[Music] alright guys welcome back UIL episode 28 28 weeks in 28 monuments so first and foremost we have to think Black Enterprise sure for featuring us that was that was a very um that was a good article that they did for us yeah it was the number one share story last week sort of almost 3,000 shares so and shout out to everybody for sharing it and all of the response that we've gotten for that it's very encouraging very encouraging so thank you thank you for Black Enterprise we appreciate you Nicole Webb thank you for writing a story we appreciate you well done and then we also have the shout-out Cerf s who amazing childhood to all the girls of curly girl collective we actually attended for the first time and definitely won't be our last time yeah it was just beautiful to see melanin celebrated and everybody come and have a good time and I was in all of it yeah sure episode 25 if you have a listen to episode 25 that's with some more mayor she's one of the cofounders of curl fast go fast as the largest natural hair festival in the world so yeah check that check that episode out it's a good one she dropped a lot of gems on women hair and also on the festival industry so we actually went to saw first year actually going intending it was 20,000 30,000 people there and it was it was dope and then I've done like they're gonna be doing Atlantis so I'll and get ready they coming your way for sure for sure what we're gonna jump right in till we got a very very special show we actually we don't know different this week we got on so much information that we want to give out to the public that we gonna release two shows this week we're gonna do our show which you listening to right now Tuesday 5 p.m. and then we also gonna drop off Friday we did that before yeah episode 24 we did episode 24 but this is just gonna be two different episodes um and we got some some some information for our international listeners as well yeah on this on the episodes coming out Friday because we get a lot of feedback we get a lot of positive feedback from from people all over from Africa from Europe from Asia and they like you know we want to have a little bit more of an international field so they love the content but sometimes it doesn't relate to their country yeah so we got some international information as well as information for the globe and I always say even for people that living in America don't limit yourself to America like the world is big right so the international information isn't just for international listeners for you too because we need to get money every single way in the world and we need to educate ourselves everywhere in the world the world is flat not literally like carve your fly as far as information information is the same this is why we can be on the charts and in Dubai be in the chart sitting on Botswana being a chart change out to Bermuda we number some Yuda and Trinidad Jamaica all of these different places is because we receive an information at the same time right now so it's a level playing field so we need to educate ourselves on what's going on all over the world not just what's happening in America they're definitely for sure so a very special guest today fritz Charles thank you for joining us for sure for sure so he's gonna tell his story but very interesting story got a lot to talk about from Wall Street to crypto and one of the things that we've been getting requested to cover the most is cryptocurrency right we got some stories yeah so we got our own personal story but we wanted to bring an expert in the field in as well so he's an expert in the field as well as a bunch of other things as well so we don't get in the crypto but before we start one can we get it a backstory on how you got here cuz your story is really interesting this was working in Wall Street and you were with the infamous Lehman Brothers right that's right so all right so of a lifetime yeah yeah all right can you explain it because that's that's that's the interesting story now for sure for sure I try to make it as concise as I could because this is pretty long but I think first off thanks for having me but yeah like you said you know it's kind of the personal background is a group of Queens born in Queens New York attended college at brew College in New York studied finance and my first job out of school is at Lehman Brothers for but you know not coming yeah I went hard for that job it was definitely a job that it's a dream job Lehman Brothers at the time this is 2006 you know I would say you know probably you know it's Goldman Sachs and like Lehman Brothers Morgan Stanley rely on that next level Investment Bank I think Lehman Brothers was one of the biggest investment banks in the world yeah on Wall Street like goldman sachs same level exactly and so I got a job there as a as a trader so I traded equity derivatives I mean equity swaps equity options and my clients were hedge funds and crazy fun job you know really intense I was 22 years old kind of doing transactions that were in the billions lucrative yeah yeah yeah you know I might be interested billion six digits 6 inches said as a 22 year old out of Queens major and then I you know did my thing got you know you kind of the way you're hired as an analyst so you do two years and analyst and they decide what to do with you and I was got promoted to associate and this is 2008 you know 2008 obviously the financial crisis happened and about three months after got promoted we went bankrupt and so and then what happened was there was like three days where people didn't know what was going on as far as like whether it was a you know what the building would be open whether we had insurance with you just basically working for a bank of entity and then we got word that Barclays bought us and then there was like a whole lot of hoopla as far as like who who's gonna be left with Barclays was gonna get laid off and I was one of the fortunate people to keep my job so I end up working at Barclays this is before the blocking centers eyeing any tickets so that's all right so the financial crisis 2008 when banks were closed and left and right Wall Street was in a mess and you were trading very complicated swap derivatives can you give 11th grade explanation on what swap derivatives yeah yeah so basically what it is is basically it's a is it's a contract that says I try to equity swaps on basically equity investors so the most popular equity index is the S&P 500 so you always hear about if you watch CNBC or even watch any news they say on the market we're up five percent nine times out of ten it's all about the S&P 500 and so that's to me 100 is five nights tops right so to trade it so trade five his thoughts especially if you you know you're not the hugest hedge fund or hugest client that's really complicated but what you can do with us is alright well we'll give you a contract that gives you the same return of the 500 stocks we'll take care of like buying all of them and what you have to do with us is you give us an interest rate so we're gonna say alright well you pay us 3% what we used to call it as LIBOR so library is a London interbank offering rate which is basically like it's almost like the international federal funds rate it's like the set rate like sometimes you hear about people talking about all the feds gonna raise rates or whatever this is like the International mmm so you so the hedge fund says I say the hedge fund all right well you want to return on SP over a year I'll give you that which you gotta go and pay me you know 5% some like that for that so if the SMP goes up above 5% let's say the S&P goes up 7% 7 minus 2 7 7 minus 5 is 2 they doing well the S&P is below 5% then they're out of money right so it's kind of like this weird it's almost like a bet so to speak how much money was being traded on that so yeah I mean normal transaction with these clients would be 500 million 1 billion yeah and so they'll call this up like I wanna move 5 I want to move a billion dollars worth of S&P 500 and we would take that trade and you're doing that at 22 years old yes usually not every every day every day so you straight from 9:30 to four straight billion dollars every day basically yes so the reason why I say that is even if the average person probably would never invest in this type of investment it's important to understand you know right we had a - cash or I was a great interview for us and he spoke about when he worked in if they used to be the CEO of a credit union ain't smoke about me when he was on behind the scenes of a bank and he started to see that wealthy people had a team of people that was working for him writing so much stuff that the average person black white Chinese the average person has no idea what happens right but this these things affect the world right and he's the end and so it's like a small group of people really affect the whole world right so that ties into the Lehman Brothers going bankrupt so people I don't think people fully understand maybe they forgot we have short-term memories about 2008 right how did this how did 2008 happen when if you're not familiar if you're too young that's when the financial crisis hit we had the worst recession since the Great Depression um stock market was down like 40% the housing market crashed everything just fell apart like a perfect storm and then the banks big banks had to get bailed out of course so but this all started because it was in England it was a it was a trading block in England right that was doing prime mortgages subprime mortgage in Oz u.s. u.s. yeah that was ankle it was us so you know investment being split in between a couple different divisions so there's an investment bank that kind of helps people go public like Bo and stuff like that and you have the capital market side which was I was in and he's put that between fixed income and equities equity just means top so my style was talking about was doing stock but the other side is where they focus on bonds mortgages a bunch of other things and so what David so the way that mortgages happen if I go get a mortgage from like Bank of America something like that or local credit union they give me a mortgage and now they have they they're basically accredited to me right and they take that but they take like a thousand of me and they put the mortgages together and you go to Lehman Brothers or some other bank and you like your packages together and sell it for me and so what Lehman Brothers does is they give you the upfront money let's say I let's say there's a I'll give you a mortgage for a house that's like 200 grand whatever and over time people pay interest on stuff like that maybe I don't want to wait 30 years to get my money back imma I'll go to Lehman Brothers I'm like you know what there's 200 grand there's 200 grand mortgage I'll sell it to you for like 210 grand and by the way I got 100 of those put it all together and then what Lehman Brothers does or all the investment banks they take it put it together he chop it up and they sell it to different people right but if the mortgage is so but the way today price is the risk right so there's people that put 5% in their homes as you got 520 credit you know credit score's some people have similar just credit scores those things basically the market says you know what I'll pay you a premium for the good credit people I'll pay you discount for the background of people but if the people in the middle are not communicating straight what the underlying assets are right or what was happening at the time you had a you had a real estate market where I was going up for so long so that people people that people would like 500 600 credit scores and making only 50 case stated income right we're getting houses that were like half a million dollars but we not to cut you up but we covered stated income we didn't really talk about stated income so people might want amazing stated income was a policy in the mid-2000s where you can state your income so if anybody familiar with the process to get a mortgage you gotta jump through hula hoops to get a mortgage right you gotta like bring you your tax document for the last two years and you gotta bring all kinds of stuff they gotta check your credit all that but anime to thousands it was you just walk into the bank and you state your income and whatever you stated your income that's what they said so you could say I'm a hundred fifty thousand you you could say I made a half a million half a million there can be a gardener and make fifteen dollars an hour and go into a bank and say I make five hundred thousand dollars a year they take your word for it and they give you a mortgage based on or a million dollar home and people was doing that it was crazy yeah watch me saying that's and the only reason people were doing that is because they didn't have to hold the bag right like they were like alright cuz if you a bank and I give you I mean just think about anybody if I give you know that person my homeboy alone and I know he doesn't have a job no he can't pay me back but I have to wait for that person to pay me back I'm not gonna probably give my homeboy alone right but if I knew I could take my homeboys loan and pass it to somebody else and they'd be on the hook for and they gotta worry about collecting for me somebody left holding the bag so that's what happened because of the capital markets you were able to do that super efficiently and that worked for a few years because all the real estate prices are going up and up right cuz even if if I have a loan against the house and the person can't pay and the house goes up I'm good so I'm okay with that right or that person is okay because they're more likely to pay me but until that stops it's like musical chairs right so i anyway lean bros was a leader in that basically they took those package mortgages and sold them out or what happened was it's good when you could just pass them out but then when you can't liquidate them as quickly and then now you hold on the back and then real estate prices go down then people default they're not paying their mortgages the houses that are sipar behind the mortgages are not as valuable right it becomes a cycle and then now Lehman Brothers now we in brothers has bad credit on their books from the people they can credit to and people don't give Lehman Brothers credit right in the stock market it's like I heard the impose can't get credit and it becomes as this spiral trickle-down effect and then Lehman Brothers has a transaction with Bear Stearns at Bear Stearns editor i JP Morgan now people like oh actually I I know you I know you the in Brothers Bloom grows can't pay their money and I know the in burrows owes you so now you screw to and then I'm not gonna buy your stock and then everything kind of just one in a second so then note it sound like the cut you know it sounds like so you know what a Ponzi scheme right and if you understand how Ponzi schemes work you only really get screwed in a Ponzi scheme when things go bad a lot of people make money in a Ponzi scheme like Bernie Madoff right if you invested early with Bernie Madoff you made a lot of money yeah right because the thing about it is he's taking new money and he's paying the old investors then he's just kind of repeating the process right it only goes bad when people ask for their money back in bulk you don't have enough to cover it right but as long as though by really accident money involved you can keep that thing going kept he kept it to scam gone for 30 years because nobody really max for anything you're giving people 12 percent a year why would you actually your money back yeah killer recession heavens well that's what I'm saying so it's all good when you when you hedge these kind of beds until it's not all good anymore it's all good till it's not so then so how quickly did did these guys go under like how I got out and I happen like in a couple of months right like well happen a couple months but like I guess Oh seven so oh seven is when things got a little bit hairy but then like things stabilized in early oh eight so Bear Stearns was the words want to go down so Bear Stearns going down probably like the first quarter of oh wait Liam Brothers was you know people stock just started going down so stock stock pile was trading in two hundred and twenty hundred 40s and like throughout the year just kind of kept going down and I don't know if you you guys covered this on your podcast previously but basically there's these people that called short sellers you could basically bet that the stocks going you haven't covered uh can you talk about so based on short selling is like it's it's it's weird but basically what you do is you you say all right I think this stock is gonna I think this company sucks I think it's comes talking over down I'm gonna go to my broker or to a bank and say let me borrow that stock I'm gonna sell it and then I'm gonna buy it back later on and lower price so in the stock is that fifty you know you know the company is not making money or you think the cup is not making money you say alright I'm gonna buy it back later I might buy it back at 25 I bought it I borrowed I sold it at fifty bought it back at 25 that's $25 profit all right and so it's actually reversed because obviously usually what you do is you body so in this case you sell then you buy and the way you're able to do it is because these firms will take other people's assets like other people's stock and lend it to you is similar to how people take people savings account and use those as loans right and the question is I wild up being do that you actually pay interest rate on that money do while you have it short yeah because that's all the big short give a read that book yep make sure the movie - yeah that movies helpful and that's what these guys did they made a bunch of a bunch of money a boatload of money from shortening yep the assurance that they're shortened those mortgage assets they believed that this will happen yeah exactly and you went to Wharton School of Business right that's right so worried that that comes because of what happened that link yeah you know after time I thought I had it made I was gonna be working in that place till I was older stacking bread maybe investing on the side but like I thought I had my career made but as that was happening I was seeing what's going on I was and also what I what I think about investor aiding particularly you really don't like your skill set is your skill set you can't take any wealth right if I traded that one thing I came in going straight bonds after that like the only jobs I could get was add another bank doing the same exact thing guess what they were hiring and you know like I said I went to CUNY brew college and it was a great school great education for the money but I felt like that was a time where I really needed Network and also I needed to kind of think about where I wanted to take my crown wanted to do something a bit more I have more control over and and I decided to apply business school and I began to worry yeah yeah you're the third person who's coming third person that's come from from Warren that's going to podcast shout out to Brandon : yeah Derrick Ferguson those are all both great episode alumni you got a lot of pressure to look up to but um so wore anything white not familiar is one of the best if not the best business school in the world not just the country the world so we have our third Warren alumni here and he just gave you a very good breakdown of very complex trading so you just got a Ivy League education in 20 minutes you are a university once again once again we provided free education for you guys so you're welcome so now we got going to the second segment we're going to talk about cryptocurrency Bitcoin and everything you need to know about it alright so now we're gonna go into what everybody's been waiting for we're gonna break down our cryptocurrency before we go into cryptocurrency we gotta tell a story or tell our own personal story about crypto they all involved yeah so if you know you if you if you listen to the podcast you know that a our theme is transparency we tell you know our Braille stories in real life and our guests tell their real stories and we also have the slogan of wall money in try to rest in peace but um it's real because we really tried everything at one point of time we literally tried everything sorry so here's the story cryptocurrency right so 2017 right the draft we got to take it back to the draft of 2017 so Jonathan mentioned shelter Donovan Mitchell right hometown hero and we were at the Barclays Center because we're good friends with his family and they invited us and we were active suite when he got drafted into the mess yeah once again the Knicks screwed that up into in draft yeah we was sitting there like you know the next had a chance to do it he worked out for them dad was like I think we got a chance and no yeah Frank Miller key no they didn't draft him but he got to by Utah but anyway we was there with his family and one of our good friends I know our time is so hurt kid went to a private school and one of his friends this is why networking was so important right people that you meet his friend was like a 20 year old kid right and I just met him and we just talking randomly like what do you do for a living my financial adviser so we just started talking mind - he's 20 years old at this time think you like a freshman or a sophomore in college something like that and he's telling me he's like you know I just bought this on ethereum he's like I put twenty thousand into a theory you guys I put ten thousand to a theory on like five months ago and it went to a hundred thousand I cashed out he said my friend put a hundred thousand to aetherium it went to a million he cashed out he started hedge fund I know it I don't even think you know he might not have been twenty I think he was eight tonight right it's not like that money as a graduation gift yeah well you know that and that's the power of family of course right he wasn't from our community that's for damn sure so when he told me that I told you more I'm like well we got like what's this like this it can I heard about cryptocurrency I heard about Bitcoin but I ain't Li hit by there yeah yeah I'm like hold up wait like what's going on here and I that's when I started studying it but I still was kind of apprehensive I ain't really sure and then I see Bitcoin I'm just studying it I'm just a student of the game and like October I see bitcoins you start climbing it went from like 6,000 to 7,000 no it was for like 3000 it was like 4,000 so like 5,000 sarcoma shot the Jason Lewis I called him and he's a bit corny expert and I might okay tell me everything I need to know about cryptocurrency he educated me for two and a half hours and I every single question and I could act like a thousand questions every question I had educated on me on it and I was like around November yeah it was like no actually late October it was late October no it was November saw my eye cool so I found out this app called coinbase where you can buy cryptocurrency right so he educated me he was telling about it's like three biggest currencies at that time which is like coin bit coin and during etherium so he's telling me about it so I'm I I you know what I'm gonna put my money I put six thousand dollars and I told the group so I told the guys I'm like look I put six thousand dollars and I spread it across those three coins I'm like I'm not telling you how to do this this is money I feel comfortable losing yeah cuz it's a it's a risk like I feel comfortable losing it if I lose it but I don't know what's gonna happen so then me and tomorrow we go to Asia for a month right this is now December yeah we was an agent for 20 days in December first we left for 20 days like we don't let that go all the ads 20 days now I let a lot of life you could write a book or I'm gonna write a book sit down a lot I stun but we went to Asia with a return ticket we went with a ticket there and a ticket back and two nights in Bangkok that's it for 20 days we was gonna figured out as we weren't we just winged it we weren't the five different country who's just winging it as we've literally winging it like we buying hotels at the airport he's just figuring it out day to day so I made a shoe and it just so happened as fate would have it I brought into the crypto space like one week before it started to skyrocket anybody's not familiar november december of twenty seven twenty seventeen is legendary in crypto world like everything went up like a thousand percent one hundred night it was crazy so long story short I'm in Asia and I had six thousand dollars invested every single day I'm waking up and I'm just getting five hundred six hundred more dollars it's going up 7,000 8,000 not it's just dopamine yeah ice cream Island now he's not sleeping yeah how about and I'm not in Thailand and I'm more focused on that than anything I'm like this is crazy I'm like I'm about to make a million dollar before someone saw him Troy start so I'm telling the guys I'm like I'm sending screenshots like I don't know what y'all doing I'm getting money out here so Choi's like he started studying it like he start my thing my choice do a research so he started studying it like he's up on 19 no sleep he starts telling me about all these other coins Tron and all of these different things and meanwhile I'm thinking I'm doing good cuz I'm going up like 100 percent three hundred percent four hundred he's like that's not enough you like yeah you earn him but that's not enough these other coins going up a thousand percent yeah three thousand percent he's like you got to come home hey I never forget I was a hot [ __ ] I was in Hong Kong and he called me like come on because this is like fact right so I heard about Bitcoin try it to all this guy that was in the music downloading services right so at that time the US has said early 2008 like they're gonna prohibit illegal downloads right so they people started coming up with web sharing sites like megaupload rapidshare and anybody downloaded music you know those sites and one of the things as far as payment was Bitcoin right and there's no way that the government could track you something like that sounds pretty cool and then I never heard about it again right people were using it I kept seeing it I never heard about it until like November and shine it's like yo I'm putting money in like he's like two weeks from leaving I'm like paint or whatever and then like he said he started texting us I'm like you know just he actually made some money now it's like now I gotta figure this out I was so he leaves and I'm like still trying to figure this out I'm studying and studying it and like I never forget I read the artist is article and it's do Justin's son who created Tron TRX yeah and so I'm like wow this guy has a vision for currency like he's gonna do with the video games alright I'm thinking like wow like Gaza war like these are these games where it's like it's not real money anymore like people are actually using currency inside of games it's like how before fortnight it was like yo we'll give you the game for free but you'll buy things in it and I'm like alright well how do I get this right so well after I start studying it right a new coin base and I might just got more than this right because I can't even fly to your excellent coinbase and so I study and I it is this company called by Nance mm-hmm and when I went to but I'm telling you it was like 3:00 in the morning I had to wait because they were on like yeah 12 hours ahead I mean I was like 12 hours I waited I say listen good you want ya gotta come home like I'm shy you booked a flight back I found some fact we found something he kept talking about try like this charm I don't know me about Ron I gotta look like less than a cent you know it's funny you know you were like in the homeless remember it was Hong Kong in the background was all his life that was Hong Kong I'll say oh come on Jim all almost died in Hong Kong different day he almost died but I was a Hong Kong by myself and I had all these lights in the background you like come home I'm like I'm an Asian I'm having a Thomas come home races so he so he came home and when I got home first thing I like I came to his house and he kated me or had like by I call it's the whole process we're gonna talk about that yes but how to buy coins how to put the money in all that stuff market caps all that today I so so anybody that knows me know that I kind of have an addictive personality I've never done any drugs in my life and I'm I'm a light drinker but I'm very compulsive it's worked out a lot of times and ocean it's been very bad for me a lot but I make very compulsive decisions so when I started I started making money and I'm like okay so now educated myself on what we call all corners looks playing out later to you today night just thought I'm like you know what I just start balling the dice I started like buying coins and doing it and I was it was crazy so by like the first week in January my 6000 grew to 28,000 you know at $28,000 in a month 6028 a month and I'm feeling like Warren Buffett Vince what we said it to ourselves like yo if we don't make a hundred thousand budget or we did something wrong no I was telling oh no I told you I was planning on making eight hundred thousand yeah in crypto for that year we calculated the calculation of the whole thing so did everything weigh everything fell apart not yet not again no no early January it went it went down but then it came back like late January like I would back we're back right I fell apart I put more money in got my high now my body dip and then it fell apart again and I put more money in as imma buy this dip and then it just completely collapsed and yeah he gave up on the space yeah so but I said this I said this I said look if it was gonna die I wouldn't write and one of the things I heard that was powerful to me is a CEO of ripple said this he was like the reason that this is gonna work is because if you think about money right what's the fastest way to get a hundred thousand dollars from San Francisco to London what do you think he's crypto he was like the fastest way in today's society right 2018 that song jet flight is to get on a plane why would that money to London how is that work in the world of technology right right that's why ripple and all these other all coins in Bitcoin that's why it's gonna work and when he said that I'm like nah I don't care this is gonna go down this is not going anywhere sure and so like one of the things we did to it and wish I sure it was like we would like look we're not letting anybody get left on the boat like if they missed the the cyber bubble right in the 90s right if that is this we got to make sure that we get to Google we got to make sure that we get Amazon and we don't get stuck with excite calm right but we're not leaving anybody so I was like your core everybody you know like we don't call everybody we know so we can tell them how this works and teach them and like we made mad phone calls it was like nobody wants to learn good all right so now we gave you my story it's a tragic story so all right so can we talk about crypto let's talk one-on-one right what is crypto currency so crypto currency is its digital asset that lives on internet that has value and where does the right come from it comes from people who saying has value right oh it's that simple and so and is that simple that fickle based on what Jesus said right and the question is I know a lot of people say our houses in the currency house thanking the currency anything's the currency because currency backed by yeah yeah it's a belief right and it's a belief that it's if more people believe that it's gonna go up in the future then more people buy it's a supply and demand thing and that's what kind of moves it but yes it's a digital asset that lives on the internet and there's you can transfer it without any middleman so you don't need the experience is similar to like a venmo experience or sale experience or whatever cash app experience opt you don't have cash you don't have cash up in the middle what's in the middle is actually a community of people that validate every transaction and it's alright so that's the definition of the blockchain yes the bless is validated by the blockchain exactly so yeah so crypto current but the name was a little deceiving because it's not really being used as currency right that's most of an investment right right so it's an investment because due to people due to the the way it's moved and Bitcoin being the first cryptocurrency it's moving up and down just based on the story you just said people don't want to use it as a currency so what is it's made to be a currency it's made to allow people to move money back and forth but because of the wave structure so Bitcoin structure in a way where there's a limited supply right it was a seventeen million it's seventeen million now but max is 21 million okay so people are anticipating at that point it's gonna be worth a lot and so it's kind of transferred from the currency to more of a digital goal so it's like it's being viewed as a commodity so that's what Jason told me yeah so alright cuz this is something that's interesting so people say like well cryptocurrency is in thin air it's not physical it's not backed by anything and I say neither the American dollar that's right American dollar used to be backed by gold but I think in Nixon he changed he moved a ghost and he removed the gold standard so now the American dollar like most all dollars all over the world there was only back about a faithful in America still buy American American dollars only backed by the faith of the people right people think that it's worth what it's worth so at any point when the vast majority of people who think the American dollar isn't worth anything it's not worth anything right because I mean it's like you said with Bitcoin there's a limited supply once it gets to 21 million there's no more right so the value of that will go up obviously right so that's why you get those projections like Bitcoin will be worth five hundred thousand dollars for one coin right whereas a dollar they can make a million of those every second exactly pay so like what's the real value and it's okay so we have okay so so a coin that's what most people have heard about Bitcoin a same cryptographic poin is the the first crypto the granddaddy of cryptocurrency started by Satoshi Nakamoto anybody found in the real world or is Satoshi Nakamoto I say that correctly that was good anybody's not fado crypto things crazy anyways definitely the guy's a legend nobody even knows if he if he a actually ever really existed or if he's a group of people or if he's one person or if he's still living who knows but he he's the founder of crypto yeah cuz he made Bitcoin right then from Bitcoin you have thousands of crypto currency over 2000 yeah whole bunch of different aetherium to ripple and they all kind of serves different purposes so you have some data like for just music you have there's like all kinds of difference it's like websites now like you have a website for everything and you have a cryptocurrency for everything I mean you have so like from those right but not the top three you named Bitcoin aetherium those are like platforms so people build on those platforms like ëthere IAM like a bunch of platforms will get built everyone's like a digital computer right right you could build on top of it you can they introduce the concept of a smart contract mmm right a smart contract is basically a digital contract that says if then if this happens then this happens right and the way I like the Illustrated is a vending machine in this smart contract right like I don't need like I go to the corner store and get Twizzlers or if I go to a vending machine I put a dollar in there's cold inside invent a machine that gives me that the Twizzlers immediately and cerium takes that and makes it a whole nother level right if you think about the internet most of the interest like more any website anything you have the way it works is if then if this and that in fact a lot going to gmail.com and I put in my password if the person was good then it gives me access if the passwords not good then it tells me you got them all passed about three more times you know if there ever was the first time to take that that code and put it on the blockchain makes it makes it decentralized because like what I did the same that's the key word to decentralized it right so Google centralized I get live like the way that the code works lives on Google servers in Mountain View California obviously throughout the world but like that is where the hub is that vending machine like that code is in that vending machine but the way that blockchain and crypto is done it actually distributes the cold around the whole world or whoever wants to be a validator and then that's it and so it decentralized it it makes it democratic and it makes it limitless as well as borderless yeah that was one of those those key words in that space is decentralized and it was like if you think about it like a company like Google right like a lot of times and it's coming up in the news now that you know the federal government is looking into them but that data that's being sold right there like the middleman selling it right right that's one of the things what this space is like there is no middle done there's no middleman you know I mean so it makes it the middleman is everybody right well the one thing and that's one thing that I said so when I first my first reservation before I started investing in cryptocurrency I made a video on Instagram and it was my reservations on Bitcoin right because everybody kept acting me my feelings about Bitcoin and I said this what I said was I think it's a good idea in theory and I think that is dope but my biggest fear is that government's control currency and at any point in time when governments feel that they don't have full control of the currency always not benefiting them then they'll stop it one of the reasons why crypto currencies really fell in 2018 is because governments across the world crack down on us it's our China China China South Korea yeah they just said it would not you can't trade and then like if you were in the United States like this was we ran into this problem - it was like we couldn't buy on certain exchanges so like one of those things like you said like as far as it's like stocks you can go to different exchanges same thing with the this space right there was like finance was the number one but we had a crypto close a crypto topia metadox all these other like some of them we couldn't buy because we were US citizens right so we had to drive you can buy 8i SEOs right actually that was yeah that was money in that - yeah so so I feel with the equivalent of an IPO so like that's an initial coin offering so when these companies are coming up with ideas right they need funding for it they make an ICU laser pointer Oh straight why so many coins could exist so it's over 2000 cryptocurrencies right now I'll see you could actually create an EU IL token tomorrow but the reason why is because the currency is cold and the code is open source so I could go and actually see how Bitcoin works and I can actually create big I could change the B to F and make it fit coin and Fritz coin is that what that's the white paper huh that's a white paper right so that's how I start that's how it Satoshi Nakamoto the group or whoever this individual is the Bitcoin was introduced through the introduction of the white paper and a white paper basically was like this cold slash business plan that said how it works how the code works and everybody could see it everybody can see exactly our work so anybody could pick it up and copy it right but just because you pick it up and copy it doesn't mean that people want to follow you so you need a community behind it - yeah so like that that's how you get these other clients like if you look now on the on like coin market cap yeah you'll see like a Bitcoin gold or a big Radi like they'll say like hey we got that cold from their white paper but we're gonna make it even better yeah it's we get that fun it's like a million different nothing that was on cheeto she did was he made it open sourced so anybody can change the code is it's an ongoing process of bitcoins changing anybody could really you could change it right it's not something that's set in stone right if he did that so his vision and how I see it is that his vision was to the world banks and government from like he wanted to make it peer-to-peer and also open-source evolving where it's for the people it will actually find out what goes back to my story like lien brothers he's green in 2008 he was these it is derived out of a community of libertarians anarchists so people that didn't trust the government and there was level high distrust amongst people from the financial system in general just cuz Lehman Brothers went down and he had a community say listen I'm a create this thing that doesn't need banks like we could actually work without banks we go out without the government and we could transact to each other trust us and that's that's kind of what we're the fervor came from yeah it's crazy yeah I said yeah alright so I read a lot of white people's man so all right so tax right because that's what you're doing now with the tax right so that's another issue because everything is so new that the government's trying to like catch up to it right so we know how like real estate is taxed a certain way stocks at tax a certain ways called capital gains tax so can you explain the taxes on that because that's that's what you're working with now right right right so I work with a company called so context and so the easy explanation is like turbo tax with crypto and so crypto if you're a crypto it's very hard to calculate your taxes because the assumption is that all right I go from let's say you're from the US I go from Dowler it's a crypto and then I go from back to crypto back to dollar that's when I have to pay taxes but actually when you're in the crypto world like we said is about 2000 crypto you could trade for crypto decrypt though and you actually have to cut all those things and taxable transactions it's as if you when you sell one for the other the government actually looks at that as a cell and a bot and also there's other things like you could actually work for [ __ ] don't get paid in crypto that's taxable you also buy things in crypto and you that's also taxable transaction so although that is pretty is complex to calculate yeah and so the company I work their software basically hooks into although all the wallets all the exchanges and posing insurance actions and and converts the dollar equivalent so an example is alright I go from dollar to Bitcoin and actually Bitcoin to aetherium then I change from a theorem back to maybe ripple right I didn't go back to Dallas but all those three transactions are taxable because when I went from Bitcoin to Bitcoin to ether there I have to actually look at the USD value of bitcoins from that each time and convert it back even though I didn't go into dollar so we allow that calculation and the government it I mean I just put on article last week where they're going to start taxing they sent out ten thousand letters to people yeah yeah so going back to our crypto started obviously with there's a lot of anarchist libertarians and a lot of these people all like anti taxes because they don't trust the government they don't think government's doing the right thing and people was were under the false belief that you don't have to pay taxes on crypto but one of the thing one of the one of the things that they created was transparency in the blockchain and so yes it was back and back but IRS also see that those transactions - right so you actually are exposing yourself so you actually have to pay taxes on that yeah and what's what's coin coin gamma so coin gamma is my own media platform so they started with an app that I built as a side project of 2015-2017 I expanded it to a blog and as well as a podcast why any of you leaders in the space and just provide education and so what we do is we write about the space we offer educational content we interview leaders in the space and we're actually going to start coming up with digital courses where people could kind of yeah so I've taught some some in-person classes so I've taught in person classes in New York City and also I've taught at my alma mater so I've lectured at war in as well as through college around crypto blockchain but I'll be doing some online courses over the next few weeks I got I got a question so in terms like we said that crypto is kind of like the Wild West little bit right so like one of exchange and we've seen this happen a bunch of times when an exchange completely disappears right how does someone even recoup what right figure out the chances on that yeah so the the IRS hasn't given clear guidance around this so this is a disclaimer it is not sacrifice confirm this with your tax accountant a tax expert but you could either if it's exchange if it's a coin that because it was only an exchange it doesn't exist anymore yeah you could basically what we've had people do is they've actually written enough at zero and base things like I lost everything on it right but if it's something like Bitcoin that exists but the exchanges one out you you just lost it like you can't really write it off right that's I guess we jumped a little at level so we could talk about the risks like yeah there's market risk but actually just like operational risk in his face that makes it very hard I was gonna actually like okay one on one right if somebody wants to start investing in cryptocurrency right they have a thousand dollars and they want to they want to do it cuz it's not it's easy oh alright how do you invest in cryptocurrency all right I mean depends where you are but if you're in the u.s. you take it you have to take your dollars you've got to be you have to transact on an exchange that actually takes Fiat which is dollars and converts to crypto not most exchanges actually do not do that so you mentioned by Nance earlier finance doesn't take dollars right most relaxed but there are some major exchanges in the US that take dollars and convert for you and it's similar to like buying something on PayPal right so coin base is the most popular another one is rot is um Israel is robbing robbed money right that just happened in New York right we just got there is you another one is the cash at all right so if you use the cash you have to pay friends and family for you know dinner or something like that you actually could buy Bitcoin in the same way but if you want to buy another cryptocurrency so if it's if it's a cryptocurrency so now all cryptocurrencies on every change so if there's a [ __ ] if it's so coinbase has a limited supply of crypto kryptos same thing as same thing with the other apps I mentioned so the cash app as well as the Robin Hood app but if you want to do some of the other crypto so you actually have to be see a Bitcoin or theory or more on coinbase then move it to the other exchange right and then you can transact all don't change and that's how people get caught up yes extremely complicated Tory sbit legend O'Neill I'm okay shook me for life me not me for sure cryptocurrency don't play around with it if you don't understand what you're doing there because there's been plenty of days where we got calls like yo not money didn't go through what happened actually it's probably gotten more user friendly now I'll even look at it anymore I had my money invested but I don't look at it but at one point I was looking at every day but it was extremely complicated when we first got in because you had to like you said you can't buy cryptocurrency with American dollars you can trade dollars for Bitcoin or during a boy theorem or like coin in coinbase that's notthat's on here and then you can buy the other coins it was mainly Bitcoin or etherium that was some of them you can buy a light coin most of them so you had so let's say you wanted to buy Tron right right you had to exchange American money for Bitcoin on coinbase from coinbase you had to send your Bitcoin to finance exchange yeah and it it went now some financing and now it's him by name now don'ts do skip the stuff what does that trend that the transaction speed was so slow which is one of the things about Bitcoin so you'd have to so let's say you sent a thousand of five thousand dollars right it would take maybe a half hour before it even got none was okey I remember one time Bitcoin took me five hours I'm like where's the customer service like I'm like no because no no it's crazy but the great thing you got me of you if I was to if I was on the venmo or cash app and I sent it to the wrong person I could hit up cash app and say yo I said oh yeah yeah you made a mistake give me a charge back if I said if I bring America and I put a wire the money in wrong person I'm gonna call Bank of America it made a mistake a mistake because this thing is decentralized is owned by you and it's owned you also its mistakes literacy it's in a black hole not so today alright so now it's in finance and then from now you have to buy Tron with the Bitcoin and by Nance so it's like a three-part process what happens is that and then you had someone you send it they send you a code it's a code that you have to put in to send it's in one place to another this is something that is extremely important this it happened to me however to me on my birthday two years ago I was I sent five hundred dollars I was trying to buy Bitcoin gold ore was a Bitcoin casuals another Bitcoin was a bit biklen cash good coin Cal talking about Bitcoin cash but I put the code for Bitcoin yeah sure I sent the wrong code after I said I'm like damn so I go back I'm like I said $500 I sent it to the wrong address I'm going nice going it's not as nobody track it it's just it's in the universe if somebody that's gone somebody lost by 21 bitcoins like that yeah they lost 21 bitcoins because they something they sent it to the wrong address or something and just gone it's crazy man but like even like that it was like there's so many steps to it like this is not like we weren't sleeping like legit or asleep and it was like you know what I'm not even do this transaction until the morning but by the time you wake up the value could have gone up because you probably do moving so fast and frantic cuz you know I got a body's got BA this and that leaves you open to making those mistakes if you are short now it's moving like a fiend feet like it was like we got to do this right now or they just did so I'm like halfway like a week trying to do this on my phone and it's like yeah I didn't really have time to really think about it but you become addicted yeah you can it's very addictive especially guys that talk there was so much money PMA and it was moving so fast anything with crypto in stands 24 hours it's like the stock market on steroids stock market they closed their you know it's it's way more structured crypto like the wild wild west no sleep it's 24 hours a day and you have both these core whales you know and these whales are like these are like the big dogs like the work those really it's really controlled it's like all things even though it was made for the people it's only controlled by like a handful of people that have millions billions of dollars and they move it they move the market so so crazy they sell their Bitcoin bitcoins don't drop exactly right now they know they know what they're doing so it's like it's hard to day trade in that space because you get eaten up you know let's just say like even if you've sitting in front of computers like you can't watch him or like it wouldn't watch I mean this was like no sleep before like two months right like you get text message like our group share it would be like I remember what's wrong went from less than a penny to like fifteen cents I would like to thank you text was just coming in I'm like I woke up like yo what happened I missed it you know saying knock up work try that two cents yeah and it went to 38 cents I think it the highest that it got to was 38 cents so that's why I like I said when I went to swarm from 6000 to 28,000 I had a couple I brought ripple at like 90 cents and I sold ripple at like three dollars and 15 cents so it was like the good times rolling rolling the good sizes but all right so can we talk about like you said okay so now we got established of how to actually buy it how do you evaluate coins like how do you know which coin to buy I had it how does somebody do that yeah that's a hard one I think the space is early nun that a lot of these things are moving a lot of these things are actually pre product all right so people a lot of these coins out there are raising money on a hope right they're going out there and they're pitching like a whitepaper which is like their business plan and they're saying all right well if you give us some money and you get a coin and you will be able to use it for XY and Z and you have to study that you have to look at their technology right because sometimes a lot of these coins actually are like you said you took of a Bitcoin gold be throwing cash it's like a bunch of bitcoins it's like coin there's a bunch of coins actually I trying to do exactly what the major ones are doing and what they're doing is tweaking it and say are we're gonna be faster we're doing more secure all that kind of stuff and so you have to figure out whether that story resonates with you right so you have to study that but most importantly you could believe that but because of supply and demand is actually you need other people believe it too right like you could believe in that new Christian or Islamic religion or that new whatever religion right but you may be the only person at church or mosque or the other or whatever by yourself right unless others unless you bring it so it is very religious inter inspect their community aspects because of the value of these of these assets are them going up so you need more people buy it or they are able to be used among amongst community between each other so if you're the only person that that if you get into it and then people don't follow you or a community doesn't follow you and they're not gonna go up no matter how strong you believe it to be so you not only have to analyze the fundamentals of it you also have to read what other people think about so a lot of research is actually spending time on Twitter spending time on Reddit spending time on these apps like telegram discord where people are talking about it and seeing what the energy is like yeah and so it makes no sense to have to make your investment decisions based on what other people think but in this space is just the way it is no they got they got the whole terminology like hold hold hold oh ho LD no I told DL hold on for dear life yeah yeah to the moon was like rocket it was like when something was going up to the moon they call those awkward [ __ ] coins it's always all coins with just any coin outside of the top three really basically yeah no it's a whole culture cryptocurrency was a whole culture I mean we studied it down to the T right when we started I know shadi when he's amazing with numbers so he started studying the market caps for each one and then after he saw the market caster sort of coin supply rights like I said do they have 21 million that means I go in this space that's pretty limited right but then you'll get a cornet that'll come out as like there's only two thousand of it right whereas like ripple was like what's this five something like crazy billion isn't like that yeah it's crazy you know say so like you can see like hey what's the growth on that there's 65 billion and it's only at it's like right now it's by like 51 cent it's like well how high can it's really go this ain't going be a $20 you know since too many but here's the problem with so you know we talked about the fiat currencies like the dollar euro etc and how there's each couldn't they have like the Federal Reserve that could create unlimited supply Bitcoin doesn't have like a group of people all these other coins actually are centralized so they actually a little bit more like fiat money so yes they could go out with a white paper says and we go in a minute but there's been coins that like they were out and like the these the people that were behind it or the company behind it decided to just change the car we're gonna do more yeah we're gonna do more right and there's no s you know that is it's a Wild West is there's no sec - like stop them this lady's a lot of quantity you know in 2017 a lot of coins you know raise all that money and they was supposed to come up with things now they bounce right I feel yeah it's scary but like I think one thing that you know we shot talked about earlier is like you posted scales like thousand dollars what she could lose like even to this day like I don't put money you can lose like do not at that time I will get texts from people I ain't like Margaret I'm it's not right play with and like nah only play with what you could lose no I don't don't play with the big boys if you're not if you're not ready man because like I said no it's real talk it's Hamelin be we don't have control over this yeah it's very new out control over anything but especially crypto because it's very thin it's very thin and that's one of the things that I actually got me involved once I saw the market cap I saw the market cap it was like a hundred what's the market cap now it's probably like two hundred in the two hundred million right no no do you yeah so we got a pretty hot like not hundred trillion right that's I don't think it was even even at a billion at that so I think of like 900 million something like but long story short even where it's at now couple hundred billion that's not a lot of money that sounds like a lot of money but that's really not a lot of times really not a lot because if you look at traditional assets I tell people all the time yeah the whole crypto market is two hundred and fifty billion dollars begins what fidelity one investment shop has seven trillion an asset not a factor themselves seven trillion right so like this is this is a spec like drop when I first got it to him I look it's a lot more room for it to grow because the market value is so low that's one of the things that made me get into and that's one of the reasons why I still actually hold out hope cuz I feel like as I said we said if it if it was gonna die it would look now what I've done over the last year and a half exactly right there's like people people gave it people the Bitcoin went down people I guess over like it's a wrap and it came back up and it's trading country and we never know why is is people to believe you said so yeah all right so now you got the education but for people that want more information how can they contact you with the your podcasts and your app or your information yeah so the podcast app Instagram as well as Twitter is all the same thing coin gamma so COI n GA mm a gamma is like a term that is in the options world that in my own world that I brought over but yeah coin gamma is it and if you search my name my name is relatively unique so you'll find me so Fritz Charles on LinkedIn I kind of changed my last name on Twitter Instagram is first chain you follow first chain on that like blockchain yeah okay no pun on the world gotcha so you can find me all those platforms saying yeah I've always put out educational content DM me and your LinkedIn and we could chat for sure for sure so Troy picture on yeah shout out to patreon is all proud to pay program at patreon.com backslash anya Lygia every every week we seems to be growing it's the community it's community now and so um we got some new members I'm a shout them out at Sean renina Nicola trip Janet iris and we got to give a huge shout out to Tony shout out to Tony he was on one of our members from a couple months ago but uh he made a video like a testimonial video just about how great patreon is so he just did out of love for us so shout out to Tony and everybody that's been supporting on patreon no it's amazing patreon and mate it's like I said it's a community and ey o University is real we're launching some stuff everything is top secret right now if you you can't get this level of information even if you paid to go to school you probably would be very difficult to get this this there's so many well world it's not just people just supply and demand choices actually real world people has actually in the field doing it themselves but you can't get that kind of information in college professors aren't they don't do that but most professors know if they study in one area right I mean everything no it's different it's a different level of education we was in Atlanta somebody said that they got two masters degrees and they learnt more from our podcast and they let me go from the master so patreon is a lot cheaper in any university in America there's different level tiers like we said on every episode so you can join at any level you like but we're just gonna keep on the information out the book tip of this week is Bitcoin billionaires from the wing Cove on my coupon it's a plot the Winklevoss week Winklevoss twins and it chronicles their journey if anybody's not familiar those are the guys that Facebook they depending how you look at they might they might I got screwed out of Facebook but they got the last laugh at the end because they we don't know well that but they became the first billionaires off a Bitcoin that was in fact I don't really probably lost some money now but they made so much money doesn't matter we at that point it doesn't agree that they don't exchange no no their powerful players in the Bitcoin market so it's a good book I highly recommend it and we will see you guys in three days because we have a as I said this this week is different we're gonna put out two episodes this week so we'll see you back on Friday at 5 p.m. keep spreading the word and please [Music]
