>>Okay. So, things are moving fast We've got a fast profits, fast losses The industry is transforming >>Yeah >>How do young people or investors that are excited about Fintech and crypto feel about traditional banks? >>I would say a lot of them I know a lot of people that have crypto and they don't have stocks Now, that it sounds completely bizarre to somebody a bit older They're like "Why wouldn't you double- >>Diversify >>diversify or double with the traditional investment before you move on to this >>So, your dad might say that >>Yes. My dad would definitely say that. So >>Okay >>I mean, I think a lot of Yeah, it just comes down to people are, they grew up with this They grew up of tech. So, they're more likely to double with that than A lot of times when we talk about like stocks >>And does a fast scare them? >>I think that's part of the excitement a lot of it >>Okay >>I mean >>Better to live fast than have fun >>We like the adrenaline >>Yeah. Better to live fast. Yeah >>Yeah. Exactly >>Okay >>So That enthusiasm Yeah So, how do you win with Fintech? How do you win with crypto? How do you win with this >>Well >>new technological capabilities? >>If you're going to do a crypto investing a lot of it is identifying short and long-term value So, in terms of you want to look for companies that are already generating revenue using blockchain technology in addition to developing technology that can >>em… generating… >>to generate other revenues >>To generating revenue Are they generating revenue just from selling cryptocurrencies? Are they generating revenue by doing something with blockchain that is more than just a cryptocurrecncy? There's a lot of different ways for a company to raise money They could sell their utility tokens, that's one way Another way that we've seen in like the last quarter is companies are starting to try to sell security tokens. So >>Okay >>a lot of the times Yeah Companies are finding different ways to raise money An interesting example that I've seen recently is a company So, let's say we have we have Kickstarter. So >>Hm-mmm >>An evolution of Kickstarter is >>Right >>there's a new coin >>Okay >>That will basically- >>So, we got a crypto Kickstarter >>Yeah. We got an evolution of Kickstarter here So, basically you would pledge your money and if the pledge amount was reached if they raised enough funds then the token would execute the contract If it didn't, then they would come back to you So, that's a small example of a company using Blockchain to advance a current trend >>I don't want to be too skeptical here but one of the things that comes to mind is it seems like everybody's coming out with an ICO >>Oh, yeah Everybody's launching their cryptocurrency I mean, recently the government of Turkey decided they were going to launch a cryptocurrency. I mean it's kind of like "Wait a minute. I thought the idea of- >>Right >>Bitcoin being valuable was that you wanted to get rid of the government role and the tendency toward inflated currency called a fiat currency, traditional currency Bitcoin is wonderful because it's limited When a government is issuing it I don't know that I trust that government with >>Right >>the crypto anymore than I do with their paper >>Right. There's been a lot of issues with ICOs in general in terms of fraud or just you know they're not issuing the tokens which is not doing what they say on their white paper >>But the governments may be the best of the bunch but >>Em… >>lots of fraud >>In theory, the government should be the ones that are protecting people and a lot of governments have taken steps to regulate >>Okay. >>or restrict the ICOs. We've seen, for example, China >>But many people like in Bitcoin, don't like governments >>Yeah. In general, a lot of people One of the flags that they always carry is that you know, there's a reason why this exists is because governments, banks and regulations are a hindrance to the free market and they corrupt politicians and stuff like that. So >>Yeah >>There's a lot out of >>This is kind of a social theme combined with an investor thing >>There is definitely a social theme to this to the whole development for sure >>Okay. So, it is interesting I was curious to look and see that there's more than a thousand coins >>Oh yeah. There is >>of various types >>Yeah >>It seems like a lot of the money is in the top five or so >>Yeah. There's large amount of money in cryptocurrency right now You know, there's just a thousand coins that you can see a coin market cap but in reality there are thousands more that they don't even put there but they exist as off. So, there's >>So, would you- >>If you want you could create a coin today. So, yeah >>What would you say if I said I think there's a lot of reasons to be bullish about blockchain and skeptical about Bitcoin or any other particular implementation of a digital currency >>Well, in terms of crypto against by nature are going to be very volatile So, that's not necessarily a bad thing I mean in terms of investment >>Yeah. You said it's kind of exciting >>You have to, there has to be some amount of volatility in the market to make money, right? And >>I'm not sure Warren Buffett would agree I mean, he tends to buy things for the long term >>For sure >>And he's done pretty well So, it's an alternative >>Yeah >>viewpoint that volatility is not something Warren is interested in He's investing in the long-term >>I would say to that that you can make money by like in a bull market, in a bear market you can make money but it's the pigs that get slaughter It's the people that are standing they're doing nothing, that typically gets slaughter here >>But isn't Warren Buffett standing doing nothing? I mean buys the company >>I mean, I think >>he holds it. He's held it for 20-30 years He doesn't sell He doesn't buy very often You sitting on a lot of cash Isn't Warren Buffet a pig? >>I would say a lot of the in terms of, the basically there is a different ways of doing analysis here That in terms of fundamental analysis a lot of which is what he typically does, right? In terms of fundamental analysis a lot of these coins have little to no value and a lot of them are going to be dead soon, but there are a lot there's a lot of fundamental technology behind them that I believe we'll change the world You know, If you get in on the ground floor there's a lot of upside, potential upside Obviously, there's a lot of risk as well but you know that's, so be it That's part of life. No risk, no reward, right? So >>This is helpful. Thank you for sharing your views on this Let me summarize something about crypto We have come back to cryptocurrency Blockchain, Bitcoin etc. Let me say that this is that there are some intriguing aspects of this world of finance This world of ICOs I can understand why people are skeptical >>Yeah >>I can understand why people are enthusiastic >>Yeah >>There are reasons for both points of view >>Yeah There reasons to be optimistic about the future of Bitcoin about the future of Ethereum about the future some currencies There's also good reasons to be scared and good reasons to be cautious because some of these things are frauds Some of them are over-hyped and overvalued just like I mentioned the dot-com boom burst Well, Amazon is worth more now than it was at the peak of the boom. So >>There we go >>you know, I mean, it doesn't mean just because things are overvalued and then undervalued that they aren't worth something So, this may be our long-term value proposition much the way that we are still using gold >>Yeah >>We'd been using gold for a long time as a store of value >>Yeah. I think you could sum it up as cautious optimism That, you know, this is something that's emerging and very new We could see the potential of it but there are a lot of risks in this field. So >>One >>cautiously optimistic >>One last question Some people have said that Bitcoin is millennial's digital gold of the new era Do you buy into that? >>In terms of as a storage value like >>Yeah. Kind of. I mean >>I would say that some people I'd say a most people are buying it for the long-term Either their day trading it or they're holding it for like a long period of time Not really to, in the traditional sense of gold they're more concerned with their profits and >>They're both concerned with the upside >>Yeah >>not with inflation >>Yes. I would say it's not really as an inflation hedge >>Okay >>I'd say most people that are involved are holding it for five years hoping it goes to the moon or they're doing some sort of day trading >>So, they're not holding it hoping that it will retain its value like the gold >>Yeah I would say >>They're saying "We think there's huge upsides" >>Yes I would say lot of people are >>the great deal in enthusiasm as well as >>Yeah >>potentially fear >>Yeah. I think a lot of people try to get in on the ground floor or >>Okay >>The first floor. Yeah >>All right >>Ride the elevator outside >>Well, thank you very much >>Okay >>for sharing your views with us >>Yeah >>And for being part of our discussion today >>Thanks for having us. Yeah >>Okay >>All right. Thank you
