Crypto Hedge Fund Manager Answers Google’s Most Searched Questions

I currently run an 8-figure crypto investment fund. These are the most common questions via Google on crypto. We're gonna go rapid fire here. So number 1, is China a friend or foe to crypto? Currently they've been a foe, and so the market has priced that in. You know, China really hasn't liked crypto, they banned it. If they become very friendly, it would be a huge buyer in the market. So it could become very friendly quickly if they change that. Will interest rates decide the next bull run? No, but they can help in crypto bull runs. But actually in the past, interest rate cuts have You know, been precedent for recession, so they could be very negative as well. But I think this cycle it'll help. Will crypto replace the dollar? No, I'm not a crypto takes over the dollar. I think the dollar will evolve. Scott Bestnett, the Secretary of the Treasury, has said he wants U.S. stablecoins to be a backbone and perpetuate the dollar throughout the world. I think crypto and the dollar will work together. Is it too late to get into crypto? Absolutely not. The entire market cap of crypto right now is about. $4 trillion. That's smaller than Nvidia. One tech company is bigger than all of crypto. We are still very early. Is crypto replacing gold as a store of value? Yes, we are calling it digital gold. You see Larry Fink from BlackRock talking about that. We are seeing people start to allocate to Bitcoin and crypto. Ray Dalio did an article last month on CNBC saying he recommends clients to have Bitcoin and gold in the same thing together. So I think they're coming out together. What is a crypto wallet? So a crypto wallet on a decentralized platform or exchange is where you actually hold your cryptos. You actually control your keys. So you actually— someone sends me Bitcoin, it's on the ledger as my Bitcoin in my wallet. It's not controlled by a third party or a centralized place. It's literally controlled by me, which is pretty cool. Think about if you're in a war-torn country and you're trying to evacuate this country and you're grabbing all your stuff and you're trying to grab all your money, like It'd be pretty hard. You go to a border check, you know, there's military guys there, they're taking all your stuff. As long as you remember or have written down your, you know, 12-word seed phrase and you head to another country, you could have nothing on you, literally nothing, and you just remember those 12 words, you can log in and have all of your crypto assets available in your wallet. It's a very, very cool thing, especially for emerging countries there. Can my crypto account get hacked? 100% yes. We've seen a lot of scams, and there's always going to be scams in every industry, but especially in crypto. Don't click on random links, don't do random stuff. Another big one is revoking. So people, if you use a crypto wallet and you connect it to a site and you sign that little contract on your MetaMask, the default setting is infinite approval. So my partner Dan Young, he's finally taught a lot of people about these. Like, yo, he went and, uh, he went and audited this really big successful dude He had 100 infinite approvals into his wallet, meaning there's 100 gateways for people that can go and they, in the middle of the night, they can just steal your, your money out of your wallet. So when you interact with a contract with your wallet, number one, use a what they call a hot wallet, a wallet only for transfers in and out. Don't put your long-term cold storage in the same wallet that you're doing other stuff with. But on that hot wallet, make sure you do revoking. So once you interact with something and maybe you buy an NFT or you do something with your wallet, you actually have to pay a gas fee and sever those contracts. with your wallet. A really great way to stay safe and make sure you don't get hacked. My business partner Dan on our fund, he's very, very good at this. He's awesome. Which crypto should you buy for the long term? The short answer is Bitcoin. I mean, Bitcoin is phenomenal. I like a lot of other coins, but long term, if you're into this, Bitcoin is the one. Should young people skip stocks and buy crypto? I think both are good. They're both different asset classes. I have stocks and crypto, but if I'm, you know, if I was to tell you one way or the other, I would push people maybe a little more to crypto for your more speculative play. If you want more blue chip and more stability, you can go more in the equity markets, and then you can also be more, even more stable with real estate and/or bonds for more stable. So it depends on what, what part of your investment portfolio it is. But for your more high-risk part of your portfolio, crypto I think is a good spot, at least for me. Are regulations in crypto good or bad? I think they're very good. The regulations that have just come out with the Genius Act, the Clarity Act, and the Anti-CBDC Act just a few months ago phenomenal for crypto. This gives a regulatory framework for companies in the United States to build and actually do stuff in crypto. In the Clarity Act, just a few months ago it came out there, they came out with a digital asset license where people that work at broker-dealers on Wall Street can now get this new license that lets them trade like a commodity pool operator, but it's for digital assets, which this brings on now amazing professionals around the country that already trade commodities all the time now can trade and have a regulatory framework, which is just more water in the tidal wave of capital flowing in the crypto direction. All right, next one. Altcoins, are they worth it or worthless? You know, you have these guys online like, there is no second best. There's no other cryptos that are like— I don't think that's the case. We think of crypto just like software. There's good software and there's bad software. Our fund, we try to invest in things that have good software. So for example, Take California. They announced they want to digitize 45 million car titles on the blockchain so that if you or I bought a car in California, you could instantly trade title. Kind of cool. They announced they're not using the Bitcoin blockchain or other blockchains. They're using the Avalanche blockchain to do this because the Avalanche blockchain, at least they believed, had good enough tech and software for them to do this. You see Mastercard, they just announced a partnership with Chainlink, because that platform, that software, that crypto blockchain is very useful for them. Are all altcoins good? No, there's a bunch of scam coins and meme coins. I'm not into that, but I like to find things that have underlying utility in crypto. So yes, very worth it. Are NFTs dead or evolving? I would say evolving. You know, NFTs, we had a huge craze in 2021, then they sold off heavy. But the idea of NFTs, A non-fungible token, I think, is still a very relevant idea. We're seeing this now potentially with new video games that are coming out and other things with NFTs. We'll see. But I think they're going to be evolved into more utility cases. What's the biggest risk currently in crypto? Now, a lot of people will point to quantum computing. So people will say, well, if a quantum computer gets created, it can just break Bitcoin like that, which is true. There's a, there's a chance quantum computing really can do this. Now, my partner Dan Young has worked on all these incredible data projects and has this huge tech company. Yeah, if quantum computing breaks Bitcoin, it's probably going to also break your 4-digit PIN into your Wells Fargo account, and it'll probably break every other centralized bank on Earth. So like, just to buck it, well, Bitcoin's going to get broken by a quantum computer. Well, yeah, if that breaks, then everything else breaks, right? So far Bitcoin's been in existence, you know, over 15 years, hasn't been broken so far. There's been no duplicates. I mean, it's a pretty— there's a great incentive to break it. So far it hasn't been broken. What's a better long-term hold, Bitcoin or real estate? Man, good question. I hold both. I like both. I would tell you both, both are good for different reasons, but I like both. Okay, advice to new investors in one sentence? Just get started. Whatever you have, just get started and get moving. That's my one sentence. Is crypto still early? 100%. The entire market cap of crypto is around $4 trillion, which sounds large, but compared to like Nvidia, the one company in California, it's smaller than Nvidia. Gold is over around $20 trillion. Crypto's about $4 trillion. So I think we're still really, really early. The entire market of crypto is smaller than one tech stock. Like, I think we're still really early. Is institutional money good for crypto? I think yes. Now there's some downsides from institutions like BlackRock coming in because they buy up a lot of the supply and they can centralize it. But overall, I think we need institutions to take crypto from the garage band to the ugly stepchild to full mainstream Taylor Swift, Justin Bieber status. And right now institutions are adopting crypto at an incredible rate. And so I think institutions is the, this cycle wave driver to make crypto get from garage band to mainstream. So if you have more questions on crypto, drop them in the comments down below. We can write them down. I can answer them in future videos.