What You Don’t Know About Cryptocurrency with Dean Jessop

welcome back to another financially
fabulous episode i’m Limor and i’m here to show you how to crush it with
your finances we’ve got a really exciting topic that we’re talking about
today is cryptocurrency and i’ve got an an individual here who has called
himself being here in the crypto world since there was just bitcoin so so much
the beginning of the cryptocurrency world and I’m super excited we got Dean Jessop in the house nice to have you here it’s my pleasure so you know one of the
reasons I wanted to have Dean here is because I have a lot of questions I know
I’ve been learning a ton about cryptocurrency full disclaimer it’s been
maybe a handful of months since I’ve been diving in but I have been diving in
deep because I’ve been getting a lot of questions about how to convert that into
plain English what to do what that means and so I’m excited that you’re hearing
are gonna tell us all about it but I was just wondering before we dive super deep
into crypto what were you up to tell us looked about what Dean was doing before
crypto came about so that you were just prepared and ready for the opportunity I
don’t think I’ve ever been prepared for an opportunity and I don’t think most
people are so I might my past is my father and I used to have a fuel company
we took it from one location to five and became one of the larger fuel
distribution companies in Canada technology wise we were always putting
computers in the trucks before nobody could do it then after that I went to
the University of Toronto and helped them build the accelerator which was the
beta version of Mars okay so I’ve always sort of been an innovator then right
I’ve always tried to be ahead of the curve
uh-huh successfully sometimes yeah not gonna be somebody that’s trying to
leave if you don’t stumble a few times and I stumbled as many times as I
haven’t stumbled so that would be one thing that I tell people is if you’re
not going to try it then don’t complain that you’re not getting ahead yeah and
so I mean has there have been sort of a motto or something that you’ve said to
yourself when you sort of have fallen and tripped and you know things aren’t
working quite right like you ever want to give up or you just you want me to
say what I usually say in front of ya say what you think
I’ll do the g-rated version usually it’s what did I do wrong
yeah what did i do right yeah what am I gonna do now knowing what I’ve just done
okay and every time I’ve made a mistake I can cross another mistake off the list
and did you spend like a day in bed because that’s what I do sometimes and
I’m like oh shoot I can’t believe that happened I will wollow a little bit so whatever your vice is and so were you I guess you’re working with your dad you
have this technology you were involved in this in this new beta and what
happened like what was your first introduction to the crypto world like a
very good friend of mine Steve who I’m now partnering with back in ’09 I
remember it came to me we chatted over coffee there’s this new thing it’s not
tangible you might be able to trade it for something tangible later it’s called
Bitcoin and we need to get in and when was this spring / summer of 2009 okay
and Bitcoin started the early part of ’09 okay so had you been doing a
lot of investing financially before that opportunity or is you know were you
somebody who was always seeking to grow your money or just kind of come out of
there like tell me a bit about that so real estate has always been a great
vehicle to increase somebody’s wealth yep
you don’t have to tell me that I know I don’t that’s partially why this is it
yeah yeah yeah so I have had multiple properties I had triplexes I I’ve done
all of that I then went to lending so giving people like lending mortgages to
people, of course, which was also a very good rate of return with a lot of security
behind it so the investing side has always been something cryptocurrency
when it started in its infancy had nothing to do with investing it
technically today still has nothing to do with investing I actually heard you
say that before it’s not investing if you’re buying crypto is is that because
of the official terminology or well no so what I’ve been telling people is if
you go buy a thousand dollars of US money okay and you put it in your bank
account because you’re gonna go to Florida in six months if that US money
has gone up and you cash it back to Canadian because you needed it that
thousand dollars might have been a thousand and ten dollars a thousand and
fifty dollars well that wasn’t an investment mmm that was just a byproduct
of what’s been going on I love that so cryptocurrency is the exact same idea
right you do not get into the cryptocurrency world if you’re just
looking at investing day trading long-term holding whatever term you want
to use you get into cryptocurrency because you understand or at least
envision that the world is going digital most money now isn’t paper so that’s a
really interesting distinction because oh in sort of the personal finance space
and the sort of mainstream those of us who didn’t start buying Bitcoin back in
2009 often talked about it as a means of investing or as a means for growing our
you know financial networth so you would really call that more
of a byproduct rather than its sole purpose by virtue of the fact that it’s
a currency correct yeah okay it is truly a byproduct it is something that happens
which is also why people say in the crypto world you hold your holding
because it doesn’t matter whether a crypto currency goes up or down you
still have the same amount of cryptocurrency so then why would you why
would you hold it so like I hear a lot of people you know in the traditional
investing world I buy stocks and I’m gonna hold them whether they go up they
go down in the long term they’re gonna go up I’m gonna retire and everything’s
gonna be all great and dandy so people are sort of longer-term holding in other
investment vehicles for that when you say you’re holding in crypto I know you
just gave that definition but can you maybe say that one more time maybe in
slightly different words so it sinks in a little more if you’re holding in
cryptocurrency yeah so the difference is when you’re looking at something in a
crypto or digital currency or whatever term you want to use it doesn’t matter
whether everybody knows if Bitcoin goes up 10% today and dropped 8%
tomorrow and goes up 20% next week and then goes up another 5% and then drops
20% if you’re day trading yep you care what that value is $1 yep once you turn
money into crypto it’s not money anymore so of course it’s absolute value like if
I have 50 bitcoins okay 5 or 100 doesn’t really matter let’s say I got 50 just
it’s a nice round number if I’ve got 50 today and I’m holding them I got 50
tomorrow and 50 next year and 50 the year after but it’s convertible value to
u.s. dollar is what’s fluctuating up and down correct and so for those of us who
are thinking about it as an investment well we want the currency value to go up
because we want to increase our net worth and then much like stocks you
would then realize that increased value when you cash up
when when you liquidate to Fiat yes the us-canadian whatever that happens to be
yeah then yes you have seen an increase in your investment so would you then say
that for folks who maybe got into the crypto world earlier on exactly when you
said it was not an investment your friend came over and said hey I have
this opportunity of sorts like what made you want to get into it if it wasn’t an
investment purpose because it was cool and different cool and different all
right there you have it cool and different no but I mean it’s more about
digital currency and what that’s gonna enable right right so backing up for a
couple seconds yeah yeah so when I helped build the accelerator at the
University of Toronto they gave the after we built it they actually gave us
the availability to be there and use the University of Toronto’s contacts to do
things so in 2002 we put video on compact version of a hint of a Palm
Pilot when it still had the little stick stylus yeah stick stylus and it was the
compact version that yelled with the ipack and compact came to us and gave us
30 of these and said you shouldn’t have been able to put video on this how did
you do it and we kind of looked at when well it was fairly simple actually but
it’s difficult to explain it – so that was ’02 mm-hmm but I think what I’m
hearing from you and allow and jump in if I’m if I’m not interpreting it
properly but you know part of the attraction for you was hey here’s
something new and exciting that I can be a part of maybe there are some financial
gains but it looks like there’s a new way that the world is moving from a
currency perspective and you know bring me and sign me up as an early adopter
yes because that was also the time that interact
started interact in my personal opinion and there’s my
Disclaimer is the equivalent of cryptocurrency it doesn’t move money you
do not email money to somebody what do you mean when I when I just joking when
I send an email transfer the dollars don’t show up on your computer
numbers show up on my computer you can’t print off the dollar bills yeah I don’t have that
printer if any but you are transferring ones and zeros yeah for the equivalent
of the value of dollars that you sent to that other individual but when you do it
with e-transfer we’re staying within the same common currency that’s right
that’s right I’ve actually tried to do that you can’t and then we were using
things like transfer wise and another what other other types of services but I
guess this is then kind of the next level in the next and this is the next
step because you can transfer a thousand dollars worth of value of a
cryptocurrency to the u.s. to the UK to Australia to the philippines wherever you
want to send it and they will see it I say instantaneously but that gets
overused they will see it usually while you’re
talking to them after you send it to okay so I have a lot of family in South
Africa and you know for like birthday presents and stuff I’ve sent money
before and it was literally like five days with the fastest system and cost me
an arm and leg to sent it this is relatively instantaneous is
command you can send it to them on their birthday don’t get it well in their
effort on the birthday of the same year so and the cost is minuscule at point
zero zero zero one of a trade right so makes a lot more sense to be able to do
that it does mm-hmm and so I mean I was gonna ask you you know
what’s made you successful in crypto but I’m almost rethinking that question
because you got into it you were super curious what’s the journey been like for
you since you’ve purchased and your friend Steve was like hey let’s get in
on this opportunity what’s that Wild Ride been like it’s
been interesting we watched the coin go from like you
think Bitcoin coin was eight cents we saw it go to two dollars we saw it go
to ten dollars we figured out that it was going between two and ten dollars in
between University and college semesters because they were using it then we
watched it go up to 200 then we watched it go up to a thousand then we watched
it drop again if we actually were worrying about that it was actually
money there’d be a whole lot less hair so did you you weren’t thinking about it
as money you’re thinking I have X amount of coins and I can I will be able to
barter them okay for something tangible it has nothing to do with money you want
if you wanted one Bitcoin for this cup yes few years ago yeah I might have
agreed to that and I could have transferred you one
Bitcoin it’s like the story of the guy that ten thousand Bitcoin for a pizza
because it had no value right it’s somebody accepted it right okay and so
you know at any point in time along this you know $2 $10 $200 thousand plus plus
plus plus plus at any point did you sort of have this exceed extreme excitement
and switch of mindset from it’s just a Bitcoin – hold on a second
now its value has gone up far more than I think anyone would have expected did
you sort of get excited you just switch into the investor mindset and any time
throughout the process for a second sure yeah I did you get caught up into media
could remember two years ago general public media wasn’t talking Bitcoin no
of course not a year and a half ago they started talking about this thing a year
ago it was the only thing thing about three months ago every news
feed had something to do with cryptocurrency mm-hmm so you get caught
up in it it still it’s still what can you trade it for what can I do with it
so what are you trading it for or what are you holding out to trade it for how
are you using it these days well I have a little bit of Bitcoin cryptocurrency
being there’s over 1500 of them right now that are there’s a lot more than
that but a lot of them are on exchanges or are specific for a niche that I don’t
need to be involved in the ones that are on exchanges I will probably hold some
of them and I do trade cryptocurrency for cryptocurrency so as a sort of a day
trader if you I I don’t even check what the price of Bitcoin is every day mm-hmm
if it comes in a feed I find out what Bitcoin price is good again it’s not
money right and if you if I think about it as money that might change the way
that I envision what the world supposed to look like hmm so you’re mostly then
bartering it within the crypto world you’re not bartering it for products and
services on mass or are you starting to do more of that as of right now
Bitcoin is about the only coin that you can barter for something tangible over a
hundred thousand websites and I’ve seen those I’m sure you guys have seen this
Microsoft virgin overstock.com Tesla Motors they accept Bitcoin for
product and mostly those are like high-end ticket items, some you could go buy a
sweater with mm-hmm so maybe there’s actually something that we can just dive
in here for a second to make sure that everyone’s on the same page when a
Bitcoin is worth a significant amount of dollars call it 500 call it a thousand
call 1,100 depending on you know when you’re watching this and and it goes up
and down and when you want to buy something like a sweater and you have a
merchant or a vendor that accepts that currency they’re buying you’re using a
fraction of that currency I mean that’s assuming that you’re using you know it’s
a $200 sweater or $100 sweater or maybe it’s on sale but um right you wanted no
no no no no it’s about fabulous right if you really want that sweater
by all means buy that sweater just make sure you’re not also at a restaurant
you’re not also you know it’s about trade-offs but regardless totally sided
tangent, so I gotta buy this $200 sweater that’s on sale for a
hundred bucks okay and I have this Bitcoin and for all intensive purposes
let’s just call it a thousand dollar value as of the time I’m buying this
sweater so long yes long time go we’re trying to do easy math here explain how
a piece of a Bitcoin is used for a sweater and I know you’ve sort of talked
about Satoshi’s and maybe you could just clarify exactly no problem we’re just a
bit more clarity how that actually works so a Bitcoin is broken up into eight
decimal places the same way that a dollar is broken up into a hundred
decimal places so you have a hundred pennies that make one dollar you have a
hundred million Satoshi’s which is the equivalent of a penny in this
conversation that make up one Bitcoin so I can give you one Satoshi which is one
100 million of a Bitcoin just like I could give you one penny which is 1/100
of a dollar okay so when you’re looking on an exchange and let’s say someone’s
new to being on an exchange is the currency
outlined as these 1/8 of a Bitcoin or how would someone
really understand how that comes together when you’re looking at an
exchange and let’s say you put using the thousand dollars you know it’s easy
let’s say you put $1,000 into the exchange the exchange would then show
that you would have one Bitcoin of value on that exchange they don’t care what
the US dollar version is that the Canadian conversion is all they care
about is you have one Bitcoin if you wanted to trade that 1,000 dollars and
buy a hundred dollars sweater you would then trade point one of a Bitcoin and
it’s be 10% of yes okay which turns into a hundred dollars worth of value of a
Bitcoin got it and you the equivalent of e-transferring and this isn’t how it works
but I’m trying to just put the picture everybody yeah yeah yeah the equivalent
of e-transferring that store that code for you to be accepted of payment so that
they can ship you the sweater tomorrow morning got it
okay um that makes a lot of sense and thank you for doing the interactive
version and working with me with the round numbers because you know when
you’re when you’re relatively new to this and I know a lot of people are I
get a lot of questions about cryptocurrency and how does that work
it definitely helps paint the picture so in this scenario of course the store
would need to accept the cryptocurrency which is happening really slowly like
what what’s would be sort of seen everybody’s been focusing on Bitcoin
because again it’s the grandparent that’s kind of like saying
bitcoin is cryptocurrency like Kleenex is tissue
everybody’s been focusing on that and they’re trading or creating merchant
services against Bitcoin the problem is with Bitcoin now being seventy five to
eight thousand dollars u.s. so if I wanted to donate donate my apologies if
I wanted to transfer yeah a hundred dollars worth of value of a bit
for that sweater I’m now point zero zero two with it not the right math but you
get the picture the transfer fee for that Bitcoin would be point zero zero
zero one of a Bitcoin okay so I always hearing that like if you want to buy a
cup of coffee with Bitcoin it will cost you way more in transfer fees than it
would the actual coffee itself right because it’s not a percentage it’s a
percentage of the transaction because Bitcoin has such a big value right for
the conversion into fiat it’s too expensive okay and this is where enter
stage left other currencies Bitcoin cash all that kind of stuff has come into
play yeah anything that has to work Bitcoin in it
again personal I’m just gonna have the big disclaimer whatever I say is my
personal opinion oh it is for sure that’s what we’re doing here are having
conversation so anything that says Bitcoin whatever my name is yeah they’re
only using the name Bitcoin it’s not really Bitcoin they forked it forking is
basically the equivalent of photocopying it but changing something in the code so
it’s almost the same but not wait if being open source so a lot of them that
are doing that that are calling it Bitcoin whatever that name is yeah yeah
they’re trying to keep the brand of Bitcoin alive even though it has nothing
to do with it okay so it’s a branding play more than anything else yes okay so
that if you do want to use your cryptocurrency for smaller transactions
there’s other currencies that you would exchange your currency into so that the
transaction fee is smaller am i understanding correctly yes and right
now there are starting to be a few newer companies or newer cryptocurrency over
fears we’ll call it that are looking at creating a merchant service
that is easier and less expensive using their coins got it so they’re switching
it over now you you made reference to the fact that there’s something like
1500 coins and tokens and currencies did I get that I heard that properly there’s
about 1500 that I would classify as so what are those what’s the difference
between a token and a currency and a crypto project the shorter version I
know that there’s kind of everyone’s probably trying to find their way in and
but what what how would you really differentiate between them
well first personally how I look at it is a token is something it’s usually an
ethereal based so it’s a fork of something etherium a lot of them are ERC
20s what’s in ERC it’s a fork goes of anak
cerium that people are now easily able to fork again to make their own coin so
a photocopy of a photocopy of a photocopy and they’ll create something
if there’s already acquaintance existence they’ll create a token to be
used over top of that to give it youth okay um what’s the point of this
photocopy of the photocopy of the split off of that left lane turns off ramp if
I could figure that out I would let you know it’s something that I personally
don’t believe in but okay but it’s something that’s happening a lot and are
they all at different values are they all on exchanges um they’re not all on
exchanges there are some exchanges that will not accept any receipt 20 token
okay and that should tell you all by itself
okay so let’s maybe just talk about how these exchanges work who governs them
how do they how does it kind of because if you’ve if half of these sort of
currencies and tokens and projects are not even making it on to the way people
buy and sell them if can use those words like how is that
whole thing work I love that you took a really deep breath
and that means we’re asking really good questions here are the phenomenal
questions these are the questions that I’m getting and in all my research and
do my best to try to you know create an aggregated and most accurate answer for
one of the things that’s been kind of interesting at least for me and this is
time for you to think of the answer by the way
yeah is that there I haven’t found that there’s as many here is the go-to person
here is the expert you know when it comes to a certain type of real estate
there’s someone who’s been doing it for 20 years has this kind of results to
prove it’s not to say that there aren’t some people who are doing extremely well
in the crypto world whether it’s on purpose or by accident but you know
trying to help create an understanding of what’s really going on so that when
people are asking questions and they’re considering it as an investment but now
you know we’re gonna start thinking about it a little bit differently how
would you talk about these exchanges well I actually was reading an article
yesterday there’s now over 500 exchanges in the world where a year and a half ago
there was four and are they all legit sure I don’t know I thought my answer
would be probably not okay an exchange would be the same if it optically looks
like any trading platform that you would use now for any stocks or bonds okay if
not but optically that’s how it looks okay
the trading platforms that actually have some very good volume and I think the
top trading platform on a 24-hour basis does a billion dollars us a day in value
the top 50 are doing between 20 and 30 million dollars a day us in Italian and
they get a small percentage of every trade they would see in the crypto world
it’s usually a two percent of each way trade okay so I
always say to people it’s roughly half of one percent okay if you look at these
exchanges that are making 20 or that are doing 20 million dollars a day in
trading and they get half a percent of that as their profit they’re not going
in right and is that why there’s more exchanges popping up there’s more
exchanges popping up because either people are trying to get in and maybe
allow coins that aren’t being allowed at some of the bigger ones to be able to be
traded so let’s say I wanted to create an exchange is that easy to do
I mean well there are white label things that you could buy that call themselves
exchanges that I don’t know if I trust the security of okay
but yes or you could have one coated and created and as long as the security is
there and built properly of course it can be you know you know my gears are
motion here even though I’m likely never gonna do this it’s just just the way I
function here hey all right Never Say Never this is how real estate
came about for me I saw opportunity that I thought made sense I’m obviously a
long ways away and you know can’t really see this happening but you know just
just thinking and theoretically so we’ve got all these exchanges let’s say you’re
somebody who’s relatively new to the world of crypto and you want to get
involved how do you even evaluate first the exchange if you even make that
conscious decision that you participating on are buying on and
selling on and secondly with all of these tokens and coins and currencies
how do you evaluate the three pillars we’ll be able to you’ll be able to
figure out if a cryptocurrency or a token is a viable option okay so the
three pillars are technology community and liquidity so when you say we’ve
created is this sort of your way framework to look at it is that what you
me um so again Steve and I we’ve we’ve been doing this enough and we’ve looked
at a lot of different coins we looked at different tokens and the framework is
now all the same it’s three pillars okay if it falls within the three pillars
technology community and liquidity I assume you’re gonna expect what’s next
but if it falls in between those three pillars and you go yes it makes them
then you have to do your own research to see if it feels right
okay so technology would be the cryptocurrency itself and I keep saying
cryptocurrency yes there is token yes there is everything else but
cryptocurrency yeah so the wallet the coin itself what the
technology is that created it is it a photocopy of a photocopy is it an actual
block chain itself and so when it’s not a photocopy of a photocopy of a
photocopy is it considered better quality is it more unique is it
photocopy bad it’s not bad for something right depending on what you’re doing
with it okay they have their uses okay I look going if you are looking at it as
how many Satoshi’s would you get to keep okay if you have Bitcoin and Bitcoin
value stays the same at let’s say $10,000…
10,000 and aetherium which is a very great coin it now is 0.1 of a Bitcoin
okay and it drops to 0.9 of it but they’re 09 of a Bitcoin anything under the
etherium platform has also dropped that 10% even though it didn’t do anything on
its own so by virtue of being connected through the split of a fork I don’t know
if I said that right but anyways by virtue of being connected whatever sort
of happens to the parent currency or coin then trickles down
is that correct it has the ability Circle down a lot more than just it
being now did I just make that up this the parent or is that is that a real
thing well I wouldn’t call it a parent but yeah I think optically that would be
how it would work okay well we’re trying to sort of make this in plain english so if Bitcoin goes up in value theorem
because basically one level below Bitcoin yeah it will go up in value even
if the Satoshi is staying the same coming again where the value we’re
talking about is the money but be it right
so if Bitcoin is 10,000 and etherium is 0.1 or 10 10 percent of the value if
Bitcoin goes up to 11,000 and atherium ends days of 0.10 atherium also gained 10
percent right because it’s relative to one another
it’s the satoshis that are goes against everything kind of like the US dollar is
the currency of the world right the Satoshi or the Bitcoin is the value of
the world and the satoshis are the price that goes against every cryptocurrency
got it and so is it always going to be that way like against I can see yeah you
don’t have a crystal ball okay but right now if I did have any different
conversation I knew you were gonna say that
but really for now at least it is through out of the crud kind of like
this you mind the curse out yeah if the world currency that everything goes
again yeah bitcoin is the cryptocurrency world
currency got it okay so I took you on a tangent because we were still under the
technology umbrella okay so yeah you got to look at the technology itself
yeah and that entails is it a photocopy of a previous are there other elements
of the technology like the wallet and other things like that that go into it
the way was built is the technology okay if it was a photocopy again there’s
nothing wrong with that mm-hmm it just depends on what it’s being used for okay
so if it’s been created and it has its own blockchain which is
kind of the equivalent of Bitcoin then it’s a standalone the only thing
that it has to worry about is the value of Bitcoin got it
and it has its pros and cons as well right that more where I believe in is
the actual coins that have their specific wallets that are only a little
bitcoin that they look at and have their own blockchain and their other
standalone community which is now the next step with a Pillar okay all right
so we got the technology piece so you want to look to see whether it’s a
spin-off if it’s on its own it’s got his own blockchain and there’s times where
it can be good and there’s times where this can be bad but you have to
understand actually I think that’s a big part of getting involved with anything
so I kind of want to say it’s it’s a component of investing we’re now not
calling this investing per say but if you don’t know what you’re doing and you
don’t understand it doesn’t make sense to get involved but if you’re gonna jump
in with both feet you better have a manual and understand
what you’re getting into even if you’re not understanding everything that you’re
getting into yeah you do as much research so that you can make the
decision so that you feel comfortable in whatever that decision is of course okay
and hindsight is always 20/20 for sure right stop looking back yeah back sure I
call that to everybody you don’t look back you can’t change yesterday well cuz
I’m sure you’re hearing this I mean it’s it’s so mainstream like if I’d only gone
in at this point or that point and of course that’s thinking about it from an
investment standpoint and you know guilty as charged I mean I’m now
involved in cryptocurrency what’s the right word to use I’ve
purchased I’m involved right I think okay so I have now acquired
cryptocurrency you know and I mean it from my perspective it would have been
great if I had acquired it an earlier phase where it’s you know trade to Fiat
would have had a higher significance but you know we none of us can go backwards
is exactly what you’re saying okay so in the community how does that case come
into so many communities everybody that believes in it so the more people that
have heard about a coin the more people that believe in what
it’s trying to do there can be multiple will go to Bitcoin so there can be
multiple communities inside at one point Bitcoin again being the biggest one has
so many different communities and I mean communities as in so we’ve talked about
Tesla Motors taking it automotive community mm-hmm
overstock.com well that’s shopping community mm-hmm
virgin well you can go to space you can hop on the Space Shuttle for Virgin
paying Bitcoin and go to space there’s other words for that but you know so
there’s so many different types of communities and the more communities
the stronger the coin so you want to have multiple communities with the same
coin and in this particular example it’s communities based on where you can use
that coin, you can either trade it between each other okay and then the exchange
also you can exchange on but the community is talking so if you and I
wanted to have an ABC coin alright and we’ve agreed that a fabulous coin
instead of a ABC coin I’m sorry I should have thought about that it’s all
good with a fabulous coin and it’s it’s sparkly and everything else all right
moving on so the fabulous coin yeah you’ve now
told everybody that you are going to donate a fabulous coin that everybody
that watches your video okay so if they watch my video they get a coin they get
a coin okay you’ve decided that executive decision. I’m gonna hold her to that it
sounds good so now your community of thousands of
people have a point mm-hm you now have a store that is going to
accept the fabulous to get the hundred dollar sweaters right they can now
use the coin and probably not worth $100 so they’re gonna want to need more
so basically I mean it sounds like the more people who are acquiring excited
the more there’s vendors and merchants where you want to have the outlet the
more it’ll be traded the more it’s traded the more the exchanges are happy
the more exchanges won’t have it so sort of just creates this sort of synergy or
snowball of excitement about a particular corner currency correct okay
perfect and so you mentioned that there’s different coins or tokens and
I’m actually gonna ask you the difference about that afterwards because
I noticed you’ve said that a number of times there’s a number of different ones
that you’ve said oh they’re specialized that’s great but that’s not for me what
what do you mean by that or what kind of specializations do they have well there
are some currencies tokens coins it you first question first currency as
long as we remember we’re still on community we come back yes okay coin
they’re all technically the same way of saying the same thing until you get to a
unique coin okay some of them are currency some of them are tokens tokens
are usually the etherion based and so are they used differently or held well
if you’re trading only they all trade the same way they all trade the same
okay it’s when you get into off-exchange trading most of the tokens don’t trade
off exchanges and then when when you trade is that are we really saying trade for a sweater
is that what you mean no most of them trade for Bitcoin or other currency on an exchange so
on an exchange yet you’re only exchanging between crypto to crypto
okay so you’re fabulous coin and your ABC coin and your WXYZ coin yeah you’re
gonna trade your fabulous coin for those coins at different values only because
you wanted to cuz I wanted those points for some other
reason for some other reason okay so that’s where the exchange comes in
okay the community is partially the exchange all right but the more
important part of the community that finally the crypto world is starting to see
is the off exchange okay tell me more about the off exchange well the off exchange would be the merchants that are going to want to accept it
okay got it so that’s sort of where I was going to but not very eloquently
whereas I could then buy the sweater at the store because the store would accept
the currency correct okay and so is that sort of where the liquidity is going to so all the coins on the exchange have liquidity on it okay but I start
in the community aspect I’ve got the community of the users and the community
of the merchants or the acceptor or the exchanges so then it goes over to
the liquidity aspect okay the more merchants you have the more liquidity
you have the more exchanges you’re on the more liquidity you have the more
people that want it the more liquidity you have now I know you’re gonna tell me
that liquidity is a good thing and from an investing world yes you want to make
sure that your investments are liquid why in this fear would it make sense
like why would I want to have a coin or currency that is more liquid is that a
higher value well it’s a higher value because if you ever want out of that
currency to go to a different cryptocurrency mm-hmm there has to be
enough liquidity for you to make that transaction got it okay so in the same
way you know if I’m if I’ve got a stock and you know it’s not heavily traded it
can be take longer or it can be a lower price if I want to sell it okay so the
exact same thing now if we go back to the beginning of our conversation where
you’re saying you know you were purchasing or acquiring coins or
currency to be able to hold it but then use it I’m assuming that liquidity is
where we’re gonna have even greater need or use of this in the future
correct okay so again in ’09 this this cool soft it’s not software but it
acts like software if those cool software that yeah was interesting and
neat and the technology the white papers that we read on the technology of what
blockchain was and it was great yeah we’re in and then when you start
watching it going forward you kind of figure out different ways that people
hadn’t thought about it yet and nine years later we’re still doing that these
people that there’s a lot of coins being created but there’s a lot of
things that people are doing the exact same with what the person before them do
hmm so not a lot of evolution on what this
is a decentralized worldwide transfer of value and I keep using the word value
instead of money or a Fiat because it’s not money right it’s valid and it’s
whatever the value of the world acknowledges the value to be mm-hmm
because currency is not like a stock it’s not backed by anything there isn’t
there’s no company there’s no asset it’s not like real estate no and you said
currency either crypto currency or fiat are not backed by anything he it does
not have any backing except for the government well that’s what I was gonna
say so it there’s no it’s no longer aren’t like gold equals a dollar but
there’s there’s a government intervention there right and we do know
a couple years ago when one of the government’s declared bankruptcy they
weren’t allowed to get the money that they put into their banks because the
government mm-hmm well I guess maybe not all that different but still seemingly
different for sort of us becoming a bit more mainstream from a currency
standpoint okay so we’ve got the technology we’ve got the community we’ve
got the liquidity and so if somebody’s considering getting into into crypto
they’re looking to acquire they’re considering those three things but what
other maybe advice is the wrong word but what other things should they
be considering because there’s another level on top of it first of all I’m not
everyone’s in a position where they could really properly evaluate all of
those three I mean it’s not like there was a very straightforward report card
unless I just haven’t subscribed to that email list and if you find that email
again we should be working on that project together but but how does
somebody really properly evaluate if if this is something that they’re
considering honestly I don’t have an answer for that a lot of it goes by
what’s here mm-hmm what’s in your heart it’s the same as real estate so again
we’re going oh wait no we’re going away from the crypto talk for a second yep
and now we’re talking real estate okay just to be clear real estate if you’re
looking for a property for yourself it’s all emotion yeah but let’s say I’m
looking I’m gonna rent out I’m gonna get a duplex that I’m gonna rent it out so
you’re gonna crunch all the numbers you’re gonna crunch the numbers yeah and
then you’re gonna figure out whether it’s going to be better value for you
when you want to sell it in five years mm-hmm
yeah there’s gonna get more per year because something might not go up in
value as much over five years but you might get 10% more rent yeah I mean I
would say there’s in real estate and I mean you know this you want to minimize
the amount of speculation so I’m gonna start with a location where you know
they’re strong economic factors I’m gonna consider you know is there influx
of population what’s the rent like what’s the history like you know there’s
definitely a lot more that you can concretely say yeah it’s cash flowing
every single month you know sure my tenants could move out sure they could
trash the place there’s insurance and elements of risk you know when it comes
to real estate yes I would say maybe 85% I don’t even know what number let’s say
85 90 percentage you crunch all the numbers you still have that feeling in
your gut on is this the right or the wrong thing but you’ve got a lot of
numbers in facts and actually it’s been really interesting for me as I’ve been
sort of moving into in crypto and talking with a lot of
other investors in the real estate space who are just like it’s not a hard asset
that there’s no way I can jump in years from now there’s a condo that if they
bought the property two years after just a month after you bought they’ve now got
a variance and now they built you’re caught the condo next door to you your
view is now looking at the next-door neighbor
mmm-hmm was that a good investment it was an event you made the investment on
the numbers that you had and the gut field that you decided and other things
now have changed that you had no control of or knowledge of mmm-hmm
so I mean let’s not get into is it still cash flowing and all that kind of right
so from an investment dollar standpoint but yes there are other external
variables and so is that sort of where you’re going to with this real estate
shifted so in crypto when you’re looking at something yes if you’re looking at a
white paper you’re looking at their website or if it’s already trading you
see how much it trades and it has a lot of trading mm-hmm that means there’s a
lot of people interested more liquidity right well then you’re gonna go and say
what can I do with it I I always do the Doomsday if every exchange shuts down
tomorrow what can I do with the cryptocurrency that I’m holding it well
Bitcoin I can still move and I can acquire things with it right most of the
other coins out there if there isn’t an exchange there’s nothing you can do
right you’re S.O.L because most of the coins out there can get traded to
Bitcoin mm-hmm now the likelihood is again we don’t have a crystal ball I
mean I know how you talked about this doomsday the exchanges are making money
per transaction so they’re likely not going anywhere but from a liqidity standpoint I see that that’s critical to be able to get out and in
real estate it’s actually kind of the same way you know if your since we’re
kind of jumping backwards and forth a little bit you know
if you’ve got a property and the worst case scenario happens what are your
options can you sell it can you rent it can you renovate it you know you need to
be able to evaluate all of those things before you buy the property so we’re
saying I think it has a lot of similarities to any of that I word that
we’re not talking yes let’s be investing it just there is no hard asset there’s
not usually a company behind a cryptocurrency yeah there’s not usually
people that stand up and say hi were part of this cryptocurrency it’s all
because everyone likes being anonymous they like to be anonymous because they
don’t want to put there they like to be anonymous for whatever reason they like
to be anonymous for yeah totally so there’s more changing going on on a
daily basis to more regulation which isn’t a bad thing to a point it should
still be decentralized the government shouldn’t be able to control it like it
control the currency but there still needs to be a little bit of governance
that says here’s what’s right here’s what’s wrong here’s what’s illegal oh
absolutely I am 100% agree with that so I I’m I’m in agreement with what that
part is some of the others not so much but I digress so when you’re looking at
a cryptocurrency and you want to get in and let’s call it like we’re not gonna
call it the fabulous coin because we already know that she’s fabulous and we
would all buy so let’s go back to the ABC coin right so you’re gonna go to the
ABC coins website you’re gonna see if it’s traded anywhere you’re gonna go on
that trading platform and just watch you’re gonna say oh look it goes through
three Bitcoin a day well it $7,500 us that’s what twenty
five thousand dollars roughly a day okay maybe that could be okay I can get out
if I’d only buy a little bit can I use it anywhere else
that’s the question is coming out in 2018 that is the question
happening because there’s no merchant services that are just started hmm so
can I take this ABC coin and go get a coffee no is there any coin that you go
and do a coffee yeah Bitcoin but it’ll cost me more than
the coffee fine XYZ coin I can go and trade it for a coffee I can trade it for
a muffin I can trade it for a hotel stay okay that has more value to me outside
of the exchange mm-hmm I know mm interesting
and then if its value goes up great if it goes down great you’re still trading
I’m trading the coin right so it’s value is not as important it’s not as it’s not
it’s always important right but not as important right so you’ve actually been involved
at the creation of a number of coins and tokens and projects and currencies since
2009 tell us about the latest one the latest one that I’m proud of it kinda
he’s very really proud of it’s called Niko it was
created by a company and they actually stand behind it Nikola Tesla unite
incorporated federally incorporated company yes you heard Nikola Tesla
correctly they are the company that the museum Nikola Tesla Museum and the
foundation have authorized to use the name Nikola Tesla to create a
cryptocurrency a lot of words no but that’s really cool this is one of the
first times if I’m if I’m correct that we’re seeing a brand really step into
the crypto world and putting their name on it is that correct that is correct
most of the coins out there have not been created by a brand even Bitcoin
Bitcoin wasn’t created by the brand Bitcoin is now a brand but it wasn’t
like the coca-cola coin no so and I don’t think they have
she called so I’m working on the fabulous so Niko is a standalone wallet
it is downloadable you go to the website Niko.eco kind of a
funky email or website you can download the wallet there is now a mobile wallet
and an Android app that goes with it so you can be carrying around on your phone
and the merchant services that we have created we already have some merchants
that have been looking at it so you gonna be able to use your phone and
swipe it just like you would swipe your Visa card that is on your phone and pay
for whatever you want so it sounds like you’re really taking your own advice to
heart saying you know the technology it sounds like with the wallet I’m assuming
it’s not a photocopy of a photocopy it’s not a photocopy no photocopying
whatsoever no okay and we talked about the community a moment but with the
liquidity it sounds like this is a currency that you’re working really hard
and taking great steps to make sure that people can actually use it yes and we’re
focusing on outside of the cryptocurrency world okay wouldn’t mean
well there’s two worlds the people that believe in cryptocurrency and that are
in it which are on their computer and then there’s everybody else that reads
about it that don’t understand how to get in or aren’t too sure what to do so
we’ve actually I found out last week so we sponsored a p3 race car I have to
get that right it’s a prototype race car which is one level below f1 everybody
knows what the f1 cars look like this is one of those it looks like that only
it’s enclosed where the title sponsors where the title sponsor is using crypto
currency as a sponsorship the team that allowed it to be accepted as title
sponsor accepted it in crypto so they’re accepting cryptic
so currency and they are the first racing team that we know of and we
looked that has accepted cryptocurrency as a sponsorship so they now encouraging
that you can buy tickets with crypto we’re working on that okay so that whole
ecosystem of racing and people always say why do we do Racing car
well everybody likes racing cars mm-hmm it’s in the news there’s television so
as a branding it’s great if we’re trying to get the word out and not just for
Niko we’re just trying to get the word out for crypto that there are other
things that can happen other than trading it so what other things have you
done or are you guys working on that you can share that you could use your
cryptocurrency for we have a charity in Ontario that is accepting Niko for a
charitable receipt so they will give you a value of what it’s
worth is that the lowest value of that day they will give you a tax receipt
that you can use for the following years taxes so personal taxes or corporate
taxes you’re doing what interesting well that’s that’s another really interesting
one I’m sure that there’ll be a lot of charities who will be eager to to get
those dollars or those currencies we’ve had five more charities that were in
conversations with right now and will accept all of them so if anybody is
listening we will talk to any charity so that they
can accept cryptocurrency and we will even teach them how to do it
that’s awesome and it’s any cryptocurrency that their interests well
hopefully it’s gonna be Niko yeah brand well yeah of course we will assist them
with others as well yeah it’s sort of the way of the world and it’s the way
that it should be um again cryptocurrency is decentralized there
should be no one person controlling it there should be no one organization that
oversees in that decision yeah it how can we help right that’s what
cryptocurrency should be um okay so you’re you’re working on that what’s the
what does the community look like today for Niko it’s actually it’s funny
so it’s actually fairly big as soon as
Nikola Tesla unite came out saying we are supporting this we have a lot of
people that believe in Nikola Tesla and what he did that have come up and said
you can prove that Nikola Tesla unite is part of Nikola Tesla yes
here is a letter-perfect we’re in how do we do it yeah so we’ve had scientists
come that have been working on the Tesla coil that was created they’re trying to
do new things with it we’re existing with them there’s
electric bikes that they came to us and said we can do this we can help charge
quicker and we went great how can we help
so there’s all these communities yeah and the Nikola Tesla community is one of
them but general retail being able to accept a cryptocurrency at general
retail so you’ve got all these stores and who are interested if I want to use
my Niko currency and get item is it trading is it was buying because well
years like I said it purchased the same way I mean it’s the currency but
acquiring you’re acquiring the product or service yeah which that means you
still have to pay the sales tax on that okay this is no way shape or form a way
to get around paying sales tax yeah no we’re not trying to no no I’m just yeah
I just I personally don’t use the word buying okay because then people think
yet got it but is it then trading quietly are you trading bartering okay
acquiring yeah can even with barter you still think tax on barter yeah so
again everything about board just moving the words around a little bit so it
doesn’t get confused with no and I really appreciate that because I mean
this is a whole new world that requires you know a new set of vocabulary because
it’s doing things differently so okay well you will use trading for now you
know when I’m going to the mall to go trading you know
exciting I can’t wait to say that one day but ya know so that really
essentially gives us a lot more opportunity and so then in that instance
if I have a currency and we’ll just use Niko for the moment because that’s
that’s the one that you guys have developed if the value of the Niko goes
up let’s say let’s say it starts at $50 and I’m gonna buy that same sweater
that’s still on sale for a hundred bucks if the value of a Niko is $50 today I
would need two Niko for that sweater correct but if the value of the Niko
goes up to $100 I would really only need one Niko
correct so that in that sense is it possible that my purchasing power goes
up if the value goes up exponentially exponentially so that’s that’s another
really interesting way to maybe think about buying into these crypto
currencies because if and only if the value that goes up and in complete turn
transmen they can go up down sideways and everything in a between we’ve gone
from $50 to $5 absolutely so where it’s not only so that we can do a better job
of our Christmas shopping but you know in theory part of holding these if the
value in fact goes up your purchasing power goes up correct you’re using less
coin for this same position right so in the trading of currency for crypto for
goods the value can go up or down and again that’s where an exchange helps
because the exchange is what you can everybody agrees to if we use barter
for a second yeah so if you and I agree that the beaver pelt is worth two
squirrel pelts and I go to the next town what’s it Wow okay it no it’s perfect I’ll give you my
goat and you go to the next town yeah I might get more for the same goat goat
right so why wouldn’t I go to the next town the exchange which is a worldwide
24-hour seven-day-a-week exchange right how’s the value public on a website that
everybody can check and are all the exchange is the same like let’s say a
currency is traded on multiple exchanges they’re not interconnected they are
usually fairly close okay sometimes they there will be an upward down on one
exchange that the other exchange haven’t followed yet yeah and that’s where day
trading in arbitrage and coming in but we’re not going we’re not gonna go there
yeah um so yes the value is usually close enough so you pick an exchange
right and say we agree that you know this one niko is worth fifty one dollars
and fifty seven cents right wait for that hundred dollars I need one point
nine two niko do we agree yes I will give you the niko from my phone you will
accept it while we’re talking yeah before defections is done you should see
it on your phone right and you go we are done very good okay so I understand how
it works on exchanges what happens when merchants come into the mix because you
know I’m going out to retailer a does it go via an exchange in order for them to
get the currency or how is that value consistent or will they align with it
would be the same as what we just talked about okay if you were the merchant yeah
you and I have agreed that 1.92 niko is 100 dollars you would end up of 1.92
niko just like when you accept a credit card
you actually don’t get the Fiat in your account the second you swipe the credit
card okay you actually have to take a couple steps to convert that into a
deposit into your bank account got endings later okay
okay no that makes perfect sense so if you look at it that optics we would be
the same the crypto would be sitting in your crypto account or your company
mm-hmm if you wanted to cash it you make that transaction happen it then two or
three days later shows up in your bank account in Fiat just like a credit card
payment so now that we bring up credit cards into the mix this is kind of
sparked another idea for me um can you potentially pay off your credit card
with crypto in the future anything’s possible in the future okay
present moment credit cards want Fiat right so if you had enough
cryptocurrency that you could convert it to fiat to pay off your credit card yes
but isn’t the direct there is a direct correlation
well cuz I’m thinking about let’s let’s remove one step if there was a credit
card out there I’m just brainstorming all over the place you this have my mind
really works so if um you know you you had a credit
card that you could buy with fiat Canadian dollars, US dollars whatever and then you
could take your crypto which value is obviously fluctuating up and down you
know assuming our purchasing power goes up but we could in fact pay off our
credit cards that can be really interesting it could be in that could be
something that happens now that you’ve told the world so don’t get royalties on
that idea that’ll be out that’s also good again that part of the community
yeah there is a crypto community as a whole and that’s where I went those two
worlds the Crypto world and the non crypto world they’re just starting to date
right now I love it so the dating process will create a whole bunch of
things that nobody’s even thought of this
so super cool and I’m really glad we’re having this conversation because I think
a lot of the conversations around you know crypto and and and Bitcoin is it’s
investing a and B you know shoot I didn’t get in and is it gonna go up but
I think that there’s so much more that’s maybe coming to the forefront now and I
appreciate that you’re sort of yeah this is really cool so a couple just
questions for you I know that crypto is not investing but I’m just kind of
curious on sort of a financial standpoint because obviously I mean
there’s been some benefit to you when the values have gone up significantly
even though that was not your intention you know is there any part of of this
process that has sort of really made you think about investing differently maybe
even in other worlds because it’s given you a different spin on even some of
your real estate I’m not sure how involved you still are with that I’m not
but it did so if I put my investing hat on and I go away from my crypto world
for a minute it’s played back out of there yeah I do bounce around a you have
ADD when it comes to business I guess I do look at things a little
different i underwrite more so in the crypto world you have to underwrite or
do your due diligence or whatever terms you want to use you know any other thing
that I’ve been approached on I under write it probably with a different spin
with the crypto I kind of burn up a way but close enough but mmm so you’re
looking at things from different perspective yes and it doesn’t at the
present moment the two worlds don’t collide very well yeah
you’re investing when you’re not talking crypto right so yeah okay no no problem
I mean I think it’s it’s interesting because you’ve lived so deeply in real
estate and lives so deeply in crypto and just kind of was curious about how those
two really came together and sort of the the the culmination of it so let me ask
you this is there a financial move that you’ve made that you’re most proud of there’s been a couple things that I’m
extremely happy that I did financially but they might not have been my best
decisions but it helped here and it also helped up here with the decisions on the
good or bad that I did to make me the person I am today that’s a great answer that’s a really
great answer so before we wrap this up I mean I want to just thank you for being
courageous and for delving into a world that is you know so new to many of us
and helping us to really understand you know that there’s so much that we can do
with crypto and I like how you said that you know the digital world and the real
world if I can call it that you know are really just starting to date and that
there’s there’s so much more opportunity out there and I know you’re one of those
individuals who’s who’s making that happen so appreciate that well I have a
lot of people around that mentored me and again Steve when we put our brains
together something that magical right and some of it works really well yeah so
that’s awesome that’s cool so you know if there’s anybody who’s you know been
watching this or listening along here and they were interested in learning
about more about Niko or finding out what you
guys are up to where’s the best place for them to do that I would say probably
the best place is Niko.Eco and if you want to get a hold of me just go into
the contact us and just let us know that you came from here and they will forward
it to me and I will send you an email that’s awesome
fantastic well thank you so much for being here really appreciate it and if
you guys like this video and you enjoyed it make sure you subscribe down below
and if you’ve got any questions or comments and you want to learn more
about cryptocurrency let me know also in the comments down here below so that I
can make even more content to help you on your financially fabulous journey and
as always come on over to Limor.Money there’s got tons and tons of
articles and resources and things for you to download to help you become even
more by name to be fabulous thank you so much for watching guys, see you next time

2 thoughts on “What You Don’t Know About Cryptocurrency with Dean Jessop”

  1. It was so exciting for me to get to ask so many questions about crypto that I've been wanting to better understand. I hope you enjoy this video 🙂

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