Episode 143 | Dave and Alex | Military Millionaire Podcast

Show us some love!

84 / 100

Dave and Alex talk about Crypto

00:00 - 05:00

Alex:

Hey there military millionaires. I'm your host, Alexander Felice, the great, the greatest the best there is the best there ever was in the best there ever will be. And my glorious co host next to me, David Pere. He's not that good. David, we're gonna do a show as no guests today. It's just gonna be you and me. We're going to update. We're going to update our listeners on what we got going on.

We're going to talk about the crypto mania, we're going to talk about our fabulous new sponsors, which I'm incredibly excited about. And I think we're gonna make this a regular segment, are we not?

David:

Yeah!

Alex:

We're gonna make, we're gonna make this once a month, say ish segment where you and I kind of do our thing. And then we'll do with a little, little less guests. And for our listeners, I want to explain that it's going to save us a little bit on logistics. I think that's actually going to create a better listening experience for people who are like regulars, they can hear more about our stuff, which, you know, everybody wants to hear more about anyway. So we get to add some more value, we get to create a little bit more dynamic content, because we'll be able to mix it up more and um, yeah, I like it.

Intro:

Welcome to the military millionaire podcast where we teach service members, veterans and their families how to build wealth through personal finance, entrepreneurship and real estate investing.

I'm your host, David Pere. And together with my co host, Alex Felice. We're here to be your no BS guides along the most important mission you'll ever embark on your finances.

Vehicle one, you're clear to depart friendly lines. Roger Vic one Oscar Mike..

Sponsor:

Hey, guys, I want to interrupt this episode for just one minute to bring you a message from our sponsor for this episode, Rentometer.

Now, whether you already have an established rental business, or you're analyzing your first deal, knowing the correct rental income is absolutely crucial to lowering investment risk and optimizing your rental income.

That's why our go-to source for rental data is rent ometer real estate professionals rely on Rentometer because it's the fastest and easiest way to access quality rental data throughout the US.

Now don't take our word for it. Rentometer provides over 500,000 rent reports every single month and gets rave reviews from its customers. In fact, when I first became a real estate investor Rentometer saved me $100 a month on my first property which would pay for the entire rent ometer membership. If you paid for the membership right off the bat, they have a free option to give it a trial. I use Rentometer Pro, it's absolutely worth your time. I still use it to verify my rent when I'm analyzing properties, and it saved me or rather earned me extra 1000s of dollars over the last few years in rental income. And I absolutely recommend that you give it a shot.

So go to Rentometer.com today to start your free seven day trial and grow your rental business smarter with Rentometer or click the link down in the show notes. And that'll take you right there. Now let's dig into this show.

David:

Yeah, the benefit for this for those of you listening is that. Why do I always fucking say that? For those of you listening, you wouldn't be hearing this if you weren't listening. So I don't know why I say that I just realized that I'm going to stop saying that eventually but feel free to call me out on it in the comments. But the benefit for this is that Alex and I are obviously very active real estate investors, very active on the entrepreneur side, the personal development side the you know, community side, the networking side, whatever you guys know a bunch about our story. But every episode, we asked people questions about them which is great we get to learn from them and we get to hear their viewpoints and this and the other we kind of back and forth it but we don't always get to really bring in our thoughts on things or debate stuff. And we thought it'd be a lot of fun to be able to talk kind of not necessarily current events but like what's going on in our lives, what we're personally learning, what we're personally struggling with, what we're you know, whatever.

So this is gonna end up being like an Alex and I just back and forth normal conversation where we hope you get a ton of stuff out of it tonight we're going to talk a lot about crypto assets cryptocurrency and some of the volatility of the market right now and some of the FOMO and hype that's going on and I also want to just real quick before we start point out that I think it's hilarious that the when I let Alex introduce me he always points like the zoom like people know where this direction is instead of like at the camera or whatever when he when he says my co host he's like points that wherever I am on the zoom screen for him which I think is hilarious so if you're watching this you probably notice that like what is he pointing but..

Alex:

No.

What pisses me off is how it records on zoom differently than you...

David:

You’re pointing the opposite.

Alex:

Yeah. And it's different every time, what a scam.

David:

Oh my God.

Alex:

You know they did that on purpose just to make me look like a jackass.

05:00 - 10:00

David:

Zoom knows who you are and they literally built their entire platform to spite you.

Alex:

I get it.

David:

Should have invested in them.

Alex:

That's a high level troller.

David:

I heard they came just to you to invest and then you were like, dumb idea.

Alex:

You can't afford me.

David:

Oh my gosh.

So okay, so I'll give a little preface to why I mentioned crypto crypto and cryptocurrency hype and FOMO. Because obviously, none of those are things we really talk about on this show, right? We focus, Alex and I are both more long term investors and much I don't want to say much safer. I'm very, like all about risk, I'm a little bit too far the opposite of risk averse, but obviously prefer to play more. I don't wanna say intelligent but well like tried and true investments with investment methods, index funds, Thrift Savings Plan, diversity, long term buying holds, rather than playing hype FOMO and kind of gambling on the new thing.

Although I have my current portfolio, I have about 2% of my about 2% of my net worth in crypto, and I do dabble a little bit in all kinds of things. But what we started to notice what I noticed today on my Facebook group is just the craziness of people who are brand new to the world of investing that are saying things with absolutes, like this will happen and, and not based on sound principles or, or genuine understanding of the asset class or the long term deviations and things to be, but based on, I made some money, therefore I will continue to make money or so and so is going to talk about like literally this week post that drove me nuts was like, hey, Elon Musk is going on SNL. So you need to buy this Doge because when he talks about it, it'll go up. And it's like, that's the worst way you could ever invest, especially because that point is probably already priced into Doge by the time that he actually talks about it, but I don't know.

Alex:

Um, so, look, there's this thing called market fundamentals, right? It's the same reason why Tesla's overpriced. And so it's like, you have to make a profit and then you get a you get your, your stock is worth something based on what you make price per earnings. Price per earnings across the board are way too high, way, way, way too high. But we're in a, some call it a bubble. It's probably a bubble. It's been a bubble for a little while, especially in equities. And that's run off to Bitcoin.

The problem with Bitcoin is that the fanatics, the people who don't really understand investing, or just learned it, or they, what they say is, well, crypto is different. Some of the old rules apply. And so you really can't have any discussion with them. Because it's like, literally, like a religious fanatic.

David:

Yeah.

Alex:

Right. They're like, you know, my God beats up your God. And, you know, if you don't agree, then you just don't understand. And it's, I have no problem with this, because I don't really have any interest in talking, having that dialogue with those people anyways.

But the funny thing to me is they act like that the Bitcoin goes on these totally different market fundamentals. But I’m curious, like, what are you buying? What are you buying the crypto with? Are you buying with cash? Interesting.

So we are in a high inflationary environment. Everybody is saying it. Yelling came out today the treasury secretary and said, Hey, we should probably raise rates because the market is getting overheated. We know inflation is coming. Powell, the Federal Reserve, Federal Reserve Chairman has talked about it. Warren Buffett came out again today and said, Hey, we are seeing inflation, it is getting priced in, we are getting it priced from our vendors, it is here.

If you have bought anything over the last few weeks, you've probably noticed the price coming up. I mean, it's so the stimulus checks inflation were, let's say, much of it was politically driven, you know, oh, people are starving in the streets need to get this $1400 and I'm like, if they're starving in the streets, $1400 over 18 months isn't gonna save them. And then next thing you know, I'm like, yo..

David:

Should have blanketed for everyone. Either it should have specifically targeted those people who were actually starving in the streets.

I agree. But..

Alex:

That argument doesn't work. Because the federal government either has to write a check, or they have to do it by the state and then it takes too long. So the idea is you want to get a fast you got to go in efficiently.

David:

Yeah.

Alex:

You want to get it targeted. You got to go state by state, county by county, and it would have taken too long.

Point is these people got four was a four stimulus checks now. Plus, unbelievable unemployment benefits, right? I can't hire anybody because they're making more than unemployment that I can...

David:

Oh shoot, me neither.

Alex:

So they're telling me and during Christmas that people are starving in the streets. And Sony and Microsoft sold more PlayStation fives and new xboxes than they ever sold in the whole wide world ever record numbers.

What did you say?

David:

No, I'm saying you still can't buy him.

10:00 - 15:00

Alex:

Right.

So. So all of this excess liquidity, which has been high for a long time because like what's going on? As they're printing money, so cash value is going down, so get the fuck out of cash and then rates are low.

So people are really pouring into equities. And now with the hype of crypto, it's been going on for a while. They're just pouring liquidity into that asset class. And they're like, well, it's going up. And, you know, bro, it really comes down to this. The game is long. The game is very long, people are trying to get rich in a quarter, they're trying to get rich in three years, they're like, well, I made such and such over crypto for five years. Let me tell you something. The economy has been fake since 2017. So any money that anybody, myself included, that has made since 2017, has been in the back of the artificially low rates. And I mean, that's and now the, you know, now the stimulus checks and fills in what was it 19? Does the first one?

David:

2020 like March, March 2020.

Alex:

Yeah, that's right. Yep.

So we are living in a fake economy, driven by artificially low rates and high inflation, and it will correct one day, and I don't know what that'll look like. Maybe Bitcoin and crypto will bubble. Maybe it won't. Maybe those things will last a long time. I actually think that the thing that people aren't addressing, as they're saying crypto is fundamentally a different entity than fiat currency. Sure. I mean, you're still buying with cash, but we can ignore that. But what, they're under red in terms of cultural movements, and I'm sitting I'm like, the government is only gonna let this go on so long before somebody, an 18 year old kid is gonna lose his life savings.

David:

Yep.

Alex:

An 18 year old kid is out there, or a bunch of families are out there and they're putting leverage to buy bitcoin. Did you know this is happening? And people are gonna get pain from this, and then the government's gonna come in and regulate and you know, they're gonna regulate, they're gonna say, Don't worry, we saved it. The Federal Reserve is gonna come out with a crypto dollar. People say, crypto is gonna be around forever. I 100% agree. It will be backed by the federal government. The Chinese are coming out with digital one. I mean, this is not even a secret. This is publicly announced. People just they can't, they're blinded by the hype.

So I am not a crypto. Well, let's say I'll be okay to be a crypto bear skeptic, right? I'm okay with that. I love that people are making money. I'm sad that I'm making so much money I only have like $2500 in crypto I wish I had. I wish I had more. I don't know how they can afford it. Honestly, if I had 100. If what I had, let's see. If I had $100,000 in cash, I probably only spent five grand on crypto. I don't know how these people have 20 or $30,000 in cash. It must be an unbelievable high percentage of their liquid and net worth.

David:

I think a lot of it is genuinely like the entirety. I had someone post the other day, I have $3,000 which coin should I buy? Like bro, buy some books.

Alex:

That person's probably young.

So if you're really young, it's like, you know what, I don't really care, you're gonna get some wins, you're gonna get some losses. But look, you know, Warren Buffett came out a couple years ago and made a bet. It was many years ago, but he wanted, right. And it was like, I bet you that the ETF that follows the market will beat all of the stock picking investors on earth over a long time. And they did that bet for like 20 years anyone. Because you can't beat the market because it's mathematically complicated. did say it out, like to verbalize it, but it's just it's hard to beat. It's like rolling dice and beating 50% over 20 years, it's just the odds are gonna work, but you're gonna get the average. So I feel that..

David:

Without a factory.

Oh, sorry.

Alex:

No, no, please go.

David:

I just say with and that's without factoring in the fact that you're going to pay higher fees, and a whole lot more in taxes by making all those individual transactions, which nobody wants to account for in all of their massive winnings and crypto is how much they're going to get hit with a tax bill.

Alex:

They're not going to pay taxes, a lot of them are not going to pay taxes. The government's gonna come in and they're gonna wet well, Coinbase is not public. So they're gonna be issuing everybody 10-99, W nine.

David:

Yeah.

Alex:

Right. 10-99 or whatever it is, they're gonna be issuing, you're even paying your taxes. Well, people still won't pay him because, you know, again, there's so many. The thing that's new about this is you never used to do it with this guy. You're never able to do it with a cell phone. Now you can do it with a cell phone and the transactional costs are low or free. And so people can rush in and they get their stinney check and they can go spend it right away. And I don't know what's gonna happen. I hope nobody loses too badly. But the game is long. The game is very long, and people are spending their time deeply learning crypto is admirable because it's not going anywhere. Crypto as a technology is not going anywhere.

People who are trying to, you know, do this get rich quick scheme. It's fine. It's like playing the lottery. Or it's like going to Vegas. You go to Vegas. You know, you put $100,000 on red, you win. It's like bro, you got to be done. Because statistically every time you play Vegas for the rest of your life, you're gonna be dwindling down to where you even back out and go to a negative.

So if you win in crypto and you like Dude, sell it and run, because the longer you play, the longer the statistical odds are that you're going to come out at a loss or average market gains.

15:00 - 20:00

David:

Yep.

And just to throw this out there because this is gonna come off, like too old friggin, what's the what's the term for that everyone uses for old people now, even though it's not...

Alex:

Wise.

David:

Well, yeah. So this is gonna come off like two old dudes talking about crypto like they're skeptics, but like, for one, I'm reading my third book on crypto assets right now I'm reading like books that aren't even on audiobook I had to like physically read to like, try to understand blockchain and all that. I spent 1700 bucks this month on hard drives, and SSD cards. I'm starting to mine a new coin called chia. Like I'm all about learning and understanding this technology. I have no qualms about crypto. And blockchain will absolutely change the future, right? Like we don't disagree with that. But I still am cautious about how I implemented my own personal investing strategies. And I would rather be on the selling of the shovels than the rushing for gold side of crypto as well as having it as a small I think, the book I've read right now really walks through some really great examples of why like having one to 2% in Bitcoin or crypto. And that extremely volatile asset actually balances out your portfolio. But when it becomes a very large portion of your portfolio, and you're banking on it, it's not that smart. And we talk price to earnings ratios. Oh, yeah, there you go.

Alex:

Anti fragile. If you've ever heard me talk, I've mentioned a guy named Nassim Taleb. And one of the principles he lives by is anti fragility, well, this thing called a barbell, and the idea is first, this is the part he's missing. First, protect the downside. That means invest in a way that you can live on your terms. Low or no risk. Ideally, you'd live off of bonds, you'd live off a 3% bond, right? And you live that way. And you live light, and then everything else. You make small bets on unlimited upside but high risk deals, and you lose all the time and you lose, you lose, you lose, you lose, you lose, you're gonna lose 90% you know, but that 10% is when you put $50,000 into Dogecoin at a penny and then it hits $1 and you're like, fucking millionaire.

David:

Have I told you what my current crypto strategy is and what I've been doing?

Alex:

No.

David:

I feel like you might appreciate this. Although you might not, you might call me an idiot. But just keep in mind that all of the money I'm playing with is 100% profit.

So when when the market tanked in March, tanked quote unquote, market tanked in March, I took the stimulus the first one and I threw it into like, five or six stocks that I feel felt were shoo ins Boeing and some other stuff that I felt like okay, this is gonna come back it the, at least somewhat, I took it was like $700 that I came up within like the next 45 days. And I literally took everything else sold all my principal took that $700 and was like, cool. I'm gonna go gamble on some crypto, it took 700 bucks. And I put 200 and Doge when it was a third of a penny. Because I was like, that's a funny coin. That'll whatever. And then I put like, a couple 100 bucks here, here, here. Whatever.

Doge obviously exploded. So I pulled. I took like 200 bucks that I put in there pulled 2000 out, dumped it because I was like, Yeah, cool, good with that. Literally, what I've been doing is I've just opened Coinbase or whatever app I'm using. If it's coin drops 20 to 25% in a day, I put 100 bucks in it. And I am up from that, like 700 bucks. I got like $8500 today sitting in this account. And it's literally just you know, whenever something tanks, I'm like, Yeah, fuck it. And the only like, there's only like two coins that I actually am like, okay, yeah, this one has some potential that I'm invested in. And that but the rest of it, like I had one I had like two or 300 bucks in and it went to 3000.

So I've got like, 30 coins that I've put 100 bucks into over time and three of them have hit. And that's I mean, that just goes to show right? Like that's if the three if one or two or three hit you, you know your portfolio goes up and you can afford the risk on the other ones. You sell them out if you're not gonna win or you hold them for a while or whatever. But it literally is just speculation for me. There's no I'm not doing any math on a lot of those. I'm just saying Oh, it dropped. Here you go.

Alex:

Yeah, so it is speculative.

So yeah, to your point about sounding like a bunch of old guys just rant about this. It's like you know what, if you're gonna if they're making money, go make money. But I'll tell you it is like the gold rush. Like, get there, get your money and get out because this is not a sustainable strategy. And especially for the fanatic believers that will like I never gonna sell.

20:00 - 25:00

David:

It's gonna drop.

You're married to your position, even if you don't even if you're even if you don't even if your doesn't drop, you're just you can't sell, you know, you're just stuck in this in this quagmire of like, Oh, well now I have $30,000 of Dogecoin. It's like, if it even holds, it's like what are you gonna do with that?

David:

Well, let's play the Dogecoin analogy real quick, right?

So let's say Doge goes to $1, which is what everyone thinks that's like all the I haven't heard anyone say Doge going to 10 or 100. I've heard everyone say $1. Right?

Alex:

That's just guessing.

David:

Yeah, well, exactly.

Alex:

There's no reason why it shouldn't be worth anything.

David:

So the only reason I bring $1.

Alex:

Yep.

David:

Every day Dogecoin creates 14 million, and I think it's like 14,000,400 points, whatever. It's one coin per minute. So whatever that number, so anyway, not won't go. Anyway, I'm sorry.

14 million coins every day, infinite supply. So just to do the basic math for everybody who doesn't believe that there's a downside of this thing. If it reaches $1, that means that every day, 14 million new dollars need to flow into Dogecoin without a single dollar flowing out of Dogecoin in order to sustain, right like mathematically, if we just talk market cap, 14 million new coins equals 14 million new dollars invested, Nobody sells. That's a pretty crazy thing to assume that this is going to be able to sustain indefinitely because there is no cap on this coin.

Alex:

I don't think anybody I don't think anybody listening is going Oh, these two knuckleheads don't know what they're talking about. This is a good investment. I think everybody thinks it's a joke.

David:

Yep.

Alex:

They're making money. And so they're like, let's have fun while it lasts, which is fine.

David:

All for it.

Alex:

But it's like, Yeah, but it's um.

David:

But you should at least know your principle out. So you can't lose. While your head.

Alex:

To me, it's like, it's just a lot of precious time wasted on when you could be learning how to do things that make money for the long run, but I guess I'm more risk averse than other people.

David:

Yeah, I mean, but then there's you bringing up the other. You brought up the P E ratio earlier, right? You mentioned Tesla, because I know you and I've talked about that. So Tesla today at current price, P/e ratio 1,099.9. And the fact that I find interesting about Tesla for like..

Alex:

It should be like, it should be like just to be clear, it should be like 25.

David:

I'll just say the s&p 500 averages between 12 and 25, right. Like that's pretty industry standard. So, yeah.

Alex:

Now to be fair, it's anomalous for Tesla, in particular, because they don't make any earnings.

David:

Well, I was gonna say, Yeah, I was, I was about to dig into that Tesla. Last year was the first year Tesla's ever been profitable. This year. They're still profitable, but they've made more money selling their position on Bitcoin than they have automobiles.

In fact, they've made more money this year selling their position on Bitcoin than they have ever made selling automobiles. And I love Elon Musk. I love Tesla. I think it's very ingenious. It's great. They're wonderful cars, my roommate has one. Great, I would love to own a roadster one day if he actually puts the SpaceX package on it, but it's not like they're in an industry where other car companies can't replicate and compete.

Alex:

No, it's coming, I mean, Volkswagen.

David:

Elon has supercar supercars now they've got a NEO and China.

Alex:

I mean, everybody, the world's going electric. And, you know, Ford has 120, 100 years of experience. GM has 100 years of experience. Tesla has one plan.

Look, I love Tesla. This is again, I love Elon, I was an early Tesla, I made a bunch of money on Tesla, right? And then they hit about 380. And I was like, This is overpriced. And then they went to 1800 split five ways. And now the backup is 1200.

So look, if the exact same problem it is. So let's talk about something besides let's talk about something broader than just the stock market, right? So you're making all this money and Bitcoin you're making all this money in crypto and Tesla because of excess liquidity, right? They printed 6 trillion 7 trillion in the last 24 months less than that.

I worry that this country is going to head towards a point of hyperinflation. Inflation is one of those things where, you know, the best way I've ever heard of described is like a ketchup bottle. You shake it and you smack it and you shake it and you smack it and nothing comes out and you shake it nothing comes out. You smack it nothing comes out and then when you smack it in your fucking plate is full of ketchup, right? It's like too much. And now you can't get it back in the bottle.

Davd:

No.

Alex:

And so hyperinflation, look up Zimbabwe. Look up Venezuela, look up Weimar Germany in 1923, right.?

David:

Venezuela is definitely the most recent but Weimar is the one that's in a big debt crisis, right?

25:00 - 30:00

Alex:

Yeah, they're the most significant example because it led them to a, you know, the Third Reich,

David:

Yeah no big deal.

Alex:

So this is what the big debt crisis was about, except without the inflation problem. So now, you know, if he could rewrite it, I guarantee you, you'd have four four metrics in there. It was debt, political polarization and inequality.

So, um, so I worry that, you know, all this money that we're making is going to be evaporated when if hyperinflation comes, you know, I would if gas hits $12 a gallon, you know, and in Weimar Germany, it was like a couple of million Reichsmarks to buy milk. And then by the end of the next day, it was like, 10 times that. I mean, it was just, they were literally wheel bearing dollar wheel bearing notes into the grocery store.

Oh, not to say that that will super happen. But, you know, people go well, the Fed won't let that happen. And I'm like, okay, Bitcoin was created in 2009, as an answer to the irresponsibility of the Federal Reserve. And now, they're continuing to be more irresponsible since then. Now. But people again, they do this. They look at Bitcoin and they look at the gains and then they're not they're not reading, they're looking at the three year play. And they're not looking at how things have been affected for the last 15.

David:

How do we are for some kind of a correction that's going to slow things down.

Alex:

Yeah.

So what basically happened is the federal government has kept artificially low rates, they should have started raising money at 16. Instead, they started raising 17. Some people defaulted. And the like, Oh, no, we can't have anybody lose money. We can't have any fault. So we left the free market economy. As far as I'm concerned, we left free market capitalism in 2017. And we went to this position where the Federal Reserve is basically underwriting the risk of the American economy.

And now they've been there, they've handheld themselves in handcuffs. Now, they can't raise rates. And so here we are, since 2009. In 2008, when the market crashed, the rate was at 6%. They dropped it to zero in one day, all at once to try to stimulate the economy, it still went slow. Now we're at zero if the economy tanks, they have no tools. The Federal Reserve has two tools. I don't know if anybody knows this, they have to do only two things. They can change rates, and they can print money. These are the two ways that they combat deep recession.

David:

And we've done them both.

Alex:

We've done them and there's been no recession. So when there is a recession, we have nothing to combat it.

David:

We got to come out of it.

Alex:

And the federal government is in more debt than it's ever been in its existence. 28 trillion more than the GDP.

So hyperinflation I worry about collapsing value of the dollar I worry about and so all this fun about like Bitcoin went up and Dogecoin all this stuff I'm like, dude, you might have a cultural collapse or a cultural problem of epic unpredictable proportions that's going to make your little Oh am I earn $50,000 is like Yeah, well, now the dollar is not worth anything.

David:

Now you can buy a gallon.

Alex:

Now you can buy a gallon of gas or you know, whatever the case so um, I don't want to funnel you know, I bought gold last year, bro. People are buying Bitcoin. I'm buying gold. I'm worried

Davdi:

So uh, normally the answer for this is right like when people I mean we've all talked about it you me we've like we've we've talked about the buying inflation resistant assets with incredibly low debt like the longest fixed rates of interest you can get your your buy, like I we're having clothes alone yet. So hopefully nothing changes, but we just locked in some killer 25 year financing on 79 units we're buying that are fixed with no balloon.

So for 25 years, I'm gonna pay 4.75% interest like what the fuck happens in the market, which I love. Because...

Alex:

Is that? Is that a local commercial loan?

David:

Yeah.

So here's what's going on.

Alex:

Is it callable?

David:

If I miss? Or in general, because if I miss maybe, you know, obviously, but no.

Alex:

If we missed, everything's callable if you miss.

David:

I was gonna say no, not not otherwise.

Alex:

Okay.

Everybody should check.

Sorry. I don't mean to cut you off.

David:

Yeah. So it was I mean, the the point there, right is the play there is if inflation happens in appreciation rates go up, we now have this asset that is going to benefit from all of those things, theoretically, without having a rate that's going to change or I'm not gonna have to refinance in the middle of whatever. My question is, you know, a little bit I mean, I'll be at you know more about economics than I do. In fact, a lot of the economic stuff that I know I can credit to you because you're the reason I read that big debt crisis. You're the reason I read Nassim Taleb you're the reason I really read it read a lot of these more complex books because you're good at finding them. And you tell me which ones not to read, which ones I should read, which is a great time saver for me.

So a question is, do you have any idea how hyperinflation is because obviously that's the far end of this spectrum, right. And if the dollar deflates that much, it's not like my $100,000 house is gonna jump to $2 million overnight, right? Nobody's gonna, nobody's gonna care about any of that stuff.

So the question is, if the dollar like hyperinflated, like the worst case scenario and goes into, like, you know, wonderful Venezuela mode, like it doesn't even matter what you invested in?

30:00 - 35:00

Alex:

So, okay, I don't actually think hyperinflation I, I'm more of an optimist. And I come off, right? I don't actually think, no, I'm more like, my position is more like Warren Buffett, when others are greedy, be fearful when others are fearful be greedy, right now everybody is confident and greedy. And I'm like, that scares the shit out of me.

David:

Yeah.

Alex:

That's all. That's all I'm really trying to say is like, when everybody's confident, I'm the contrarian, I'm terrified. So I use hyperinflation as a worry, because I've been worried about it for a while. And then it happened. So it was like, in my head, a little bit of confirmation bias, where I was like, yo, the Federal Reserve is not raising rates and raising rates, they're gonna print money, they, it's the only thing they can do. They have to, and then they, then they did it. So now I'm like, Yo, hyperinflations next, will it happen? I don't know, Janet Yellen came out today and said, We gotta start raising rates. So my hope is they're gonna raise rates pay down, pay down some of this debt, they're going to slow the economy a bit, that's going to reduce buying power, that's going to reduce, that's going to reduce mortgage issuance, it's going to reduce home sales, it's going to reduce, it probably won't reduce home prices, but it will reduce, it will slow that purchasing power down, it will slow people's purchasing power when they..

David:

Yeah, it'll slow the number of offers, because not as many people will qualify, but it won't tank the market. I don't think so because the inventories were so low.

Alex:

It depends on what they do.

So like, again, this is why history and economics are so important, because people act like my mother's first mortgage in the 80s was 18%. And that was after a period of high inflation that they had in the 70s that they had to fix.

So let's say that history doesn't repeat, but it rhymes. So let's say we don't get hyperinflation, which is only not even 100 years ago, that happened in Weimar Germany, and only seven years ago that happened in Venezuela, it's not impossible for it to happen. But we do have a little bit more sophisticated of a system than either of those two economies. But let's say we just go into a place of high inflation and then high rates to correct.

Um, the worry is volatility. It's not it's what it is, it's a cascading effect. It's not that prices come down so fast. It's that liquidity dries up because people get scared. And now it's like, hey, look, lenders, the rates are higher. Things, start defaulting, and then they're like, okay, fine, we'll do it. We'll still do that loan at 6%. But we'll do it at 60% LTV.

So now they're gonna dry up all that liquidity, people are gonna spend it or they're going to save it. And so then everything stops, stops flowing. And let me tell you, the economy only works when it flows in 2009 10,11,12,13 and 14, real estate was bottomed out, and people were not buying. So what's funny to me is like people are so bullish on real estate right now. But I remember when I told people I'm gonna go to real estate and they're like, you're a lunatic. Did you just see what happened? You couldn't, you couldn't get a house bought, you couldn't get a loan for a house. You couldn't get hard money. There were no wholesalers. This was only six years ago, seven years ago.

David:

I tried to buy a house like I live in flip in 2013. And it was dumb, I ended up buying in 2015 I regret not buying in 13.

Alex:

But it was a lot harder to find money then. Because the liquidity was low, people were sitting on the sidelines waiting.

So right now, you know, we look at the Bitcoin and crypto investors but I think mostly it's I think it's mostly kids. And I mean kids by 25 and under sorry, you know, younger people I shouldn't say kids, right? I think it's mostly younger people and so they are not you know, the retail investor is not where the liquidity of the market comes. So a lot of them are, you know, hard money lenders. A lot of them come from institutional money. And there's, there's, there's deep money up at the top. That's what's fueling the equities. That's what those stock buybacks came in 2017 tax cuts.

So I worry that when the train stops, right, if they raise rates half a percent, it's game is going to be the jig is up, business won't stop. What's gonna happen is you're gonna start to see defaults, not in people's 30 year mortgages, but you're gonna start seeing business defaults, because, look, the whole SBA program is variable rate loan.

David:

No.

Alex:

And a lot of big, big loans are variable rate. They're like, Look, we'll give you two and a half percent on that $25 million loan. We'll give you two and a half percent. Now, but it's variable, right? Don't you have a variable rate loan?

David:

We were going to but then we talked him into this talk. So we went from 30 year to 25 year went higher. It's a full point, just shy of a full point higher now, but it's two and a half points lower than the ceiling would have been on the floating. And so it's one of those where if the loan stayed at the bottom, we would pay another $120,000 over the course of the loan and interest but if the loans floated up to the ceiling for the duration, we would pay an extra 1.4 million in interest.

So the win is to take the fixed rate because eventually the rates have to come back up over the next 25 years.

35:00 - 40:00

Alex:

You do the right thing.

David:

Yeah.

Alex:

Rates I do not believe Look, if rates stay as low as they are. This country's gonna have a calamity because they cannot do this. They can't. If you could print money to prosperity, Zimbabwe and Venezuela would be the richest countries on Earth. It doesn't work that way. You can't do that. It just doesn't work. I'm not saying it's something morally can't. It just economically doesn't work. You have to have you know, we anyways.

David:

Yeah.

Alex:

So I don't know, it's gonna happen. I don't know how long this is gonna be.

David:

Ironically, the reason that I think Dogecoin is not going to keep profitable, right? Because it's got an infinite supply of money coming. So the same thing that's literally if you just printed money all the time. So just throw that out there for those of you who are convinced that it's here to stay like you make money and a great, but pull your frickin profits. You can't go broke pulling profits back on track.

Alex:

Yeah, there's just so many economic deep economic principles that that really are at play here. And the new investor demographic is dismissing them because they're saying things like, well, the old economic fundamentals don't apply to Bitcoin. So none of that matters. And it's just like, you know, what reminds me of, can I get philosophical with you? It reminds me that in the late 1800s, the Russians had a, a secular revolution, a cultural secular revolution, a rationalist revolution, they said, We don't need, we don't need religion anymore. We're going to go to rationalism. And we're going to install socialism, which was this rational thing, and it collapses their culture to a fantastical, like mega it collapses their country to where I think at the end, Stalin had killed, like 28 million people. I mean, he didn't kill him directly, like starvation and whatnot, right?

So it reminds me of like, they're just rejecting the things that have held a country together for 500 years. And they just learned how to use a cell phone, or how to trade stocks within the last 18 months. And they're like, none of that old stuff matters. Because I'm making money and Bitcoin and the old people don't understand and I say, maybe I'm wrong, maybe you're right. Maybe everything is different now and all the market fundamentals. But I will say you're still buying with cash. So the cash part is still playing market fundamentals. I mean, my favorite example, right, people go Tesla's allowing Bitcoin Teslas to buy bitcoin, would you tell me they freakin sold a lot of it. in cash, they wanted the cash. If they wanted the Bitcoin, they would have the Bitcoin, instead, they wanted the cash.

So I don't know what's gonna happen. I am skeptical, the more people are confident, the more that I'm skeptical, I don't know exactly what's gonna happen. The perfect world situation. Oh I’m sorry.

David:

To talk on that exact point, right. So two things.

One I mentioned today, everybody, my office over the last six months has gone from like, nobody hangs out. And I don't, you can't have cell phones in my office. So they hang out in the lobby outside. Used to be a few people out there on the phone, talking, texting, whatever.

Now, it's a whole lot of people out there on the phone, that all of a sudden, are all dictators, right? So that kind of scares me. But to talk to you your point, right? Like, though this time, it's a different theory. Even if the market is completely different, right, like 100% crypto changes the world and all that stuff, which I don't think is the case. There's one massive component in that. That won't change. Humans are emotionally fucking wreck like irrational, right? This whole thing reeks of emotion. And if you see the posts on my Facebook page, with how angry and angry people are defending their position, yes. Fucking read that book. If you haven't read fooled by randomness. I'm actually about to read it again, I think because...

Alex:

In 2022, I'm going to do a reread of all my favorite books of all time, and I'm gonna make it really public. So how about you wait, oh, I'll make a big public thing about it. And maybe we'll do some YouTube content about it and be like, you know, I'd love to do like week to week updates. And I'll schedule out a whole year's worth of reading of, like, my favorite stuff, and I'll go over it with people maybe like week by week, that'd be amazing.

David:

I'm down.

Alex:

I'm sorry. But yeah, fooled by randomness, people act like the fundamentals are different. It's like the fundamentals to your point, are based on human emotion and they are not changed.

David:

And there’s a full swing right now. Nobody is investing in this calmly.

Alex:

No, it's all mania. And you know, it's so it's, look, they did it in the 20s, the roaring 20s. They did it was Greenspan had a famous speech in the 80s where he said there's no irrational exuberance in the market. And then Black Monday came along and the market tanked 40% in a day, like weeks, like...

40:00 - 45:00

David:

Don't make me go grab my tulipmania frickin poster that's framed in my kitchen downstairs.

Alex:

Tulip mania, Bernanke, the Federal Reserve Chairman. During the financial collapse, he said the same thing he goes, there's no problem with the subprime market. 90 days later, we had a global economic meltdown.

The problem with these things is that it's not the crypto market that will collapse that caused all the damage. It's the catalyst that creates a chain reaction of it's like a bank run a bank run is when we live in a fractional reserve. We have a fractional reserve economic system banking system, which means the banks you know, they have a million dollars in deposits, but then they issue out loans for 800,000.

So if all the million dollars were the people went back to the bank, and to get their money in one day, the bank would seize, right? So we don't have the cash and then the whole economy yanks it just until it seizes up till the bank runs and they have a lot of reasons. That's what happened in oh eight. That's, this is how it always happens, right? It's like people get scared, they all get their money at once. And then it turns into a chain reaction.

So it's not that crypto inherently is the problem. Because it's so irrational and so exuberant, I think that my friend, Russell Brazil, is like Dude, crypto is going to be the catalyst of the next collapse. Because it's so irrational.

David:

It's extremely volatile. Yeah.

Alright, so here's the question. Oh, wait, first let me run around. Like I got something really smart to say and grab a book that obviously has something to Oh, oh, oh, shameless plug. And Alex runs off in his pink shirt. For those of you who aren't watching the show, and you're just listening, I'm holding up my new book, which I'm going to now promo while he's running off to go find something. The no bullshit guide to military life, how to build wealth, get promoted and achieve greatness. So you're gonna learn my thoughts on all this stuff. Actual sound investing as Oh, look at that Alex has his stuff.

Alex:

Bro let me tell you something. If you guys didn't see my Instagram for those who didn't see it, I made a very punchy but sincere. Little thing about David's book, bro. You did. You did. This is the proudest I've ever been to you. This is amazing.

David:

I appreciate it. But

Alex:

This is probably to me. This is the one of most impressive, this is the most impressive thing that you've done. This is amazing. And I look I'm not gonna read all of it. Because it's not for me. And you know that.

David:

Yeah.

Alex:

But I looked and gave it a solid skim, right, I like to give it a solid skim and Dude, you did. It is organized. It is concise. It is useful. It is pragmatic. It isn't rambling. It's not narcissistic. Somehow, it's all about you, which is what I worried that I would do.

David:

I hired an editor. That's why I was like, cut me out.

Alex:

You did fantastic! You did so good!

And let me read this real quick, right? So I'm skimming through this book, right? David wrote a nice little note, he wrote me a handwritten note on the front. And, and I'm skimming through this thing. And at the end, I see acknowledgements. I'm like, Oh, shit, you know, I'm one of David's closest friends, I think. So maybe I'm in here. And there's, there's a couple of people here and I was like, okay, boom, and then and then I see this straight up. Verbatim. Alexander Felice. Fuck you.

Alex:

I sat in my room and laughed. For so long. I sat in my house and laughed. Alexander Felice fuck you. Thank you, sir. I can't believe you put that in.

David:

There’s more in there. I think that's the only time in the entire book that I actually use the F word. I'm not. There might be I did throw some swearing in there. I can't remember there might be some more. But that is definitely the only time that it is that blocked the entire book. So you're welcome. I figured there would be no one who would appreciate that as much as you.

Alex:

I was tickled.

And you know what, but I'll tell you what, um, so for anybody who, anybody who hasn't pre ordered this, like, I highly recommend the book, especially if it's, you know, if it's if you're still kind of on your first, say, three to five years of investing, or you're in your first, your first four years, four to five years of military life. This is a highly valuable book.

Secondly, if nothing else, you know, I'll buy a few copies to support you and give them away. And I'd love for our listeners to say look, you know, David did an incredible job here. You should buy his book. Because one day you might want to read a book, write a book and you're gonna want you know, I always say people go shave your friends discounts and I'm like, No, if you can't make profit off your friends, then how are you going to profit off your enemies? Right? So your friends should support you.

So I'm gonna buy a copy. I appreciate this one. In fact, actually, I haven't seen this new girl and she goes what you should do with the new copy is rip this page out. Highlaided it in pink and frame it. And that's what we're gonna do. That's what we're gonna do.

David:

I would be flattered, you also took the best, I paid a five person to do some product photography online, you know, just like digital stuff, but the photo you sent me was awesome. So I'm gonna use that in some of my marketing stuff. So I appreciate it.

Alex:

Well, don't do it. Don't do that yet, actually, because if you give me a little bit of time, I have a. I didn't tell you this yet, but I have a photoshoot planned with my photography buddy here in town and we're gonna do something. We're gonna do something big, bigger.

45:00 - 50:00

David:

Alright.

Alex:

And then lastly, I'm a bookaholic. I don't know if you know this. And I'm, I've been wanting to write a book for a while. That's why I started blogging in 2016-17. I called Jay Scott, who I only barely knew at the time and I was like, dude, you wrote three books. How do you write a book? He's like, just write a little bit every day. And then when I saw you writing this book, you know, you're working hard. You have a good work ethic. So I didn't necessarily didn't think you could do it, but I wasn't sure you were gonna produce but you pretty something here fantastic. And I just watched you do it. You know, we're sitting here podcasting day to day and it took you about 9-10 months to do it.

David:

Physically writing was less than four. But then the editing and audio and audiogram and everything else that stuff all takes though that's the lengthy part.

Alex:

That doesn't matter, the hard parts are four or five months to write. So you did it. In addition, you know, I'm sitting here complaining about doing a podcast with you, after you have a full day's worth of work. And then you're building this on the side, too. Dude, this is so impressive. And you know what? Between you and some other people that have inspired me over the last few years, that's why I started blogging, and I feel like I've gotten a good way of putting my voice out. Like, you've really inspired me this week I started, I started putting out doing a table of contents for something I want to write. Because I think not to say that because you did it. I can do it. I don't want to say that what I'm saying is, um, you inspired me to do it, because this is incredible.

David:

I appreciate it. I'm happy to share any context that you know, I got help and feedback and yeah, I learned a lot. So.

Alex:

Yeah, I know. I gotta get I gotta get, I gotta get 250 or 300 words on paper first.

David:

Yeah, no, absolutely. Anything you got. I got answers.

All right. Uh, so I know, we can't talk too much longer. No one's gonna watch this, right? Because there'll be like, holy shit, two hours.

Alex:

They love us. They're gonna listen to the whole episode.

David:

Here's my question.

What's the advice you give for somebody as far as starting as an investor with all this chaos and hype going on? Because it's a lot easier to say. Yeah, just ignore it. And stay sound, then, I mean, that's pretty much the right answer.

My answer has been like reading a simple path to wealth read set for life, like reading some of these books that are about basic principles for getting started. But I think fooled by randomness is a good one. For this, but it's not an entry level read.

So I'd be curious what you think as far as like, if you were Nick, the new guy right now. What do you wish someone was telling you? Like? You know, I mean, index funds aren't sexy, and everyone's telling you to stay out of them because crypto but.

Alex:

This is a really hard question. I'll say a few things.

One, the game is long. The game is your whole life. So like I got 65 more years. I don't have to make all my money in two years. So that's one play the ultra long game, not the five year long game, not the 10 year long game play the lifelong game. You don't have to make it all right now.

Two, never take on risk of ruin. Never take on the risk of ruin.

Say it again?

David:

That's in the book. Literally, literally that term is in there.

Alex:

That's a Taleb thing.

David:

That is from you, because you are the reason I read Taleb.

Alex:

So there's anything he says he goes, he goes, you know people who lose everything? They're okay with it. People who lose half they commit suicide. Isn't that noticeable? So, um, but you don't want to like, you don't want to lose, don't take on risk of ruin. If you're worth, if you got $5,000 in the bank, can you put $3,000 in crypto, you're gonna be a sad puppy, there's a high likelihood that you're gonna be a very sad puppy.

Playing the long game never takes on the risk of ruin. This is the hardest advice that I could give. But it's probably the best one. All of the good wisdom and information of the world has been written before your time. And so people who, if somebody let me put it this way, let me put it a little bit more a little more in a usable way. Anybody who has learned investing of any kind since 2008, when the markets only been up my date myself and David included. Don't learn from us. Learn from people who have been doing it from an up and down market, preferably multiple I can't I could probably think of more. But those are the those are the those are the big ones learn from people who have been experienced from more than more than one up and down cycle.

Try to read books, like stop trying to get, I mean, nuance is complicated. Like David said, this is not an easy read. And this is the easiest of the five.

50:00 - 55:00

David:

It's a good one, though.

Alex:

It's a very good one. But it's not for the faint of heart, right?

David:

I think that might be one of the first books that well, there are. A bunch of people have recommended that one to me, but black swans is probably his most popular one.

Alex:

Black Swans, his most popular one, which is in black swan. He wrote it in 2007. And in the market, he said, Oh, yeah, we're gonna have a crash in the Fannie Mae system, because of the way that they are doing the risk in the derivatives, and then six months later, the global economy collapsed. So.

David:

Perspective, your advice on up and down markets, right? I'm not gonna say too much about this as far as the topic, but there's a venture that I'm looking at, potentially for down the road. And so I've been talking to people kind of picking people's brains trying to learn a little bit about the industry, you know, whatever.

And so I've talked to a few people who've started this up in the last three years, five years, 10 years, whatever. And it's been okay, conversations that give me a little bit of ice, whatever. I had dinner with somebody last night. I got to set up a friend of mine. Mom was in this business and built a business and whatever for 40 years, we had dinner, and I got to pick her brain about upturns, downturns, best times in the market to start if you were looking to and all the difference in insight.

I mean, I have like full pages of notes and action items, as opposed to tidbits of information here and there. And I mean, it's just nuts. How much more valuable that was to be able to talk about like, Okay, well, if you were to pick the perfect time in the market to try to start this one would it be? What would that look like? What do I need to do this time? What do I need to watch out for here? What do I need to be doing here to prepare for this?

And I mean, a lot of it's the same as all investing principles, because this is still a financial, you know, endeavor. But, man, it was so much more valuable to talk to someone who's done it for 40 years through four market swings, as opposed to somebody who's just done it over the last 5-10 years.

Obviously, there's experience over 40 years in the last five to 10 years, but a lot of that comes from the swings. So.

Alex:

That's the anti fragility is it's getting better from down swings, getting better from systems that when they have disorder. So everybody's a genius and up-market. You're learning from people who there's an unbelievable tailwind. It's like saying, Well, you know, what's the problem right now is people are earning 15% returns in a market that's up 20.

David:

Yeah.

Alex:

And then they're teaching other people how to invest.

David:

Yeah, and one of my favorite phrases that I've been repeating over the last little bit aside from the you can't go broke taking profits. So you know, when you make a ton of money on a gamble, at least pull your principal out, so you can't lose if it comes back down.

I've been pulling principal plus some and then you know, I'll let the last little bit ride and see what happens. But that's what I did with Doge. I've made two I turned 200 bucks into 2000, when it felt like I had it sit there for like five months, but when it jumped, I took the 2000 out and I left the last 200 in for a while that I was able to pull another 1000 out of it so but another great one that people hate is past performance doesn't indicate future success. So just because you made money doing it doesn't mean you're gonna keep making money doing it acknowledge, like, there is nothing inherently wrong with being speculative and gambling on some of this stuff, especially if you're young and you can afford the risk. I'm all for it.

But acknowledge that you're being speculative and acknowledge that you're gambling and don't pretend that it is sound investment advice. There was a screenshot I said Alex today where someone said play it safe, invest 50% in Ethereum and Bitcoin. I kind of thought they were joking so you know, I replied and I was like yeah, I was like quote, play it safe. And then you discuss the most volatile asset class out there like Haha, get it?

And the guy was like no, you gotta risk big to win big I was like that's not playing it safe though. Like you're pawning This is advice and go to find out the guy you know just started investing in crypto and stocks in the last three months but it's like don't be, don't be publicly telling somebody to answer their savings account question is to play it safe by investing in something that's not safe at all. Just because you want one piece of at one time that's like you got to acknowledge that it's risky acknowledges gambling acknowledges speculative it absolutely has a place in your portfolio. If treated and respected the right way. It's like riding a bull. You wouldn't jump on a 3000 pound bull and say there's no way I can get hurt from this. There's nothing wrong with riding a bull. People do it all the time, but acknowledge the risk and treat it the right way.

Alex:

It is not the responsibility of the random moron on the internet to be careful about his words. It is the responsibility of the listener to understand that most people who are talking to you are morons and not to listen to them.

55:00 - 1:00:29

Alex:

So uh, yeah, look, to your point about survivorship bias, right? One, therefore I'm right, right? inevitably, crypto will skyrocket. It'll stay there forever. And then everyone's like, Alex, you were so wrong. But the game is long. And you don't want to be, you know, for me, I invest for two reasons. Increase freedom, reduce stress. I do not invest to make money. That's not my, that's not my end goal.

So anytime that like, you're sitting there, like, Oh, I invested $200. Now I'm up to 2000. On time, like, the time and effort and the stress of that to make two or even $8,000 the stress of it, I can't do it. It's not a good fit for me. I can't afford to lose $8,000. I mean, I can't afford to lose eight.

David:

That's why I don't research it. I literally just open the app, say, Oh, this one dropped 25% 100 bucks. Because I wouldn't put the money into it either.

Alex:

I’m not telling you what to do, or what's rational. All I'm saying is everybody has to play their own game. Like if you're just sitting there going, if you're getting FOMO fear of missing out and you want to go invest in this stuff, like go for it, but also, you know, it's the blind leading the blind out there. So I don't know anybody prudent, right? Charlie Munger just came out and it's like crypto, Nassim Taleb was a Bitcoin bull. And now he's like, it's a Ponzi scheme. It's a scam. It is not what started out to be. It was supposed to be a decentralized currency that was low on volatility, and high on usability. And now it's just mania.

David:

I want to say this publicly, because I've been talking about it a little bit. And I wanted to go on record, saying it is not that I'm ever going to be the guy who goes off. I told y'all so I called it to make me so rich off this scheme where I now say I made this one prediction. Right. But my theory on Bitcoin right now or crypto cryptocurrency in general, right, and blockchain technology and all that? I absolutely think it's gonna stay around. I think there's some very viable uses for it and technologies that are awesome, like it's gonna change the world, right? Absolutely. Not against it at all.

My thought, currently on crypto, is that it's like the.com bubble. And I feel like 20 to 30% of these coins that are around right now will be around in three to five years. And 70-80%, maybe not that much. But a lot of them will have gone the way of the dodo and been replaced by new coins or not at all, just like pets calm which have disappeared. And now there's other companies in his place.

So while I believe in technology, the problem is it's a technological thing, right. And technology doubles, they say it doubles every year, right. So or whatever.

Alex:

That's Moore's law.

David:

Yep. Yeah. So like Moore's Law, bitcoins have already been, there's already two or three coins that do what Bitcoin is faster, with less energy, there's already coins that do what aetherium does faster, with less energy, there's already coins to do this. And there's already different ways to do this. And so they might have created the blue ocean, but other coins are coming. And with tech comes increases in ability, and people are worried about the green.

So while I believe that technology is here to stay, and it's going to change a lot of things like taking title on property, and all these other cool things. And if T's and you know, whatever, like stuff is here to stay, I don't think it's gonna stay like these 4900 tokens or whatever that are in existence. I think like 1000 of them will be, I think 1000 of these might be here in three to five years and a whole bunch of other stuff that we've never heard of will be, but you can't tell me that like omg coin Dogecoin and come rocket, which Yeah, that's a real one that came out like two, three days ago and saw a 75% increase this week.

Alex:

300% in one day.

David:

Yeah. Like, you can't tell me that those are things that are going to be solid business models going forward long term. And some of them might be but it's not. It’s not all.

Alex:

I mean, yeah, it's like any technology. It's new. It's fancy. It's cheap to get in. So everybody's all hyped up on it, but it'll change you know, it'll change.

Early cars were a lot of electric cars when cars first came out. And they're like, this sucks. We got to get some gasoline, right. And then now we're like, go back to electric cars like, okay, it took 100 years, maybe a bad example. But it's like, you know, it was DVDs, right? It was DVDs and then it was what we weren't sure it was gonna be blu ray or what was the other one? HD DVD, HD DVD, the Sony one or whatever it was right. It was like, that's how it is. Was it VHS? Or Betamax. Like you have this thing come out and then guess what now both of them are gone.

So no, technology is gonna change. My my, my opinion is still and will continue is the United States Federal Reserve is going to come up with a crypto dollar. It's going to be highly reliable, it's going to be usable damn near everywhere. It's gonna be backed by the FDIC. And when your average ding dong, right? Your average person wants to use crypto, they're going to use the one that's that's sure. They're not going to want to go off and trade and if that something's gonna be valid. What's the whole point was to get rid of the volatility So, bro, we talked about this for two hours and we didn't even mention our sponsorship. So let's call this a night.

David:

I think about that. Yeah. Whoops.

End:

Thank you for listening to another episode about my journey From military to millionaire. If you liked it be sure to visit Frommilitarytomillionaire.com/podcast to subscribe to future podcasts. While you're there, we'd love for you to rate the show. Give us a review on iTunes. Now get out there and take action.

David Pere quote about cryptocurrency

Episode: 143

Dave and Alex talk Crypto

Join your hosts, David Pere and Alex Felice, as they talk about crypto assets, cryptocurrency, and some of the market volatility right now. David and Alex share their thoughts on the hype and FOMO that cryptocurrency is getting recently and if the risks are worth taking when investing in cryptocurrency.

Cryptocurrency has been increasing hype over the last few years due to stories of people reaping what they sow. As different cryptocurrencies pop up around like Bitcoin, Ethereum, and DogeCoin, to name a few, David and Alex try to expound on blockchain technology and how it affects the economy.

In this episode, David and Alex share what they think of cryptocurrency and how it affects real-world currency in general. They discuss the game of cryptocurrency and weigh out the risks and gains with gambling and some optimism on the side.

Sponsor:

Rentometer: https://www.frommilitarytomillionaire.com/rentometer-sponsor

Outline of the episode:

 [05:17] Cryptocurrency in a nutshell

[08:58] Impacts on the economy, unemployment, and taxation

[15:21] Risks and strategies when investing in cryptocurrency

[20:03] DogeCoin analogy; Price-to-Earnings Ratio

[24:00] Threat of hyperinflation

[26:31] Cryptocurrency and the federal government

[31:36] Volatility and cascading effect

[35:45] Old economic principles don’t work with cryptocurrency

[37:59] Irrationality leading to collapse

[41:23] Shameless plug

[47:27] Advice for people starting to invest

[52:44] “Past performance doesn’t indicate future success.”

 

Follow From Military to Millionaire’s journey on:

 

Website:              https://www.frommilitarytomillionaire.com/

Facebook:           https://www.facebook.com/groups/1735593999901619/

Instagram:          https://www.instagram.com/frommilitarytomillionaire/

YouTube:             https://www.youtube.com/c/Frommilitarytomillionaire/

Sponsor:

Rentometer: https://www.frommilitarytomillionaire.com/rentometer-sponsor

Real Estate Investing Course: https://www.frommilitarytomillionaire.com/teachable-rei

Recommended books and tools: https://www.frommilitarytomillionaire.com/kit/

Become an investor: https://www.frommilitarytomillionaire.com/investor/

SUBSCRIBE: https://bit.ly/2Q3EvfE

Website: https://www.frommilitarytomillionaire.com/start-here/

Instagram: https://www.instagram.com/frommilitarytomillionaire/

Facebook: https://www.facebook.com/groups/militarymillionaire/

My name is David Pere, I am an active duty Marine, and have realized that service members and the working class use the phrase “I don’t get paid enough” entirely too often. The reality is that most often our financial situation is self-inflicted. After having success with real estate investing, I started From Military to Millionaire to teach personal finance and real estate investing to service members and the working class. As a result, I have helped many of my readers increase their savings gap, and increase their chances of achieving financial freedom! – Click here to SUBSCRIBE: https://bit.ly/2Q3EvfE to the channel for more awesome videos!

THIS SITE IS INDEPENDENTLY OWNED AND OPERATED. ALL OPINIONS EXPRESSED HEREIN ARE MY OWN. THE VIEWS EXPRESSED ON THIS SITE ARE THOSE OF THE AUTHOR OR THE AUTHOR’S INVITED GUEST POSTERS, AND MAY NOT REFLECT THE VIEWS OF THE US GOVERNMENT, THE DEPARTMENT OF DEFENSE, OR THE UNITED STATES MARINE CORPS.

Share this article soldier!

David Pere

David Pere

David is an active duty Marine, who devotes his free time to helping service members, veterans, and their families learn how to build wealth through real estate investing, entrepreneurship, and personal finance!

Leave a comment trooper!

Leave a Reply

Your email address will not be published.

Add Your Heading Text Here

never miss a post

Join the thousands of other Military Millionaires that are building their real estate portfolio!

ABOUT

Custom Blog Design by RapidWebLaunch

Copyright 2020 From Military to Millionaire

[class^="wpforms-"]
[class^="wpforms-"]