We’ll do this week’s Live Q&A Chat at 2pm ET today. I’m going to keep it to about a half hour, so get your questions in early. (You can just hit reply on this email to submit your question.)
Back in October of 2015, when we bought Axogen, I explained that, “You guys know that I’m very leery about investing in penny stocks and/or stocks that came public through a reverse merger. So you can imagine how seriously I’ve taken my homework on researching this new pick that is indeed a small cap company that came public through a reverse merger and is practically a penny stock, trading at less than $5 a share. Axogen AXGN is a biotech company that’s pioneering a brand new way for surgeons to rebuild and reconnect and save nerves in all kinds of surgeries. My best friend from college from twenty years ago at UNM is nowadays a hand transplant and reconstructive surgeon in Baltimore and he’s been using this company’s nerve connect technology in nerve reconstruction…”
Axogen, which was trading at less than $5 per share when I wrote that and bought the stock, is up more than $5 today to new all-time highs near $35 per share, up 600% from our cost basis after yet another blowout quarterly earnings report. The company is now valued at $1.2 billion — which happens to give it a multiple of an astronomical 20x annualized revenues. I think it’s prudent to trim some shares today, and I’m selling 20% of my Axogen, locking in some 600% gains since we bought the stock 2.5 years ago.
On another note, here’s a link to the video and below is a transcript of “The Great Cryptocurrency Crash” speech I gave at the MoneyShow a couple weeks ago:
I got bad news for you. I am not going to be up here telling you all the easy ways you can make money in cryptocurrencies and Bitcoin. And buying the next Bitcoin or anything like that. I’ve got some suggestions. I do have four or five cryptocurrencies that I like. I don’t think now is a very good time to be involved with cryptocurrencies with your money.
It’s a frenzy. We were just talking a second ago about why I don’t believe in getting up at 3:00 AM and trying to make $200 or $2000 trading 4X. And it’s because, guys, let’s just get a reality check here. What is our goal? Why are you all at The Money Show? Are you here to make quick money in the next few days? The next few weeks? Or are you here to try and maximize your returns and minimize your risks of your portfolio and your net worth of your life over the next 10,000 days? It’s not about the next 100 days, 10,000 days is 30 years. And you still got 30 years, don’t be laughing, you’ll be 92.
Speaker 2: I’m 70, that’ll make 100 even.
All right, so there you go. In all seriousness, I tell my subscribers at TradingWithCody.com that I want to create value in the next 10,000 days, 30 years. That’s what you’re doing when you’re moving your money. Don’t be greedy, don’t think you can make an income day trading. I’ve never known anybody who’s survived 5, 10, 12, 15 years trading quickly. Doing Forex trades at 3 AM, using software screening technology to tell you when you buy Bitcoin for the next six hours or whatever it is that you’ve heard around here.
It sucks guys. It’s hard. There will be losses and pain. You remember 2000? The year 2000, I mean. We had a dot-com crash, a technology crash. What had happened in ’99 and 2000, leading up to that crash, we had a frenzy and a bubble. Pets.com went from a dollar to 100 and back to zero. Riot Blockchain last week, or last month. I started telling my TradingWithCody subscribers, “Guys, try to buy some puts on this sucker.” In three months, this thing will be back to five, and then in two or three years, it will be back at 50 cents like it was before they did a 10 for one reverse merger. Do you guys know what a 10 for one reverse merger, selling company that does Bitcoin, Blockchain naming is? If you don’t, then don’t ever buy a Blockchain-micro cap-penny stock because that’s what they do. It is a frenzy. It is a mania.
When a company like Long Island Ice Tea changes their time to Long Island Blockchain, and the stock goes up 500%, everybody who bought that stock, every single one of them will lose all of it, unless they sell it now and lose only 50% of it. It’s not a real company. That is what is going on in the frenzy, and that’s why I’m here to try to talk some sense into you guys and try to check your green. It’s hard, and it sucks, and money is not easy. Yes, guys, don’t leave ’cause I’ve got some ideas that you could make money under, just not this week.
That is no joke. I mean, the fact is guys, there’s tens of billions of dollars that are moving in a block chain and Bitcoin technologies right now, and there’s an infrastructure that’s been built and there are conferences, not like The Money Show that just has Bitcoin topics, but their entire conferences and infrastructure being built to take Blockchain companies’ technology out into the open, to enable people ..
That’s the fact that there’s money moving into blockchain. There will be real things that will be tangible. This is it’s somewhere either ’99 or the year 2000, I don’t know when the exact top will be, but it’s a mania and it won’t end well. You’ll have a year or two, my best guess. The next year or two, but maybe three years, 99% of the cryptocurrencies out there are going to zero. There’s going to be a few Amazons though. There’s going to be a few Googles in the cryptocurrency world. Block chain is real. How do you invest in Blockchain in 2018? You don’t. Wait for some great companies to either truly implement Blockchain and create growth and prosperity for themselves, and you’ll see this coming, you’re going to hear Amazon talking about how to create an open Blockchain cloud to everybody in the future can build their apps and technologies and streaming and 5G IOT things on top of.
But, you got to go through the pain first. We got to go through a crash. You can’t have frenzies out there. I have friends, ex-friends of mine on Wall Street who are paid big money by ICO cryptocurrency scam artists to perpetuate the scam and promote it to you guys. They’re not disclosing all of the information to you. How many of these cryptocurrencies you don’t even understand what the heck they were talking about?
I was in Las Vegas a month ago and Terrell Owens says to me, “Cody, what do you know about Bitcoin man? I’m thinking about buying some” he didn’t buy it yet, thank goodness. Next day, Bobby Farrelly says to me, “Cody, I’ve got a friend who’s creating a fund for cryptocurrency investments, asking me to put some money into it, can you talk to the guy and see what you think about it?” I talk to the guy. I didn’t understand what the heck he was talking about. I walk into an elevator, about five minutes later, there’s a sign that says “Alpha Token cryptocurrency room 17 in the Aria” and I’m like… let’s see what these guys are talking about. Let’s go see what company is at CES with the Crypto-Alpha-Token thing, and I go in there.
This might sound familiar to you guys, he has a new token that he’s creating that is going to enable “blank” to monetize “blank” and to be able to create a new Blockchain way that’s truly transparent for “blank”.
And this particular one’s for content, so I didn’t understand what he said, but he explained to be that as a content creator, I could us his tokens to make more money than using US dollars or something. None of that’s making sense. That’s Pets.com in 1999. You guys remember wbvn? W-B-V-N. It was a billion dollar company at one point. It went to zero because home delivery of groceries wasn’t ready. You had to wait. 10 years for Grub hub. And that’s probably what’s going to happen. Let’s be realistic. You can’t have all of these manias and, again, people around here are taking thousands of dollars from everybody in this conference and putting into their Blockchain and their cryptocurrency and everything else. Catch your breath a little bit. Be scared. People are greedy right now.
Isn’t there an old saying, right? The great Warren Buffett to, by the way, you bailed out with your tax dollars in 2008 because he was greedy when others were greedy? He wasn’t fearful in 2008. Take it with a grain of salt to anything Warren Buffett says too, take a grain of salt anything that I’m saying, of course. But it’s greed out there. This is a frenzy. I don’t like the vibe. I don’t like what I hear. I don’t like that Neil Patrick Harris is telling me he bought Bitcoin in 16,000. Dinner two nights later, I’m not just dropping names, but it’s fun to drop names when you’re talking in front of people.
Two nights later, I’m at dinner with Kevin O’Leary, Shark Tank. And he starts talking, “Cody, what do you know about cryptocurrencies?” I’m like, “Dude, I just pulled this book called the Blockchain revolution and the great cryptocurrency crash.” ‘Cause we’re crashing. This is a frenzy. Back up. Guess what? I’m not joking. The Maitre D stops over at our table ’cause he heard us talking about Bitcoins, cryptocurrencies and he wanted to tell us all the money he made in the last month, pay-trading Ethereum and Ripple and … that’s a top. That’s not healthy. That’s not the time. You should be put risking your money in that stuff. That’s my first step. My first lesson, my first, really the only thing that I really want to try honing today, is, be scared. Be skeptical, be cynical. There are scams galore.
You see the ads on Facebook, oh they got banned on Facebook, ’cause they were scams. You see the ads on Market Watch that are fed by Google. You see it on Yahoo, wherever you go, you’re seeing ads telling you the next Bitcoin. This guys’ got the secret. Pay him $20,000 for a lifetime subscription and you too can find out all the secrets.
How many of those are actually scams? I don’t know, but a lot. It’s a free for all. You guys heard of Regulation CF? Reg Crowd Funding. We got companies here that I was surprised to see, that are not even publicly traded, that are raising a million dollars from retail investors at this place, probably legally. Legally. Not illegally, because government regulations have changed to enable retail investors to invest in startups more easily.
Maybe that’s a good thing. I’m a bit libertarian-minded, I’m not a libertarian, ’cause I don’t quite think like I libertarian either, I want to be free thinking in all cases, but yeah, maybe people should be on their own. They’re all adults.
Speaker 3: Donald Trump says hi.
Oh, tell Donald I said … actually, don’t tell him i said hi. I don’t talk to the Donald anymore. Or the Obama.
True story. Donald Trump Jr. was on my show in 2008, I did a block party on Wall Street, two hours, we closed down Wall Street, Fox Business, and every major, famous Wall Streeter on there and Mario Gabelli telling me banks were going to go up forever, it was right before the banks got bailed out. And Donald Trump Jr would come on the show, and we start talking about oil for some reason, and oil at the time was at $125, and I was as embarrassed as I could be on oil. I thought it was going to crash. Seen this playbook before. Lived in eastern New Mexico/right next to West Texas for many, many years.
Growing up I’ve seen these items. I saw many … about two or three bubbles and pops in the energy sector. I bet, on air, with Donald Trump Jr., man, oil’s moving $30, you’ll have a three handle before it gets to, say at $15 handle, 150.” He goes, “That’s insane.” It’s going straight to $150. I said, “I will bet you my inheritance against your inheritance that oil sees 30s before it sees 150s.” On air, we shook hands. Got a picture of it on TradingWithCody.com, see me shaking his hand. Making that bet.
It was, what? Six weeks? Maybe eight weeks later, oil is at $38. By the way, I invited Donald trump Jr. to come back on to my show every month for the next year and a half and he never came back. So, I don’t talk to Donald anymore. Donald Trump Jr, I’m waiting for my inheritance.
Kicker, side note. I got a feeling, before I die, I would rather have my father’s assets and my assets than Donald Trump and Donald Trump Jr.’s debts. Let’s think about it. Different perspective.
I don’t know why I was talking about that except it’s sort of the same topic. In 2008 man, everybody was sure energy was a no-brainer. It’s easy. Peak oil. Peak oil. Peak oil. Peak oil. Peak oil.Peak oil. Energy’s going up forever. Same a little bit like Bitcoin, Blockchain’s the future, Blockchain’s the future, Blockchain’s the future. And it is, Blockchain is going to create a transparent way of keeping records and interneting and surfing and apping and artificial intelligencing and it’s great. It’s huge. Yes. With a new way to invest in Blockchain right now that’s ethical, that’s actually meaningful unless you’re got it inside on a guy who truly is creating a revolutionary cryptocurrency-Blockchain-oriented company that you know personally, but you’re not going to meet him here.
You’re not going to meet a stranger who wants your money. If it’s truly the opportunity, why do they want your money if he’s a stranger and it’s such a great opportunity? There is, did I mention tens of billions of dollars floating into Blockchain technology this very minute?
From institutionals. I’ve been approached in the last 6 months, by probably several dozen, at least, several dozen Blockchain, cryptocurrency related companies. Six years ago, I was approached dozens of times by marijuana-related micro cap pink sheets over the counter scams, I’m sorry, stocks. And they want to pay me. They’ll write me a half a million dollar check and give me millions of dollars under crappy worthless stock that I can then go promote and hype and sell to the retail investors like you, along with those guys who have those shares at those companies who are going to issue themselves lots more shares after you buy their shares, ’cause it’s not even a real company. It happens. It’s a real game. It’s a real scam.
I went up to the finra group, and asked them, why is this legal? For the last seven years, you can go Google, Cody Willard, penny stocks. Cody Willard, Marijuana Penny Stocks, and you will find, I have called out dozens of these companies by name in articles on Market Watch and Wall Street Journal, saying that they’re going to zero. They’re probably scams.
Heck, I called some of them outright scams. You know how many times I’ve been contacted because those companies were wanting to sue me for calling them that, for explaining what their scam was. Zero.
I don’t understand what the FCC and finra are doing. Finra’s suppose to regulate the brokerages, fine. The FCC, how can they allow Long Island Ice Tea to change their name to Long Island Blockchain and promote the heck out of their stock? How can they allow these people to pay promoters, newsletter writers, money, to promote stocks that are worthless but they’re not even trying to create a real company with?
How can I from Ruidoso, New Mexico, recognize these scams, write about them, call them out, and the FCC’s not doing anything? And guess what? Blockchain went from 40 to 13. Sorry, Riot Blockchain, R-I-O-T, and it’s going to five, its’ going to zero eventually. I’d love for them to call me. Let’s have a debate. I think the … was it Andrew Left? Citron? Called out the same stock by only two days after I met, and was going on CNBC and invited the COE of Riot Blockchain to go on there with him. Didn’t show up. Didn’t show up but he did sell a few million dollars of Riot Blockchain stock, I’ll bet. Go check it. I haven’t checked it. Don’t need to. Love for them to reach to me for more.
All right. Is that enough scare and fear and everything else and talk about at least trying to make some money from all these stuff settles down, after the bubble pops, after the people are crying, maybe in a year or two when we come to The Money Show, there’s not single cryptocurrency, Blockchain, Bitcoin related booth? Might be the best time ever to buy this stuff, and I think that’s happening. I’m not in any rush, I’m not going to be greedy. I’ve seen Bitcoin go from, when I bought it, and took it as payment Trading With Cody, $100 each, to start selling it, and it was at $2,000, ’cause I started getting scared and still selling it all the way up to 20,000 and still selling all the way down right now.
There’s going to be great opportunities to invest, probably in Bitcoin, so let’s talk about four or five ones that have potential, then let’s be realistic that I’m not putting any money in them any time soon, I own almost anything I want to talk about, I’ve owned them for a while, and I would suggest being just cool and scared right now.
One other note before we get into that, I started offering a lifetime subscription two weeks ago on TradingWithCody.com, $6,000 you have a lifetime subscription, so $100 a month, $1,000 a year, $6,000. I had a good chunk of my subscribers take me up on this new lifetime subscription. Most of my subscribers have been with me 15, 20 years. You know what I did with that money? I, actually, was just out there talking to another presenter and we just got on the topic, and he was like, “I know you didn’t put it in a savings account.” Yes. That’s what I did with it. Putting money in a savings account right now might be a great idea. Be fearful when there’s greed, and there’s a lot of greed right now.
So, one other anecdotal thing, yesterday I gave a speech called fraud and scams you’re econom-
Bubbles, frauds and scams, your economic and stock market things for 2018. You know how many people came to it? Not very many. Today, I talked about the great Blockchain-cryptocurrency-Bitcoin topic, and packed.
Here’s five of them that I think might live. Bitcoin, Litecoin, Ripple, Etheruem, and Stellar. I plan on, somewhere in the next year or two, buying more of almost all of those. Probably one or two, I’m going to be wrong about. Probably five or six other incredible platform-Blockchain-cryptocurrency-related things that will be out there that I can buy. I hope I recognize them. I’m going to be studying this because I do believe in Blockchain and cryptocurrencies just like I believed in the internet. And even though in the year 2001, the internet stocks went to zero, Amazon went from 100 to 2, that was a time to buy Amazon, at the bottom.
I bought Apple, at $1 per share in March 2003, still own it. I bought Google the day it came public, 2005, 2004? Still on it. $45 a share, there’s no cost basis. There’s opportunities like that but I just don’t think this is the very moment. This is buying Amazon in Spring 1999, and 80 before it went to 100 on its way to 2, before it went to 1500, by the way, 20 years later. That’s the vision. By the way, are we talking about thousands of days again? Not tens of days. How do you make big money in cryptocurrencies this year? You’re not. Nobody’s going to make big money in cryptocurrencies this year except from the insiders creating the companies and some of the guys who are really creating real companies.
I did, actually, agree, just yesterday, to get involved with a cryptocurrency-token that will be rolling out in the next year or so. Do you see me in here hyping it and trying to get retail investors money? No. These guys are the real deal. They’re building this thing from the ground up, legally, ethically. I believe they can crowd out a lot of these scams. I think there’s a great opportunity to be involved with this stuff. We’re going to institutional investors first. Big money.
I don’t think people, right now, should be trying to take retail investor’s money and putting it into some random cryptocurrency that you’ve been told is a hot one. Always, always, always check to see if the person who’s promoting the currency, the equity, the option, the trade, the concept, the security, how are they compensated? Who’s paying them? Do they own it? Are they selling it to you when they’re telling you to buy it? Right now, I would bet, almost every single one of those ICO’s that have come out in the last month, that retail investors can put their money in are scams.
Don’t touch them. Run. 25 minutes in, I wanted to leave 15, 20 minutes for questions, I don’t mean to sound like a big ole pessimist, because I will tell you, I believe in our world. I believe in technology, I think we’re living in a virtuous time, that we are creating prosperity and wealth in this world, unlike any other time in the history of mankind and I do want to keep my buckets out there, trying to get some of the moneys that are flowing into those areas from artificial intelligence, to cryptocurrencies, to Blockchains, driverless cars, I own stocks that are related to all of these sectors. I spend time, energy and money, Neil and I, Neil Patrick Harris and I in CES in Vegas a month ago, took a driverless Lyft ride from Lyft to a show that we wanted to go watch, Michael Jackson ONE, it was terrible.
But, it was cool. Taking a driverless car ride and knowing that this revolution’s happening. Trying to figure out the best ways to invest in that. Be patient, know that it’s not going to be big money, and it’s not going to be easy. There’s a lot of people, whose mission in life, is to take money out of your pocket and put it in theirs, and not actually create value doing that. Any questions?
Speaker 4: How do you feel about companies like UPS and they’re utilizing the Blockchain to improve their logistics?
Yes. That is the revolution. There will be improvements in logistics, there’s going to be improvements in privacy, and ways for you to monetize people who are tapping into your privacy so that Facebook and Google are capturing all of the value of your data, but that you get compensated through some sort of token on the Blockchain that Coca-Cola has to pay for, or UPS is able to track packages in any place at any time because they’re part involved in the Blockchain, it’s transparent, and all that stuff, great. It’s real, there’s no way to make money in it yet. There’s going to be a Cisco of Blockchain, there’s going to be an Amazon of Bitcoining, but we’re not there yet. I just think it’s early. I think we’ve got to be cool, we’ve got to be patient, we’ve got to be rally cynical ’cause when you see a frenzy like this, it sucks when it unwinds, and that’s what I keep using that word.
It sucks. It sucks your value. It sucks your portfolio out of wealth, puts it in someone else’s pocket who’s not doing virtuous things with it. Where the heck is the FCC? Yes, sir?
Speaker 5: Is there any real world value in any cryptocurrency? I mean, 20 years from now, would we be using it with something other than just a savings account or just storage value?
I hope so. And I believe so, yes. I do believe … anybody follow me in 2008 knows my stance on Republican, Democrat policies and bail outs and the entire, again, where’s the FCC? If the government was really on your side, the FCC would be doing something about these scams, they’re not. I truly believe that an ethical, transparent, currency is needed and maybe even more than one. Let’s say three or five that hit critical mass, so you can have options of your different types of currencies that you think store value better or have lower transaction fees or whatever the case may be. That is real. The banks steal, trillions of dollars a year out of the system with their stupid commissions and fees and everything else. The government’s printing trillions of dollars while interest rates are at zero. That’s free. We can keep doing that, let’s throw another 500 billion on the budget next year, 1.5 trillion dollars of tax cuts, let’s bail out banks for $8 trillion under Bush and Obama.
I’m not okay with that stuff, and I don’t think anybody is in this country. Then you go to Venezuela, or Iraq. I live in a small town in New Mexico, the biggest CPA guy who does all the books for all the professionals in town, kept having these guys invest in Iraqi Dinars five or six years ago, and actually go create an LLC. One of my friends who’s an attorney, and “Hey, let’s buy $15,000 in Iraqi Dinars and put it in an LLC so when it goes up 10 or 100 fold in the next 18 months.” And I wrote an article at the time at Market Watch, and I was like, “Why don’t these people just do Bitcoins?” Coz if you go to Venezuela or Iraq, with dollars, people will trade you the Iraqi Dinar or the Venezuela Krone or whatever the thing is, for anything. They would take a Dollar, here, take all my Krone, take all my Iraqi Dinars, just give me some of those dollars, man. That’s not going to change.
Those people in Iraq and in Venezuela, they really know what the downside of government fee on currency is, that it sucks. Again, it sucks value and prosperity out of the world. I do believe that over time, value and prosperity and ethics carry the day, and there will be trillions of dollars of your wealth in the world because banks aren’t sucking it out. Governments aren’t sucking it out. Yeah, man. There’s a real place for cryptocurrencies and I plan on owning some of those that become the true defacto standard of currency. Yes, sir?
Speaker 6: Would you say investing in industries and companies that are trying to take directly from a Blockchain application to move because their revenue will increase ’cause of the cost of operation or is Blockchain itself?
Both. It depends on how you would invest in the Blockchain. Again, there’s going to be guys who are convincing you to put money in something that doesn’t even exist. Or isn’t actually related to Blockchain of things. And then, as far as the companies, and that’s my point here is that there’s nobodies making a sustainable revenue model that you can invest it right now. There will, there are private companies that have access to real money in silicon Valley, and on Wall Street, and tens of billions of dollars that are going to fund those companies. But you’re not going to be able to buy it right now. In another two or three years, hopefully those companies will come public, maybe in a year. Several of them are coming public, and they’re doing $50 million in revenue in a projected to go 10-fold in the next three years because everyone’s moving to their Blockchain platform or something.
More likely, frankly, Amazon’s going to squeeze out everybody, and be the Blockchain defacto standard, or Google. You’ve got to be aware that there’s going to be competition in it anyway, and that even if you invest in Blockchain-related companies that look great, they might get squeezed by existing 500 billion, trillion dollar companies like Amazon and Apple. But my bigger point is, I just don’t think right now, it’s possible for you and I to do that. Yes?
Speaker 7: Excuse me.
Speaker 7: How do you put your Bitcoin in an LLC? You just mentioned that.
I said I had a guy who was telling people to put, create an LLC for their Dinars, and frankly have no idea. I don’t care. All I was telling those people was, “Don’t buy Iraqi Dinars, let’s spend money creating an entity to put your Iraqi Dinars in,” it doesn’t make any sense to me. So, no, I have no idea. And please don’t do that.
Speaker 8: I assume I’m the only one in this room that doesn’t know this, so let me ask you-
I hope I know the answer then.
Speaker 8: How does it work?
Speaker 8: What is the Blockchain? The entity, how does it work?
The simplest way to truly picture this is that, you’ve got … there is information that everybody can access, but you have to have a key to get to it. By enabling it for you to get the key, you can monetize things, you can control things, you can create tokens out of it, but it’s that, instead of it truly just being blinded in a cloud, there’s transparency to everybody that wants to check what’s happening in the system. That’s the simplest way to explain it, I do suggest reading lots of books on it. I’m still wrapping my heads around it, head around it … sometimes I feel I have more than one head, but that’s not a good thing. Sometimes I feel like I’ll lose my head, only, my wife tells me, I’ll lose it while connected.
But yes, the truly … transparency, transparency, transparencies is the best way to explain Blockchain.
Speaker 8: Thank you.
No problem. And nobody here knows the guys who are driving the Blockchain revolution that truly understand, and how it’s going to work, and creating this stuff, they’re doing that. They’re not here at The Money Show, trying to get your money.
Speaker 9: You had mentioned that you had five cryptocurrencies, what characteristics in those currencies led you to like them?
Great question. Number one, I would say, I’m looking for something that can hit critical mass, and I think Bitcoin has had so much infrastructure and investment around Bitcoin, that it has a very good chance of surviving and becoming some sort of a defacto alternative currency. I also … some of them, it’s like I’m working with … like the company that’s approached me that I do think is the real deal, they’re building themselves on Stellar. And so I went, hmm, oh I better go work more on Stellar, and looked it up, I’m still wrapping my head around stellar.
But I know that, guys I tried are building a platform on Stellar, so I’m at least looking at it, I know there’s something sustainable if these guys are real, but my point, again, it’s early. Nobody knows exactly what technologies are real and what’s going to be built on, but you do want to find … you will recognize overtime, over the next year or two, you’re going to see maybe Ethereum, or maybe Stellar, or maybe both have all kinds of things built on top of it.
Then you’re going to have companies like … here’s a good example, you remember Red Hat? When they were trying to monetize Linux, an open source operating system, and how can you, then try to monetize … they did actually, they figured it out. And they built a business model around creating, helping people run Linux and stuff. Linux was critical mass, companies building themselves around that. Go find a Red Hat of Ethereum, or a Stellar at some point.
Speaker 10: Can crypto, at some point, replace cash
Yes. I don’t know that it’ll truly replace, but it will be an alternative to. I truly do believe that … I’m not going to depend on this corrupt government’s currency any longer someday.
Speaker 10: That’s maybe a good point from a crypto.
I’ll tell you this, again, there’s no way to know which one’s truly going to get there right now. In 20 or 30 years, it’ll just be normal. It’ll be like the internet, everybody’s got it.
Speaker 11: How can you get people to buy Bitcoin to think like that to pay for things, when the people who build things can’t depend on the value of the Bitcoin from 19,000 to 7,000 in one day?
I will tell you this though, that … he’s asking, how do you create something that you can actually trade price and then, purchase and sell things with in a Bitcoin currency when it’s so volatile. If I may re-phrase your question. I heard that same argument when I was buying Bitcoin at 100, and again, I don’t think Bitcoin’s a great buy right now, but there are guys who have built platforms around Bitcoin, and it is up from 100 to 8,000. And whether it’s down from 20 or not, there’s value. There is 100 billion dollar plus market cap that’s in there, that’s moving around and people do purchase. I accepted purchases at TradeWithCody.com for $99 a month, I can take one Bitcoin and I can literally hit pay one Bitcoin get one month of TradingWithCody. There was a transaction there, that’s where I got a bunch of my Bitcoins, some of which, some of which were stored at Mt. Gox. So I got some great gains, but I also have 100% losses on about half of my Bitcoins from 2013, did I mention that? Huh.
I actually mention it throughout my book. It’s very important to recognize that again, I got scammed. Thousands of dollars at the time. Gone. Didn’t really pay attention. Now, some of Bitcoin have 2,000, I started going … sort of like 50 cents, I was like, holy crap, I’m going to go find out how many Bitcoins I’ve got, and I couldn’t find all of them. I was like, I know I’ve got more than this. I kept going, and looking, I started … finally I went to my Gmail, and I was like, “Bitcoin purchase,” Bitcoin passcode, and I found that I had put some of those Bitcoins at Mt. Gox in 2014 or something, six months before MT. Gox got completely hacked.
You probably, guys, don’t even know what Mr. Gox is. It was a wallet where I can keep my Bitcoins, and before that it had been a card, literally, a trading card, like you can trade Pokemon cards and stuff at this website, now you can trade Bitcoins.
Well, it wasn’t secure. And someone came in and stole all of our Bitcoins, not just mine, hundreds of billions of dollars, maybe not that much. Hundreds of millions of dollars, probably half a billion dollars stolen in Mr. Gox, of which, a very small portion was mine.
Speaker 12: A lot of this stuff, as you had see they are way over heated on their speculation and everything. Is there a way to do fundamental analysis on Bitcoin company, the cryptocurrency company, are they public yet?
They’re not. That’s one of my point is, there’s not any major Bitcoin pure player, anything. You can even analyze much less reasonably purchase at a decent price at this very moment. Your bigger question though, I will just tell you, there were millions of people in the year 2000 who were like, well, maybe it’ll come down a little bit, but eventually, the Internet’s going to be real. Pets.com, everybody’s going to buy their pet store stuff at Pets.com someday. It’s not like you can even just fundamentally be able to tell that those things aren’t going to work out either. We’re wrong, you can mess up the fundamental analysis too, is my point. Amazon is where I buy my pet supplies now, how about you?
You guys remember the pet.com stock? Sock? The little puppet? Yeah. That, actually did sell. That puppet got sold for $10 million when pets.com was already at zero.
Speaker 13: Do you feel like that Ripple Blockchain has a fighting chance against the current swifts model?
Yes. I do. Again, that’s why I mention Ripple. I think Ripple’s got a potential to become some sort of a defacto standard of some sort of a platform for Blockchain stuff and smart contracts and all the stuff that you hear people explaining how you can buy that stuff right now and why I’m here telling you don’t.
Speaker 13: I mean specifically against the Swift model?
No. I don’t know what the Swift model is.
Speaker 13: The interbank transactions.
Yes, absolutely. That is my point. Not just Ethereum, all of these things, someone’s going to kill swift. Someone’s going to kill bank fees, the transaction cost, the hundreds of billions of dollars a year that banks suck out of the system. I should have called this the great suck.
Speaker 14: Did you ever see a Bitcoin vending machine?
I’ve been over … I’ve seen them around three … several years even. You remember when they started coming out two, three years ago, when, again, I was … my coins are at Mr. Gox, so what the heck, don’t listen to me. But, I did go around right now, you know what? I’m going to go buy $20 of Bitcoin back. I’ve been selling thousands of dollars worth of Bitcoins, I’ll buy $20 back just so I can do it on this thing. So I did go over there just a few minutes ago, I was talking to these two lovely people over here and made them walk around with me. I didn’t do it. When I go to put my $20 in, and then it wouldn’t take it. It said, “Tap here to get started,” and I tap, and then, “Put in your phone number,” I’m not giving out my phone number. I was out of there.
So no, I’ve never actually bought a Bitcoin on a ATM type of device but I did just try to, and I also fly all the time, and do not do TSA pre-check because I will not let the Republican/Democrat regime have my finger prints, and then I realized, I think they’ve got my finger prints when I was in eighth grade. We went through a police station tour, like a field trip and we all got to do the finger prints. And I think back, what was I doing? People control the record somewhere now.
You think 23 and Me, some day’s going to share all of your DNA information with the Republican/Democrat regime? Does Google share all of your information with the Republican/Democrat regime? Whose wife … what company’s founder’s wife started 23 and Me? Google. I’m not sending anything to 23 and Me. Here’s where the Blockchain can work. That’s a great example. Just had this right up, right here, new idea. You need a 23 and Me and uses Blockchain technology so your code, your information, your security, your privacy is truly protected. Hey, 23 and Me, you’re not getting my information. And neither is that Bitcoin machine over there.
I have no more time. I will give you one last question, and one last bit of advice. Two words, you want to make big money tomorrow? To words, Bit. Coin.