About Indestructible Wealth: I’m Jack Gibson. I’m your wealth strategist and I’m here to help you make some money. The Indestructible Wealth Podcast is for young entrepreneurs who want to make, keep and grow wealth to enjoy now, and for years to come.
Episode #35 – You Don’t Need to Be a Genius to Make a Fortune in Crypto
Podcast Episode Transcripts:
Disclaimer: Transcripts were generated automatically and may contain inaccuracies and errors.
Welcome to the Indestructible Wealth Podcast. This is the place where we help young entrepreneurs to make, keep, and grow wealth that you can enjoy now, and for years to come. I’m your host Jack Gibson, a serial entrepreneur, founder of multiple seven and eight figure businesses, and wealth building strategist. Each week I’m going to share my tips, resources and secrets, to help you create a plan and build the life you’ve dreamed of.
Welcome back to indestructible wealth. And I think you’re going to like this. You don’t have to be a genius to make a fortune. I think that’s pretty freeing right for a lot of us. I know I’m definitely no genius. I definitely want to make a fortune though. So I want to make sure you guys are clear on my platform and kind of my position on who I bring on to this show and what topics that I cover. I’m never going to bring anybody on my show that I would not personally invest or put my own money with them or that I don’t wholeheartedly believe in what they’re representing, what their philosophy is. So I’ve had people approach me to get on my show and I just said, look I don’t know that I would invest in what you’re doing or one person just asked me to get on here with multifamily real estate. I’ve never heard of them and I’m sure they’re probably great, but I said, look, send me all your resources. I’ll review them. And if I feel strongly that I would put my own money into this, or willl put my own money into this at some point, then I’ll bring you on my show.
Anytime that I recommend anything, if I talk about a specific tactic, like a specific investment or if I bring somebody on the show that’s talking about an investment opportunity, then I have either already put my own money into that or as soon as more cash flow kind of replenishes then I will absolutely be investing into it. So you can rest assured that I put my money where my mouth is. And pretty much everything that I’m going to talk about maybe there’s a couple opportunities where I will be able to monetize and make a profit off of recommending it to you. Nothing of that has happened yet, but I’d certainly plan on doing that in order to help sustain this platform, this podcast. I’m definitely very serious about that. So I want you guys to feel competent in knowing that anything that’s said on this podcast is definitely going to be something that I would stand behind and I think it’s going to be a great bet.
However, Very important is that I’m not providing any specific financial advice for you. This is merely financial education and I am not a licensed financial advisor so I cannot sell securities and those are things that are licensed products like stocks and bonds and whatnot. Anyways, just a little clarity and disclaimer for you guys so you understand where I’m coming from. When I recommend cryptocurrency or recommend a stock, I’m not selling those to you. I can’t make any money from those. So anyway just wanted to get clear. So let’s dive into the subject because I think that this is going to be pretty enlightening for you guys that you don’t have to be an expert on the technology of cryptocurrency behind it to make a fortune.
So here are the questions that you need to focus on. Is adoption increasing or decreasing? Adoption is the number of new users. Number 2, what happens when the asset drops? And question 3, do you have the mental fortitude to hang in there? So if we look at on any given day, you can wake up, fire up your computer and your positions could be down 50%. And that has happened to me. And the flip side of that is also true you could log in to your account on any given day see everything up 50% from its lows. I don’t recommend looking at it very often. I think crypto is a better asset to just put your money in and just don’t log in and look at the prices. I know it’s very difficult because it is very addictive to want to watch it, but is much better for your overall psyche. If you just look at the longer term trends, you’re going to see a lot of fluctuations in the short term.
So the key is, do you have the internal fortitude to be able to withstand the volatility? As I’ve said before, volatility is the price that you pay for outsized gains. To make sure that you don’t make bad decisions when your thinking is at its most impaired is because when you’re down 50% to 60% believe me, your thinking is absolutely impaired. You’re not thinking with your most rational, correct mind. So what we need to look at is what are the longer term trends showing us means adoption. We don’t really need to know anything more about crypto than that. You don’t even know what a blockchain is. You don’t even know how a consensus mechanism works. I don’t even know what the fuck that means what I just said. None of that is necessary. Of course, it’s really good to know so you have a deeper understanding of what you’re buying. I think it’s important so you’re not a speculator or even a gambler to just buy something because somebody else talks about it or says that they made money with it. That’s called FOMO, fear of missing out and that’s really never a good thing. But in terms of what you need to know in order to make a fortune from these assets, all of that knowledge and in-depth technical understanding is completely unnecessary.
Are companies pulling back from adopting the asset or moving forward to adopting the asset. Are there more users signing up and buying cryptocurrency and setting up new accounts like on Coinbase or Celsius or any of the decentralized exchanges, like Uniswap, my ether wallet, those sort of things what is that usage looking like? So right now, even though Bitcoin just certainly saw a pretty big pull back from its high of $64,000, down to as low as $29,000. While that was happening, adoption was increasing. So that’s why anybody who asked me I was saying, buy the dip, keep buying, you got a discount, you got a great opportunity. And we had a slew of announcements that came out during that time, like JP Morgan saying we’re now opening up Bitcoin to all of our customers, not just the wealthy ones. We saw an announcement about PNC bank. That’s the 5th largest bank in America, an incredibly conservative bank out of Pennsylvania they used to kick people off their platform out of their banking if they did crypto. So now they’re offering crypto to clients in partnership with Coinbase, and it’s crazy because PNC bank, it’s a real vanilla type of bank that’s never really shifted out of its lane. So the fact that we’ve got to this point where they’re offering crypto is incredible. And then the new Neuberger Berman, a $400,000,000,000 fund is now said to be getting involved with Bitcoin too.
So what’s happening? Why is this adoption happening from these real big players? Everything always comes down to what? Follow the money trail. Show me the money. Jerry McGuire that awesome movie. The economic incentives are driving the adoption of Bitcoin by the big global shepherds of investor capital, because why? Fees, Greed. They can monetize it. And these companies they’re not making as much money as they used to in other asset classes with their fees. So now they’re looking at something where they can charge exorbitant fees and increase their bottom line. They don’t care about their clients. They care about fees. You’re never going wrong bedding on wall street greed. So we got to look at that. We’ve got to look at those types of things. Now, the other thing you need to be aware of is the way Bitcoin is designed. It has this incredible structure of self-reinforcing economic incentives. So think about it this way. Once you’re in the Bitcoin network like these big players are, you’re incentivized to defend the network. So Goldman Sachs, JP Morgan, Citi group, PNC Morgan Stanley, these companies have their reputations to uphold they cannot and will not put their reputation at risk for any asset class. So that means every lawyer in Libya, as they have now works in service to defend the Bitcoin network. Once they joined it, whether they realized it or not, they became a defender of the Bitcoin network. There’s all this stuff going around in the media about the legislation proposed regulations that are coming down the pipe and could there be some additional regulation that comes on cryptocurrency? Yes, of course. I think that’s probably an evitable, but it doesn’t really matter because they cannot corrupt this asset. It is absolutely incorruptible and that’s never existed before. Any publicly or privately traded company, any other traditional type of assets, they could all be manipulated in some way, shape or form. But as Bitcoin gets bigger and bigger, it gets so much harder to manipulate the actual price and the asset the way that the code is written into Bitcoin, that it cannot be corrupted.
Now, there were only ever 21 million Bitcoins, 4 or 5 million have been lost forever. So the actual amount of Bitcoin that out there it’s pretty tiny. So only about 18 million Bitcoin has been mined. So 4 or 5 million have been lost. So maybe there’s 13 million out there. That’s a very finite asset. And I believe that it’s still very cheap relative to where it’s going. I think at some point in my lifetime I’m 43, I expect to live with my current lifestyle to make it to at least 90, I believe. I got another 50 years. I do think side tangent with the advances in biotechnology and precision medicine and gene editing therapy that I’ve been reading about, I do believe that we could see lifetimes extended to an average over a 100, maybe even 120, maybe even more than that. I don’t know. I mean it’s crazy what’s happening in medicine and the advances that are extending human life. So let’s just say on the low end 50 years I believe we’re going to see a minimum of $1,000,000 price per Bitcoin in my lifetime. I believe that’s very realistic. I think that could actually happen sometime within the next 2 decades. And why, I’ve talked about this before, so just see if you really want to get the lowdown on Bitcoin. I did an overview on Bitcoin and why I believe it’s such a strong financial asset. It’s a “Did you miss out on Bitcoin?” That was a previous podcast that I did. So take a look at that one. So what happens though, is people come into the Bitcoin network. That’s really good for the entire crypto ecosystem. That’s good. What’s good for Bitcoin is good for everything. Because what happens is people start looking at Bitcoin and they’re like, oh that’s super expensive per coin. So that starts spilling over as they invest into Bitcoin, then they start looking at Ethereum and then they start looking at the other alt coins. That’s what happened to me. I did the exact same thing. I started getting interested in looking into Bitcoin and Ethereum, and then I saw those 2 and I was interested though, started learning more about those. And then I started investing into other cryptocurrencies. What we call the alt coins are alternative coins, everything but Bitcoin and I started investing. I have 41 in my portfolio of different cryptos, all because I started getting interested and investing into the one. So it creates a spillover effect.
So what happens for Bitcoin? What’s good for Bitcoin is good for all of the other alt coins. And that’s why I believe that we just need to keep focusing on adoption. That’s all you need to do. And adoption is going to radically take off in the next several months. I don’t think we’ve seen anything yet. If you look at the trends of adoption, it’s crazy how much it’s grown just in the past 12 months, even in just the past 3 months, we’re definitely going to go to new highs and we’re definitely going considerably higher from here. And trust me when I say it is going to be a volatile road. When you buy it and you buy it today on Ethereum as if I’m recording right now, I think it hit $3,200. You could buy it right now at $3,200 I think it’s a great price. Anything below $5,000 and it could drop down to $1,700 by next week. That’s very possible. Don’t sweat it. You didn’t make a mistake. It’s impossible to time the asset. You cannot time it. We do not know what’s going to happen in the short run. Nobody knows. We do know if we buy it and hold it for the next 5 years, I’m on a 10 year plan on anything that I do, businesses I start investments that I make, I’m on a 10 year plan. I’m going to buy something and hold it for at least 10 years. That’s always my thinking. Unless something changes drastically to the underlying thesis of the investment. I’m not going to buy stuff and just sell in the short term. Guys, look at Long-term adoption. Go study it yourself. If you’re not fully convinced that crypto is a great place to put some money, don’t put all your money into crypto either, be smart about it. Position size your bets, put your money to where the amount that you’re able to lose and it’s like a trip to Vegas. You guys know you when you go to Vegas and I’ll likely know that whatever you take is probably not coming back. Whatever you would do, if you took a trip to Vegas and you’re okay with losing it, then that’s probably the amount that you should invest into crypto. If it’s something you’re going to lose sleep over. If it’s going to affect your current lifestyle, then that’s too much. Don’t do it. It’s the, you don’t ever risk your current lifestyle for a better one. All right. That’s it for me today. Hope you enjoyed the episode. Have a great day you guys.
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