bitcoins at one point but wife was a little bit distracted by the price going crazy all the time so I ended up selling a lot of it like so many people did when it was it went up to $30 I thought I was a genius so I just tripled my money that's so amazing and then and then it quickly crashed down to $2 so it was like floating around so I think I ended up exiting probably the majority of my position and not too I kept enough to make it interesting I always believed that Bitcoin one day would be a thousand dollars so I kept it interesting enough so that I would one day have enough Bitcoin to keep me motivated to get back into it and maybe start building again and that that happened again in 2013 which is when we were in the mastermind group together and I started switching to Bitcoin again cuz I still had some Bitcoin and cold storage that I was just watching the news and you know peripherally paying attention to it but I wasn't really actively involved in it following all the other developments of different currencies that were getting started and Bitcoin did a big run up to $1,000 in 2013 and of 2013 so that's when I kind of got more excited by it again and brought me back into the space yeah I think it dropped after that right so like 300 or maybe it was before but that's when you're it's like man you got to get in yeah every time there's a big drop I'll always get get excited by telling my friends you got to get in this is the time to get in because I feel a little comfortable telling people to buy when when it's that the all-time highs but I do feel comfortable telling people to buy when those dips because I seriously believe bitcoin is going to be a hundred thousand dollars a coin in five years now I think it I think it was gonna I think it was a harder for it to get from ten dollars to a thousand dollars but from a thousand dollars to a hundred thousand dollars if you just think about like the the amount of money that's sitting in you know black money market accounts where where it's kind of hidden from governments and stuff and the amount of gold funds that invest in gold an individual private individual wealth and gold it's like a seven trillion market cap if just a small percentage like one percent of people that are diversifying their wealth into gold and kind of hiding their money outside of the system if they just got into Bick and we're probably at like $25,000 a coin so so the more the more people start to learn about Bitcoin and use it as a store of value there's only 21 million of them that will ever exist so the economics sort of it provably you know it provably has the supply and a demand there's only ever gonna be 21 million bitcoins so how does a hundred thousand but within five years where do you think the limits gonna be where do you think it'll actually pretty much stabilized and just kind of stop I don't know I think the more people that use Bitcoin the less volatile that it's going to be if you look at the volatility of other major asset classes like oil and gold and stuff like that they're not nearly as volatile but even the even the price of like euro USD right those are two major economic you know currencies fiat currencies and they float all around the place there's like a crazy 25 percent variance between the USD value and the euro value over the last couple of years so we'll put will approach Bitcoin right now is like pretty volatile again went from six thousand two three four five thousand to three thousand up to six thousand like that's quite that's quite a run recently so that will lessen as more and more people get participating in it and as you see like sovereign wealth funds like the Abu Dhabi sovereign wealth fund or like endowment funds and retirement funds as they all start to put a percentage of their assets into Bitcoin and average people start to like use Bitcoin more and more you're gonna see it like stabilize and it won't be going so crazy anymore it will approach the stability of like oil or like an m1 money supply or something like that do you think at some point somebody will own one Bitcoin and there'll be a millionaire I think that's possible like if you think about it there's 16 million millionaires in the United States if they all want to own one Bitcoin how much they think bitcoins gonna be worth like there's only 21 million bitcoins so if six if every millionaire in the United States wanted to buy one Bitcoin it would cause a price appreciation that was pretty pretty dramatic you never know it could be 1 million what's the what's the math on that 21 million times a million what is that math you get a calculator yeah I don't know that's a lot what is it calling the trillions what do you want million times 1 million that would be 2 billions and then trillions do the math 21 trillion yeah yeah that's though there's there's a hundred so okay there's one quadrillion dollars worth of derivatives exposure right now in the entire global economy so derivatives are like what brought down the financial system in 2008 right it's like CDO it's like basically if there's nothing back its bets on financial products so there's one quadrillion dollars worth of that available you know to pop at any point right so 21 trillion is a large number but it's nothing compared to the the amount of money that these banks and stuff are gambling with so we could see 21 trillion you could see that all right I'm investing on a regular basis I know you are – and you're managing a big fund you got up you got some pretty smart people over there at the the company you're a board member on right I'm part of the the the team that decides where we're gonna put our money so the the the fund has about seven or eight different people that help decide on where we're gonna invest like what strategies we're gonna use and then also there's an IC o—- committee so me and two other guys kind of heading the IC o—- committee of alphabet where we're deciding how much of the percentage of the portfolio we're going to put into IC o–'s and then how much of each individual one we're gonna buy it what's an IC o—- for people that have never heard that term so nico is an initial coin offering and you may hear it now being called a tge a token generation event so it's a take on the IPO the initial public offering and you know the SEC is probably gonna weigh in on them they've already weighed in on them the biggest crowdfunding in history was the Dow and that was when in 2000 and late 2015 early 2016 and can't remember when but over a year ago aetherium investors took their theory em tokens and they invested in the Dow and the Dow stands for decentralized autonomous organization now it's basically an ICO so they took all their coins their aetherium and they invested into this more Poole that was to be given to the Dow right and a theorem is like the second most popular cryptocurrency so everybody probably knows what a cerium is if they've know what bitcoin is and Syrians main you know value proposition is it's going to uses like smart contracts right so this is like vending machines talking to you know the cryptocurrency that enters the vending machine to issue the water right so yeah you know it's like contracts that execute by themselves can be wills it can be like deeds to houses it can be anything so the idea that if the value of aetherium is that the future is like heading towards the smart contracts and but really what a theorem has turned into is more of just an ICO platform so it's just a platform for fundraising it's over the last over the last seven months I think we've seen 200 million dollars invested through or sorry it's way more than that 200 billion or something it's my my brain is a little messy on this one but it's like there's been more money invested into I SEOs this year then there have been in venture capital fundraising so it's basically startups right like if startups want to get funded they can go to VCS and they can get seed from seed funding and or they can switch to this token tommix model where they take their their network or business or whatever they add a token economy to it and then they sell the token and then you give cryptocurrency in a instead of money okay all right well we will have enough time to get into that in this podcast but I'm gonna I'd love to have you come on and we can do a whole episode on I SEOs and how people can in get involved in that yeah but we do have a Facebook group that we just created and we've got a lot of eager people in there that are already investing want to invest if you guys want to become you know want to join that community guys head over to am/pm podcast.com for slash Bitcoin and that will take you there so it's a MPM podcast com4 slash bitcoin brad and myself are in there but I grab some questions out of the group Brad and and I'm gonna be jumping around out of order here you know because the conversations just kind of flow naturally but Chris you know you've just mentioned icos Chris ass he says another crypto investor says that 99% of the cryptocurrencies out there are scams this is a pretty bold claim what's your take on it and how can somebody spot these there's there's like two types of cryptocurrency people there's Bitcoin maximalist s– and then there's everybody else and so Bicks bitcoin maximalists are people that believe because Satoshi Nakamoto is the inventor of Bitcoin created the blockchain bitcoin is like the king of cryptocurrencies it's the it's a hundred billion market cap and it's the one the one that created blockchain right so a lot of people that got in early like myself kind of are Bitcoin maximalist where we see the rest of it is just like alt coins or or just ways to make more Bitcoin by investing in them just so we can trade them for Bitcoin later so like you know I've shifted my perspective over the years because I'm a trader I invest in AI cos and I trade so I don't quite think they're all scams but there's still some people that are trying to brand themselves as like you know the ultimate Bitcoin maximalist where they feel like everything else is a scam it is not Bitcoin it's a scam so clearly that's not the case but you know whether this is just a branding thing that they're trying to do or they actually believe it I mean I don't think that 99% of all other crypto currencies are scams but there are a lot of them that are scams and there's gonna be 99% of them that are probably gonna fail so whether they fail because just of market conditions or they've mismanaged the money or just you know typical startup numbers right it's gonna follow the same pattern as startups there's some times the teams fail I think it's pretty close to 99% of all startups fail so it's difficult to actually predict which ones are going to fail but I would say here's here's a couple of guidelines that you'd want to look out for so if typically if they're gonna be promoting with a celebrity then those of those have had a poor poor track records so I would not invest in I SEOs that have celebrities tweeting about it and stuff because it's just one it brings a lot of unneeded exposure by the SEC when they when they do eventually come down and comment on these I SEOs the ones that are using celebrities to start bringing in retail investors are probably gonna get in trouble and – it's kind of like a bit of a shady marketing technique so if you're a brand of sneakers or something you're gonna want celebrities promote your product but if you're like a technology ico product like what do you want some rapper promoting your project for it's it has nothing to do with the technology behind this this industry so it's just a marketing thing to get people to invest and so far there's been like Kevin Hart has has tweeted and who else who's the the big box or that fought that that anyway Mayweather yeah mayweather tweeted about one paris hilton tweeted about one and all of them have done poorly after they tweeted about it so that's one rule don't go into them that if they're being shield by celebrities yet we're not there yet we're still like early adopters in this yeah you know the value of having celebrities promote your product at this point is negligible because the average person doesn't know how to get Bitcoin or theorum invest in icos so just pour it's a poor decision by the teams to be getting celebrities to endorse their I SEOs what's another one you said you had a couple other one really high market cap if they're raising a hundred million dollars 50 million dollars like I would stay away from anything that's raising too much money so like for instance someone that's making headlines right now is Tasos so Tasos is a version of Bitcoin that allows for on chain governance that was their big claim to fame it basically means that like they can make the decisions through the code so right now the big thing with Bitcoin is the scaling debate there's Bitcoin cash there's Bitcoin gold upcoming there's seg with 2x cornets scares a lot of new people in the wondering what the hell is going on with Bitcoin why is it forking so much and changing so much with coins like Tasos their proposition is that well we're gonna be able to like solve all these issues on in a code and there won't be any forking away in different types of the coin because we'll be able to solve all of our scaling decisions as a team with the code right so Tasos raised 232 million dollars and it was one of the big big sort of celebrity DC backers and invest in that one I think it was like Mark Cuban or or one of those guys you know one of these big you know billionaire investors got behind a and started backing at Tim Draper or something like that anyway so so they they raised two hundred and thirty two million dollars and just recently now there's you know their futures market is crashing it's down like seventy five percent from the from the the price it was because you know they can't solve some problems there's some problems that they're trying to solve and like one of the founders of the of the nonprofit foundation took too much of a bonus paid himself too much and now and now there's like you know the founder of it came out and said oh we didn't really promise to give you any Tasos coins investing in Tasos was like investing in kickstarter it was kind of like you'd get a tote bag back you're donating your money so you know anything that's a really high market cap over a hundred million dollars like I'd say just you're not probably not gonna see much upside to that obviously if you can't find the team like on LinkedIn and you know they're using I'd go through what I actually do is go to ten I if they have pictures of their team you search the profile picture on ten I which is a you know machine learning and how do you spell that TI n ey e.com or just Google search images you just drag the picture and from their profile page into the search box and it'll search all the other images and if they're using a stock photo of somebody from like you know istockphoto.com it's probably not something you want to invest it and believe there's there's a lot of this right now where people are just making up names and you know putting up a really nice website and fooling people into sending millions of dollars because this is a bubble we're in right now Wow Wow yeah this is gold this is good not Bitcoin gold but okay so you that's right I know okay any other signs that people should look out for I would say if they're you know if they're not if the bonus is extremely high for pre sale investors that's also something that's a little disconcerting because sometimes you'll see I SEOs giving out 200% bonus 100 percent bonus and while that's good to get bonus tokens if there's no lock up on the tokens and they're giving it to everybody then that really isn't a bonus right if everybody can get it it's not much of a bonus just a marketing technique what's a lock-up meaning and what would be a bonus amount that you think is right at that level where you don't want to go beyond that well it depends like okay so this is wax is one I see oh that alphabet invested in and they just sent me this shirt today so I threw it on but that was a nice e oh that's raising are you sponsored by Sri Racha [Laughter] wax was one that's kind of breaking almost two of my rules it's gonna raise about a hundred million dollars and they gave us a 50% bonus and the 50% discount sorry so that's a hundred percent bonus so the 50% discount is available to pre ICO investors if you're accredited and if you register now but like if you look at the fundamentals behind something like wax it's run by op skins which they're the leader in the esports skin trading it's like a multi-billion dollar industry and they've got hundreds of thousands if not millions of users people that are like actually sending them money and and using their ops games platform to trade like Counter Strike skins and player unknown battleground skins and overwatch stuff so like if you're into gaming you'll know what OP skins is and you'll know twitch and you'll kind of understand that's a massive market right so you know my rules aren't necessarily one-size-fit-all like I invested in wax because I think they're gonna be able to execute because they've already got an existing business with tons of users and that they'll be able to expose wax token too but you know there was an example of one that called Paragon right where Paragon was like promoting oh it's a it's an IC o—- run by a supermodel and a rapper invest now 100 percent bonus like what does it have to do with technology and they'll give the bonus to everybody so there's no previous experience by this team that all they're doing is building a co-working space why do they need 50 million dollars to build a co-working space right so it's use a little bit of like common sense on this stuff too like do they need that much money to build what they're trying to build and does it even need a cryptocurrency toka okay good all right we've got three or four now out of the way any other ones so you know the lock-up I didn't explain what a lock-up is the lock-up means that it's it's not tradable for a certain amount of time so with you no storm token is one that I invested in that I'm advising actually and alpha good invested in as well and storms open did the right thing where they locked up the bonus tokens for like six months so you know those of us who invested in the pre IC o—- we get our tokens but we don't get those extra bonus tokens until a little while after the IC o—- so that sort of aligns interests for early investors to have like a long term longer term approach to the IC o—- and to holding the token rather than so a lot of what you'll see is is people just flipping I cos they'll just try to get the bonus and then they'll try to flip it afterwards and just make them you know if you're getting a 50% bonus you'll sell everything and try to make that spread on the 50% bonus and then rather than just actually investing in the project to hold it long term you're just flipping you're flipping to try to like make money off these IC o—- bonuses so if you if the token is not locked up you're gonna attract a lot of these IC o—- flippers which means that it's gonna be a lot of sell pressure once it hits the market so people don't like to be locked up because they can't flip it but I like to advise all the ICS I'm dealing with they'll let's lock up the early investors or on their bonus tokens because what's the point of having them in if they're not locking it up there's gonna there's gonna sell it when it comes out so you want to get in as an investor you want to get into something that has a lock-up in is what you're saying I mean I take a long-term approach to this market there's a lot of people that are kind of opportunistic that are coming into the space they want to get rich they want to make a lot of money really quickly which is fine like that that's happened to me for sure with IC o is I've made like 10x my money on them and I have no lockup so I'm not saying that you shouldn't invest in something with no lock-up but if you're taking a longer-term approach to the space where you know we're I believe I were gonna be a couple of trillion dollar space in a couple of years like right now or 150 billion or whatever so we've still got a ways to go in the next couple of years I'm gonna hold for a frog for two years I'm not gonna sell all this stuff right away so I'm looking fundamentally what's a good investment and I want to have an alignment with the team and the investors that are in the token that want to hold it long term so I'm not really investing in ones that don't have a lock-up because traditionally what you're going to see is a lot of people racing to get it the token and dumping it as soon as it comes out of the market okay how would you how would you suggest somebody invest the first thousand dollars I'd like how much in Bitcoin if theory about something else so like kind of pull doing a little call back to the earlier conversation there since she brought aetherium up again the Dow right that was an IC o—- that was one of the first big IC o—- step that rage the thing was over a hundred million dollars or something like that and at the time it was like a Kickstarter project was the leader for crowdsourcing I think it was like the coolest cooler or something like that and so the Dow ended up getting hacked and the Dow basically of a hacker realized that the contract that all this theory was stored and was not secure so they found a way to siphon all the etherium out of the contract so it's investing in IC O's has risks like I think there was a massive amount of a theorem invested in that IC o—- and it ended up being like 30 or 40 percent of all Assyrian holders lost their money in that IC o—- and you know there's still like recently there was a hack where three or four of the big IC o—- has lost all their money too because there was a hack and the Assyrian parity wallet where you know a hacker just figured out there was a weakness in a smart contract and they were able to siphon out like hundreds of millions of dollars out of out of the out of the contract so like there is it's not like it's without risk so if you're gonna take your first money I would be careful about investing your first money into IC owes because it's a very degenerate sort of gambling space right now and it's risky like we're the pioneers right like you know I don't know if you ever remember playing Oregon Trail but sometimes some of those pioneers would get sick and fall off the wagon and they wouldn't make it so the the village or whatever that's what we are where the where those where those villagers those pioneers aren't going on the trail so first I I would say like I'm a long-term believer in Bitcoin I'd say if it's just a thousand dollars just buy Bitcoin hold it for five years you know if we're talking philosophically like as a bit as a base strategy like let's say somebody's really rich and they've they've got like 20 million dollars in the bank they want to take 1 million dollars invested in cryptocurrency how where should they start I'd take it take a large chunk of it and put it in Bitcoin and put it in cold storage take it and put it on a treasure wallet hold it Bitcoin is gonna be Bitcoin is like a new form of money and I don't see Bitcoin going away I don't see anything usurping Bitcoin I think that aetherium has already had a massive rise in the recent you know in the recent like eight months or whatever it went up what it was a thousand percent or more more than that it was it was like five dollars in January wasn't it and now it's 300 though that's a quite a lot that's quite a run-up so a lot of people are getting into the space right now and they're thinking a Bitcoin is six thousand dollars i I don't want to pay $6,000 for Bitcoin what's the next Bitcoin right and they look at the coin market Capcom list and they see its new room is number two oh it's only three hundred dollars well maybe it'll get to six thousand dollars I'm gonna buy that right and you were saying to earlier in another conversation that a lot of the people coming in are getting exposed to cryptocurrency through coin base and they're only given a certain amount of coins they can buy a coin base and aetherium is one of them so a lot of people are coming into the space thinking oh I missed Bitcoin what's the next one a theorem is probably gonna be the next one that could you know and you hear talk about the flip inning and all this stuff so people think that a theorem is going to one day overtake Bitcoin and then you have a lot of VCs coming in from Silicon Valley and angel investors and stuff that are backing a theory and based startups and theorem has really become the ico platform so it's a fundraising platform for crypto currencies that want to raise money and do some kind of decentralized blockchain based project right a lot of the ico they're growing on aetherium so if he reom the argument there for aetherium is that yes you could expose yourself to some aetherium and you could see some massive gains but I don't see the theory I'm going to 6,000 dollars like Bitcoin because if you look at the supply you got to look at not just the price but also the supply and also the and also the recent patterns every market sort of follows the same pattern I got this chart that I keep nearby at all that helps remind me about the pattern of crypto anything doesn't have to be cryptocurrency I don't have you can see that very well but yeah that that chart is gonna you're gonna see that chart follow every market and it's basically a chart of human emotions because all markets are basically driven by fear and greed and and you know we're probably about here with the Syria because this is what happened this year already it's here iam did this this year right so it had a massive run and it's come down quite a bit and it's sort of settling in this price and now it's going to probably come down more so I am exposed to Syria and personally but not as much as some people like some people come in all in one hundred percent on aetherium I'd say don't put all your eggs in one basket in the space at least if you're if you're sold on a Syria you gotta at least get yourself some Bitcoin like Bitcoin is the king of crypto currencies so you gotta at least get some Bitcoin I mean Bitcoin is money right it cerium is smart contract fuel for cryptocurrency fundraising platform it's not really money now that doesn't mean that it's not gonna be money one day like maybe people are just gonna treat it like money like they do Bitcoin so yeah we could see one day a cerium take over Bitcoin I don't think it's likely but then I'm also fundamentally like philosophically opposed to a cerium because I'm a libertarian guy I got into this space because I was thinking like Bitcoin is gonna solve us you know salt free free us from control and debt enslavement from central bank's and like quantitative easing from the Federal Reserve that is a private corporation that's not even owned by the government and we're all taxed to death and you know like who there's no accountability at these central banks like nobody knows how much money is actually in you know circulation and kind of like the whole credit card debt industry it just makes me sick so I got into Bitcoin because bitcoin is like the libertarians dream about money right and you know philosophically cryptocurrency is meant to be like free humanity from debt and slave when you get down to it like that's what it is it's a system of trust you don't have to trust a bank you have to trust a government you trust code like the code is there you can see there's a limit on how many coins there's going to be there's a predictable supply autonomy it's going to be issued you know there's not going to be something one day some guy's going to decide to throw another million bitcoins so there's 22 million now but with aetherium they broke that social contract last year when they forked and and sort of like erase the hack so I don't know if you're aware of that that's what happened with Assyria so when the DAO hack happened everybody got together and basically the the guy that runs a theory and vitalik beuter in' and some of the other guys that were sort of heads of the theorem decided they were gonna roll back a cerium and what they did was like rescued all the investors and when they did that they broke they broke the social contract of what cryptocurrency really stands for and what it's what it's supposed to do for for Humanity right so philosophically what they did to me was like central banking right like it basically erased all that hack and they said well it didn't happen so we're just gonna you know it sucks that it happened I mean we're gonna erase it make sure pretend it didn't happen and that's one that's when aetherium classic split off so ET c and e th started as a theorem and then when the dow hack happened aetherium forked actually so a theorem is the forked coin and if you're in classic is actually a cerium but you know all the developers went to a cerium so so then you still have you still have like this one sort of group of people that believe in what smart contracts and the theorem was trying to do but they didn't agree philosophically with the way that they just erased everything because you got to remember like there's been plenty of people that got hacked with Bitcoin in the early days and we just accepted it as a cost of you know being a pioneer and being being a pilgrim and this in a sort of like new technology but so that's that's so when I talk about aetherium you gotta wear that I got a big bias against a cerium and that bias caused me to miss the entire run up from $3 to $300 so don't listen to what I say about aetherium I've got a huge bias against it I've done really well without even touching a cerium I'm surprisingly so it just goes to show you that you can make a stupid mistake like not investing in something like aetherium and still be up 30 X in a year so do you where do you see a theorem in five years you said Bitcoin you know a hundred grand you see aetherium hitting similar levels where they go up you know 10x no I'm really not as confident in a theory and long term because of all that stuff I just said like plus you got projects like AOS and eternity so there's there's all these like aetherium 3.0 or well I guess they're Bitcoin 3.0 etherium 2.0 because etherium was Bitcoin 2.0 so you've got all these projects that are like raising etherium doing an IC o—- to disrupt the theorem you see like how strange that is so like EOS is trying to raise a billion dollars in a year and they've already raised like two hundred million or something and they're taking aetherium so EOS is gonna be like the evolution of aetherium some people think it stands for aetherium on steroids some people think it's like I don't know there was another funny one that that you know it could stand for iOS but what these projects are trying to do and there's quite a few of them there's like four of them like neo is another one cute um is another in quantum so there's all these projects that are starting up they're trying to be like the next smart contracts platform that's going to like disrupt aetherium so if all these projects that raise hundreds of millions of dollars worth of aetherium are trying to defeat the cerium there's quite a there's gonna be quite a battle there when these founders decide okay well our platforms ready we're just gonna dump aetherium now do you understand you know what I mean like there's they could do the responsible thing where they like sell at OTC or not suppress the price but there could also be a battle for price where these people holding aetherium just attack the price of aetherium because they want their project to be the winner so you know in a cut in three four years like I don't even know if the theorems gonna exist I know but again like I've missed the entire theory and run up now so don't don't listen to me on that one I just know for sure that bitcoin is gonna exist you're confident of that huh I want to percent yeah so so a lot of people that are getting into this space are interested in this space I have a ton of friends now that know what bitcoin is right it's in the news it's all over the place so when they come on and they figure out coin base or whatever it is you know they're they start investing the immediately invest in Bitcoin they've never heard of a theory they never heard of litecoin or any of these other ones right they just know Bitcoin so you have all these people that aren't technologically advanced I would say that only want to invest in Bitcoin because that's what's being talked about do you think that's what's causing such a big rise in the price there's all these people that don't even know that the other the other cryptocurrencies even exist or that they can get into that's probably part of it part of it is probably also just that the economics of Bitcoin just being a limited supply and as it's not necessarily just average people but investment banks and funds and stuff as they start to invest in the space you know like Wall Street futures traders just recently last week or maybe the beginning of this week what is it Monday so it was last week and I don't use days anymore in the space what's a day it's a 24-hour market but yeah so Wall Street is recently getting in there's like futures contracts starting to get opened up so I mean we're gonna see a lot of a lot of volatility in the price I think for a while with Bitcoin because now Wall Street's coming in it's gonna be a little bit unpredictable it's more so to do not just with the US but globally like Japan like Bitcoin is legal money in Japan right now and you can get Bitcoin at like thirty thousand stores and like GMO is like the equivalent of Google and Japan and they've got a platform with officially like the the Japanese central bank where I think it's a central bank or it's one of the biggest banks or whatever it is you can actually like link your GMO account to your bank account just like how you can link coinbase to your bank account now instantly by you know in Japan and different countries it's starting to become accepted more and more so not just people in the u.s. getting exposed to it people all over the world getting exposed to it now sometimes it's like like in Korea it's it's aetherium like Koreans love aetherium so a lot of the volume will come from Korea so again like it's hard to say which one is gonna end up winning but right now we are still very early and it's hard to say what is causing the price to be to go up so much but it was kind of fully expected by a lot of us we expected this this to happen with Bitcoin so I think it only makes sense with all the recent run ups with like – coin and Manero and aetherium and all these other alternate E's I think it only makes sense that bitcoins at $10,000 and you mentioned altcoins multiple times I guess this is one of the pieces of terminology people should just understand does that mean any other coin other than Bitcoin yeah all coin is kind of like an old term from from the earlier days where anything other than Bitcoin is just an altcoin and some people are starting to feel like that's not a good term to use because there's no there's like no there's a lot of crypto assets so some of these projects or utility tokens are not really coins so calling them coins doesn't make sense so they say call it crypto assets or tokens and some of them some people think that like calling aetherium an altcoin is kind of like derogatory in a way because because it's like you know a very high-value currency so it's not just an altcoin it's like the second blue chip cryptocurrency project so I just do it out of habit but I think I think it's an appropriate term a lot of us used to call everything else coins so at least we don't call them coins anymore but the malt coins that's a bit more respectful theory and wouldn't like that hey invest in coins all right you mentioned forking you know so what is a fork and let's talk about the upcoming fork for Bitcoin and what do you think why is it happening and what is that gonna do to the price and what should people that know nothing about this that are in Bitcoin and now it's going to be splitting off into what yet another bit what should they do so forking is when you know a project takes copies to code and forks the github repository which is where the code is stored and starts their own project and calls it something else so all crypto currencies at the beginning were forked from Bitcoin but now you got quite a few of them that were their own original code basis so litecoin was a fork of Bitcoin and then you've got other coins that forked off a flight coin and then other coins that forked off of those coins so you got this fork of this like tree branch almost of coins that initiated from Bitcoin and then you've got other original coins that like etherium and there's some that aren't even blockchain so like iota is one it's not even a blockchain is that because developers can't agree and they're like they split up say I'm gonna create my own over here is that's what's happening well more so it's just it's just like people will want to start their own projects and they're interested in the technology but they have different ideas of how it could be done like it's all consensus mechanisms of how to like trust the numbers really is what it all boils down to it's like a new form of trust accounting and the first use case is money because that's the most obvious one for a trustless accounting system is money and the next use cases will be other things like smart contracts and stuff so if cerium didn't really start off because they couldn't agree with the Bitcoin developers it was just that the taluk had this interesting concept an idea and he just decided to do it by himself and then there's other projects there's plenty of other projects like a lot of the top-20 on coin market Kapoor kind of like their own original code bases they're not even Forks of anything but then you've got like Bitcoin cash so when you hear a lot of the term forking when you when it's talking about Bitcoin because that is when it's a contentious sort of like out of consensus team that wants to do something else that bitcoin is not doing so the technical thing is that they want to increase the block size now the block size is capped at one megabyte so that people like you and me can run nodes and validate our transactions it can it can help somebody like validate that their bitcoins are real right if you run a node you can fully validate the the Bitcoin blockchain and and know that the bitcoins you being sent are real if the cost to run a node and become you know validate the chain is too expensive then that will lead to more centralization the big value proposition of Bitcoin is like censorship free decentralized money right so there's a certain sect of like the Bitcoin developer community and the Bitcoin business community investor community that want to have like big blocks which means they want to have it so that we can compete with Visa so we can have the you know every single little purchase be paid for in the Bitcoin blockchain they want Bitcoin to replace Visa and MasterCard now with the current sort of like path that bitcoins on we wouldn't be able to handle that the kind of mass adoption that would come with being you know coin use for pay for coffees and stuff what what bitcoins main value use case right now is digital store of wealth the gold 2.0 so you store your value store your wealth there you don't move it around too much you're kind of like putting it there as a hedge against dollar hedge against gold a new form a new asset class a new way to store value and also speculative gain some gain some profits as well so that's mate bitcoins main use case and it's like slow to change because you don't want to screw that up if there's 100 billion dollars of wealth being secured in the Bitcoin network you know you want to take a really conservative thoughtful approach to how you upgrade the network there's this other group that really wants us to get to money 2.0 where Bitcoin is being used for coffees and everything else now the fees are too high for us to be there so what they want to do is increase the block size which will allow more transactions to go into each block which will lower fees so there's a group Roger ver Craig right Jihan whoo like these are some names you might hear these guys forked off of Bitcoin and created their own Bitcoin called Bitcoin cash in August and Bitcoin cash now for every Bitcoin you held before August 1st you now have one Bitcoin cash so – so you have the original Bitcoin and Bitcoin cash you've got the original you got your Bitcoin cash now there's another one coming up recent in the next month or actually tomorrow okay a so tomorrow Bitcoin gold is going up now there's there's another one so there's seg what 2x that's coming up in November so so seg wit is the official officially developed solution to the Bitcoin block you know congestion issue that we've been having as more and more people get into this space and start using Bitcoin for payments and stuff there's like the fees got really high so seg wit was a bug fix and an upgrade in the network that allows us to like scale much bigger and also fix a bug that prevented us from using smart contracts in Bitcoin so now you can have smart contracts in Bitcoin plus you've got smaller fees with Segway but there's the business community that's like the guys that own the Bitcoin investment trust and shape-shift and coinbase and like bit go and zap oh and all these like business guys that that got into the space early saw the the writing on the wall wanted to create like the X for Bitcoin right whatever it was for Bitcoin and so they've got their really powerful and they're wealthy and they've got a lot of funding and they're trying to influence Bitcoin to go to the bigger blocks so they made an agreement with the miners to upgrade the block size but then you've got all the developers of Bitcoin that don't agree with it so the developers of Bitcoin are what makes Bitcoin valuable really like the holders and the developers and you've got like a large percentage of the people probably like 90% of the people that are holding Bitcoin that have an opinion on the matter that are like storing their wealth and bitcoin that are against seg with 2x in november then you got 90 percent of the people that own businesses and miners that are for Segway to X in November so it's this contentious hard fork now that was neither it was never supposed to split Bitcoin and two it was meant to be an upgrade to Bitcoin but these miners and businesses don't really come from the cypherpunks sort of like libertarian roots that a lot of the holders and a lot of the the developers have so these developers are basically saying if we go to seg with 2x we're finished with Bitcoin we're not going to develop for Bitcoin anymore or we're just going to keep developing Bitcoin core so that's led to this sort of like boiling point now where some of the big businesses are coming saying we do not support seg with 2x in November we're not going to give you coins for that we're gonna stick with BTC we're not going to go to this new code so it's very confusing for people that are coming into the space that it's like what the hell is happening with Bitcoin like why are there so many bitcoins so the thought is like what you want to do is get get yourself a treasure or a ledger or something like that and take your bitcoins off the exchanges because it's gonna be dangerous if seg what to X happens in November ok so talk about Bitcoin gold who cares about Bitcoin Gold nobody cares about Bitcoin Gold like just I don't even care about it you're probably gonna get some Bitcoin gold but it's probably gonna be worthless so for every Bitcoin you have you'll have one Bitcoin gold it's right it's still gonna work the same way yeah yeah so when the fork for Bitcoin gold happens that's a coin I'm like honestly that's just it's just a coin nobody's gonna care about that okay that's a that's a coin that it's like clams clams was a coin two years ago that Forks from Bitcoin and now it's ruthless like him it's got birth a little bit of money but you know it's not like it's not going to be significant enough for you to be like seriously stressing out about Bitcoin gold Segway 2x is the one that you're going to want to be concerned about now the big thing with Bitcoin gold is they're changing the consensus mechanism so that you can mine it with graphics cards instead of the ASA cards which are like the more expensive more optimized cards so anybody can mine Bitcoin with graphics cards but unless you have a sip switch costs you know four or five thousand dollars each and produce maybe like you know twenty thirty dollars a month of Bitcoin like it's not it's not really effective for small-time operators so Bitcoin gold is trying to fork away and change the algorithm so that like people with graphics cards can mine again which theoretically sounds cool but it's like none of the bit corners really care about it there's a small small small group and most of the exchanges aren't even supporting Bitcoin gold so the big thing to worry about is like the segue to X and that's the one that's upcoming that I'd say like I'm stressed out about that I'm like I'm not selling my Bitcoin but I'm in my Bitcoin off the exchanges I don't know how it's gonna play out but I feel like all these attacks on Bitcoin are only gonna make the network stronger now it sucks because you've got like now because of all this fighting and stuff you've got things like litecoin and which the founder of litecoin is very influential in the Bitcoin space and he's against the 2×4 Caswell so you've got aetherium like silently like sitting there like sucking up people from this debate about Bitcoin and then there's Bitcoin cash over here that are like sucking people in from the debate about the Bitcoin block size so it does suck that you're like confusing all these new people coming to Bitcoin at this time that they're like what is going on with Bitcoin I'm just gonna go over to theory em or whatever so that is happening but I'm keeping my Bitcoin and I'm taking it off the exchanges and I recommend that everybody that doesn't know what to do about this like take your Bitcoin off a Bitcoin how soon in advance to that will you be ticking it off and how long will you keep it off I'm gonna take it off until there's a resolution and I would take it off immediately like I've already started taking my Bitcoin off the exchanges the only way you want to keep Bitcoin on exchanges is if you are trading actively if not get yourself a treasure get yourself a ledger get off of there right because this is a good point man like Bitcoin like I said were the early pioneers and we're still early adopters I last 90% of my bitcoins when mount got hacked I held all of my bitcoins on Mount Cox almost all 94 Shia though and when that exchange got hacked I lost it all so I don't want to see everybody else make these mistakes of holding all their bitcoins at exchanges coinbase and bitstamp and stuff like they're more trustworthy because they're in the states and they're regulated somewhat like they have to sort of like you know it's not it's not as willy-nilly oh that was three years ago but still if you don't hold your keys yourself your private keys then it's not your Bitcoin yeah and coinbase has a vault and you know what I want to talk about all of that what I want to do Brad if you cool with this is we're gonna have a part two because I have a lot of questions I still want to I want to absolutely talk about how to take stuff offline what does cold storage mean you know what are the wall it's I have I probably 20 questions here that people are asking in terms of long-term versus short-term there's a lot of things so so let's do this we'll have you come back on the next one and we're gonna be answering all these questions we'll talk a little bit more about you know you losing 90% that's it cuz I remember when that happened to you brutal and then and we'll take it from there so guys if you want to watch the second episode of this podcast make sure you subscribe if you're watching this on video or subscribe to the to the podcast to iTunes and make sure you join us in our Facebook group which is you can get there the easiest way is to go to am/pm podcast calm Ford / Bitcoin and Brad this has been awesome hang loose we're gonna start part two and then we're gonna release that one shortly after because it's gonna I mean the information you're giving right now is gold I mean it's just it really is it's gonna save a lot of people a lot of headaches and time and and you're answering all the right questions okay buddy thanks man thanks for be on the show and we'll talk real soon if you've listened this far and if you're currently selling or looking to sell on Amazon you need to do two simple things right now first make sure you don't miss any of the weekly videos quickly like this video and tap that subscribe button and turn on notifications if you want to be alerted to our new videos and second and this is the best part if you want to have a massive advantage over other sellers get the helium 10 Chrome extension for Amazon sellers which has tons of free Amazon tools all in one place to help you it's gonna help you source and rank products find keywords remove negative reviews calculate your profit margins and so much more anybody not using the helium Tim Chrome extension is at a massive disadvantage other services they'll charge you for similar tools like this that are free and helium 10 so download the helium Tim Chrome extension right now for free at helium 10.com the link is also in the description what are the topics would you like us to cover in these types of videos write it in the comments below the am/pm podcast hosted by Manny coats for more information insider control and to get the resources mentioned in this episode visit am/pm podcast calm you

5 thoughts on “How to Invest in Bitcoin and Cryptocurrency for Beginners – AMPM PODCAST EP 144 (Part 1)”

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