[Music]
this is category 5 community coffee
break
good afternoon or good morning or
wherever it is in your time zone
i'm bp 9 and
on my view at least to my
this side is is doug and then
below him thanks doug for the wave below
him is peter
give us away pete thank you sir
and then down here is sobu give us a
wave sober oh that'll work
coffee will work yeah absolutely i was
um
chatting with um uh with you dough
before we got started
and hello to your cat i see him there uh
in your lap i see the ears poking up
into the picture right there so
he or she may make a is she or she is
that right
she's a she nice this is maddie there
she is
hi ah rump it's here good
we have questions maybe he'll have
answers
jolly good so good i'm looking for
that's that's excellent i wasn't sure if
he was gonna make it this week
hello sir robert how are you sir
uh-oh he can't hear us
hello robert do you hear us yeah hi
hello hello welcome
welcome it's been some time
i i am i'm so sorry that uh that we're
missing with your
uh with your other appointment i did not
mean to do that
no don't worry dory absolutely seriously
don't worry
okay good okay so i have questions
and i'm sure the rest of the crowd does
too so uh
let me if you don't mind i'll start with
the questions
and then if anyone else wants to throw
some questions in we can do that
okay so primary oh
you're hanging out outside oh my i
thought it was
i thought it was pretty rainy out there
and i wasn't sure if um
no it's been we had fantastic weather
uh here so it's a little bit overcast
but
not too bad very nice
so my questions primarily revolve around
the everyday uses
of bitcoin um and
the sorts of questions i have are
related around the
wallets um for instance i i don't have
any bitcoin and i
i you know i don't know if i'm going to
invest or anything like that
but when i first saw it my first thought
was
yeah this would be an excellent everyday
use currency something you would
normally use
for cat you know instead of cash but
um i'm not sure that i'm seeing
any particular um um
i'm not sure that i'm seeing widespread
use of it it seems to be used more and
more for
an investment type
for an investment type
vehicle rather than for day-to-day use
yeah would you like to throw some
comments in there
yeah that you're absolutely right i mean
the initial setup of bitcoin was
that it was uh meant to buy a cup of
coffee
as you are drinking one right all right
so it is coffee break after all
yeah it's a as a monetary
uh value but that has changed
significantly so
bitcoin is exclusively now um
store value so nobody's using it to buy
something i mean you can buy a house for
example or
a car with bitcoin but nobody else
does use it on a day-to-day database
it's because of value yeah one bitcoin
is 32 000 us dollars
right and also every transaction on the
bitcoin blockchain
is around seven to twenty dollars so
a cup of coffee that costs two dollars
will cost you twenty two dollars because
of the
of the fees now having said that there
are two solutions
that run parallel one is to use a credit
card type of scenario so they're
companies
where you deposit the bitcoin and
they are still yours and you have got a
credit card
and you pay with a credit card and at
that moment they deduct then
the lower value uh so the two dollars
like
through the visa network from your
from your bitcoin account yeah so that's
one way how to use it
and the other one but the problem with
that is that you're
you're still relying on someone else to
actually transfer the funds
in this case yeah and the whole point is
that that wasn't
really the vision for bitcoin right
yeah but those those times have changed
so
it's now the old world mixing a little
bit with a new world
so this libertarian ideal of creating
a global currency that everybody can use
there are alternatives that are much
better than bitcoin
and also bitcoin created a so-called
second layer
that is a layer above
bitcoin which is called the lightning
network
which is currently still in development
but there you can use it and to buy
a cup of coffee so there is no problem
to use
the bitcoin to to buy a cup of coffee
through the lightning network
but then the vendor has to be and that
will happen yeah
so the fees there are then again 10
cents or even less than
that for a cup of coffee and it's
immediate yeah in the case of bitcoin
you have to wait 10 minutes
minimum to have a confirmation uh and
with a lightning network it's immediate
okay
what was the excuse me what was the
other scenario before i interrupted you
you mentioned one scenario yeah the
was okay okay so
so my experience with with bitcoin
wallets
is that they tend to
yeah the bitcoin wallet that i
downloaded many many years ago
downloaded like 40 gigabytes of
blockchain data
in order to in order to make it work and
the whole idea was that the
um that the blockchain
every node was supposed to verify the
blockchain
um i'm i'm i'm guessing that's also
changed quite a bit as well yeah i would
yeah that's true i mean if you're true
bitcoiner
then you have got your full node uh with
you
and the wallet is on the full node but
that has changed because people don't
want to wait
uh several hours until the they're
synced no so
yeah so like you have got let's say
software wallet or hardware wallet
and then the vendor like let's say an
example
trezor is a vendor that that vendor then
has got the full node for you so you're
relying on them
which is okay because if they do
something wrong then
um they would be dead immediately
because nobody would
would use them anymore so but but that
you have to download and sync
with with bitcoin that's not the case
anymore
okay yeah you've got full nodes and then
uh small nodes and and sometimes you
don't even have that
i know that my um my android wallet i
used to have an android wallet i
guess i still do if i remember the the
private key
the passcode for the private key there's
no bitcoins in it so i'm not that
worried
but um so i'm not in the i'm not in the
position of the poor fellow who
took or who who left his um uh uh
jacked his hard drive out into the
landfill with uh
you know 50 bitcoins or something like
that yeah i think it was
several several uh
millions of bitcoins yeah 200 million
u.s dollars
wow that is nuts
i cannot imagine that would be
but then again i mean the point is it's
currency
um well it's digital currency yeah
it's it's backed by more trust than i
think even the us dollar is at this
point right
absolutely that's one thing and it's
also
by far more secure than any other thing
that is out there
because of the of the blockchain and
would you say that is true of
of any cryptocurrency i mean no no no
if bitcoin if bitcoin was uh
running out like i was i was doing a
little bit of research before the um
uh before the coffee break started and
if
bitcoins are you know run out in what is
it 21
stand by just one second here
oh you did the wrong person
yeah just because uh
peter was um i'm sorry doug you're gonna
have to unmute yourself there because uh
i muted you by accident sorry about that
no problem um thank you sir
um there's more trust
we already talked about the trust okay
uh that pretty much covers the various
questions oh
um i i know i have an android wallet
somewhere and i'm gonna have to go find
the bitcoin application that uses it
but i don't know about a linux version
my linux version is um
uh it's the one that downloaded the
entire blockchain and i'm not sure i
i need that anymore you have any
suggestions robert for um for linux
yeah i mean we've got two scenarios here
if you're getting serious about cryptos
then the only solution for you is a
hardware wallet and there are two one is
trezor
and the other one is ledger yeah and if
and if you're planning to invest more
than 10 000
yeah then those are the only solution i
mean they cost around 100 bucks or so
okay okay and if you if you're planning
to buy one only buy them on
the website of the manufacturer yeah
because i've heard that
if you buy it to amazon they might be
compromised
so those are the two and if you're under
uh
10 000 then use a wallet that is like
exodus or so
that offers you the comfort of many
other applications
in one go a pure bitcoin wallet
is i mean unless you're really a bitcoin
maximum
maximum list and you don't believe in
ethereum in any other currency
is is not advisable so because
there are other wallets that offer by
far more uh
goi than the pure bitcoin ones
so if i were to get into bitcoin my
use case would buy would be primarily to
see if it was you know to make it easy
for me to transfer
money to my to my siblings over in
australia
or or something like that um is that
something you would still recommend
bitcoin or a cryptocurrency for
of course the difficulty is having them
figure out how to use bitcoin at their
end and
reconvert it to their own fiat currency
yeah you have got stated coins also so
bitcoin i would not use for that
but you can use a stable coin there is
for example tether
which is kindly a little bit debated but
it's the third largest currency
can you spell that for me what is that
style coin you said
stable oh stable coin yeah okay
and it's a coin that's linked to the us
dollar
so the the terror coin is always one to
one with the us dollar
and there are a few others there's also
usdc that's even regulated
by the u.s authorities and
there you can just transfer dollars over
to your relatives in australia and then
they've got the
the dollars the only thing they need to
find which is usually
never a problem for australia it's
definitely not a problem
is to convert those u.s dollars uh into
australian dollars
yeah so you need to have them
i don't think banks will do that but
you've got exchanges
and those exchanges are then linked to a
bank account
the same what do you say convert us
dollars you mean convert
the the cryptocurrency back to
australian dollars right
correct yeah so they have big well
again i keep calling them bitcoin atm
but that's not
going to work necessarily for for this
particular coin they
have to go through an exchange of some
sort then right yeah yeah
and and also atms are very expensive
right so i would never use atm you you
lose too much money there no they're
exactly the same
yeah they're very i mean here in in in
north america so canada and and also
europe
we've got kraken is for example a
fantastic exchange
and very low fees fantastic customer
support
you can sign up literally within half an
hour you've got an
account it's a really good exchange and
they have been in this market for a long
time so you can also only come there and
and then buy tether and transfer them it
does require that you
connect a bank account to your um to
your
uh kraken account no no not possibly
okay so how do you convert how do you
convert fiat currency then to
bitcoin or whatever currency you want i
do that with wire
transfers because my bank here is one of
those old-fashioned ones that doesn't
like cryptocurrencies
okay so i once linked
my bank account to a crypto exchange and
they closed my account then oh nice
oh nice okay they didn't yeah they
didn't like that
yeah in norway two hours a few years ago
and it ended up in the court system and
in in in one of the lower courts and now
when the banks can't
close your accounts due to bitcoin users
wow yeah so does anyone else have any
questions for robert uh
that i haven't uh touched on because i
wanted to also talk about
uh when bitcoin runs out what's likely
to happen there but
i want to give everybody else a chance
to ask some questions as well
wall street uh debacle that happened uh
this last week
uh it's it's a fun watch but uh one of
the
news items that i read the headline
talking about gamestop yeah and games
yeah but the the same guys who
initiated the gamestop
rice have no um have put their eyes on
one of the bitcoin alternatives and
one of the headlines said that
they had a realistic uh ability to have
data and the currency
in the one dollar range
wow yeah that's dodge coin and dodge
coin is a currency that has got
absolutely no use there is nothing
behind that one
so theoretically that thing should be
zero
but people especially through tick tock
and so the young people
are pushing that and so that grew in
less than a year over a thousand percent
because of the people in tiktok can you
explain what you mean when you say
there's nothing behind it you mean you
don't have to do any work to earn
dogecoin or or what do you mean by that
no if you've got if you've got
bitcoin for example you've got the store
value and
and the proof of work and and so there's
a big network behind it
if you've got ethereum you've got smart
contracts so you can do a lot of things
behind
with ethereum and every coin has got so
it's usability
dogecoin has got absolutely zero
usability
you can't do anything with that that's
because nobody will accept a theory um
no you can't yeah you can't do anything
with it you can only exchange it that's
all you can do with
dodge coin so because
the logo of dogecoin is a dog
it became a meme and because it's a meme
those
young people 20 years 25 years old they
use that just to
to do to be part of it right right right
so you could still exchange fiat
currency for dogecoin and back again
right
yeah yeah that's that you can do and if
if that's all you wanted for then it's a
viable option yes
yeah yeah
there are other options like tether for
example or so that are by
far better because the volatility i mean
if you look at the chart of
dogecoin it goes up in one day 300
percent next day it goes down
uh 50 again so it's crazy that's even
that's even true of bitcoin that's not
the reason
no the volatility of bitcoin is a
complete different one
but yeah just in one year thousand 500
percent or so those kind
because young people just do means and
say hey let's push this coin
let's get it to one dollar and it's
currently i think it's eight cents or so
[Laughter]
so bad luck if you bought it at a dollar
because uh
that'll be worth very little now yeah
what one can do um the uh uh
latest week's uh stories have uh taught
us that
what one can do is
short the uh dodge coin
because if it has a one dollar and it
eventually will
go down then those who have uh
what the short positions um it's called
i've learned
they can earn a lot of money by just
talking
going back down or yeah
yeah but in general uh shorting
um cryptocurrencies or or getting long
positions
is something that is not advisable
because the market is extremely
unpredictable
yes if if you short something and
suddenly the price goes
in a complete different direction you
lose all your money
yeah that is what happened with the the
uh gamestop um
uh yeah the big hedge funds uh had a bet
on um
and um shorting is is a bit um
i've learned they're betting that their
stock is going down
and when it does that they earn they
earn money
but um people uh uh on a particular
reddit forum
where they are actually doing and
they're reading public information and
they are doing um
due diligence they're reading up and
they're verifying that their
information is correct and then they are
sharing the information
the public available information in the
forum and people
thought that maybe we can stick it to
the big
greedy uh traders this time and then
and the hedge funds are losing big time
money because
the stock is going up and not down 89
yeah yes doug go ahead sir
um robert i was wondering what would be
the best
uh bitcoin to get into for a small
investor
for a small investor at the moment
because we're currently
in in the beginning of a bull market
yeah the bull market is the following
that the price like bitcoin was i think
when i was here last time on the
in the break at 13 000
it went up to 40 000 at the moment it's
32 000.
and it's predicted to go this year to
100 000.
yeah so one has to be careful to
to to be part of this bull run because
you know it's a bubble and after that
the price will drop again
by eighty percent yeah so it will come
down again
and so if you want to know yeah if you
want to invest
my recommendation is if you don't
first if you want to learn more about
those currencies
then um there are many opportunities
yeah
in d5 for example so finance you've got
coins
um that will guarantee do a 10x in the
next
few months and
yeah i i i come back to that and bitcoin
will not do a 10x
bitcoin if it does well because they're
institutional investors will do a 3x
so for somebody that does not want to
learn just want to invest something i
recommend ethereum or cardano
those are the two ones that are safe
bets
cardano or so ada is
the the ticker or if
ethereum so those are those two
and let me let me just put a quick
disclaimer in here because i know robbie
will
likely do that anyway we are not
offering financial advice here
no uh we are purely just reporting on on
what we
what we understand is going on in the
market and we
are um and these are opinions
so we are not we are not offering
financial advice just to make that
absolutely clear and also one thing uh
two to keep in mind there at the same
time before you do that
um did you have any other questions
because you didn't have a chance to
throw any questions in
so do you have any other questions well
is there a specific place i need to go
to invest in ethereum
yeah the only the only recommendation i
can give you
is to open an account with kraken don't
do it with coinbase
or any other exchange because they all
have got
have got their big issues coinbase for
example will sell you data
to the irs so it's not recommended
kraken is is is a very good exchange
where you can then wire transfer
your your money into that exchange and
then
purchase those coins uh with that money
yeah so kraken cardano and ethereum
that's what i am doing
okay so now what happens
what happens so what happens when
bitcoin finally does run out
um i know it's not predicted to happen
for another 100 years or so yet
but the unit or the proof of work that
has to happen
to validate transactions will still be a
very high
um a very high task a very
expensive task right and that will be
true even when
all the bitcoins run out um correct
and that's going to be reflected in
higher fees i'm sure
correct yeah the fees will go up of
course
and is that true for all
cryptocurrencies no no
no they are all working on a different
it's like comparing
transport yeah you've got a bus you've
got an airplane you've got a bus
so the currencies cryptocurrencies are
similar
and bitcoin will from my point of view
be
forever a star of value and
the second layer the lightning network
will be then the
the exchange part um and yeah i mean we
will all not be living anymore by
by that time when bitcoin really runs
out that's true
but but bitcoin has a finite supply i
think it's like 21 million coins or
something
yeah which can be subdivided into
millions and millions of satoshis
yeah i think it's one millionth of a
bitcoin it's a satoshi right
a hundred million 100 million okay yeah
even more than i expected um is that
that also
true that finite supply problem is that
also true
for other cryptocurrencies as well uh
no no ethereum is operating now
especially ethereum 2.0
will operate on a complete different
level so they
they have got a different system because
they're moving over from
proof of work which they're currently
using over the proof of stake
and so it will be different there yes
every currency
has got its own way of of uh
securing the network so with proof of
stake you have to prove that you have
the equivalent value
of the ethereum that you have somehow is
that true
yeah you're putting up money
to secure the network so there's an
algorithm it's done by through the
software
uh the ethereum software and that then
secures
with your ethereum the transaction and
if you're
you're a bad actor the you will lose
than
your the money that you put at stake
okay that's proof of stake
interesting interesting my point was to
understand
and because i think it has to be said in
this beta
about uh if people want to get into this
to learn uh or to invest
um uh there is on all the advice uh
i think it's over a hundred years old
advice that
and never put more money into it into
this
then you can afford to lose right yeah
absolutely yeah absolutely okay so
uh we've only got a couple of minutes
left so last call for
questions if there's any other if anyone
has any
additional questions for robert i've got
i've got still one remark to the
investment side there
please go ahead robert go ahead because
the difference i mean
what i see with people that have not
been
involved in cryptocurrencies and they
something they come with the old mindset
of shares
that is absolutely not valid anymore so
if you're coming
with that mindset you will have a root
awakening at some time
and why if you do your research on a
currency i'd say if you go to something
like coin gecko and do some research
there
then first thing is the the network
is extremely important yeah because
in the case of bitcoin it's easy but if
you go to a currency
that is unknown uh or smaller like let's
say rook or
or mahada or whatever then you have got
a complete different network
and if nobody's pushing that network
there's nobody behind it
that thing will not go up in value so
the research is a complete different one
yeah you have to you have to compare it
with a gme
uh with the game game
called game shop what happened last week
that's exactly how
how cryptocurrencies are being pushed
and
and uh and that's how you have to do
research so it's looking into the
currency that has got a great developer
team
management is not that important it's
the developers
and the marketing side so if they have
got really good developers that are
active
because very many times these projects
are open source
so you can check what they're doing and
if you see that that network it's all on
github if
you can check that they're really active
in doing something
then um then that's a big plus sign
the network has to be big and also the
idea has to be a big one but
if the idea is not big you will not find
many developers supporting that
that card anyway and it's true
also that that network has to be
supported by developers not only now
but also in the future as as as we move
forward because
uh yeah but if they lose interest in the
project
yeah they're stale now you have got the
market
that dictates that because now we're
coming into a bull market or we are
already in a bull market
and i've seen that now in 2018 and 19
where we had a bear market
then a lot of people will lose interest
and those things will go down
i mean all other coins bitcoin went down
by 80 85 percent and other grants that
cardano went over 90
95 down from the the cardano was once at
1.30
and it went down to 5 cents and so
so that is important from the investment
point of view yeah so the time
is good to get into cryptos now again no
financial advice
but the time is good but you have to
know when to exit this thing
and so from the investment point of view
not from the cryptocurrency for just
from the investment point of view you
need to
not be greedy if you're greedy you will
lose it you will never time the market
correctly anyway so on the way up you
have to take profits
constantly and on the way down you have
to also take profits because you never
know because these things can fluctuate
20 in one day or in a few days
so you don't know if this is a it's a
bubble that burst or if it's a bear
market or it's still bull market
yeah so always take profits very
important
okay and then and you can't basically
you can't lose
excellent robert thank you so much for
joining us
that that was it's been a yeah
very informative i'm sorry we only have
25 minutes we've already exceeded that
we had some audio issues at the
beginning but i'll let it out so that'll
be fine
no problem at all another one more
reminder we are not offering financial
advice this is purely just uh our
opinion and what we're reporting in the
in the industry right now yeah and it's
it's my experience of what i see in the
market so
you don't fall into the same class but
it's not financial advice clearly not
thank you again you are welcome to join
us anytime robert i would love to uh
thank you
i would love to to you know ask you more
questions and pick your brains even more
yeah we can do that next week or in two
weeks now two weeks would be difficult
for next week
just invite me back in and i uh we can
continue i love this year
anyway it's my passion i'm doing this
here full time so
um i'm i'm i'm up i like those
discussions
so don't forget to check out robert's
crypto corner segments that he has every
week here on category 5 tv
and uh and that's that's it for uh for
this week
thank you again for everybody for
participating and have a
have a great day take care bye-bye thank
you robert thank you bye everybody
bye everybody