Jonathan Kaplan: Bitcoin Is Like Winning The Lottery In Slow Motion! Video

Winning the Lottery

to our Financial Kaplan is our special to discuss his new crypto currency hedge fund and the amazing potential for Blockchain in a variety of different sectors.
Also discussed is the recent Hard Forks and how they are turning Bitcoin more anti fragile than ever and many other interesting topics.

01:30 Discovering Bitcoin and Blockchain and getting in early
10:00 Bitcoin is like winning the lottery in slow motion!
12:20 Hard Forks making Bitcoin more anti fragile?
17:30 The different sectors Blockchain could disrupt
24:30 Variety of Blockchains with different use-cases
30:00 The future of Crypto Currencies and its relationship with Government
34:45 New Crypto Currency hedge fund and what does it do?.

hello everyone and welcome in the crush the street comm I’m Kenneth Emery I’m really excited today I’m gonna be speaking to a cryptocurrency trailblazer I’ve been meeting a ton of really smart people in the the crypto space and it’s no wonder why obviously money attracts talent and I was introduced and I met Jonathan Kaplan a few weeks ago I had a Bitcoin meetup in Austin and I find out that he’s in the process of starting a cryptocurrency hedge fund and we’re gonna learn about that today but he’s got quite the story and he’s super knowledgeable when it comes to crypto currencies he’s a local guy here to me at least here in Austin Texas and I’m looking forward to speaking with Jonathan today Jonathan thanks for coming on the line with me thanks for having me Jenna I’m really excited to be here always happy to have an excuse to the talk crypto and you know this is actually my first podcast so thank you for that I’ve done a radio show before but first podcast so I’m excited to be here well hey it’s a pleasure to have you on and we got to tell the audience about this when I first met you you told me you made enough money in crypto as you were introduced to it to last you a lifetime and I I was blown away by that I don’t think I’ll ever forget that and if you would by way of introduction tell us about how you got introduced to cryptocurrency and how you got involved in the space and why you’re so passionate about it sure I’d like to think it’s a pretty interesting story originally I’m from Atlanta Georgia came to the University of Texas in 2008 for Business School got a degree in Information Systems started working at Du.Pont chemical company when I graduated doing corporate sales and spending a few years there before realizing that the corporate life really wasn’t for me so I started looking for other jobs and I ended up getting an email actually from the chapter advisor at the Sigma Chi fraternity at UT where I had pledged as an undergrad and he told me this since I had graduated the chapter had actually grown to the point where the university was mandating that we have a live in RA house dad so to speak to live here at the house full time and basically make sure that the guys don’t burn the place down and so I said hell yeah man sign me up that sounds like a blast and my whole family was just mortified that I’d be quitting a six figure sales job to move back into an 80 year old fallen apart fraternity house I’ve always been of the opinion that you should think of your life as the story that you’re writing and I certainly didn’t want the story of my life to read and then he worked at a chemical company for 60 years and died and I didn’t really know where my life would go after that I definitely had the plan but I thought okay at 25 quitting is cushy sales job to move back into a fraternity house at least sounded like the start of a very interesting story so I came back here in June of 2015 and while the chapter doesn’t pay me a salary they do provide room and board and I’m not a very materialistic guy and I had a pretty cushy savings from my few years at Du. Pont so I had all the time in the world to myself and so I just started digging into things that interested me and I I really liked being the house dad I love being a part of the chapter it made me the man that I am and the ability to give back and mentor these young men and make sure they maximize their time here at UT and well anyways it it was something that I knew I wanted to do for a while and in order to be here for them I knew I had to make money from a computer somehow I have to be here 24/7 up till 3 o’clock in the morning four times a week chaperoning mixers putting out fires metaphorically sometimes literally and so they did the first thing I do whenever I have a bunch of free time and a wonderful library and I just checked out a gigantic stack of books so I’m just about anything that would interest me and then one of those books happen to be digital gold by a Nathaniel popper and it’s basically the story of how Bitcoin was created and it reads like a thriller I mean it’s just it’s a fascinating account of the history of this technology and all the major players that created it and I have had a very fortunate life and that I happen to sort of be at the right place at the right time with the right knowledge because I had just finished a book before that by my favorite economist Nassim Taleb called an PI fragile and the concept of the book is that there are systems in life that well a lot of systems are fragile where when you introduce chaos and volatility and uncertainty to these systems it causes them to fail or break down or lose value and you think if maybe a glass of buying China a box of fine china if you drop it if you introduce chaos and uncertainty and volatility to that box of China well it breaks and the system loses value and two lives concept of anti fragility was such that if you had an anti fragile box of China and you dropped it the China would become stronger and you can look at that concept play out in real life in very many different scenarios the human body is a great example anyone who’s had chickenpox to the child knows that once you’ve been exposed to the virus your body learns how to create antibodies and once you’ve had chickenpox you never get it again what doesn’t kill you makes you stronger so same thing with lifting with lifting weights or if an earthquake decimates the bridge ideally the city comes back and builds it even stronger than it was before and after I read that book and I was reading digital gold and I was reading about all these terrible things that had befallen Bitcoin and at the time in late 2015 we were just finishing off a rather brutal two year bear market which saw the value of Bitcoin fall from an all time high of about eleven hundred dollars down to a floor of about 200 and again I was very fortunate to find it when I did because when I discovered Bitcoin it had in about December of 2015 it had just turned around and gone from 200 to 400 in the span of a couple of weeks and I wasn’t the world’s best trader but I knew a trend reversal when I saw it and to read about all these things that Bitcoin had survived that the China air quote banning Bitcoin and the mountain ox implosion and the Silk Road collapse and then to see that basically what didn’t kill Bitcoin made it stronger well that’s to me was just a fascinating ceptin I like the idea of investing in anti fragile systems I actually did the same thing we’re Donald Trump / 2016 I noticed that every time he would say something crazy or offensive the mainstream media would go oh well his his poll numbers you know they’re they’re surely going to collapse and his campaign is over with but the opposite would happen his rallies would diss bigger and so long story short in January of 2016 I basically took my life savings to that point and I put half of it into about $400 Bitcoin and I put the other half into Donald Trump to win the election I found a prediction market online that lets you buy and sell shares and the outcomes of course you know when I came back I didn’t know any of the undergrads and I very quickly became the crazy house dad who was just ranting and raving about how Trump was undervalued and Bitcoin was going to go to the moon and they didn’t take me very seriously but by the end of the year Bitcoin had doubled to about $800 and I had rolled all of my winnings from the primaries into the nomination and then let it all ride on the general and I think the day before the election is odds were like four and a half to one unpredicted the website that I was using and so then when he won the election I took all of that money and I bought my mother a very nice Christmas present and then I put the rest of the money in the Bitcoin as well and at that point I’ve been so distracted by the election that I’ve been reading about Bitcoin and I had kept up with you know the things that were going on that the having in the the bitch connects hack and that stuff but after I I didn’t have the distractions of all the political drama going on I was really able to dig into Bitcoin and the emerging crypto economy that was starting to coalesce around it and I realized thanks to the help of Andreas Antonopoulos a Bitcoin programmer author guru who has some amazing videos I had this realization that you know Bitcoin wasn’t just a digital gold it wasn’t just an additional asset in which you can invest it was an entire financial system unto itself it was it was an entirely new technology that could be adapted and and changed and just like you could take in internal combustion engine out of a car and put it in a motorcycle or an airplane or a double decker bus and achieve an entirely different mode of transportation so could you taste the technology behind Bitcoin this blockchain ledger and you could tweak its attributes you could put it in a different vehicle and you could achieve more interesting or alternative goals and so I started looking into this thing called a theory and when i bought some $10 aetherium and then something called Manero and I bought some $12 monaro and then again story my life just happened to be in the right place at the right time because in March of this year the whole space just started taking off and for our listeners who maybe haven’t been paying very close attention anything but Bitcoin you know their coins done very well this year but just about everything else is a cliff stood in many parts although lately Bitcoin has been stealing the spotlight yet again but in January the the value of the entire space the market tech if you will was about ten billion dollars give or take and I think today it’s right around 170 so I don’t like to talk much about price because I think that the technologies and the things that this space is bringing about you know it’s very much a new Internet it’s an Internet of money as opposed to the Internet of data that we have right now I think that’s interesting but like you said you know big money brings in a lot of smart people and there’s just some amazing things going on in the space and yeah people ask me what this year has been like and in between 2016 and this year I tell people it’s been like winning the lottery and slow motion mine so having lived through this and having become so obsessed with it you know that’s this is aside from managing things here at the fraternity and trying to help my boys be the best that they can be and make the most out of their time here when I’m not doing that or if I’m not asleep I’m I’m just I’m reading about crypto I’m talking about crypto I’m trading and investing and researching and It didn t meetups and meeting fine folks like yourself going to conferences like the big the Texas Bitcoin conference here in Austin this weekend then so that’s Jonathan that is an incredible story congratulations number one I mean this will be something you’ll you’ll remember and you’ll tell this story 4/10 while the rest of your life I mean you’ll tell this to your grandkids and your great grandkids I mean this is just such a game changer and really a game changer for the world in so many ways with the what we’re seeing with cryptocurrencies and their applications in the real world all right so we talked about how you got involved in cryptocurrency I want to get your thoughts on where we’re at right now with Bitcoin and then I do want to get into some of the what the implications of blockchain and how it applies to you know where the world of finance is going and obviously you’re starting a cryptocurrency hedge fund so there’s a lot of things I want to talk about that relates to that but on Bitcoin news right now we had the Bitcoin cash hard fork in August it’s a seemingly non event Bitcoin got even stronger and everyone got this crypto dividend and here we had the Bitcoin gold hard fork and it seems like everyone was just waiting to dump it you know everyone wanted a pile in the Bitcoin just so they can get this hard fork cryptocurrency and it seems like they’re just dumping it and I’m wondering if that’s just becoming the norm here if bitcoins just getting stronger with these hard Forks and people are just going to continue to disregard them as they come or do you see something different especially with what we got here in mid november what’s seg what 2 X those are all they’re excellent questions and it’s a great example of just how quickly the space boots and all the fascinating things that are going on and one of the things I like to tell people especially it’s like you said I am starting a crypto I said hedge funds with a good friend and local austenite Frank Joo we met on a actually cryptocurrency web forum back in March when we were trying to see if there was anyone we knew in person in the city who wanted to talk about this stuff and we had been managing money for friends and family and had been doing well enough to where they just kept referring other friends and family to us and we said look we can do a lot of good for a lot of people and we know this market very well and we want to help people make money while we make money so that’s that’s where we are now but as far as the hard fork goes I you know like I tell my investors I I don’t like to impose my will on the market I’m not one to tell people well I know what’s going to happen or or you know this is how things should be my strategy is simply to kind of watch what happens and try to figure out what’s going on and a lot of people like to be consistent in their opinions or to have a very set idea of something and I mean I changed my ideas and opinions all the time so at this point I’m sort of and watching and see mode because when the the Bitcoin cash hard fork was coming up in August and the market really started to turn down people were very very bearish and as we saw it like I was saying earlier if you know what doesn’t kill Bitcoin makes it stronger and I think that’s exactly what had happened this you have this very philosophically divided community where one part wanted to go with core and the other part wanted to go with the Bitcoin cash bigger blocks guys and I think it was very healthy for the ecosystem that instead of spending more time fighting each other well you guys can take some Bitcoin code and make your own modifications and create your own chain and if the market supports that well there’s your answer and I think that’s I like to see that a lot of people get concerned with the short term price action and oh well is there going to be a lot of fun before the fork or is this going to you know cause prices to differ what not well traditionally the times leading up to for extend to be on what I’ve seen a pretty good buying opportunity as as the the fear and the doubt tends to freak the weak hands out and they sell and then like we saw right before Bitcoin I mean the market just bounced right back after the fork happened I think these things are healthy for Bitcoin I’m not very interested in many of the Forks that I thought Bitcoin gold was going to be a flash in the pan and that seems to be what has happened and time will tell with 2x it looks like with Bitcoin cash there was a very clear cut divide where they were happy to sort of take their ball and go play a different game and with 2x it doesn’t seem to be the same way there seems to be a fight for the name behind Bitcoin and obviously there’s a lot of value and having the name and the reputation and the BTC ticker from what I’ve seen that there’s a lot more ground ground route support for what we could call BT one or you know Bitcoin core or Bitcoin as it exists today I think this 2x is probably going to be something similar to what we saw with Bitcoin cash where people made a very big deal out of this and then it’s kind of faded into the backgrounds and there’s a lot of very smart very dedicated people working in Bitcoin core and III don’t like I said I don’t have an emotional stake in this game and one of the things I see in the space and I think we’re probably going to get to this discussion soon of how many different assets there are and how many different groups of people are supporting these various projects and people get very emotionally attached to their project and and you know just like people get attached to their football team or their religion or their hometown because humans are tribal creatures and I think what you’re seeing is a lot of people that get emotionally attached to these things and then try to you know beat the other team so to speak and what I try to do is dig through all these emotional arguments in favor of well who has the best technology and where what does the market really want to see happen in the world and who’s you know providing the most groundbreaking advancements and then again I’m gonna watch the market and see what happens unfold so my prediction is that like very many Forks before this I’m guessing that there will be some short term volatility but I think Vic 1 will come out of this stronger and probably more valuable than ever before that seems to be the history of a Bitcoin hard Forks at least at this point right yeah Bitcoin continues to prove itself resilient and it’s quite powerful ok so let’s start talking about the amazing things that we’re seeing in the blockchain space crypto currencies are solving incredible problems and I interviewed Erik Voorhees a couple weeks ago and he does even like using that word anymore he likes to call him digital assets because he sees them more as just crypto currencies just for money and I thought that was interesting because of course we’re seeing cryptocurrencies serve as a tool for money data storage cybersecurity title and registration solution incentivizing content creation and more and I think especially in the beginning it’s very easy to confuse a lot of these alt coins as just some Bitcoin copycat and I remember the moment when I realized that within crypto currencies there’s essentially different sectors and obviously this is all developing very fast and I guess by way of justice kick this conversation off how big of a deal is blockchain as a more general application for the future in just sectors across the board another great question and first of all I watched that or listened to that podcast with Maurice and I think he’s a brilliant guy and I would encourage anyone listening now if you’re interested in this space and the topics were discussed and go back and watch can its interview with Eric a lot of great stuff there as well and I would agree with him I think that at this point the word cryptocurrency itself is an anachronism because while Bitcoin was created to be a peer to peer digital cash system the vast majority of I like to use the word crypto asset I stole that from Chris pernitskiy and I’ve actually been reading his book that just came out called crypto assets it’s a fantastic guide to anybody looking to invest in the space yeah I would agree that you do have some similar assets like coin it’s a very good example that it’s basically like javi paste a Bitcoin with some minor modifications but the vast majority of assets in the space really aren’t currencies so crypto assets or digital assets I think is much better nomenclature and it’s funny cuz after I met my partner Frank and we were talking about starting off this fund you were trying to figure out an investment strategy we we took a look through well there’s there’s now thousands of these asset because it’s relatively simple to cobble together some computer code and start your own token then most are worthless and most are going to fail and most are scams and pump and dumps and Ponzi schemes and you know part of the value we provide as a fund is to help navigate this environment but there are some really amazing things going on I think the best way to probably describe how this is happening is to give a couple of concrete examples so Bitcoin basically enabled a pure pure digital cash system that eliminated financial middlemen and a lot of people I don’t think really realized this they think bitcoin is just a different kind of Pay. Pal or it’s just a faster you know digital money and we already have digital money if you have a bank account and you access it on your phone and you send some money to somebody else that’s digital cash but that’s not Bitcoin one of the many great things about Bitcoin is that it’s peer to peer so you no longer have to use a third party to send value to somebody else you can just send it directly to that person and you no longer have a bank or a processor or a credit card company taking a cut of that and so the second largest crypto asset by network value of this moment is an asset called aetherium and aetherium uses the blockchain ledger a way of keeping track of who has how much value in the system and the ability to send money or send value on a peer to peer basis but they took the concept behind Bitcoin the programming language and they broadened it so that instead of doing just payments you can really write any type of code you wanted to do and they talked about this using the nomenclature smart contract and it’s pretty much exactly what it sounds like if you have a paper contract that two people sign and agree to it’s a way of organizing action between two or more parties you and I both agree that we’re going to perform certain actions at certain times under certain conditions and then what we sign it and we both hope that we end up keeping up both ends in the bargain but what happens if I decide to say to sell you my car and then I give you the keys and I expect you to make monthly payments and then you never send the money well I probably have to go bring in a third party I have to take you a small claims court or hire a lawyer or a debt collector or I have to get some type of third party there to enforce that trust then what aetherium does is it takes that contract and it turns all those stipulations it turns the agreements into computer code it’s an if then statement if this happens then do that and when both parties agree to that smart contract and they sign with the digital signatures and submit that code to the network the network execute the code automatically then by eliminating the need to have a third party enforce these contracts the value that would otherwise be sucked out of that arrangement by this third party is kept between the people that are doing business with each other and so there’s a real value in eliminating these third parties and allowing people to send value and to do business peer to peer and we’re just starting to see some of the implications of that because what aetherium is allowed to happen is for all these other teams tech startups basically that instead of going to Silicon Valley and begging VCS for capital instead of going the traditional route through there through Wall Street teams can simply build a project on top of etherium just like you could create a website based on the infrastructure that underlies the internet you know like tcp/ip protocol and these teams are now making all these different projects based on the smart contract that like you mentioned everything from prediction markets like I used to bet on Donald Trump on predicted and predict it as the third party who would basically match someone like me that wanted the bet for Trump with somebody else that was betting against Trump and for bringing these people together they would take a large chunk of our profits well there are projects like auger or gnosis that are trying to create a decentralized version of that where that value instead of going to a third party would be kept within the network participants and if you can creatively structure the correct incentive system you can have these self sustaining ecosystems that perform all the functions that many of the third party companies or corporations are doing today but instead of having them suck away a large part of that value it’s kept within the participants themselves and in fact helps to incentivize them to participate and strengthen the network accordingly and it’s a very much a positive feedback loop and I think that’s what we’re seeing is people realize how much can actually be done in the space it’s very exciting to see what people are coming up with you know one of the things that you were telling me about before we started this call here was that if you were to take a hundred the top 100 crypto currencies and you divided them up I know you and your partner we’re doing this especially dealing with the hedge fund you’d have basically 32 different baskets of different sectors so what are some of these different baskets that you’re dividing these different digital assets into another great question and there’s so much overlap between so many of these things that it’s been very difficult to categorize them I think Chris pernitskiy the author of this crypto assets book I mentioned earlier did a very good job and essentially breaking it down into three sections you’ve got your straight crypto currencies which are stores of values units of account medium and exchange where that’s that’s really all they do is try to serve as a store value or a currency that that can be spent and so some examples there are of course Bitcoin litecoin the Forex like Bitcoin cash you’ve got another area called you know whats let’s call it crypto commodities and just like you have commodities in the real world for know oil and soybeans and things that nature well now that we live in a digital world in a digital ecosystem we’re starting to see the emergence of digital commodities and there’s demand for computing power and bandwidth and storage so you’ve got projects like Gollum or storage or file coin that are working on providing platforms by which those commodities can be bought and sold and then you still have an entire other group call them you know maybe crypto securities tokens that essentially represent ownership in a platform or protocol where ideal the value accrues to those tokens the more that that platform or product or service is being used and you know you’ve got everything from from gambling to gaming and virtual reality lending finance lines of credit advertising conditional payment platforms data immutability and asset tracking auditing decentralized exchanges social media networks ways to create your own custom token insurance markets and you know there’s more coming out every day there’s that there’s a new ICO and there’s a new project coming out and one of my favorite analogies to this base is I in an Alice in Wonderland there’s a character called the Red Queen and she’s running as fast as she can but because the environment moves with her she never gets anywhere and that’s almost how you feel trying to keep up in the space where I’m spending eight or ten hours a day reading books and blogs and forums and message boards and Twitter’s and white papers and the faster I run it just seems like everything’s moving just as quickly as I am and it’s it’s very difficult to keep up here especially given that you know these markets trade 24/7 365 the Bell doesn’t ring at 4:30 you don’t get weekends off but my god is it exciting to be on the cutting edge of technology and financial innovation and you know to be part of a movement like this this it really feels like the Internet in 1996 you know right after the web browser first gave the vast majority of people access to this space and yeah at the time you could see a little bit into the future of the internet internet search was a good example you very quickly realized that the ability to type in a query whether it was in Alta Vista or Ask Jeeves or Yahoo or eventually Google to get an answer back what you knew what was going to be a big deal and you see where that was going but in 1996 or in the late 90s you you just couldn’t imagine the type of technologies that were going to come from the internet that the the Facebook’s and the ubers and the Airbnb ‘s and the Spotify SH and the types of things this would be enabled you know the the revolutions around the world the the enabling of three anonymous speech how that would affect the way we lived and how social media would change the way we organize ourselves and communities and live and work and find partners and I think the same thing is happening with crypt of space you can see a little bit where it’s going you know better remittances faster payments eliminating third parties decentralizing certain aspects of fragile systems that turn them into anti fragile systems but the exciting thing is that you just you there’s so many unknown unknowns you can’t even imagine where we might be five or ten years from now if the rates of technological change continues to this pace and more and more smart people you know like yourself are coming into this field every day and then the reason I’ve now dedicated my career to this is because I have yet to introduce somebody to the space or to Bitcoin or the concepts of crypto and not watch them just light up with excitement and go wow that is incredible you know every smart person I know immediately gets into this and becomes obsessed and that’s a very exciting thing to see that I couldn’t agree with you more Jonathan so I’m very curious to see I guess some of the behind the scenes of what you’re dealing with now as we are in this unprecedented territory and I can tell you we’ve seen some pushback when it comes to governments and regulators and banks who are not necessarily for this decentralized system of money transfer of value that’s out of their control and so it’s interesting because you’re obviously trying to start a hedge fund a cryptocurrency hedge fund and I’m wondering if you’re having any sort of resistance from any entities and and what do you think the future is gonna be like with the dynamics of crypto currencies and you know the the regulators the government toll entities that is one of the most pressing questions in the space right now certainly right one of the more fascinating aspects of this space is that you know Bitcoin got its start coming out of the the cypher punk movement and it was this very niche the collection of you know very hardcore libertarian leaning ideologues who you know we’re very much you know into disrupting these systems and I think that it’s no coincidence this you know the Bitcoin white paper was released as the global financial crisis was unfolding and you really got to see why there was a need for these types of technologies and so having been born out of that sentiment washing Wall Street and big money and institutions start to dip their toes in and become interested and I think there is going to be something of a clash and there certainly you know like we saw where Bitcoin really jumped onto the scene with the Silk Road which was this you know basically a completely open market with no regulations where you could buy and sell everything from stolen credit card numbers to heroin to you know God knows what else was on there so coming from there you know that that there’s there’s going to be a little friction and I think that what’s really going to be interesting right now is a lot of people don’t realize bitcoins not anonymous it’s pseudonymous you don’t have an account with your name on it it’s random string of letters and numbers but there you can see all the transactions between accounts and so given enough information you can essentially start tracking movements back and forth and because of that teams have come up with other truly anonymous crypto currencies things like Manero or z cash or particle is sort of a dark horse that’s one of my favorites right now this can’t be tracked and so I think we’re seeing a lot of growth and certainly a lot of the traders that I’m talking to have started to hedge into these private crypto currencies because they think that’s part of where the future is going but well as we’ve seen before this is not a space that can be controlled and when people ask well what happens at the US bans Bitcoin or something like that and I say well what would happen if the US tried to ban the internet if it can’t be done you know yeah there’s catastrophic in the world ending scenarios you know where we don’t have electricity and we go back to living in the dark ages but if that happens we’ve got bigger trouble then it’s trying to figure out how to sin Bitcoin back and forth but that’s what I tell people well you know you can’t you can’t stop Bitcoin just like you can’t stop the Internet and I think that there’s going to be a lot of drama in this space as corporations in wall street try to get involved and deal with playing in a sandbox that refuses to be controlled and and corporatized and regulated so personally I think that the market would appreciate some regulation in the sense that markets like resolving uncertainty and everybody I think right now it’s kind of looking around and holding their breath and waiting for the inevitable release from the SEC or the IRS on exactly how they plan to regulate this space so in that sense I think a little regulation would be welcome but on the other hand you know that the part of me that got excited about creating a system that a government can’t ruin like they burrow and our fiat currency you know I’m looking forward I’ve got my big bucket full of popcorn and you know regardless of what the price does at least I know I’m not going to be bored for a very long time the understatement of the year right Jonathan so okay so we’re at the 30 minute mark a little over that but I want to talk give you an opportunity here to talk about the hedge fund maybe tell everyone you know for people who aren’t even familiar with what a hedge fund is let them know what a hedge fund is and what is unique about your crypto currency hedge fund and where you guys are along your your route to being operational sure I appreciate that so the name of the fund is numerous capital there’s a Latin phrase be res in new Emeritus which translates to strength and numbers and seeing as its numbers and cryptography which gives these assets the value I said your numerous capital was sitting and the domain name was available so if you want to visit our website learn more it is numeric capital the funds not open to the public but if anybody’s interested and would like to ask questions we’re to shoot me an email obviously I could talk about this all day the reason we started the fun was pretty simple like I said I’d met my partner back in March and we’re both obsessed with the space and it’s it’s so difficult to invest here like I said we’re kind of where the internet was in 1996 some people might even put it a bit earlier where you still kind of have to be a tech geek to even be able to get into this and there’s companies like coin based which have created great user interfaces and make it a lot simpler maybe to buy the the bitcoins and the experience of the world but there’s still so many dangers and pitfalls so what we try to do is provide a way for people to invest larger sums of money into this space to where they can write us a check and we do all the work of keeping up with the markets and trading and investing and protecting their capital I tell people that you know you shouldn’t invest more into this space than you can afford to lose bitcoin is the oldest of these assets and it’s not even a decade old most of these are months or only years old and you know it’s absolutely possible that they could lose you know 80% or more of their value you know in a minute or an hour at really at any time so but at the same time it’s very difficult in a globally connected world to truly diversify your portfolio and I forget the name of the blog which put this out but there was a great study where a data scientist wanted to basically see if he could combine additional investments or a basket of securities that would approximate the price performance the Bitcoin so that he could receive those sorts of gains without actually having the underlying risk and volatility of holding Bitcoin so he wrote an algorithm and he took 3000 something assets everything from gold and oil to corn and soybeans to tech stocks and he compared their correlation with Bitcoin and what he found is that there wasn’t any asset that had greater than I think maybe a point to correlation with Bitcoin which which is pretty much no correlation at all Bitcoin tends to act as a hedge against global uncertainty and chaos it spiked after brexit it spiked after Trump won it has a history of sort of digging when the market zags and so I tell people you know depending on and I’m not a financial adviser not financial advice but depending on your age in your situation in life and your financial goals for the future I would you know recommend one percent of your portfolio in Bitcoin in a basket of crypto and for those who agree with the philosophy put forth by this space and maybe have a higher level of risk tolerance we’re here to manage the difficulties that are inherent in this space it’s you know we’re not simply people that pick assets like you would pick stocks you have to learn how to navigate the infrastructure first of all so just being able to sign up for these exchanges and figure out how to buy and sell these tokens and work all these you know very computer nerd s cues or interfaces to avoid the scams and pump and dump from the posi schemes to avoid getting caught and exchanged collapses and all sorts of infrastructure issues you know you don’t want to accidentally send your Bitcoin to an aetherium address and lose all your money instantly for example and then of course like I said earlier you know these are 24/7 365 markets where one month in crypto with like a year in the stock market and it just moves at lightning speed so for people especially those that are older I’m working with a lot of our older fraternity alumni who you know they’re seeing Bitcoin and aetherium in crypto on the the front pages of the Wall Street Journal’s and The Economist and you know the CNBC’s of the world and they’re going mad I want to get into this but you know I have a degree in information systems and my partner Frank is an electrical engineer and works as a computer programmer and and we still often have trouble fully comprehending everything that’s going on in the space and keeping up with it and there are a lot of people out there who want to be a part of this but just don’t have the time to devote to it like we do and it certainly helps if you’re possessed like we are because for us this doesn’t feel like work it feels like fun we do it because we love it and yeah the money’s nice but at this point I don’t have to worry about money so I’m doing this because I want to see the space grow and prosper and I want to help people get involved and and to protect them from the dangers one of the examples I ment listed earlier was you know there are ideas in this space the idea of an immutable unsensible unfeasible store value the idea of a smart contract where you can cut out the middlemen and have a trustless network the idea of a truly free market with no financial or commercial intermediaries secondly value those ideas are not going away but just like we saw internet search go from Alta Vista to ask jeans to Yahoo to Google and just like we saw social media go from livejournal to xanga to myspace to Facebook there’s a very in my mind a very strong possibility that these ideas will change vehicles probably multiple times before they end up in maybe not a permanent iteration but maybe more a long lasting example so it’s difficult for me to tell people that either don’t have the capital to invest in our fund or the time to just stay up with the space they say well if I just buy Bitcoin and hold on to it for 10 years I’ll be ok right and well right now in 2017 I would think yes but if you would bought you know you would bought into my space and then thought I’ll just hold on to my space for a decade what you wouldn’t have done so well and that’s part of the service that we provide is to help make sure that as the space evolves that we evolve along with it and we have no emotional attachment to these assets we have emotional attachment the ideas behind them and we follow those ideas and whoever can do the best job of bringing those ideas into the world well that’s where we want to be invest and that’s where we want to be a part of and so that’s just an example of the various services that were attempting to provide with new merit Wow well hey you’re a testament to the fact that the smartest people in the world are in the Fin. Tech space and specifically in volve with crypto currencies and it’s really exciting and you know we’ll definitely have you on the show in the future for follow up interviews especially as things develop with numerous capital so Jonathan thanks for coming on crush the street with me today so it’s been my pleasure Kenaston and thank you for having me here and for doing your part to help spread awareness of all the amazing things that are going on I know I speak for a lot of people and a lot of listeners who have enjoyed all your other podcasts keep up the great work we’re definitely looking forward to everything else you have to put out hey man thanks so much appreciate it.


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