to get into bitcoin you have to talk about money most people really don't understand what money is and how money works money was never meant to be a policing tool and that's what it's become bitcoin is the antidote [Music] welcome back to kim daily tv today we're going to be talking about diversification of your investments i have an expert in cryptocurrency his name is bob burnett bob welcome to kim daily tv i'm really excited to have you here today because you know cryptocurrency is something that i think the average person i'll raise my own hand i mean i know very minimal about it you hear all this buzz about it my teenage boys are on me about buying bitcoin buying bitcoin so i know you're an expert i have investments with you because i
i think that it's an up-and-coming thing for me it's part of my total portfolio but i want to learn more about it and that's why i want you to share a little bit about bitcoin and why it's important as you see it since you're the expert but guys before we get into crypto let me read bob's bio so you can get to know a little bit about the man who's going to talk to you about his expertise so bob burnett he is the founder and ceo of barefoot mining it's a company focused on the development of horse class mining sites so we're gonna have to come back to that and he is a vocal proponent for the expansion of diversity in bitcoin mining site geography scale and energy sources so that's sort of interesting bitcoin and energy we'll come back to that bob has spent over 35 years as a technologist including 13 years at gateway remember your gateway computer a fortune 200 personal computer company where he led the company's product development efforts as the chief technical officer he has founded several companies in the bitcoin mining space and he's an evangelist and educator for bitcoin and its importance in the world's future importance in the world's future this is why he's on i want to know what he wants what he i don't want to know what you're going to say today bob he has a degree in computer engineering from the university of wisconsin at milwaukee with that introduction bob let's just go right into the basics of bitcoin why is it important overall as an investment well to get into bitcoin you have to talk about money you know what you do in franchising i think what what what all people in business they're all after money but i think what's interesting about it is is most people really don't understand what money is and how money works they know they want it they know its importance to their their life and their future but they really don't know what it is and so maybe we'll start there so money is a representation of your work the geek in me says you know what is work in physics work is energy it's it's it's very simple right so we'll get back to this later because you talked about energy but but work is energy a monetary network a monetary system is a way of moving work over space and time because what do we want we want our investments we want our money to be able to buy things if i want to buy belgian chocolates or i want to buy apples from peru i want i want to be able to have my money work that way and i also want like you talked about your young children or your boys you know i want to know that hey i can i can take money that i earn now and i can have something i can give to them in the future and to the degree that the value of that money erodes um that is resistance in the system okay and so what are the resistance points in the system their taxes their inflation their fees okay my wife's from the philippines and so if we send money from here to the philippines we meet a lot of resistance in the system okay we we we start with a hundred dollars and my mother-in-law if we're sending her a birthday gift let's say we're sending a hundred dollars for a girl's gift she ends up with about 85 dollars of purchasing power that 15 loss is energy loss okay bitcoin um is the antidote our system is very antiquated and it's filled with bureaucracy it's filled with ineptitude it's filled with corruption and it's it's filled with antiquated systems and those things are creating resistance in the system that doesn't need to be there bitcoin allows me use the if i want to send a hundred dollars of value to my mother-in-law in the philippines i can use bitcoin and i can get that money there instantly with no resistance i can start with a hundred dollars and she can get a hundred dollars okay so so bitcoin um which is the granddaddy of all cryptocurrencies we'll talk about cryptocurrency in general but bitcoin is the granddaddy of them all um bitcoin is an attempt to disassociate government from money because most of these problems that i talked about most of this resistance comes from money from the government and it's it's an attempt to reduce as much resistance in the system as possible so that's why it exists um so maybe i'll stop there and let you uh yeah so great so this has been so many questions so as you with that setup then is it no wonder that there's sort of like this sort of it's it's almost like um what is bitcoin like you hear all these mixed messages is that why there's chaos about the messaging because like government doesn't really want the average person to know what bitcoin is because it's my kids are they are 14 and 15 and they don't want cash like if i give them cash they're like mom give me the venmo they they they already only want digital currency that is there i watch what my kids do and think this is our future they don't they don't transact like i transact they want it all digitally my 15 year old is like mom we need bitcoin we need bitcoin we need bitcoin you know he's trying to set up his own account and i'm like why do you need bitcoin like what do you know that i don't know that's why i thought bob needs to come on my show and teach me what i need to know about bitcoin so okay so let's go back to the question i was asking about like if it reduces resistance and increases i mean who doesn't want their hard-earned dollars to always equal what what it should equal if i give you 100 i want you to have the 100 i'm giving to you who doesn't like that right well the people who who were getting those resistance points were profit centers for other people and so those people don't like it very much and um those those resistance points also that by the way the the fancy financial term for those resistance points is trusted third party that's how they have categorized themselves so when you get into the geekdom of the financial world those would be the trusted third parties that are important to maintain the financial integrity and make sure that that that the money truly so bitcoin is a threat to the way that the whole money system works it it is a it's an answer or it's a threat depending on which side of this debate you're on it is a it is a frontal attack against the establishment financial system and it came up in a manner through what's called the cypher funk community cyberpunk community which is a group of people kind of from cryptography backgrounds a lot of people with resumes like mine [Music] technically also from a lot of people from kind of libertarian political thought or austrian economic thought all groups that maybe a lot of people would consider fringe groups but and i think that the government authorities never really took it seriously and it it slowly uh this is a terrible analogy for today but it's like a virus that that kind of eek out and you know a few dozen people came became a few thousand people that became tens of thousands of people that became hundreds of thousands and now hundreds of millions of people there are hundreds of millions of people scattered around the world running a network that's so large that they can't stop it it's like the genie got out of the bottle and they can't put the bottle they can't put it back in the bottle and now the only thing they can do is is try to attack it um and and you know they will attack it by trying to say it's it's it's the fodder of criminals and money launderers and sex traffickers and you know they'll they'll say well you know that's what it's being used for or it's using so much energy it's going to boil the oceans or you know you really can't trust it you need us you know that that we are the people you should trust which is i find awfully ironic that that group of people wants to be trusted any of your listeners go out sometime and and do a search a google search on the fines paid by large banks you will be aghast for participating in things like money laundering you will you will see hundreds of billions of dollars of bank fines paid by bank of america and jp morgan and wells fargo like massive massive amounts of fines for their illegal activities you'll find names like christine lagarde who's the head of the ecb the european central bank who was convicted of participating in these events yet somehow still holds her position as the head of you know probably the second most important central bank in the world but i i said this to you before i i believe there is a site a fight for the soul of society sounds very grandiose i know very very big but here's what's happening um we started this conversation talking about money and what it is money in my opinion and this is just my opinion it money was never meant to be a policing tool um it was never meant to be some mechanism um to be used as a weapon and and that's what it's become money money is supposed to be what it what we talked about it represents work and the monetary system is supposed to help move that work over space and time it's not also supposed to be a mechanism by which we we as a country i'm talking united states sanctions other countries we use it as a weapon we prevent countries we don't like or we disagree with from participating in the global financial network we use that's a weapon right we use it in place of war um and by the way some people get really hurt by that like like you know you may you may think i'm i'm a nut but there are there are north koreans and iranians and and uh syrians and countries that we don't like individual citizens who are who are suffering great economic harm because of those actions additionally just as an example our our system is moving toward one where we have no privacy so cash which was you know the money that most of us thought of is disappearing you even said kim like your kids it's becoming a venmo culture okay or a paypal culture or even a bitcoin culture okay those are all digital digital forms of money but here's the thing you're going to read and see in the coming year or so a lot of talk about what's called a cbdc a central bank digital currency so this is an attempt by the federal reserve to say we don't need bitcoin we have our own digital money it is a trojan horse of epic proportions what it means is that the central bank will be able to completely circumvent the the regional and local banks and see directly into your personal wallet we'll remove cash cash will go away money can be distributed from the central bank directly to you personally and they will decide whether or not you have access to your money or not they'll be able to turn it off with a with a switch um and and i know you're you probably don't want to get real political well just say hypothetically people that are vaccinated can use their wallet and people that are not vaccinated can't use their wallet people that buy too much gas can't use their wallet and people that use electric cars can um those types of things will literally be the slip of a switch and your entire access to your monetary system and again you might say oh bob you're talking kind of kind of conspiracy theory stuff well i'm talking about things that are already happening in other countries right things that before you know coveted 19 we would have thought you know these that could never happen you know we how many times have we found ourselves saying that in the last two years like are you kidding me right are you kidding me i can't go to a concert without a vaccination passport it's crazy and again not to make it political but it's it's tied into a much much bigger conversation so to like lighten it up a little bit and to make this more like so about the investment part of bitcoin or any other cryptocurrency what's the value to me to my teenage son today who's like mom set up a coinbase account for me i want to start buying bitcoin like what's the tangible investment value yeah great question because i i think that there's a there are multiple ways of looking at this but but maybe the simplest way to look at it is this bitcoin one of its founding principles is a fixed money supply there will only ever be 21 million bitcoin and that can't change unlike our current money supply which they print more every day right it continually expands devalues the dollar and and the reason that whether it's your toilet paper or your apples or you know whatever are more expensive at the end of the day a lot of it gets blamed on the supply shortages and all that but most of it really comes down to the expanding money supply that's the technical economic definition of of inflation is expansion of the money supply so bitcoin can expand so what does that mean that means if i have one bitcoin today i have won 121 millionth of all the bitcoin there will ever be if i give it to my grandchild 50 years from now it still will be one 121 millionth of all the bitcoin that will ever be so i can move my bitcoin through space and time and i can preserve that value now um that's in the bitcoin world now in parallel if we think of parallel universes there's the bitcoin universe and there's the the fiat u.s dollar based universe that universe the money supply is expanding and so um while bitcoin may vacillate in short windows in time if you look at the 13-year history of bitcoin it's been a pretty sharp zoom out look at the 13-year chart it's a very dramatic up into the right performing asset in fact it is the best performing asset of the last 12 years interestingly too if you change the base metric in other words if you and and very few people do this today and i get it but if you value your life in bitcoin instead of dollars you start doing that okay what you'll realize is if if you look at for instance a chart of the s p 500 again another one you could google go get a chart of the s p 500 and look at the performance of the s p 500 valued in bitcoin of the last five years you know what you find out is that you lost money if you value so for people that are like heavy into equities right now if you had valued your life in bitcoin you'd you would realize that you've actually done very poorly so um there's i know that's a huge mental leave for people but but bitcoin is about again i'll go back to that core thing it's about being able to move value in space through space and time without resistance and so when like when i say um people will often say i bought bitcoin and and and another way of expressing exactly the same thing is you can say i sold dollars that's a that's a concept most people probably don't think about is that whenever you buy anything you're selling dollars to buy that other thing okay and so what i say is when i sell dollars to acquire bitcoin i don't ever want to move it back why why you know i i i don't have an interest in in taking that bitcoin which i know will move through space and time without resistance and get something back on the other side in dollars so that will then decrease and could decrease in value okay so and this is my ignorance can you use bitcoin to purchase like a car or a house or it does it have that type of value or would you have to then convert it back to dollars to use it today that's up to the merchant um my my business um we accept bitcoin and so we you know we do transactions all the time we do small ones of a few hundred dollars and we do um some internationally especially that are hundreds of thousands of dollars we we accepted about 360 000 from somebody in turkmenistan um and where's that yeah it's uh it's just kind of a former soviet satellite those are us dollars what were the equivalent in his country i don't even know what their local currency is but that was the whole point was we were able to do a transaction with a guy in turkmenistan for you know a lot of money and do it in 10 minutes without a bank and we did it on a tuesday evening um so because that's the other thing is bitcoin runs 24x7 365. it's not bound by oh you missed the wire cut off or bikers hours you know it's the weekend oh it's columbus day i guess we're closed i mean we don't deal with any of those sort of really insane um restrictions again resistance points we don't deal with any of those things but the answer to your question kim is today it's not common [Music] that said paypal venmo mastercard square almost all the credit card processors they have built into their infrastructure the ability to accept bitcoin it's up to merchants to decide if they want to turn it on so what we call the payment rails are already all there they're all built and i think it's going to take you know a handful of years for merchants to get comfortable with this um you know because the truth of the matter is you know i i want to be realistic too most businesses your business is even example i'm sure you have if if if somebody worked with you and they paid in bitcoin you're still going to have a lot of your costs in dollars so so you know if i were you and that happened it's my dream bob that's met that's in my vibrational escrow but it's not manifesting into reality into that porsche in my driveway like i need to convert it to how i can use it so that's really that like that's the thing like is it is it a valuable is it a valuable investment today because you hear bitcoins going up and up and up the price is going up and up and up so is it a valuable um investment today to kind of wrap this up or is it a vehicle that i'm putting my money into that i can't then have access to actual the value of that for most transactions the good news is if you do want to go back you want to convert into u.s dollars it's highly liquid and as i just mentioned the beauty is you can do that 24 by 7 365. so if if if you had one bitcoin two bitcoin and you wanted to buy that that beautiful new car you could you could sell bitcoin at 11 30 at night on a saturday um and turn it into dollars and and have them instantly available to buy your car you you could do that i don't think people have to be afraid about the liquidity um bitcoin is a trillion dollar market cap it's it's super super liquid so it's not i mean in a lot of ways um you know there's a lot of for instance you know real estate investors or gold or equities or things like that bitcoin's liquidity is way way better than any of those even if you want to bring it back to dollars or yen or wherever it is you live in the world you essentially have instant access to move between the two worlds okay and so how how does one decide like what is you know i've i've heard people say just get in like do the dollar cost av average like we're just putting it in consistently like how does one decide how much bitcoin or when to jump in and and then tactically how like where's the best place to go to buy bitcoin yeah what i what i like to say to people is first you know should i get in or not that's just the basic question should i get and if so how much and one of the things i do when i speak when i do public speaking engagements is i'll say if if if you've listened to me and you hate everything i say um then i still hope you'll take a half a percent or one percent of your net worth and on the chance that you're wrong and i'm right you'll you'll buy a little bit of bitcoin if you believe i'm right at the other extreme and you believe that it ultimately will become the the global reserve asset and that primary store of value used around the world then you probably don't need to put much more than 20 to 25 of your portfolio in it because um if if that scenario is right that 20 to 25 will become uh 95 of your portfolio within the decade you know it will it will grow so much faster than the rest that you know that you don't in other words you don't have to go all in like even if you believe that you don't have to go all in you can you can still stay fairly balanced and stay within and and and if if you believe somewhere in the middle that's fine too you know um you know pick your point um if you are if you are um just getting started you want to get your feet kind of kind of wet i think the dollar cost averaging scenario is a really good one and you can do there's there's plenty of services through places like coinbase or swan bitcoin for instance where you can dollar cost average you can set up a buy um like twenty dollars a week fifty dollars a week 100 a week whatever is comfortable for you and just get involved i really encourage everybody to do that five dollars a week i don't care just something to start paying attention some motivation to learn and go deeper because we're truly just scratching the surface here today you know what you'll find is there are different ways to invest and even diversify within bitcoin and so you can you can hold bitcoin and and buy it directly but then you can also invest in things like bitcoin mining which um basically bitcoin mining in very simple terms is the um the computer network that processes the transactions and manages the blockchain and um there's a way to earn bitcoin through mining and so um that's that's what my company is primarily involved in and what we help people um people invest in in mining and i'd say that's kind of the the phase two level investment for people you know and and then it provides that second layer of investment in bitcoin and diversification even within the bitcoin part of your portfolio i skipped part one because i'm advancing i went right to part two guys just don't don't follow what i do bob like i i mean my mind wants i want to keep asking you questions but i don't want to just like take up your time like there's one lingering question on my mind that i i just have to ask like could bitcoin ever become you're gonna laugh when i say this i think but could it ever become illegal like could the powers that be the federal reserve the big the people that run the money ever see this as such a threat that in some some way or somehow they like you know like squelch the whole thing anything is possible um but i'll have two two ways to answer that question okay the first one is that let's say that that happens i i would say you would have the equivalent effectiveness of um prohibition [Laughter] it it would have they have they they can declare anything illegal but they have zero chance of stopping it from working so that's the first thing and the second thing is it's i believe it is too um too diverse to the virus has spread you know we have we have in texas right now there's a gubernatorial race every single gubernatorial candidate in texas says as part of their platform they will make bitcoin legal tender in texas so you know could could they yes would it have any effect i don't think so and also remember that companies like tesla hold almost two billion dollars of it in their balance sheet companies like new york life and massachusetts mutual hold it in their general funds so for the government to make it illegal they now even have to fight large corporate forces that are heavily invested in it so i just i don't think that will happen they'll they'll try to regulate it i believe um and and uh that's okay and i don't you know but i don't think they can ban it to sum it up all of this at the core it's about freedom right bob it's about freedom freedom from the resistance and you know that's really what kim daily tv is all about like my in a much simpler level teaching people how to break free from working for other people to own their time their future you know to build income that they own and can control and to create the tax advantages that are set up to help the rich get richer right and to build assets that you own and control and ultimately the reason i wanted bob to be a guest on my show was because i know that at the core conversation of bitcoin it's about freedom and kind of bring it full circle that's what this is all about you can do you know as bob has suggested to make an investment or not if you think he's crazy but i hope that you enjoyed listening to his expertise and maybe even learn something today i know that i did thank you so much for being my very special guest today bob burnett well thank you kim and amen to what you just said i couldn't have said that better it is about freedom freedom is what it's all about i was leading a course last night a mastermind group and i had like you know 20 or 25 real estate investors and just interested in diversification and was teaching them about franchising and i said look guys i'm not selling franchising franchising is just the vehicle that's driving freedom and that's really what this whole conversation is about and it's a it is a much bigger conversation that goes to the heart of i think what the human spirit just longs for in every way every single thing that we do i've said this in other videos is because we believe that in the having of whatever we're striving for we'll feel better and most of what we're trying to feel is freedom yeah and yeah awesome well amen now it becomes like a little gospel sermon i love it bob is there any if people want to reach out to you if they want to know more about barefoot mining or about what you do where can people find you yeah visit us at our website uh barefootmining.com and i'm very engaged in twitter on primarily the topics of bitcoin and economics um you can find me there at boomer underscore btc and um you know i hope you'll hope you'll join me there uh it's uh you know bitcoin twitter is a is a very fun place and and i i would encourage anybody that has even a cursory interest in these topics to to join me there on that note guys i hope you enjoyed this special episode with bob burnett until next time my name is kim daily and don't forget i want to be your daily coach
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