TMBA 422: Crypto: What's It All About?

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Happy New Year to all our listeners. We hope that we can help make 2018 your best year in business ever.

To kick things off strong, Dan and Ian are going to discuss one of the most popular and controversial topics in the entrepreneurial community today.

Of course, we are talking about Cryptocurrency.

Digital currencies like Bitcoin and Ethereum have made many members of our audience wealthy, and have left the rest of us wondering what we are missing out on.

Greg Gerber is an internet entrepreneur and cryptocurrency enthusiast. He owns a marketing company that has been accepting Bitcoin as payment since 2013.

In this episode, Greg joins us to talk about the world of digital currency, the advantages of slowing growing a cryptocurrency portfolio, and the future of money.

Transcript

Listen to this week’s show and learn:

  • Why two-thirds of Greg’s net worth is invested in cryptocurrency. (4:36)
  • How Greg built a business around accepting cryptocurrency as payment. (9:50)
  • The meaning behind some essential cryptocurrency terminology. (20:12)
  • How to approach building a product or service aimed at cryptocurrency users. (36:07)
  • Tips for beginners who want to get into cryptocurrency. (40:28)

Mentioned in the episode:

This week’s sponsor:

This week’s episode is brought to you by Refund Retriever. Refund Retriever is an unbelievably powerful tool for any business that uses UPS or FedEx to ship their products. Refund Retriever will automatically audit your invoices for late deliveries and other billing mistakes, and will directly liaise with these shipping companies to ensure that you are receiving full credit for any refunds that you are entitled to. The best part is that their fee comes out of the savings that Refund Retriever makes for you, so you only pay when you save.

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Thanks for listening to our show! We’ll be back next Thursday morning 8AM EST. Cheers, Dan & Ian

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Published on 01.04.18
  • Seán Feehan

    Nice one for this aptly timed pod – although for me at the current price of Bitcoin it looks like I have been priced out. Maybe Ripple could be my way in.

    I was looking for Greg’s step-by-step approach to buying Bitcoin – Am I blind and having a blonde moment?

  • hey Sean cheers! ooops thank for the heads up we pushed this one a bit early and haven’t quite finished that document, I’ll ping you here when we get it!

  • Michael Stafford

    Surprised you did not mention Bitcoin Cash and the recent fork in Bitcoin. I’ve not yet encountered an explanation “for normal people” that nails it. I would love to have heard the difference between regular Bitcoin vs. Bitcoin Cash. Why should I invest in one and not the other?

  • Thank you for putting this together to start the new year. I am looking forward to seeing the content that you can built with it. The instructional flow of the conversation was great – Greg obviously knows his stuff. I will definitely be recommending it to my friends that have similar questions that were answered.

  • great question Michael unfortunately I didn’t know enough at the time to ask. Perhaps I can ask Greg to mention some resources in the comments.

  • Cheers Matt appreciate it! :D

  • Good episode! Glad you covered this topic!

    Something weird going on with the audio at 22:10

  • arisoncain

    Hey Scott, Thanks for the heads up!

    This should be all straightened out now.

  • @Sean you are definitely not “priced out.” This is a common mental trap though. You can purchase a fraction of any crypto currency. For example you could buy $10 worth of BTC (0.000585 BTC as of this instant).

    As for step by step… If you’re in the US, the easiest way is to jump on coinbase.com and make a transaction.

  • Ethan Adeland

    Thanks for this valuable pod. great discussion and really appreciated the “easy to grasp” explanations! Looking forward to seeing the step-by-step document too when it’s ready. Not every site plays nice with Canadians so any additional input/advice on buying in Canada would be appreciated.

  • Evaldas Miliauskas

    Hey finally got to the crypto stuff! I also liked the groove, reminds me of this movie: http://www.imdb.com/title/tt0120735/

  • Seán Feehan

    Hey Brandon, thanks for getting in touch. I’m in Ireland so I’ll have to check it out but I know people have bought over here.
    I’m novice thoughts were drug towards ripple as they were cheaper but from what your saying a piece of a coin might do the trick

  • great pod Dan, and as usual great timing from the perspective of taking crypto payments for services as just been playing around with integrating bitpay with shopify and trying to figure out how best to accept crypto for my course. It’s all pretty technical for me so super looking forward to Greg’s new biz! Also I wrote a blog post on how to buy altcoins if that would be useful (in meantime until you get the doc up). Cheers!

  • No worries Sean, there’s a lot to learn here and I don’t want rookies to get burned :) Ripple appears “cheaper” because each XRP (ripple) is around $3… however that’s that telling the whole story.

    Instead of the price of 1 coin, what you want to look at is Market cap (Total coins in circulation x current price). Use total market cap is how to determine which coin is “cheap” vs “expensive.” I highly recommend CoinMarketCap.com to get a quick glance of what’s available.

    In Ripple’s case, there are a total supply of 100B coins (aka a lot) which is why it appears to be “cheap.” You can compare this to Bitcoin which only has 21M total. Massive difference.

    TL;DR = look at market cap instead of “price of a coin” to determine if a coin is “cheap” or “expensive.”

  • Hey Michael,

    So one of the cool things about how the blockchain technology works is that it’s all open source and public. That means the code for how Bitcoin works as well as all the transaction history and data is public for anyone to go look at. Take a look- https://blockexplorer.com/

    Because it’s open, that means that you or I could copy and paste the code and technology and start our own blockchain. Which is what happened with Bitcoin and Bitcoin Cash.

    Bitcoin Cash was a group of people that had a different vision of how Bitcoin should work. So they copy and pasted everything on Bitcoin at that point (sometime in Aug 17′) and started a new path forward using a lot of the same ideas, but with their own ideas mixed in.

    It’s important to recognize that these projects are still being developed. Bitcoin is still being worked on, improved, and coded as we speak. And because of that, there are differing opinions on how it should work. And when those opinions disagree too much, a fork can happen.

    In terms of investing, I’m no financial advisor so you should definitely do your research, but there a lot of people that don’t believe in the future of Bitcoin Cash and that the real technology lies in the future of Bitcoin. Roger Ver is a controversial guy but he makes a good case for Bitcoin Cash, but a lot of the people I follow and learn from don’t like Bitcoin Cash so I tend to stay away from it. That’s just me.

    As you dive into this space, you’ll quickly learn there are over a thousand alternative coins to Bitcoin, called “altcoins.” Each one with their own tech and their own idea on how their coin can solve a problem. Again, do your research before investing and don’t invest anything you aren’t willing to lose because it’s very speculative at this point.

  • Seán Feehan

    Nice one bro – that’s very much appreciated!! I’ll start studying and look to get in someway.

    Do you recommend any blogs or sources of info?

    Thanks again! Also the yoga site you have looks great man

  • Stuart

    I really liked this episode, especially for covering bitcoin from a use-case perspective, rather than getting all bogged down in the weeds of the blockchain math.

    However, there are a few points (unrelated to bitcoin) that should be corrected.

    At about 26:42, there is discussion of the US FDIC insuring US bank accounts up to $100,000 — the correct amount is generally $250,000 per depositor per insured bank, and may be more than that in certain cases.

    Just after that, Greg mentions that “that system has never really been tested”, which is not correct. It has indeed been tested, many times since being established in the 1930s. This URL has a list of the 500+ banks that have failed since 2000:

    https://www.fdic.gov/bank/individual/failed/banklist.html

    Also, Dan mentions that FDIC insures accounts of US citizens, but non-citizens and non-residents are also covered for FDIC-insured US banks.

    One of my accounts was saved by FDIC insurance in the early 1990s, with no disruption to my banking. Often, they will close a failed bank on a Friday and re-open on Monday, then sell the assets/liabilities of the bank to another institution through a bidding process, with seamless transfer of funds. Wish I could tell you it was a $250,000 account of mine that was saved … !

  • LibertyJusticeAndFrall

    Still a problem with overlaid audio at 22:28 if you subscribe to the pod via iTunes, but then iTunes and the Podcasts app are quite possibly the some of the worst software on the planet – No idea how to get the podcast refreshed, if that’s even possible, since it can’t even keep track of what I’ve listened to – grrr…

  • Jane Beresford

    Thanks for pointing this out Stuart. We should have picked it up. I’m going to add a ‘correction’ for clarification in the transcript. Much appreciated.

  • Jane Beresford

    Sorry about that. You’d have to delete the ep and then re-upload. Agree – Itunes is worst form of podcast platform, except for all the others.

  • appreciate it Stuart! Got a little fast and loose there :)

  • yeah can you toss the link in here?

  • cheers :)

  • cheers Ethan.

  • great stuff Brandon.

  • Noel Andrews

    There was a mention of a checklist for buying crypto in the pod, I can’t see the link anywhere, apologies if i’m missing it.

  • Jane Beresford

    We pushed the episode a little early, so the blog post isn’t quite ready but we’ll upload as soon as we can.

  • Noel Andrews

    Thanks for quick reply Jane.

  • @TropicalMBA:disqus thank you.

    @senfeehan:disqus – There is a TON of information out there and most of it is noise. Everyone thinks they’re an expert and there is a lot to gain by promoting coins you’ve purchased.

    My general advice is to learn everything you can. Before making buys, do your own research and understand why YOU are interested in a project. If you can’t explain the project, you probably shouldn’t be speculating/investing. Over time you’ll start to trust people in the space… but be very cautious taking advice.

    As for resources…. to get a sense of the overall vision, watch youtube videos from Brock Pierce, Vinay Gupta, and Andreas Antonopoulos. Curating a good twitter feed is the best source of actionable info. The Crypto Watch on facebook is great with a TA/trading focus. Reddit/r/cryptocurrency is decent. Also. any project you’re interested in will have a Telegram app.

    Good luck!

  • sweet, just updated it too :) https://richardpatey.com/how-to-buy-altcoins/

  • Seán Feehan

    Cheers man real solid resources!

  • Michael Stafford

    Thanks, Derek, that’s helpful!!

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