Stay Sane In Crypto Chaos- A DOS Conversation about Crypto with Joe Polish and Nic Peterson

I don't know if this will work. I don't know this asset is tradable because I made the contract, and that's not good. So we're going to sit here, and I'm going to walk you through every step. So as the investor, for the first time ever, you actually know what is happening on this side. And people just kept coming in and listening and watching. And so it was like a series of, all right, so I'm going to add liquidity, which just means, again, you have to provide the initial liquidity so there's something to trade. And there's all these stories about how to add liquidity. If you ask an investor, how is liquidity added, you ask 50 investors, they'll tell you 50 different things. Nobody knows. So it's like, I'm going to walk you through this so that you can then easily discern whether somebody's full of or not.

Nick has a ecosystem called the Wolf Den. And Nick, he's had many businesses. He's a young dude, very smart, weird, strange. You'll see. He also spoke at the last Genius Network meeting and also the 100k meeting, and everyone had a lot of takeaways. And during those talks, you actually talked about bumpers. You talked about how you make decisions on what to do, what not to do. One of my favorite quotes from you that's in your book bumpers, is you don't win a game. Yeah. You can't win a race you don't want to be in, like you just said. And you talked about how you make those decisions. What I wanted to talk with you about today, and I wanted to do Q and A with the audience, but in lieu of our situation with the mics, which I'm so happy to do, I'll just have to hand the mic or, you know, have you raise a hand and is, I want you to talk about crypto, cryptocurrency. And one of the things that we are exploring is a series of videos and audios that we could turn into podcasts that actually just teach crypto the basics. Like, what is it? How does this work? And I was going to use this particular conversation is maybe just a test to see how does it. What are the questions that all of you would have that you would want to know? Because there's all. There's so. There's so many layers to this. And so I wanted to kind of start with that as the fundamentals. But can you maybe describe to people some will remember, and you've met many people here that Know who you are and they know what you do. But for people that don't give a little bit of background on who is Nick Peterson, where is your focus? How did you come into this sort of crypto space? Because it's not the only thing that you do. You're also. We have property together and stuff. Now this is gone. This has turned into a lot of cool things. But that's.

Yeah, yeah, absolutely. First of all, can somebody make sure that they can hear me online?

We're good.

All right. So as Joe said, I've had many companies in many industries, and one of the questions up until recently that I got often was, how do you keep doing this in so many different industries? And that's actually where Bumpers came from when I wrote my book and I presented that methodology at the 100k. And super grateful that we have theory of constraints guy here, because Howard, remember Howard, he goes, hey, what you just described is basically theory of constraints. And I did not know that. So there's this methodology which is mitigating risk, keeping asymmetry to the upside, prioritizing, allocating resources, yada, yada, yada. And yada yada, yada is the good one.

Yeah, yada yada. I wonder who came up with yada yada yada.

I don't know. I'm a trade market.

Huh. Okay.

And let's go right there.

Is that okay, Rakim for the video. Okay. Oh, yeah. So you talk louder, Nick. Yeah, it's probably. I really project in such a Barbra Streisand, like, fashion.

So you guys can hear me back there. I'm good now. Okay. So I'm going through this. I'm getting out of my companies a couple years ago, I'm exiting these companies, and I was bored, and I wanted to play in crypto, and I've been buying Bitcoin and Ethereum and all that stuff. So I joined a bunch of these groups of experts and realized that nobody had any idea what they were doing. Nobody. And not that I did, but you can tell when it's a group of people. They can't discern competence from incompetence from malice because they look identical. And nobody can tell me how to tell the difference. So that's the first thing I realized, is this space is up and coming. Everybody wants into it, and I. It doesn't matter how much I pay or where I go. Nobody can tell me how it works. I can't get any. It's all conflicting information. And again, incompetence and malice look identical. So we're looking at like anchor protocol. Was that malicious or is somebody just really stupid? It's much harder to tell than we think. Now at that scale, it's a little bit easier to figure out, but on the smaller scale it's more difficult. So it was probably 4 o' clock on a Saturday morning and it hit me that nobody that is building is teaching, and nobody that is teaching is building. And that's the big gap. Anybody that knows what is going on is like sitting in their mom's basement doing code. They're not talking to anybody, and anybody that is talking has no fucking clue what's going on. So I went to the office and I started trying to write a smart contract. Took me hours. I went through iteration after after iteration, and then I did like, I'm similar to Joe. I want to have a genius network. So I start calling people, I start texting people, I start putting groups together who can build, who can teach me how this is built. So I built my first contract. That's my first token. Took me like six tries and I didn't learn anything. I just learned it's really hard to code shit. Yeah, like, didn't tell me, like, you know, I need to micro step into things. I need a really tight feedback loop. So I got to do this stuff. And okay, I didn't learn anything because there's nothing to be learned. Just writing this code. I need to push this thing live. Because that is when people start getting wrecked, is when something goes live on the mainnet, on the blockchain. Right. You guys know what that means? Kind of.

Well, describe it. Define everything. That might even be a question of what it is, because that was.

Yeah, so it's a tough question because people always go like, what is cryptocurrency? You know, and that's like, it's equivalent to like, what's protein? Well, it's, you know, micro, blah, blah, blah, blah, blah, branch, chain, amino acid. What they actually mean is, should I invest in cryptocurrency? Should I look at cryptocurrency? Should I build on the blockchain? So crypto's tough because nobody knows how to ask the right questions. And so they're getting answers to the question they're asking, not the one they mean to ask. So I'll do my best to talk about the definitions here. So you can push a contract live. There's a test net on all the networks. There's a test net where you can build stuff and you can test it. That doesn't impact Anybody else, you can push it live onto the mainnet and then it's a tradable asset. Anybody can. If somehow they have your token, they can do whatever they want with it, which means they can put on other exchanges. It's all, it's all fair game. And that is where most of the people that are full time crypto or they think they're full time crypto, they sit around and they look for new things to be launched. They're trying to get in super early. That's the riskiest place to get in because we don't know anything about, like when Microsoft went public, it was a privately held company for 11 years. We knew what it was, we knew what it did. It has 11 years of balance sheets, tax returns, diligence on Bill Gates, et cetera, et cetera. So the most dangerous time is right when it launches. And that's when everybody tries to get in. And all the groups I was in, that's what everybody's trying to do. They're trying to get the first one in the new bitcoin. So I was like, I gotta launch this. So I reached out to a small group of people and I said, hey, I'm gonna push this thing live. I have no fucking clue what's gonna happen. So I need you to like we did a pre sale event, like an ICO event. So I need you to put a little bit of BNB in like $300. And if shit goes crazy, I will just pay you back. I need to learn what it looks like on this side. I need to know what it's like to generate the token to add liqu, which allows people to trade. So the person that generates the token has to provide the initial liquidity. And I just need to know, because we have no way of knowing if a project owner says, oh, we just got to do this, this and this. Is that true? We have no way of knowing. Nobody can tell me. So I put the ICO out there and like five people put in like 300 bucks each. And I was just gonna like let them watch over the shoulders, just education for us. And as soon as the pre sale went live. So the thing about the blockchain is you can see everything. And what I didn't realize at the time is how many hundreds of thousands of people are staring at the blockchain waiting for something to just ape into everything new. So I pushed it. I put this pre sale live. Hundreds of thousands of dollars start coming in, complete strangers, anonymous. I have no way to contact them and be like, Stop. Don't do this. And they're coming in. I'm just like, oh, shit. I'm on the hook now. I have to make this right. I have to do right by these people. So I launched a telegram group. If you guys aren't familiar with telegram, it's just an app, like a messenger app. It's the most common one in crypto that most people are using. And I fired up a voice chat, and I was like, hey, everybody, can you stop putting money into this? I don't know if it's gonna work. I have no fucking clue. And so that was. And then people started telling other people. I think Bill probably got in about that time. People started. Who told you? Randy? People started reaching out to other people. Like, hey, come listen to this guy. He's being honest. It's really weird.

Yeah.

And so I'm. Okay. So I. I gathered, like, my little team together. I was like, we got to do right by these people. That's all that matters right now is that especially the ones that we know. And it's my voice and it's my face. I didn't take the time to go anonymous and do all that stuff. And so we launched it. I said, hey, we're gonna launch on Monday, but here's what I'm gonna do. I don't know if this will work. I don't know if this asset is tradable because I made the contract, and that's not good. So we're gonna sit here, and I'm gonna walk you through every step. So as the investor, for the first time ever, you actually know what is happening on this side. And people just kept coming in and listening and watching. And so it was like a series of, all right, so I'm gonna add liquidity, which just means, again, you have to provide the initial liquidity, so there's something to trade. And there's all these stories about how to add liquidity. If you ask an investor, how is liquidity added? You ask 50 investors, they'll tell you 50 different things. Nobody knows. So it's like, I'm going to walk you through this so that you can then. You can then easily discern whether somebody's full of shit or not. Because typically they'll say, as an example, hey, we're gonna add liquidity. It'll take about an hour. Is that true? I don't know. So I went through the steps as, all right, guys, I'm doing this. I'm doing this. I just added liquidity. You should be able to trade it now, and people message me, yeah, I could trade it. It took like 15 seconds. So now we know how to. If it's gonna take an hour, they're probably doing something sketchy to the contract because it doesn't take an hour to add liquidity. Now we know that.

Hey, I hope you're enjoying this video. And I want to let you know that I have a new book that's come out, and if you'd like to get it absolutely free, there's a link below in the description. Or you can wait till the end of this video, or you can Simply go to joe'sfreebook.com and you can get a copy there.

So that was my first token. It went 40x in two days. It just went nuts. Because Bill can probably speak to it because he was. He was. I didn't know him at the time. He was just coming, investing. It's the first time anybody just fucking told you what was happening.

I don't know.

I don't know if that was your experience.

I might need you to come up with the mic.

Yeah.

So before the Wolf Den, when we. When we were just trading and finding, literally just searching the blockchain, finding random tokens, adding liquidity, no one was telling us anything, how to do anything. Like you said, 50 different people, 50 different answers of how to do things, why to do things. And it's very easy to get trapped and doing things and losing your money really quick on some stuff.

When I was first introduced to Nick, I'm very sketchy of any new sort of thing because it's always the. It's the, you know, the whole Gold rush analogy of the ones making the money are the ones selling the picks and the shovels, not the ones finding gold. And there's a lot of that in the crypto world. And then Alex Moscow, you know, Jennifer, Hooty's fiance, he's like, you know, they heard that. I. It's like, first time I had dinner with you, he's like, he's the smartest dude I know in crypto. Ilona, my friend Ilona, one of the first time she came on my house for dinner, she didn't know that Nick was gonna be there. And so we're just sitting there and she's like, you know, we're just introducing each other and stuff. And she's like, you're the one that created the wufta. And she's like, I'm in it. And I'm like, why are you in it? And she's like, the education that they do is so good. They just teach you everything about understanding what it does, and they just try to protect their people that get involved in it.

And.

And so I started having a lot of conversations with Nick about the whole concept of don't wreck yourself. One of the things is, it's almost like you've grown this thing by telling people not to even invest in it, because you never tell anyone to invest in it. You just explain, why are you even doing this? What do you actually want out of your life? If crypto or whatever is a way of getting you there, then figure out what you actually want. And that's. And that was just at the very beginning stages because I was trying to gauge, like, what is this guy? What is he creating here? Who is this dude? And so I've gotten to know more and more. I mean, you could be an evil person, and I just haven't seen that side yet. What I will tell you, though, I think we're one of the few NFT projects that we launched, which I never even promoted, and I'm happy about that to our Genius Network members because of the price of Ethereum, how much it's dropped. But we took 50 people to cleatr and many of them had tears in their eyes. I mean, they were just stoked. And I filmed a whole bunch of stuff with people coming. And that was part of people that they could only go there if they were one of the Cleader NFT holders. And so because I went into this thing thinking, how do I. It's interesting, the difference. Like, what's the difference between the crypto world and the real world? I know that's kind of.

That's another one of those questions.

I know, I know, I was just saying that.

But.

Meaning the mindset of, like, what? There are people. I think the vast majority of people here, they don't even know the majority. I mean, how many of you are kind of like you would consider yourselves in kindergarten when it comes to this sort of topic? Preschool. Preschool. And there's a handful. How many of you consider yourself pretty knowledgeable in blockchain? Okay, so we've got five people. Six people. Six people.

Yeah.

So what? I mean, who is this built for?

So the interesting thing about innovation, because there's an answer to that question and then there's an answer to the question you might be asking. Yeah. Because the innovation is in the application. So how it actually diffuses. A lot of people ask all the time, what do you see the future of crypto? I don't think we can conceive of it. Somebody is going to come up with something, an application using the existing technology that we are not conceiving of right now. And so really, crypto was built. So cryptocurrency, for those that want more specific definitions, is just a digital asset class as a medium of exchange that is in theory, not controlled by essential organizations. All it is, right, blockchain is just the technology to transfer, store and secure those assets. That's all it is, how it gets used. Right now you have a whole bunch of people finding ways to sell pictures of things for tens of thousands or hundreds of thousands of dollars. But it was really built as a secure network. So instead of columns and rows, for those of you that don't know, most data is stored in columns and rows and on the blockchain is stored in blocks and it's verified and validated by multiple sources, thousands of sources, tens of thousands of sources. So it's really just fast, in theory, faster, safer, more secure way to move digital currencies. That's what it is. How it gets used remains to be seen, right? Right now, it's getting used. Of course, people realized really quickly that they can, they can. This is how most of the coins that a lot of people have heard of, a lot of the NFTs, this is how the people make money in crypto right now. I'll just share this with you guys real quick. The only people that could develop on the blockchain a couple years ago were developers. Now there's apps and you can, there's. There's enough people to develop that tell you they can develop and will sell it to you. They're mostly developers of Ethereum, Polkadot, yada, yada yada. Is that word again. Okay. What they realized is that they could put together a community, create a coin, make other people get behind the coin, convince each other it's super valuable, pump each other up. And the reason most of these coins exist, 99% of the coins in the world exist right now, is because the developer wanted more Ethereum. You have to think about who has the skill set, let's say five years ago, who has the skill set to develop a new coin. It's going to be a developer. What does a developer want? Probably more Ethereum. How does he get it? He convinces all of you that it's going to be the next Bitcoin so that you give him Ethereum in exchange for this thing he just printed out of thin air. And then he watches as the whole community, all out of fear Desperation, greed, tries to convince each other that they need to buy more and hold more, hoping that they can sell theirs and get out faster. That's what most of the crypto space is. Does that make sense? You see that NFTs are very, very similar. What if there was a way to do this same thing? Create an asset out of nothing, get a whole bunch of people to get super hyped about it, create a group think, get them to hype each other up and walk away with their Ethereum. But there's no chart. It's way easier to get away with the scam when there's no big red candles showing up. So that's why I tell people, be very, very careful with crypto. 99% of what you see is not what it is built for. It's not what it is, it's not what the potential is. It's a whole bunch of people trying to convince other people to convince other people that it's valuable so they can walk away with what they want, which is Ethereum, mostly Ethereum at this point.

Wanted that I might actually ask you guys to come. Well, trying to think the best way to do this, but, you know, come up, you know, let's do this for. Because it's the only way we're going to capture it on video.

Oh yeah.

And I want the people that are watching online to be able to see who's asking the question.

So, that being said, obviously there's a lot of coins out there. Everyone talks about the different capabilities of all the different coins, which coins are more valuable? Why is everyone trying to get their hands on Ethereum? What makes Ethereum so special with obviously the NFT projects. I know that there's some sort of coordination between NFTs and Ethereum that I don't obviously understand. Bitcoin being maybe the original cryptocurrency. What makes those two so special? And do you feel like those are going to outpace every, all the other coins and maybe those are the stable ones to invest in?

I will answer that question and I'm going to try to, because there's answers to those questions. But I think there's a way that we can pull out some concepts and principles that we can extract and extrapolate out. So first, Ethereum, let's back up. Because you said, what makes them so valuable? Everybody's looking at them. We're in a very interesting time. So if you study diffusion of innovation or adoption of technology, which is basically diffusion of innovation with a chasm in it, which is that Chasm is typically regulation. Never have so many people been so excited about something that is so early, anything else in the world. The way, the way ideas diffuse, you really don't see it or hear about it until you're ready to see it or hear about it.

Right.

Like groups like this hear about things before, like people hanging out at Burger King right now. So typically people don't see things until it has diffused along a very consistent curve, which is diffusive innovation. So we're in a really weird time where general population, late adopters, day traders, value investors, tech investors are all looking at the same thing at the same time, at the same like point in the diffusion curve. That's never happened before. So it's like, what are people buying? It depends on who you ask. Most people are buying a green candle, which means 99% of retail investors right now see green and they buy, they see red and they sell. That is not investing, but that's what they're doing. So this is just humans being human. So a lot of the conversation, if we did Q and A, which I hope we do as much as possible because I like the dialogue, I would expect to be about the technology. But the real conversation is about the anthropological, it's about the human, the humanity of it, because that is the wild card. The technology is very straightforward. So what's that? Which part?

That's pretty cool.

They're all seeing it at the same time. Yeah, it's very interesting. And you see fear, greed, simultaneously in extremes. It's wild. So Ethereum, Right. There are tech investors that believe that Ethereum as a first mover advantage is going to flip Bitcoin. I don't know if anybody still believes that, but Ethereum is going to flip Bitcoin. And that's typically from a tech investor standpoint or a value investor standpoint.

Right.

So a value investor would say, I believe that all future NFT projects will likely be built on Ethereum. They're investing in the utility of what they believe It'll be in five or 10 years. That's a very small percentage. We don't know what that is because we don't know how much of Ethereum's price is made up of people chasing green candles. So it's much harder now to discern the tech. Typically the tech investors would be very first. They read the white paper, they know what it means, they invest and they wait. Value investors wait till there's a utility and they can determine whether they think that's going to be valuable in the future, they invest and they wait. Right. And then day traders see the charts and they start trying to day trade it. And then mass market comes in and that's everybody's exit liquidity. But we don't have that same, that same kind of growth that the price discovery is very violent right now. So does that make sense?

He gets the general idea.

So the, the, the reason Bitcoin, Ethereum, Bitcoin, Ethereum are just the first movers. And, and it'll be interesting because blockchain I was talking about to somebody, the degree of diffusion is directly correlated to the amount of reinvention allowed.

Right.

Like Viagra was like for heart disease and then headaches and that's, that ended up being not what we all buy it for. Right. So how, how much do we allow the population to reinvent something or how much reinvention is allowed? Now blockchain is supposedly immutable. It's very, you see how hard it is for ETH to migrate to ETH2. So there's actually a limit in how much a project can reinvent as rapidly.

And what you're even saying about Elrond, that even though it could be the best tech, that's not always the one that wins.

Yeah. Ipod is a great example. So the tech investors use a lot of talk about tech, but we know the best tech is not the one that gets adopted sometimes, but it's the person, it's the ipod. Right.

The Zune had like four times the technology. He said the Zune had four times.

The technology, but the ipod was a thousand songs in your pocket. So it's really difficult to be a tech or a value investor right now in crypto. It is Bitcoin. Bitcoin is very unique. Bitcoin is one of one and it's a limited supply. There can only ever be 21 million Bitcoin. It is effectively deflationary. So what do we hate about the US dollar? It's inflationary. Bitcoin is technically deflationary because even though the max supply is 21 million people die and they bring their keys with them, people lose their wallets. So effectively there's less and less the max supply in circulation, which makes it for most the safest treasury type asset like Michael Saylor and Elon Musk, that's what makes it a safe treasury asset, is that Ethereum could be deflationary, but it doesn't have to be. Same with most other tokens. They have way too big of a supply to be considered safe.

Yes.

You okay?

Yes.

Go Ahead and ask your question.

Oh, yeah, I can't hear you guys sometimes. Can you hear me? I'm going to ask my question just in case you can hear me. I can't. Can't hear you.

I hear you here, Matthew, so just go ahead.

All right. Okay. My question was, Nick, how did you come up with the decision to build Wulff Dent on the chain that you picked? Like how. How would you. How would you make that decision based off all the chains that are out there?

Great question. Oh, hear myself. Hello? Okay, so that's a great question because a true somebody that has never built on blockchain that really has done a lot of research, they're really into the tech, probably wouldn't pick BNB chain, which is the chain that we picked. My number one priority. And again, I operate from a place of basically theory of constraints, right. So we're thinking asymmetry, asymmetry to the upside. And what the BNB chain does, for a few reasons, and we're talking about investor safety, is it has the most liquidity, cheapest fees, easiest to onboard. Like have you ever tried to get Phantom or get something on Elrond? I had to walk Joe through that. It's a nightmare. So we know that the biggest risk, or I believe the biggest risk, is taking new money, getting it all the way into crypto and then all the way on to the appropriate chain. And at the time, the BNB chain was the safest, easiest way to do that. So that, that was the reason we chose bnb. Just if our thing is don't wreck yourself, we should probably build in a way that leads to less people being less likely to wreck themselves. So does that answer the question?

It does. Yep. Thank you.

You gotta come back up here, Michael.

And I'll give you guys some. I'll give you guys some big picture crypto stuff that you could take action on.

So there's a lot of talk about getting rid of currency, right? Actually getting rid of the dollar so that everyone's on this electronic kind of global, global system. I think there's even like different coins that are being introduced out there by like World Economic Forum, and even the Federal bank is also thinking about doing it. Do you ever think that sometimes, like this whole bitcoin thing is a big scam to get us to get away from actual paper currency and get us all on a global system where they can monitor, restrict, track social credit. A lot of the stuff that's happening in China today because we still don't know where bitcoin came from who the inventor is. And I mean, that's obviously pretty odd for as big as it is. I wonder if you have any opinions or thoughts on that element of bitcoin.

I have so many opinions. I do not believe that to be the case. We are fortunate we have conversations with. Is anybody familiar with Fenwick. They're a very large law firm. They do most of Silicon Valley and the top projects in crypto. And we talk closely to people that are in charge of the teams that would be like looking into Binance for their ico. And my belief is that. My belief is that yes, the government absolutely would love everything to be on the blockchain. I do believe that. And I believe they want to regulate it as quickly as possible. And what I. What I have been told is try, I'll paraphrase. We don't want to mess stuff up. The problem is we're always late. This is what was told to me. So we're always late, meaning there's like this weird environmental fund stuff that institutions are doing right now and the SEC is going in and they got to blow all this stuff up because they were late. So I believe they're trying to be as early as possible. They're acting as fast as possible. They want to regulate it. And of course they want all of our stuff on the blockchain and recorded. I don't think. I think it would have been a lot smoother if it was the plan all along. You know what I mean? But I don't believe at all that the government would want to get rid of blockchain. It's a big win for them to have every transaction on the blockchain that we ever make. So I think it'll get regulated. I don't think it was by design, but who knows.

Was it Scott or someone had a friend that sold 10 bitcoin for like a pizza.

Somebody offered me.

Wait.

Yeah, come up here, then you're on camera too.

Tell a 10 second story.

It's funny. Yeah.

It better be a good 10 seconds.

Thanks.

Yeah, yeah. So, by the way, Nick's a stud. He's been helping us a ton. Listen, that's all I have to say.

He.

It's way more than 10 seconds.

Yeah.

My cousin's in Seattle and his best friend is the director of crypto at Microsoft, Marley Gray. And he spent 260 bitcoin on a pizza.

260.

Wow.

Yeah.

In 2012, I had somebody one time reach out and say, back when I was in fitness and say, hey, can you mentor Me, I was like, I'm really busy. It's 1600 bucks for like 12 weeks. And he goes, hey, there's this thing called bitcoin. I'll give you 1600. Bitcoin? Yeah. I said, no, fuck you give me real money.

Yep.

So, you know, I find it best not to look back. I don't do the math. People go, you ever done the math on that? No.

Bitcoin's at the lowest price it's been in a long time. Right now it's a little over 20 grand per bitcoin Today. I think you should talk about the.

General crypto that you were going to say earlier, because I think a lot of people.

Hold on. Scott, you got a mic.

Yeah.

So ask the question away to where he. He divulges. He divulges the answer. That's amazing.

So, yeah, I think I need a lot of help. Talk about kind of the macro of crypto for a second and what. You know, the part that interests me about what you guys are doing is your connecting with community and building ways to mitigate risk and building utility around it and the farming. And with Kumite launching our big NFT project, I'm not shilling this. Don't get into it. If you're not into crypto, it's great for what we're doing if you understand the space. But we just dropped our NFT today and these guys yesterday, pre sale. Today is now. It's to the public. But their community has actually probably guided us more than anything else. And we talked to all these people, like, Joe's not wrong. Like, we. We're talking to all the people in the space from the Shillers and the marketers and the top names and all the people who made billions and, you know, some strategic coach people are good friends with Vitalik, with eth, we're talking to everybody and no one knows shit. And it's so crucial to open it up. So with, like Hero Maker Studios, we're just being completely open. We've done 40 spaces on Twitter with all these people. And we're just trying to educate every day. We're literally just educating like five hours a day, trying to help people understand what I want you to get to, which is build a moat around an NFT or a token, or really based on a community that is building things together that helps protect the system and really adds ways that people can utilize the technology in their own niche.

Right.

Because there are a million niches that blockchain are going to be great for, and that's what we need to talk about.

Right?

Ours is in storytelling and building superheroes for the future. But there's a thousand of those types of opportunities, and that's what we need to get smart on, how that can help each of our businesses and our industries get to a place where things can be tracked better. Get to a place where things can be easier to transfer, to provide liquidity, to provide opportunities for people. And that's where I think you should go, because I think that's what people here are trying to get to.

That was still way more than 10 seconds.

Yeah.

Thank you. Yeah. You know, I guess let me just say this before you answer that or respond to that is what I'd like today to be with Nick is a starting point. I'd love to have people online because it's easier to capture. We can do the same thing here is what are the questions that you would have through this conversation? Because I would like to compile and understand what everyone in Genius Network would like to learn, what they would like to know. And then we start recording it and we start dangers, opportunities and strengths. That's Dan Sullivan's thing. Yeah, a DOS conversation. What are the dangers? What are the opportunities? What are the strengths? And so to Scott's point, explaining, you know, answering some of the questions, there's several in there. And then how does everyone here use it? Like, how does it actually apply to their, to, to their current businesses or life? And what do you see happening in the future with this? What's, what's it going to enable? Like, why should anyone care about this?

So I'll start with. And I'll piggyback off theory of constraints here, which is there's something we're all trying to accomplish. It's really helpful to define that if what you are, you can get away with this in your business for a while, it will destroy you in the markets. Specifically crypto, which means if the only thing that you optimize for is more, you will blow yourself up.

Right.

We need, we need a multi variable equation that we can solve for how, like how much more by win and why. So that we then have where we're at, where we want to be. And you know, to, to use language from yesterday, we're trying to improve the throughput. Right. And I always use kinks in the hose analogy. We want to remove the most immediate kink because we have limited resources and we want to put it the most immediate kink that's going to improve throughput the most and give us the most resources. To attack the next one, so on and so forth. Okay, so just bring that back from yesterday. The risk with crypto, and I'll start here, is that it's like if you want to hang a picture and you're like, I think I need a screwdriver for this. That might help. And then you go to the store and you get a screwdriver and you're like, this is a cool screwdriver. What other kind of screwdrivers are there? And then you obsess over screwdrivers for like five years. That's what people are doing in crypto. It may help you solve a problem, but then you go down the rabbit hole, and now you're obsessing over the tools. We want to make sure we stay focused on removing that most immediate constraint. That crypto is a very, very blockchain technology is a very, very powerful tool, potentially. That may represent the most efficient way to remove that constraint. It may not. What we don't want to do is start walking around the house trying to find all the ways we can use a fucking screwdriver, is what we're doing. How you. I'll do this in NFTs and that in NFTs, like, you're just trying to find ways to use NFTs. That is not solving the most immediate issue, the most immediate constraint. It's not good use of resources. And I'm a resource allocation guy. I want all my resources going to the primary thing. The thing is going to move the needle the most. So I want to start with that, because that is the lens through which I recommend we look through crypto. Does that make sense? This is the most immediate problem. If the answer is not obvious, or maybe there are some answers, but you're looking for a more efficient one, we look to blockchain, and it may reside there. We don't look, we don't find blockchain and then try to find ways to use it, which is what a lot of people are doing. So the ways that you can use blockchain, you could be a tech investor. So you're gonna have a much longer timeline. You're gonna be making asymmetric bets on the technology, maybe on a 10, 15, 20 year timeline. That makes sense. That's tech investing. You have to be pretty smart. You have to understand the tech. You may be a value investor, in which case you might bet on the utility or the team. You might say, oh, shit, Elon Musk is doing a protocol. I'm in. Because you're value invested, you can value Invested team, you're still on a longer timeline. A lot of people do all the homework and diligence of a value investor and then they act like a day trader. That is a macro belief that is diametrically opposed to like a micro strategy. It doesn't work well. So you can tech, you can invest in tech, you can, you can value invest. That's as an investor you can also day trade. If you're day trading, I wouldn't even say you're in crypto, you're just day trading assets that happen to be cryptocurrency. But day traders, they're just trading volatility. So like day trading, I don't consider that being in crypto. It could be forex, it could be whatever. You're just day trading a chart and it happens to be Bitcoin. All that makes sense. That's all the ways you could look to make more money in the short term. You could invest in infrastructure. You could say, I believe crypto is going to be the future. I don't want to look at all these individual projects. So if I believe crypto's the future, it's going to have to have a layer. One has to have a network. So maybe you put a little bit, you find the most popular networks, but a little bit in each one. Because we're just looking for the Google. In this case, we don't know. It's like investing in Ashdeeves, Google, Bing and Yahoo. You only need Google to win and you're good. So the infrastructure, you might get a layer one network like Ethereum, Polygon is a layer two phantom Elrond, what else needs to work? Do you guys know what an oracle is? No.

No. You remember the Matrix, the movie in Oracle.

So we got all this land, we got Cletr if we wanted to prove ownership of Cleater on the blockchain and maybe we wanted to borrow. You can do this. I asked chainlink. Maybe we wanted to borrow cash against the value one of our crypto against the value of that. In order to verify off chain data on chain, you need an oracle. So if we believe that people will use Web3 to check the weather sports scores, validate their verify their real estate holdings, we need oracles. So we divest some oracles. It also kind of answers your question. You see all these, it's not just a bunch of different coins. There's actually an infrastructure that's really helpful to understand what else needs to work exchanges. So you might put a little bit in networks, a little bit in Exchanges a little bit in oracles. What else? Insurance. There's no way defi goes mass market without insurance, armor insurace, et cetera, et cetera. So if you wanted to make a bet on crypto, you could just actually understand the infrastructure of it. It's not just a bunch coins that all have the same properties, they actually represent something with most of them are just a bunch of random ass coins. But there is an infrastructure with utility. So you could do that. All that make sense. Those are ways you could invest. And all you want to do is make sure that your macro belief, I believe bitcoin will be a million dollars in 10 years. Matches your micro strategies. If you're day trading bitcoin, you are not behaving in a way that is aligned with your espoused belief. One of the biggest problems with crypto is I know real estate investors that kill real estate because they know they buy and they wait 10 years and just the day to day action on crypto, they can't help but stare at it. And if we know that a loss hurts more than the equivalent gain feels good, it's just a matter of time before even if you're winning, you could be in an emotional deficit. Day trading.

You know what would be a total win for this conversation?

What's that?

If we could get Joel Weldon to want to buy a crypto punk.

Yeah.

His level of enthusiasm towards this subject right now I think is just.

We'll get him, we'll get him.

He needs a board ape. He needs a board ape. A board ape would work well for Joel. Do you know what a board ape is? Yeah, it's one of the highest floor NFTs right now.

Yeah.

Remember when we had gold coins?

Gold coins, yeah. We still do. Yeah, yeah.

Actually Gordy Bell has all the gold.

Yeah, yeah. Gordy has the original.

Yeah.

Well, here, let's do this for, for just. Cause I want to be cognizant of time. We got a couple, we got a couple questions. What I do want to do though, and, and let me just ask this to people that are online. If there's a question that you have but you we're not going to answer, but that you would just have please write down, like what would. Where are you kind of at in the middle of this conversation with Nick? Where are you at with crypto? Like I think there's a lot of people that are sitting there waiting for this like it's some sort of fad. And then we can go back to the regular world as if It. But that's not going to happen. That's just not, you know, And I remember this one tweet from what the Hell's His Name? Where he said, if you. Some along the lines of, if you don't have any interest in crypto and are not willing to learn, it's going to be a very bad century for you. And, you know, it was kind of. And I. Something along those lines. It's kind of interesting. So there, there is, you know, there is some, I think, truth to that, but I want to kind of get some of the. Some of the questions that people would have and then organize a way for us to teach it in ways for people that are interested. Because I know not everyone may or may not be interested, but yeah, continue on. And then we'll take the questions as you'd like and we'll have to. Should I bring the mic back there?

So that.

This is. Well, that. But it is picking up though, right? Okay.

Okay.

John.

I have a quick dumb question, if I may. I've been to your Wolff Den site and it says to get started in Wolff Den, go on bnb. For those of us who have no idea what BNB is. What the heck is that? That's a great question. Yeah, so.

Gina, mute it.

Hello. Okay, so it's a great question. BNB is actually a layer Binance. BSE is a layer one. So it's like Ethereum. I actually think it's a fork of Ethereum. If you look at their code, the way the Wulff Den is built is actually designed so that if you cannot follow the steps to get in, then it is probably not a good time to play in crypto right now. We actually built it. I can agree with you more. Yeah, we built it specifically so that people are not getting into something that they're not ready to get into. So, yeah, BNB is a layer. It's the native token of layer one. It's just like Ethereum. It just has cheaper transaction fees.

Okay, and another question for John. And you are muted, John, by the way, just so you can't ask another question. So how would you recommend people learn about it? I mean, just basic thing. How do you learn?

So we did an event here. Here. We did it at your office. And Anna David was here and I said, hey, Anna, how you doing? She was like, I understand about 10% of this. And I said, good, good. Because it's such a paradigm shift from traditional finance that if you sit down and you read and you watch and you think you understand more than 10% of it. You are very dangerous to yourself.

Right.

So it's like, good. You act. This is actually one of those things where you have to micro step into it. You have to send yourself like a dollar and wait because people could say, hey, look, you're gonna send yourself a dollar. It'll get there in like 45 seconds. You're like, okay, cool. Anybody here ever sent themselves crypto for the first time, watched it leave one wallet, and then just sat there stressing the fuck out because it was. You have to experience that before you can understand crypto. Otherwise you're gonna do with 200 grand, you know? And so it really is, at this point, Scott, what is it? 1.5% of the population has a wallet. It is so early that if you're not typically the first 1%, you shouldn't even know about it. But we do.

Yeah, and by the way, let me mention that too. I mean, like, that's one of the reasons we're having this conversation right now. Because, like, I swear, you know, Dimitri Butrin, who's Vitalik's father, came up to me in 2017 and he's like wearing an Ethereum shirt. His son invented Ethereum. And he's like, hey, can we take a. I listen to your podcast. Can we take a picture together? I'm like, sure. And so this guy's like, he was an active listener of. I love marketing. And I'm like, so what's this Ethereum thing? He's like, oh, you know, my son created it. And I mean, they're like billionaires, right? And like, had I known then what I know now, you know, and I waited, you know, I waited. Yeah, I wait like three years before I start asking him to start educating me about, you know, cryptocurrency. But it's this conversation, even though it may. I expect everyone to walk out of here, be like, what the hell is like. There will be a lot of that, and trust me, it will make sense and it will at least open up your. You will be more perceptive about this as a result of this conversation, even though there's going to be a lot less questions unanswered than there are answered during it. Because there's a lot to this. It's just not.

Well, there's this marketers and the concept of the grease slide.

Right?

Grease slide marketing, no brainer offers. And that works when it's not incredibly dangerous. If you have a grease slide, try to go through my stuff, it's not easy. And that's by design. Because if you have a grease slide with a no brainer offer, you have a bunch of lazy people with no brains pushing buttons and that's not good. So there's an awareness to have about yourself. Like, where are you on the diffusion of innovation? I'll tell you two really good reasons or two things, two really bad reasons to make a decision to relieve pressure in the short term. Not a good reason. That's probably what a lot of addiction is. And fear of missing out. Those are not good reasons to make decisions. So you have to know yourself. And like, this is a very unique time where we are sitting here talking about something. There's fucking super bowl commercials about it, and only 1% of the population has adopted it. So it's not supposed to be easy. And that's tough. It's really tough because I also have a marketing background. It's really tough to like make a sandpaper slide.

And the marketers are going to persuade and wreck a lot of people as a result of this, you know, depending on what their intentions are, how they go about doing it. And also the crypto, I've said this, the crypto market is a petri dish of addiction and gambling addiction, it is just rampant. And so I see this as being a vehicle for genius recovery and to actually help like the very same people that are addicts. Many of them don't even know it. There's like, what do they do? Where do they go? And so I actually see this as being something that will enable a lot of what my core mission is to build one of a very valuable, useful place for people that struggle with addiction. Let's go to Matt and then Randy and then we'll come to you. Is that okay? Yep. Let's try to wrap within 20 minutes.

Behind, behind a Dex. Like, how do you, how do these dexes come up with aprs, like varying between 5% and 600%. Like what's going on behind each of those pools to come up with those, those kind of returns.

I'll, I'll try to answer this quickly because this is the paradigm shift Dex is. So there's a farm right now. And I know you'll know what I'm talking about. And it shows 5% APR. The real return has been over hundreds of a percent. So the blockchain is not programmed in dollars and time. APR is a reflection of dollars over time. Okay, does that make sense? The blockchain is programmed in token emissions per block. And blocks are always changing. You know, they could be 3 seconds, 3.3 seconds, whatever. So what you're looking at when you look at the APR is not the existing data of past APR or a projection of future apr. It is given the number of tokens per block that are going to be emitted if none of these assets change prices, this is what you would get. So it reads the blockchain tokens per block, calculates the price, and then it back calculates to the UI the best it can in apr. But that's not actually how it's programmed. So if you're talking about a farm, I assume you're talking about like a farm, LP farm. Yeah, they're actually programmed, let's say pancake swap or whatever that farm, a 1x farm, might be programmed to emit 40,000 tokens per month, which is however many per block. So that APR is fluctuating because you're not staking. You're not putting dollar for dollar. You're putting asset one for asset two. So if the token per block remained the same, but asset two doubled, your APR would double. You're still getting the same number of tokens per block, but you're getting more US dollar value per US dollar value staked. Does that make sense?

Yeah, it does. It's. It's weird.

That makes sense to you? Okay. All right.

So muted for Matt this way. Hold on. I think you're saying something Matt and I couldn't.

Yeah, it makes. It makes sense. It's just crazy.

The impossible task that Defi has right now is they've built an entirely different system and they have to communicate it to us in a way that we can even begin to. Like, if you saw tokens per block, your brain would not know what to do with it. So they're trying to show you something that you can kind of relate to. It just doesn't. It's actually really poorly done. But if you bought a house for a million dollars and you got $3,000 rent and you counted that APR, what's that? Whatever the fuck that is. Okay. If that house doubles, it appreciates by 100%. Right. Your APR, your return on your rent, is actually now half of what it was before.

Right?

Right. So token, Token, you got two moving assets. Now if you're. This is where people get wrecked. If you buy a million dollar house and you get $3,000 a month and you're like, cool, I'm happy with this apr. If that house gets cut in half, the value gets cut in half, what happens? Your APR doubles and you're going, yeah, APR going up. And so a Lot of people are actually chasing APR and they're dwindling down their net worth, right? And they go, oh no. APR is going down. So they bail. But the APR going down was actually a function of their net worth going up. So it requires a rewiring.

I got it. Thank you.

Good.

It's just assets.

Let's unmute it for Randy.

Thank you for the information, by the way. It's over most of our heads, I have to admit. I'm a macro investor myself. I love macroeconomics. And so I'm going to ask the question for a bunch of the rest of us that want to see if this is relevant to us. And that is how. What is it that Wolf that the Wolff Den actually does? And is it something that is investable at some point? You know, it's like, how should I say this? What is Wulff Den? If you can summarize that real quick. And how do we participate or and who should participate? Let's put it that way.

Wolfeden. And how should we participate here? And here's. Let me just preface this, which is kind of funny. He's like, in the marketing world it would be like the sales prevention department. But in Nick's particular case, he actually does it to be protective of people that are not already in the the space. He actually always tries to not sell people into anything related to wuften if they happen to stumble across it. He's like the anti marketing of any of this because he doesn't want people to wreck themselves. And it's kind of funny now to answer his question, what the hell is Wuff Den and why should someone not participate or when would you know?

All right, two components of the Wolf that. And you guys are actually the first to hear this because we haven't revealed the next step versus retail that's going to be primary. Primarily people that want to actively learn and engage. It has very little to do with crypto. That part's easy. We talk. We spent a lot of time on the anthropological. We spent a lot of time on, you know, talking about concepts, principles, what I now know as theory of constraints. You know, really trying to help people figure out what the fuck do you want to do. So it's a membership for retail investors. We do have our own tokens. Don't have to buy them, doesn't make a difference. And there's tiers. So the lower tiers are going to be most investors that are sitting around, they want to push buttons themselves, all that stuff. There's higher tiers where you get direct access to me and the team. And we just talk through. We have people that we're helping them build some of their business on blockchain. We help them think about their portfolios, their time preferences, all that stuff. Okay, so that's just retail investors. The higher up you go, the more access you have to me and the team. The second, which is actually something we're going to reveal later on. The Wulff Den is designed to innovate in the application. We're not innovating. Technology I don't want to pay for that's very expensive in the application. Right. So how do we bridge this beautiful technology with doing good in the real world? So we're about to do a raise with Fenwick, most likely, so we'll do a pretty big raise, and we're going to incubate, coach, support, and help projects that are doing good in the real world. Use the blockchain to facilitate that.

And that's investable.

Okay, unmuted.

Gina, I said.

And is that second part, Is that investable?

It will be in a couple days. Okay.

All right, that. That's what I wanted to hear.

Yeah. And unmute it again if you can.

And that.

Randy, go ahead and say. What else are you going to say?

Yeah, I was just, I was looking for the place where those of us, I have no interest in the technical side of this and put my hands on anything and making it work. But I am interested in and to looking into things that are investable with people I trust.

I would not recommend trusting this man.

I didn't say I did. That's fair. That's fair. Yeah. So we do have an entity. It was built for this and it was built for people that are in traditional finance. We've had a number of, of people that watch what we do and they're just like, can we give you millions of dollars? And it's like, no, I'm not a fund. I don't want to be responsible for that. But now we're rolling out this, this entity, which is going to help incubate, build and fund some crypto projects that want to do good in the real world. But mostly people already doing good in the real world that want to utilize crypto to amplify it or refine it. And we've talked to some people about doing some projects. So that would just be like standard equity in the for profit entity. Thank you.

Yeah. And you know the thing too, and I've told a couple people this also that just want to, you know, how do you educate and do this? You know, it's like, you know, buy a hundred dollars worth Of Ethereum, buy $100 with the Bitcoin, just, you know, get a metamask. You know, I've told several people, you know, Scott's project that just launched. I said buy, buy Akumite. You know, they're what, what do they cost right now? I mean, with the price of Ethereum, what, 100 bucks or something? 85 bucks. Yeah. And because it'll just. And again, I'm not saying this for any other reason, just to start playing the game, you know, just so you start understanding how. So you don't push the wrong buttons, you know, walk through, set it up. I mean, it's, it'll be a good, it'll be a good education and start playing around with it. And I wish I would have done that sooner. And I say this very cautiously. I, you know, I mean, you already heard me say it. I had a quite a large sum of money in Anchor Protocol when it crashed. It was over, you know, it was over a million dollars and more than that. And you know, I never realized the term stable coins weren't stable in that particular case. And you know, and it was a great project. I don't actually regret it to me. John Raymond's. I was talking with him yesterday. It's tuition. You know, I just paid a big tuition to learn some different stuff. And I'm a huge believer in crypto and I'm a huge believer in what it's going to enable and I really like NFTs and, and most of it out there is NFT flippers. Just a bunch of fricking people trying to get rich and selling a bunch of, bunch of hope. And it's, and it's real easy to get sucked up, sucked into it. So, you know, I mean, I'm trying to learn this much. Everything I'm doing here right now is just my own education too. So. Well, it's. Well, why did crypto. Boy, that would take a long time. I don't know if you have an answer, but that one, an easy one.

Humans, humans being humans. When, when crypto moves very fast. This is this oversimplified version. Most people don't know what they're investing in. Okay, so same reason. Anchor crash. So when, when anchor. If any of you are familiar with Terra, when us UST was algorithmically stabilized, it was a stable token stabilized through arbitrage actually of, of Terra, of Luna. And when terra deep, when UST depegged so it lost its $1 peg. If everybody was educated and everybody knew how it worked, they would have done nothing and it would have repegged. So the crash was a whole bunch of humans being way too early to something that they didn't understand, thinking it was simpler than it was. And it just created. When people see red candle, they try to panic, sell before the next person. And it creates. And that's what most of it is, is people being too not understanding what they're investing in.

Yeah, it was fear. It was this fear that drove a lot. And here's the thing, it's interesting when you read headlines, you know, crypto crash, cryptos in the toilet, all that, I actually don't think it crashed. I mean, it's one way to frame it. This is a big sale right now.

You know, time preference, right? Like if it was what, $900 a couple years ago and it's $20,000 today, is that really a crash? That's just a short time preference.

Yeah. January 2007. Yep. Come up here if you could. Come on.

Come on, Jason.

Yeah, that's what happens. You open your mouth. Yeah, I just ate a bunch of nuts. Don't comment on that.

So walk through the mouth. A bunch of nuts in his mouth.

January 2017, Bitcoin was 900. So if you think about that, how long ago is that? Five and a half years. And it's 20,000 now, which is low relative to where it was 60,000 last year. But 67,000, right? Something like that. 64,000.

20X in five years.

So yeah, 20x in five, five years, 1,000 to 20,000. What other asset class do you know of that is doing 20x in five years? Real estate ain't doing 20x in five years. Now obviously it's not a perfect comparison, but even when Bitcoin went from 900 to 20,000 in 2017, on six separate occasions, it corrected 30%. It dropped 30% six separate times on its way to 20,000 in a single 12 month period, calendar period. So even during 2017, when Bitcoin went up from 900 to 20,000, a lot of people lost money in bitcoin because they were doing what Nick says, they were panic selling. They're saying, oh my God, it's dropping in value, I better get out of it. And then when it started to rally, I better get back in it. So they were buying high and selling low and they lost money as bitcoin went up from 900 to 20,000, which.

Is because primarily they didn't understand what they were investing in. They bought green and they sold red. So they had no fundamental operating system. Which is why one of the reasons crypto is so volatile.

Yeah. So how do we tie all this?

Thank you.

Go back to your nuts. So how do we tie this all together? Because what I'd like this to be is just, you know, a starting conversation for identifying what are, as it relates to you, what are your dangers in this area? What do you. What do you see as the opportunities and, you know, what are your strengths? So online, if you could just post. If you could ask Nick a question, because I will either do like a genius morning with you or we'll do a special session on this, because I actually want to start a podcast with you where we actually just kind of go through this whole process and start learning it. And I'd like to find out what you guys want to know. And what would be Gina or who on my team is up here. That is, how would we capture from everyone in here. Would it be. I guess we could have them put it on one of their tools and just text to one of the questions. You have the text number that's on there what a question would be? And we'll compile them that way. But let's kind of wrap this up and say, like, what didn't I ask you? Or what did not anyone ask you that we should have.

I think there are great questions. I think the most important thing, again, I'm always coming from the place of resource allocation and the anthropological, the human behavior component. There is infinite upside in crypto right now. Things get crazy in technology post regulation. We are still pre regulation. You're very, very early. That is not to get you to fomo. It's to tell you to slow the fuck down. Actually, slow down. We got plenty of time. Because the biggest risk is fear and greed. Right now, everybody's fearful. In a couple months, you're gonna see green candles and everybody's gonna be greedy. So work really hard. It's always my recommendation on figure out back to the theory of constraints. What is the constraint? What am I actually trying to solve? And it may very well be that cryptocurrency does not fit in those that those potential solutions, in which case just forget about it for now. Put it in toolbox. It might solve another constraint down the road. It's probably the most important thing because. Because the upside is infinite. The game is domesticating the risk. It is not catching as much upside as possible. There's infinite upside. You don't need as much as Possible. You just need some of it. So the game is really mitigating risk. Don't blow yourself up. Unfortunately, a lot of people in Anchor would have millions of extra dollars to deploy at the bottom here. And now they don't. So that's the game is understand what you're trying to accomplish, understand that the upside, we've only seen a fraction of the upside. So don't blow yourself up is really the most important takeaway. And FOMO is not a good reason to act.

Okay, let me do this because it's too good. Alan and Todd, that's it then. Then I'm ending the thing. Come up here if you could.

Yeah, I always take up way too much time.

No, no, it's not you. It's like this is a lot. I mean, we could do this for a whole day. Yeah, constraints.

Yeah.

Yeah.

So something I want to leave everybody with that should be really clear in your mind. Theory of constraints is not just about overcoming constraints. It's about resolving the reefs. The rules for overcoming constraints, what does it mean? So there's a great book that Goldrad wrote called Necessary but Not Sufficient. He said a technology.

Is that again in English?

Necessary but not sufficient?

Necessary but not sufficient?

Yeah. He said that technology is necessary when it can reduce or remove a limitation or constraint. For the technology to bring value, it must be able to diminish or remove a constraint. A limitation. But people lived with a constraint and a limitation before, so they developed modes of operation rules to live with that constraint. What would happen if you remove the constraint with the technology, but you never change the rules that acknowledge the constraint? It would be as if the constraint is still there. So the example that they use in a book to make it more practical is in the 1980s, they developed this technology called Material Requirements Planning. Big software like SAP and Oracle use it, right? Imagine you're taking orders from your customers for complex products that you have to build right now to decide what to build and what to procure. You had to go down this complex bill of materials and figure out exactly what do I have to build by when, what do I have to procure by when? Huge exercise. So in the days before these computer systems, guess what people did? They did that calculation once a month, once every three months. So that immediately had an impact on customers. You get all the customer orders in, and once a month, you do the calculation, place the order. So once a quarter, you do the calculations, place orders, sometimes even once a year, which is like budgeting. You do it only once a year because it's a massive exercise. The technology came in, it removed the limitation of the time it took to do those calculations. Theoretically, you could do it every day now, right. Which would mean you would need much less working capital. You would be much more responsive to customers. They put in all this technology, SAP, Oracles, most customers never got any value from it. Why? Because they were still running the MRP systems once a month, once every three months. So I think as a useful analogy, think about not just crypto and blockchain, but for your own product or service, for to bring value to your customers. It has to remove some kind of limitation or diminish some kind of limitation. But that's necessary but not sufficient. Think about the rules that your customer was using before your product or service that allowed them to live with a limitation. If you don't change those rules, they won't get the value, or at least not the full value.

I hope that was very good. Thank you. Thank you. Really good point. And you want to come up here.

From the South, I get a pass for asking stupid questions?

No. Like, you know, the thing I always say is there's no such thing as a stupid question. There's a stupid people that ask questions.

I'm in that ball game too, so I'm good player in that too. Simple question. So whether you've done any of the studies or what, we're. We're eight to 10 months out from a drastic food shortage. Whether you've studied or not, it's going to happen. Now, assuming that I have a supply of beef, right? 200 acres of fertile farmland that a cooperative can make food and access to clean water. What does cryptocurrency mean to me? If you don't have food, you can offer me all the crypto in the world that you want, right? But you're not getting the beef and you're not getting what's grown on my land. So, you know, from my standpoint, I'm saying I own some and I lost some.

Some.

Some money. Too speculative. But to answer that question, you know, I'm thinking, and, and this guy over here probably has, Joel, probably has that same mentality, thinking. Because I'm trying to process this, but I'm thinking when, when there is and there will be a depletion, there already is a depletion of resources. And coming from raised in farmland, I see that from fertilizer, all these things that are, that are coming, you, some of you may not see that it's coming. So with that being said, make me feel comfortable about crypto because I've got beef, I've got food, and I've got clean water. Right. And shelter. So I love the upside potential, just like anybody would in an investment. But anyway, that's my thought process.

I would tell you, if you're here and you want to get here in this time frame and you're there, you said, I want my beef, I want my land. This is what I want. I would not make an argument. I'm not going to spend time trying to make you comfortable in crypto. You got what you want and what you need, Right? So every. Every additional thing that we have, we are taking additional risk. Every dollar you put into Bitcoin is not in another ounce of beef. Right. So it's resource allocation again. Everything new you do, you are taking on additional risk. So we only take that risk if it is necessary to get what we want. If we can get what we want without taking on additional risk or even removing risk, we're going to do that. So people are like, I got it made. I'm happy. Should I buy crypto? Fuck no. For what? You know, so that's the game. We would take the additional if there was, but I also need $10 million to house my whole neighborhood and bring them with me. Well, maybe some exposure to crypto might increase the probability that we do that. It's a necessary risk because we don't see another way to get there.

Right.

So it's solving problems, not using tools.

Yeah. And I'll tell you, like, a lot of the things that I'm doing right now with even buying the land, buying the town with Jason, and some of the stuff we've done all started as sort of like, what happens if we go into the apocalypse? And you take. I look at a lot of the crypto stuff as a protection against tyranny. Because, you know, even if you had a million dollars in gold, it's hard to lug a million dollars in gold around. Okay, it's hard to lug. But you can literally take a huge amount of net worth in a little flip drive to any country, any place in the world, you know, because it's. If you can remember the codes or, you know, there's. So I look at it that way. That's really. It's a protection against tyranny. And I see a lot. Yeah, yeah. And I usually don't say that's the reason, but that's one of the big reasons. And I would definitely treat all of this like anything else. You know, just don't put stuff into it you can't afford to lose, you know. But what happens if worst case scenario, then what even matter? I mean honestly, it's one of the reasons I talk so much about the mental thing and just being connected with yourself. Because at any point in time, if it blows up as a human, you don't want to blow up, you know, your friends, your family, your relationships, your health. That's more important than any of this money shit. That's more important than crypto marketing campaigns, building a big business, having a title, having status, you know, I mean all that's irrelevant if you know. And what's great is if no worst case scenarios happen, you just become a more solid human. If that's the, you know. Yeah, exactly, exactly. I always hope for the best, prepare for the worst. That's how I try and you know. What's that? I was talking to Cherie about this yesterday. The back when we had overheads, I used to use this, there was this overhead chart, this little that I would use all the time in my seminars that said the difference between. I didn't come up with this, I don't know where I heard it, but is the difference between genius and stupidity is genius has limits. There's no limit to just when you thought you've seen the worst, it could always get darker and it could always get worse. And there's. Yeah, there's a lot of crazy shit going on. Oh, is it Einstein?

Okay, so the quote is from Einstein. He said that there's only two things he thinks is infinite, the universe and human stupidity. And he's not so sure about the universe. Yeah, and I think the final quote is just what I iterated is that fear of constraints is really about these, just these two things as overcoming constraints to whatever goals you have set for yourself and your business. But remember, we have to live with constraints. So we develop rules to live with constraints. And unless you change those rules, it will be as if the constraints still exist. So it's figuring out what rules to change and what new rules to adopt to for example, really exploit the power of this new technology. And for crypto, that's the thing is what limitation does it really remove? Crypto or blockchain for your business, if it does remove some kind of limitation, how did you live with it before? What was the modes of operation, the rules that you developed to acknowledge that, to live with that, unless you change that, you're not going to get the full value. And then what should be the new rules to really exploit the power of that new technology?

Okay. Give it up, Nick Peterson.

Thank you.

Thank you.

Appreciate it.

Okay.

I hope you found that video awesome and useful. So if you want to get a free copy of my book, I want you to click here. And if you want to watch some more videos that will be useful and awesome, click here.

Go ahead.

You're over here. Do it now.

Come on.

Thank you. Watch them.