Episode08

Transcription

Jeremy: [00:00:00] Good morning everybody to another episode of the investor chat podcast. This morning I have Chris Powell with me. Chris Powell is a good friend of mine and has a, different, investing strategy than what we've talked about so far. Mostly what we've talked about has been real estate. Chris is doing something a little bit different.

He's working on some cryptocurrency stuff and some trading that he's been doing. And so I'm super excited to tell his story and share his knowledge with everybody today. So with that, Chris, I want to thank you for joining me this morning. Appreciate you joining us.

So let's start, with a little bit of your background. What is your work history and your schooling history. So let's start with a little bit of what your background is and what your interests are.

Chris: So, I've worked as a electrician for about 8 years. Um, got a master electrician's license. Then I went back to school. I got a bachelor's degree. bachelors in science with, a, emphasis in robotics, automation, and [00:01:00] controls. That would be my, my schooling on top of that.

Jeremy: Okay.

So you said you you've got a master electricians, you've got a bachelor's, in robotics automation. Um, where has that brought you? Into your working career, as far as, what you do for your day to day employment.

Chris: Well, right now I am transformer design engineer electromagnetics design.

Stuff like that, which is kind of not what the degree was for, but it kind of goes side by side with it and so it's just kind of been a more of a niche build that I've kind of worked myself into.

Jeremy: Yeah, that's really cool. So, it's being able to go through the electrical side of things, with the robotics and automation, and then being able to find an, a niche opportunity to be able to, work yourself into a role that's, pretty unique. You don't hear about people designing power transformers, very often. And so it sounds like it's a pretty unique responsibility there.

Chris: Yes, [00:02:00] it is. It's nice because it's different than the normal stuff I'm used to. So it keeps me from getting complacent. Right?

Jeremy: Yeah. And it sounds like it's because it's been a, transition from what you went for your regular schooling for is you're probably doing a lot of on the job learning and, continuing education and getting better at that as you go.

Correct?

Chris: Yes. It's kind of, yeah. Just figure it out as you go, a lot of it's kind of like brute force type stuff where you just have to figure it out and get it done. But it's been a good learning experience and a lot of good knowledge that I've taken in from it.

Jeremy: I'm sure there's people that are around you. You mentioned to me a little while ago, you went to the IEEE standards training and stuff like that. So you're meeting, networking with other people in the industry, other people, that are doing similar to what you're doing. Right? So you're not just a lone soldier sitting here trying to figure it out as you go, but you've got other people that are [00:03:00] around you helping you with those things. Right.

Chris: Yeah. There's been some professional connections that I've made that kind of been able to assist in the growth and kind of figuring out where do you go from here? And, the just industry standards and stuff like that.

Jeremy: Yeah. That's awesome. As you're building out your investing portfolio, primarily when we've talked in prior instances, we've talked about, cryptocurrencies and trading and that type of, of investing.

So tell us a little bit about what brought you into that investing world in the end of the cryptocurrency, what was the allure there? And, what kind of kicked you off into the interest there?

Chris: Well, first of all, it was kind of like cryptocurrency was this black sheep type of investment opportunity or whatever, it had that whole thing with the silk road or whatever that it did and it was like, well, it can't be regulated and so it's kind of.

Other people can't get their fingers on it or manipulate it [00:04:00] in their way or whatever. And so it had that kind of appeal to it because it was this outlier black sheep type of investment. And so I kind of got into it with that. And then after I got into that, with that, I said, well, this has real potential for returns on investments with it.

And so I've been putting money into it and then figuring out, other cryptocurrencies that are kind of piggybacking or incorporated with other cryptocurrencies. And so you find ones that kind of might be on the Ethereum blockchain, but it's a different one.

Jeremy: So what was the first cryptocurrency that you bought into?

Chris: It was Bitcoin, which is, yeah, the flagship one. I think that's the good place to start with anybody that wants to get into it is just straight up Bitcoin because it's kind of the gold standard for everything else that's out there right now.

Jeremy: Okay. So if a new investor wanted to get into cryptocurrency and Bitcoin, they're going to look at the price of [00:05:00] Bitcoin.

And they're going to look at it like a stock, you know, most people that get into, this type of investing understand , to some degree stock trading. Right? And if you see a stock at valued at $25 a share, you're gonna buy it at $25 a share. But Bitcoin is thousands of dollars.

And so does somebody have to come in and buy a full Bitcoin? do they have to invest 30 or $40,000, you know, right up front. A lot of people don't have that. So how is Bitcoin different than a regular stock and can I get into it with less than a full Bitcoin?

Chris: Yeah. So you can buy fractional shares basically.

Um, and they rated off as Satoshi, which for the most part, it's kind of just how they divide up the Bitcoin. And it goes out into, you can buy thousands, hundreds of thousands of a Bitcoin and just invest in that much of it.

Jeremy: Okay. So if I had 5 or 10 or [00:06:00] 20 and I wanted to get into the cryptocurrency world, I could go in and buy 20 worth of Bitcoin.

And it's, it's a fractional share of a full Bitcoin. But I don't have to come up with that full amount. So that makes it. . Easier, I guess. So for other investors that don't have, thousands of dollars to put into some high dollar stocks, um, they could actually go in a little bit at a time.

Right. So that, that sounds interesting.

Chris: Yeah. And they even have a way, they call it dollar cost averaging, where you get into the market where you just add 10, 20, 30, 40, 50 dollars at a time into a position into Bitcoin and you can pay that weekly, monthly, um, so on and so forth.

Jeremy: Okay, so like my 401k that automatically comes out of my check, every paycheck.

You know, my employer takes some of that out and they just put it in to my 401k. We could do the same thing with, with cryptocurrency and Bitcoin, right?

Chris: Yeah, you can auto pay and just dollar cost average into, which is probably [00:07:00] the better way to get into it is where you just do a little bit of time over, a longer period of time instead of going all in when it's low or all in when it's high. Um, when you dollar cost average in, you kind of get the best of both worlds, I guess.

Jeremy: Okay. So that's, that's very interesting. Now there's several other cryptocurrencies in the space as well. You mentioned something about the Ethereum blockchain.

I'm assuming there's, some other pieces in there, but let's just take a step back for a second at a high level, what is a cryptocurrency? And why was it created in the first place?

Chris: Um, it came as a way to secure money being transferred from one place to another. So with the blockchain, it has to be validated, which makes it secure for the money to be transferred.

Jeremy: Okay. So we, we could spend an entire episode just on the blockchain. Right. But from a high level, [00:08:00] what is the blockchain and why is it, secure for me to send. Bitcoin or transfer Bitcoin or buy Bitcoin because of the blockchain.

Chris: It's a way of validating transactions through the ledger that is kept on the blockchain through, bitcoin, stuff like that.

So then you have miners and they validate everything that you do, every transaction. And it's a way of, encrypting your data, for that, it keeps it secure. And there's not really many ways to hack it or get into it and kind of fraudulently make transactions with it.

Jeremy: Now, a lot of banks are very secure, right? So it sounds like Bitcoin has done the same thing is instead of using, physical banks, it sounds like they're using the blockchain, Which is a validation, right? And they're validating a ledger. This ledger, is a public ledger. So everybody's got access to it, but then you've got miners that are [00:09:00] validating.

So are these guys, are these like accountants standing around calculating this out? Or what is, what is a miner and are they using a pick and shovel or are they, I mean, explain this to somebody that's

Chris: Brute forcing trying to solve an equation. That's the blockchain. And once they do that, they solve a block and then they're rewarded a, miner fee or whatever, which is free Bitcoin for them.

Well, not free because the power consumption that it costs to actually mine the Bitcoin with it. Um, there's a cost associated with that.

Jeremy: Okay, so these miners are basically like supercomputers that are just running these calculations to solve the ledger and that block, right? So that block of the blockchain.

So if I transfer, Bitcoin over to you, it has to go through this process to validate it. Right. So it has to validate it, that I can send it, that I'm sending it to you and your address, your [00:10:00] account. And the only way that I can send you that is it has to go through this process, right?

So you've got this super computer somewhere that's calculating all of this out, so it's bits going back and forth and then it's being solved. And then it'll transfer to you, right? Once it's validated that, yes, I am the owner of that Bitcoin or that fraction of a Bitcoin, and yes, I can send it to you and then now it's transferring that ownership over to you as part of the ledger, right?

So now that ledger says, okay, this was transferred from here to here. Just like in accounting, if you have a ledger and you're taking finances from one account and you're transferring it to another account, you move that over in your ledger and now you've got record of it. And so that's what we're doing.

If we think of the stock market and, Conventional trading and conventional investing that people are thinking about, they're thinking about buying a share of Apple or Tesla or Microsoft, Amazon, whatever, right? But this is actually a digital currency, [00:11:00] like you're buying into the U. S. dollar, the yen, the Euro. So you're actually buying into that currency with the expectation that based on its fluctuation, so like right now, the us dollar versus the Canadian dollar, you could buy in us dollar sell in Canadian dollar and you get a spread, right?

Jeremy: You're getting a difference.

Yeah. The forex exchange.

Yep. And so you're doing something similar with the cryptocurrency is you're buying it with the expectation that the value of it is going to increase over time as an investment, right? So just like the U. S. dollar, because of inflation, the U. S. dollar's buying power continues to drop every year, but instead of parking your money into the U. S. dollar, you're parking it into Bitcoin, which has continued to increase in value over the years. Which is where you're basically hedging your U S dollar with Bitcoin. Right? So instead of hedging your U S dollar against the [00:12:00] European currency or, the yen or, the Canadian dollar, you're just using a platform that's not a typical government backed, Currency you're using the digital currency.

Yes. Okay. All right, cool. We've talked through the whole premise of what cryptocurrency is and how it's secure. So talk to me a little bit about, Your education process through this as well. Just like you talked about with your career, you're continuing that education, but how did you learn this stuff about Bitcoin and cryptocurrencies?

Chris: Of it's been kind of self-taught trial and error kind of you get an app and you start trading it and you kind of see what goes and then you get on YouTube and you listen to what other people say and you get more than one input from YouTube or whatever, because one person is going to say one thing, another person is going to say [00:13:00] another thing, and so you kind of get all these different range of views on it, and then you figure out where it actually lies with those viewpoints.

Jeremy: Okay.

So you're aggregating all of this information that's available out there. So you've got people that are, cryptocurrency, call them news anchors or whatever you want to call them, , but they are studying the markets and the industry. And they're providing that information to you. And just like any news outlet, they're going to put their own spin on it or their own opinion on it.

Right. So then you said you're taking that information.

Chris: Their own kind of way of looking at it. Some person might be kind of like a medium term investor. Some person might be a long term investor and somebody might be a day trader and they're going to have completely different views about how they see the market going or what they want to.

Do with the market based off that kind of perspective of what they have.

Jeremy: Yeah. I think it's very relatable to any other type of [00:14:00] investment, right? Because again, depending on your outlook and time horizon that you're looking for that investment to, be able to bring you a return depends on what your intention is with it.

Right? So you mentioned you got day traders and those guys are trading every day or multiple times over the course of a day, and then you've got the medium term guys that are looking at, over the next four or five months, and then a long term investor, you know, a lot of times when you're thinking, long term, you're talking years or decades out there, right?

So if we, yeah, they're, they're

Chris: in it for the end.

Jeremy: Yes. And so in my mind, that works really well. If we look at the real estate side of it, right? So you've got guys that are, on the short term process. In the real estate world, we would call those a wholesaler. They're going to go find a property that they can get under contract and then they're going to sell it to somebody like a flipper.

And they're going to make a [00:15:00] short term spread on that. So they're going to go get it under contract and then they're going to go find somebody and sell that contract to somebody. They're going to make a few thousand dollars on that spread.

They didn't actually own the property. They're just selling the contract. And then you've got guys like a fixing flipper that they may go in there and they may buy the house and they're going to own it typically less than a year. They're going to go in and do a quick renovation, put some money into it.

With the intention that they're going to get a little bit more money out of it. So they're in the market for a little bit longer time than like a wholesaler. And then you've got the long term investors. The holders that are going to buy that property and they're going to hold it for many, many years.

They're going to rent it out as a short term rental, long term rental, medium term rental, whatever, but they're going to hold that property for five, 10, 15, 20, 30, 50 years. Sometimes, depending on the investor and they're looking for something different, right?

The wholesaler is looking for a quick buck and the, the long [00:16:00] term investor is looking for. Tax depreciation, long term, equity in the house and a lot of other opportunities for the long term investment. But it's a slower building gain. So you got the same thing in the currency, in the trading, right?

Cool. Yeah. So on that side of things, where would you place yourself in the realm of, A cryptocurrency investor?

Chris: I would be more medium and long term. I know it's going up in the end at the end of the day or the end of the year. Long term, but at the same time, , I look at shorter trades too, where, okay, this one's going to do good for this X amount of time.

And then try to get in on that. And then I have also looked at day trading or I'll sit there and be like, okay, I know this is going to go up today or the next couple of days. Um, let's put something in here, maybe do a leverage trade or something like that. Or you see some, okay, this has gone up way too fast, too quick.

It's going to go [00:17:00] down. And then you leverage that downturn and do like a short position or something like that. Okay. And so there's all these different ways to trade it and so you're always looking, which 1 do I want to do right now? And you take positions on all 3 because you're always, diversifying your portfolio with how you're doing everything.

You might not make as much money quickly doing the long term stuff. As you would, the medium to short term stuff, but at the same time, it's also more of a safer bet to do it that way.

Jeremy: Yeah. So when you talk about your diversification, you're diversifying your position as well as the cryptocurrencies that you're investing in.

Right. You mentioned this particular one looks like it may have gone up too fast. It's time to sell, or maybe this one it's been held back for a long time. It's ready to take off. And so as you're looking at your analysis, what are some of the tools or some of the techniques that you're using aside from doing the research, following different, [00:18:00] cryptocurrency influencers, but what are some of the other tools that you use, in your analysis?

Chris: Um, I'll use trading view and I'll do some of the different, tools that they have on that, your Mac MD or stuff like that. And then a lot of it is just kind of looking at fads. What's hot in the moment. Because with crypto, from what I've noticed is it'll get a fad and I'll go up real quick and then it's going to come back down and it's going to Consolidate backward, at a certain point.

And so you're always looking for these upticks and downticks or of where could be at. .

Jeremy: So you're using more than one tool, right? So you said you're using trading view and you're looking at the actual charts and looking at trends and, the flow of the chart itself, and then you're also using the public opinion, as well to gauge, okay, look, this has been something that's been bottling up for a long time, it's finally starting to get some attention.

[00:19:00] And so you're using multiple tools, multiple strategies to help you in your investing strategy. So you're not just listening to one thing, right. Just going back to your continuing education, you're not just listening to one person, you're spreading that out and, learning from others and listening to others, talking, networking, those types of things.

I think that's super important to point out for just a minute as investors, we should never rely on one source for information. We should be using multiple opportunities, multiple opinions, and use our own opinions and use our own research to at the end of the day, our personal opinions on the things that we should be investing in.

Right. Exactly. Cool. I think that is, difficult sometimes for new investors to really grasp. From what I've seen, a lot of times they will, focus on one side of it.

Chris: You put all your eggs in one basket and then If it goes bad, or it doesn't do what you think, [00:20:00] then that's where everything is.

That's how you get burned on some of this stuff.

Jeremy: Yeah, absolutely. What are some of the, the cryptocurrencies that you're looking at aside from Bitcoin right now that you're looking at that you feel have, some good potential either short term or longterm.

Chris: There's always Bitcoin, but Ethereum's one that I watch, but. Not too intensely involved, but then there's also other ones like polygon. Matic. There's a meme coin, which is Pepe, which is 1 that I've been watching. You kind of watch them and like, polygon Maddox, more of a long term investment.

You read the white paper stuff on that. You see what they're trying to do with it and how they're trying to, get it off the ground, and you're like, okay, this one has potential. Then you look at one like Pepe and you're like, okay, this one is, a meme coin. It's short term. It's going to be a fad.

It's going to go up and down real quick. Um, so you can figure out when it's going to jump up and you can figure out when it's going to jump down and you can make [00:21:00] some quick trades on that. But then if you want some more medium to longterm, then you're looking at these other ones that actually have some substance behind what the project is, what they're trying to do with the coin.

Jeremy: Gotcha. You mentioned reading some of the white papers, again, a lot of research that's going involved with that on a daily, weekly, monthly basis to really help select the ones you feel that are going to, help your strategy, right?

Because whether that strategy is short term, long term or medium term, it sounds like it depends on the type of coin that you want to be investing in. Yes. Okay. Awesome. I think there's so much into cryptocurrency that, there's still so much to learn.

Right. And so it's really intriguing. If there's somebody that's new to, investing in cryptocurrency, what are some places that you frequent that you would recommend for other people to start doing some, research on cryptocurrencies?

Chris: I think YouTube's been the best resource for information like that.[00:22:00] And it's a dime a dozen on YouTube for people that are going to be talking about crypto and it's going in and finding one and then just feeling like they have good information. Like they know what they're talking about because there's so many people out there that are just bandwagon jumpers or whatever that you don't feel like they know what they're talking about.

And they'll just tell you anything and everything. You can always find an opinion to do one trade or another for whatever reason, but it's finding ones that where you're like, okay, this actually makes sense. This guy knows what he's talking about. This is the way the market's actually going to go instead of somebody who's doom and gloom.

You gotta do a lot of due diligence with it, right? You can't just. Say, okay, this one guy said do this. So I'm going to go do that. No, you got to get counter opinions. You got to actually research it a little bit. You can't just jump in just because 1 or 2 people said to do it that way.

Jeremy: Gotcha.

Yeah. So really [00:23:00] it's more of a, personal basis, right? So the people that you follow may not be the right people for myself. And so your recommendation then is to do a lot of research, find the counter opinions and really be building out their own network of people that they're going to follow that will align with their strategy.

Chris: Yeah. You can't just rely on one source. I mean, I've been watching this market since 2017 and. You can go find people or tell you whatever you want to hear 1 way or another and it's not necessarily true. And you have to really weed through it and do your due diligence to actually figure out. Okay, this guy knows what he's talking about.

cause you're never going to figure it out all the time. You're just trying to figure it out. Most of the time is how you do it, right?

Jeremy: I think that's super important to focus on for a minute.

I want to dive into that. So you mentioned you're not going to be right a hundred percent of the time. And that's the same thing with any investment, right? If it's an [00:24:00] investment, you're going to expect that you're going to end up losing some money. And so what is it that has helped you, with those down times?

Jeremy: And focusing on, Hey, look, this was a loss. I'm going to move on. I'm going to get better about it. So what are some things that you've done for your, psychological and your emotional health to be able to get through that because cryptocurrency moves fast and it can move in big swings. I think that's important to focus on those losses and how you get past them, get through them and learn from them.

Chris: Well, my biggest lesson learned that I've learned the hard way has been, you gotta figure out What you're willing to lose and you got to put your stop loss in and you're going to say, if I lose this much, I'm out of this trade. I'm done. I'm moving on. I'm going to do something else and that's what it is.

And you have to hold yourself to that. Because if you don't do that, then you can get burned. You can get liquidated. You can lose all your money. By not paying attention to it. And so it's something where you have [00:25:00] to go in and say, okay, I'm going to put this trade in and if it fails this badly, then I'm pulling out all my money and I'm going to take 5%, 10 percent loss, whatever it's going to be.

And then I'm going to find something else. And you're not going to go back into that trade because you can get emotional at that point. We're like, okay, now I'm down 5%. Now I need to find a trade where I'm going to make. 10 percent so I can get back and get 5 percent off or something like that. And you can't do that.

You have to sit there and say, okay, I've lost this. Now I'm going to. Start from scratch, find something else and I'm going to go back into a different trade.

Jeremy: Yeah, I think that's valuable to focus on, right? Because a lot of times you see people that have a gambling problem, that's the same mentality, right?

They may be playing blackjack and they're down a little bit and then they get emotionally invested in the action of the, the game, right? So if we're doing the same thing with crypto or any trade, if we're emotionally attached to [00:26:00] the particular trade, it could really cause us some problems, right?

I love how you mentioned you have to know what your hurt point is. What's your limit. And you put in a stop loss. here's, here's my level at this point, close the position, walk away, look at something else completely.

And I think that for myself, sometimes that is difficult because you spent so much time thinking about, this is where I want to trade. I've done all this analysis. I've done all this, looking and research, and then you become emotional.

It's like, oh yeah, this is going to be a sure thing. And so then being able to take that lesson and walk away from it, I think that's super powerful. I mean, how have you been able do that, build that resilience in your mind to be able to just walk away from it?

Chris: It's been learning the hard way I've lost.

I mean, you do some trades, you lose and you're like, okay, well. I play it this way, then this is [00:27:00] going to be the result of it. And it's the same thing on when your trade is actually doing good. It can go up and up and you can be five, 10, 20 percent up in a trade. And if you do not pull your profit out, then it goes back down and you lose that way too.

And so it's knowing when to fold them, when to hold them kind of thing. and you got to predetermine. I'm going to only lose this much and I'm only going to gain this much. And that's where I'm going to pull my profit out. This is where I'm going to cut my losses and walk away from it at the same time.

Jeremy: That's interesting.

Chris: You can't just throw it in there and ride it unless you're doing more of a long term investment.

Jeremy: I got you. How is your mindset different if you're looking at it in a long term aspect versus, Hey, it's dropped, 20, 30 percent over the last three, four months. How has your mindset have to be different?

Chris: Well, like I got into Bitcoin when it was like, I think it was about 2, 500 a Bitcoin at that point. So you get into it and [00:28:00] then it jumps up 20, 000. Well, then it jumps back down to three, 4, 000. You're still up at that point, but you're not up as high as you were when it was 20, 000. But then, you know, it's going to go back up and then it goes back up 60, 000.

And so that, that same Bitcoin that you bought in at 2, 500 is now worth 60, 000. But then it stays up there for a minute and then it goes back down to 20, 000, 25, 30, 000. And so you're like, okay, well, I'm not up as high as I could have if I would have got out at this point, but I'm still riding it because I'm still up from that 2, 500.

You look at it that way instead of, I could have made this much or whatever, but you're like, I'm still up.

Jeremy: Yeah. And I think that's a powerful mindset to have, right? Because if you look at what could have been, you can start self doubting, right? You can really beat yourself up.

And so [00:29:00] by realizing, I'm still in a positive position. And even if you bought Bitcoin at, 45, 000, you know, or 50, 000, as long as your time horizon is long enough. Yeah.

Chris: Right. You're saying, yeah, eventually this is going to be higher than this price point that I bought in at. And I will make money, but I have to hold out on it because if you pull out when it, when it goes down and you get that money at a loss at that point.

Jeremy: Yeah. So I think that's super, key to remember is that you don't lose money. Until you sell same thing with real estate, right? A lot of times, if your strategy was to hold it short term, but it doesn't play out to be profitable in the short term, if you sell it, it will be a loss. But if you have the ability to hold it for the longterm, you.

Are most likely, or at least through the data trending for the [00:30:00] last, you know, however many years shows that it's going to continue to increase. And so I think that's, something really to think about as an investor, your time horizon may have been short term to begin with, but it may.

Be a benefit to you to look at a long term. So would you recommend then for new investors into the cryptocurrency space that they look at, the dollar cost averaging where they're basically buying some every week, would you recommend that for most individuals, if they want to get into it, but they don't want to be doing a whole bunch of trading or maybe they're still learning, is that the best way for most investors?

Chris: Yeah. If you're getting into it and you don't know a lot about it. It's a long term investment at that point. And then as you get more, knowledge about how it works, how you want to do it. Then you can look at more shorter term trades, stuff like that, then you're more doing more technical analysis, predicting what, where the market's going to go, how it's going to go, and then, you're pretty [00:31:00] much, leveraging your money towards what you think is going to do, right?

Jeremy:

Yeah. So I think that's super key in, in any investment. And I think that brings in a lot of the mindset, , challenges that a lot of investors have is being able to focus on the long term strategy.

Tends to pay out. Um, it may not pay out as high of a return, but it's going to pay out at some point. And so depending on your time horizon, it's, it's always better to be in the markets or in the investments for the longer term than, a short term, especially something like a cryptocurrency or a stock , and again, I think it's important as you mentioned, understanding the fundamentals of the market and the coin itself, right? Because you mentioned some of these coins are meme coins and they could go up. And if you buy them and they go up and they come back down and they stay down for ever, or they completely crash, you may be completely wiped [00:32:00] out.

Right? So you do have to be very cautious and aware of which. And where you're focusing, which again, I think the advice of, focusing on Bitcoin as the leader of the industry, you have to pull billions and billions of dollars out of the industry for Bitcoin to crash. And that's very unlikely.

Chris: You have to figure, okay, how much exposure do I want to this meme coin for my overall portfolio where it might be 2 to 10 percent that you're willing to trade for that in kind of more of a, volatile trade or coin, something like that, that has that potential to fail because most of them eventually they're going to probably fail.

They might do good for a few years. They might do great. But if there's nothing really substance backing them, then what good are they at that point? And they will go down. One outlier from that has been that doge coin. And a lot of it's just because it has Elon Musk who's been saying, Oh, this is a good coin or whatever.

And that's [00:33:00] kept it afloat for this long but there's nothing behind it saying this is actually has a legitimate use in the cryptocurrency world.

If there's no use case for it, then how do you justify the value of that actual coin?

Jeremy: Yeah, I think that's interesting, right?

To justify the value with anything, somebody has to be willing to pay that price, right? And so the fact that you have influencers that are pushing that specific coin, really, Is the reason why people have any sort of value in it at all, right? If it doesn't have any intrinsic value, otherwise, then it's, only the value of the people that are holding that coin, right?

If, if I,

Chris: someone else is willing to pay for it.

Jeremy: And I think that's the, the truth in every investment is if it has. intrinsic value to somebody else or perceived value to somebody else, they're willing to [00:34:00] pay for that value that they perceive. As investors, we have to be aware of what somebody is willing to pay for something.

Because again, I'm just to relate this back to real estate if you go into, you buy a house for 400, 000 and you're the only one in the world that values that at 400, 000, you're never going to be able to sell it. You're going to have somebody that's going to come in and be like, Oh, well, I only value that at 200.

And so I think that's where. Being cautious as investors, really plays into, the long term strategy and then continuing to do your research, like you've mentioned, allows us the opportunity to be able to say, what is somebody else willing to pay for this? And if I can get into it at this point and there's enough influence in the market or enough influence in the community for somebody to see this as a higher value at a later date, then yes, it makes sense as an investment and [00:35:00] be able to move forward with it. I'm gonna buy this, and then when, the perceived value is increased because of the, whether it's influencers or, market use case, then absolutely.

You know, then. I can absolutely do that. You're not going to invest in a cell phone because you're going to buy a cell phone and it's going to lose value. If you, if you invest in an exotic car now, a lot of times an exotic car, you may be able to buy, and then it's going to increase in value because it's a limited.

Peace. There's a higher market for it. There's, wealthier people that are willing to spend money on those things and pay more than what the original value was. And so it really

Chris: comes down to supply and demand, right? Scarcity kind of drives that with something like that.

Jeremy: And so the scarcity with cryptocurrency is the fact that there's only going to be so much Bitcoin ever released.

Right? And so at the end of the [00:36:00] day, there's only going to be so much to go around. And if people are using it as a currency, then it's going to have to maintain some sort of a value. That scarcity piece of it helps drive that price up, right? Yeah. Awesome. Well, Chris, this has been an awesome conversation.

I appreciate, where you're at and the experience that you've brought, the mindset that you have and have been able to share with us today is being able to focus on your strategy and being able to Step back and reflect, make those decisions as you're going through. I feel that we've received so much value, for our mindsets today.

I just want to shift over for a second and if people want to reach out to you and talk to you about cryptocurrency or Bitcoin. Is there a preferred way that people can reach out to you? Is it social media and social media? Yeah. [00:37:00] Um, and is that Facebook, Instagram, where would you prefer them to reach out to you?

Chris: Um, either, or it don't matter. I got accounts on both.

Jeremy: Cool. I'll get your handles from you and we'll get them put in the show notes so that if people want to reach out to you and talk to you about, your mindset and cryptocurrency that they can reach out to you .

Cool. Well, I think with that, Chris, I think we've covered a lot of what I wanted to today, is there any last things that you want to share with the community or share with the viewers about cryptocurrency and where you feel that it's going to be in long term?

Chris: I think it's going to keep going up.

It's going to keep having the actual amount of bitcoins that are rewarded to miners, which is going to have to drive the price up. So it either has to go up or it has to go away and I don't see it going away. It's only going to go up. Um, and then there's so many more use cases for all the cryptos that are based [00:38:00] off the Ethereum or Bitcoin blockchain, and it's just.

Sky's the limit for some of that stuff. And it's just figuring out which one's going to be the one, right. Or is it going to be a couple of them that are the one.

Jeremy: Awesome. So it's really a matter of, continuing to do that research, continuing the time in the market is going to make a huge difference in, your final rewards, for holding that and backing that investment. Yeah. Um, cool, man. Well, I appreciate your time today. This has been super, beneficial again. I do, thank you for coming on. And with that, I'm going to let you go and we'll talk to you another time. Thanks, Chris. Appreciate you.

Chris: Yep. Sounds good. Thanks. Bye.