Is regulation of the crypto markets a good thing or bad thing? Well depending who you talk to you get differing opinions.  Shocker. In this episode, we’re pleased to introduce you to David Drake, founder of LDJ Capital, a multi-family office which deals in worldwide funds accessing over $1.5 trillion in assets.  That’s right.. I said trillion.

The G20 met and made an announcement about regulating crypto that might make you smile.  And there are some things on the bitcoin blockchain that could land you in jail… and then you won’t be smiling.

Also, I’m thrilled to announce that my 15th book is coming out this summer. We’ll tell you how you can download a free chapter right now. Because that would make both you AND me smile.

There are plenty of smiles going around at the Republic of Bad Cryptopia, so if you’re not in a good mood now.. You soon will be.  It’s episode #102 of The Bad Crypto Podcast.

Full Show Notes at: http://badco.in/102

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Coinbase is one of the most popular and well-known brokers and trading platforms in the world. Their platform makes it easy to securely buy, use, store and trade digital currency. Users can purchase bitcoins, Ether and now Litecoin from Coinbase through a digital wallet available on Android & iPhone.

Do your own due diligence, some people have had some customer support issues.  Neither Joel nor Travis can attest to that.  If you do use Coinbase, once your coins clear, move it to an offline wallet or if you choose, move them over to another exchange.

Here is a list of all of the top crypto-currency exchanges.  Choose one that you like.

DISCLAIMER:Do your own due diligence and research. Joel Comm and Travis Wright are NOT FINANCIAL ADVISORS.We are sharing our journey with you as we learn more about this crazy little thing called cryptocurrency. We make NO RECOMMENDATIONS.  Don't take anything we say as gospel. Do not come to our homes with pitchforks because you lost money by listening to us.

We only share with you what we are learning and what we are investing it. We will never "pump or dump" any cryptocurrencies. Take what we say with a grain of salt.  You must research this stuff on your own! Just know that we will always strive for RADICAL TRANSPARENCY with any show associations.

Edited By: Aaron The Tech (http://aaronthe.tech)

United States


00:00:00is regulation of the crypto markets a good thing or a bad thing well depending who you talk to you get differing opinions shocker in this episode were please introduce you to David Drake the founder of LBJ Capital the office which deals in worldwide funds accessing over one and a half trillion dollars in assets that's right I said a trillion and David has some interesting thoughts on Cripple regulation the G20 Matt and they made an announcement about regulating crypto that might make you smile and there are some things on the Bitcoin blockchain that could land you in jail and then you won't be smiling so I'm thrilled to announce that my 15th book is coming out this summer will tell you how you can download a free chapter right now because that would make both you and me smile obviously there's plenty of smiles going around at the Republic of bed cryptopia so if you're not in a good mood now you said it will be its episode number 102
00:00:59of the bad crypto podcast
00:01:10who's bad it's the bad crypto podcast gang in the morning Travis how you doing Travis Trucking gym
00:01:27that probably wasn't thing somewhere wasn't it I just made of it right in that on the fly yes and I told you there be Smiles that already there are upgrading it because I love doing the show I love speaking with you about all things crypto cuz when you break it down we're just two dudes. Crypto
00:01:55what does how I get to be a jingle welcome friends to the bad crypto podcast the show for the crypto curious and the crypto serious and occasionally the crypto hilarious were glad that you're here we got a great episode ahead of for you and make sure that you go to the Facebook Mastermind as you're listening to this episode and let us know what your favorite quote is whether it's something serious or silliest that Travis says that I say or our guest today says cuz you're really going to love listening to him just put it look for the Post in the bad crypto Master find a bad photo lion 4 / Mastermind and let us know what you think would make for a good meme you know something that we can share on social if we use the quote that you have shared with us we'll put your name at the bottom and say thanks for sharing be awesome is if it's something that's like you know maybe a minute quote or even at men and a half because I was asked if you could put the timestamp there
00:02:55more helpful because we might actually take that time stamp out and then make a little video with that audio and put it on social stuff like that sweet you know who's going to be smiling right now Travis everyone listen to the show but you know who else is going to Smiling one person in particular because he is the first winner in our world crypticon weekly ticket giveaway that's taking place in Las Vegas October 31st through November 2nd that there will be emceeing new bad crypto live at mr. Richard gratulations you have won two tickets one for you and a friend or enemy you know whatever you ever you want to give it to I maybe you have an enemy that you want to turn into a friend and giving them a ticket would certainly be one way to do that so you'll be hearing from our team and the world crypticon people and if you guys want to enter to win it's simple all you got to do is go subscribe to our weekly
00:03:55newsletter did you say Ricardo Tubbs does anyone know this is none of Miami Vice reference it's Richard done alright guy I mean if it is it could be Rockets to to go with him and they will rock it so do you guys want to win a ticket for next week's giveaway go to bed Co. I am forward slash WCC what's your name your email and you will be automatically entered and you will receive our newsletter and that will make you smile so many smiles
00:04:45smile dealers Miles of Smiles I'm smiling right now Travis because I am holding in my hand a passion project for me it is a advanced reader edition of my 15th book and this one is if there ever was a core message for me this is it it's called The Fun formula how curiosity risk-taking in Serendipity can revolutionize how you work in this book basically reverse Engineers the successes that I've had over the years and I think you guys are going to like it I would like a free chapter you can get you guys can go check it out right now download you the first chapter for free at bad Co. I'll forward slash fun and I'll make you smile for me
00:05:45what are two more books in me I only have one book digital sense and none of you guys get a copy of the chapter of that because I'm not giving them not fun. Smile delivery guy go buy a digital sense show me cheap Amazon start taking Bitcoin so people can buy Travis's book okay more Smiles coming your way we really loved the interviewing David Drake he's a great guy and I wouldn't be falling up with him because there's some potential synergies for what he's doing bad crypto but first we get to know him as we did in the future interview while we were in South by Southwest we had an opportunity to show me the gentleman who said we needed to meet with another gentleman of the first gentleman was Jordan friends Jordan rights for the street.com and Jordan says have you had David Drake on your show and and
00:06:45you know call me an idiot but I said who and then I went and researched him I'm like oh that David Drake and I said no we have it and so we've invited him David is the founder and chairman at ldj Capital they are a multi-family office which deals in worldwide funds accessing over get this 1.5 trillion dollars and assets and David is also a leader in the cryptocurrency arena he saw the value of digital assets many many many years ago in 2011 I he collaborated on the jobs act to create new laws underlying all fundraising in the US for ico's and he's got a $200 came and fun focus on crypto Mining and Ico Acquisitions he likes to talk crypto blockchain and investing welcome to the bad crypto podcast David drink but thank you for adding me on here I kind of going to enjoy talk about bad crypto podcast opportunities
00:07:45pick up pothole so to say so glad to be here and let me know where should we start or are you bad at heart that's what we want to know now but I do tell my wife I'm a bad boy like that well that would turn into a different podcast and if we went down that right so bad David sometimes I think they like hearing it more than the actual act unless I read into that the right away we had a tumultuous couple of weeks after I was taking a bath all meters down below 680 nurse informs are no longer billionairess if they're sitting on crypto so you might have to update those things happening what what what took place when we saw the huge rise take place through early January and then Kaboom what do you think actually was happening behind the scenes
00:08:46well I had a chance to speak to CNBC and I told him it could be cold winter because it's so much uncertainty doubt there's no direction and now the whole world sing to us the reason to look at the same time in the US but yes she is a bad boy it's bad crypto boy and they're the only ones who go outside the US and mess with you so don't want to go out of us and say I'm going to shut you down and there's no other equivalent that will go outside their own borders and that's why the SSC and that you was such as center of the world in addition to being a deal with this and be with Simpsons bad you know that market going up and down and keep crashing over and over again hell going on 50% market share and
00:09:46what does Google say we're not going to have any more fake ass for no more bad crypto all these bad crypto ads there just rip offs breaking the law given in trading liability for us we going to shut them off and cut but let's be clear that you're not talking about ads run by the bad crypto podcast we were talking about actual cryptocurrencies that could be conceived as bad as you might not even have any ads on the guy Google but yes correct us bad crypto that can be seen that that's what he said look up the office before it becomes crypto are potentially three weeks ago only changes because you have these bad actor cryptos to work listen utility but we think they might be Securities so beware
00:10:45and then last week Google say well you know what these eyes are not that significant we were multibillion-dollar company liabilities too high we just going to say no more bad or no more crypto Ico and initial coin offerings advertising on our site that's always with Facebook dead couple weeks ago and start thinking like you know what I wonder how much China has to do with this vagina forbade ico's initial coin offering send a Tulsa cryptocurrencies the last 6 months and I'm wondering if you know Google and Facebook has thought that well let's kiss their ass and you know follow their lead some what or if it's completely independent saying hey there is no liability lot of these things are breaking the law because he's not your peonies in European Asian companies
00:11:44so why wouldn't I just buy ads and say whatever they want so I would say it's probably latter the former but it still makes me think that you must want to be a little more friendly with Chyna and Rob the charger but actually started trade war with China so it's pretty interesting questions to be asked me this morning time we have conversations around this all the time like what's happening why like with the geopolitical stuff that's going on and the potential regulation stuff that's going on and different things happening a different countries that that's one of those things that that is nobody seems to really know the answer in the in the market tends to respond and its own way based on the fear and we've seen how how much did the market has gone down since since January so you know one of the things that the Joel and I you know I've had conversations about is is the Innovation potentially leaving America because of
00:12:44SEC gets to clamp down on regulation a lot of these companies are are going to leave and you know most startups 9 out of 10 startups fail and so it's not that there scams Rise of an Empire intentionally trying to scam people it's just that they're using ico's as a method to to create their funding so I guess through all this confusion going on right now what advice maybe would you give a company that's thinking about doing an Ico like where should they even begin to think about launching it cuz it doesn't make sense to do to me I do in America right now that's too right now it does not make sense to do in the US because it could be a security and being legal and if you treat us as security there's no secondary market right now they will give illiquidity which defeats the whole purpose of having it so right now I was just a look most of these companies were brought in the first place anyway most of the US companies were created
00:13:44from Gecko and now my default they're all going to be incorporating the bra even though their principles are in the US so is we going to have rain train parts and keeps going for too long potentially but you know factors and I'll people now becoming an offshore Bankers Crypt allows you to say let me have my trip to assign my Corporation and Bahrain when mouth or Cypress because I'm hoping there and today going to Cooper a lot easier in the past I need to do the online of us and passed you had to stop at the store with the banker it would cost you back $23 bucks to go bra to learn about it today the world is changing to do that instantly and have a corporation may not have an office Broad and operate from the broad and then receive Revenue should have brought brought and consequently if Dad has little to no rabbit and
00:14:44taxes wow you just save money so what that's nasty and is doing and in the US it's necessary that they do it you got to remember the regulation we have has been tested and tried for decade it wasn't created by accident it wasn't created because people ripping people off and you see La by Seals ripping people off because they're bad actors so what Facebook and Google did there right then I can look but not s AC will not a police officer but if these things are breaking yes to see any laws in the US and we know the breaking the law because of the way it's worded black and structure will because most of them are for an advising us
00:15:33with hundred billion dollar company do we really care about a couple million bucks and then give us liability for the billion course. So we're going to cut that off in the time being so that legitimizes my advice for businesses my subsidiaries the companies who are they understand the law on by it and say hey to you David Ortiz sitter is because you know how to do this properly I supposed to we just need to throw some bucks into Google and advertise left and right and get people give us money and go get in trouble, don't care when Russia what are we care in Russia so
00:16:17Hyatt's to me good thing because it gives us service providers in the in the market who are in the US are compliant more value and it said remove a lot of the trash and frivolous advertising so fake ico's could go out there and make it a little more difficult for them just please take advantage of people instantly short-term yes it will hurt it absolutely because the market mechanism have been reduced tremendously sordo's then use bots in the medium and long-term is the best thing we could have had until that since he tells us how we should be doing properly David maybe this would be a good time to kind of summarize what it is that you do and all DJ DJ Elgin capitals and family office
00:17:11as my family office on the first generation of made my money and rules didn't catch
00:17:16game for Sweden as young kid on scholarships was smart enough to get out of people to pay for my studies and then give it to real estate and Wall Street and belts probably 99 * the startups eventually I learned my failures to the extent that I knew how people going to react and how business was being done in my forties I made my wealth and today
00:17:45lot of my energy is focused on real estate in crypto mainly because crypto allows you to reach the world and they can transfer your their Capital to you in seconds don't have to go to the bank and requested wire and pay 45 box to wait 3 days that I go through until I get stuck somewhere it's all those going to fish in C's middleman I remove it slow of tokens are Universal in the u.s. in the world and it gives you a certain freedom but yet again I will get you a Buttes to goes back to the fact regulations authorities we have to put their into the purpose and I know this will start in 1929 the real Great Depression there were no rules
00:18:37people wearing fleece done tricked and cheated to the extent that they lost their jobs and their house and we might think that you donate was a bad depression was nothing like that people are homeless people become vagabonds so they created 33 and 34 act night and stealing from mainstream America Louis years was to give Bruce a. When repeated itself and 34 act like we need a police officer guess who they picked this police officer take the biggest Crooks the crap casual the crooks and his name was Joe Kennedy became the chairman that Sassy 1934 of course we all remember that we would like to u.s. what's the weather at 2nd 3rd Generation the us already
00:19:37that's a great depression cuz he knew all the tricks to catch a crook but today the family
00:19:50bought in 34 and price of that was a different story fascinating isn't it by everybody I mean some Kennedy's or more idolized than others depending who you who you speak to so you know what what are your thoughts then on regular people those that we wouldn't categorize as quote-unquote qualified investors being able to partake in ico's today in the US they can't regulation then is that every ice deal with potential security when I saw you have to use exemption to be allowed to do it there's two exceptions today for the job site back down to three ones that I've been writing and working and helped create was crowdfunding wall but you can always a million bucks not very efficient this industry they have Greg d560 which is typical
00:20:50Japanese wealthy predication according to the 1999 amendment by Clinton was that hate you have to have had $2,000 in salary last 2 years this year or as a married couple $20,000 past year 2 years or this year coming up or the third option being you haven't known. Net worth excluding your main home but including your summer home so that's been the definition for the last couple decades what's your thoughts on that you know we got Travis brought up a point that you know he posted in our Facebook group he can go down to the corner and spend hundreds of dollars on lottery tickets right and nobody stops in from doing that but if you're if you're a small investor you can't put $500 into an Ico and what do you think of that I brought it's not a problem at all what do I think about it I think we should stick to the rules we have in the US and try to change
00:21:50I am in Congress like we did before on Herlong people doing best but I said there is a vehicle reggae. And get to reggae Lighthouse Joe Blow and you and me to go by and it's token we want and that bird is really on the issue you're the one who's doing it I see old understand what reggae is and then they are here to it says I love my current boss Rick is my favorite no worries behind strangulation a that's the exemption was Queen 1936
00:22:30by the government and he said you can be watered down Ico we want we won't charge you as much as other I said I'm sorry I typed you like the simple version I feel small businesses and it's been changing in car died in the last couple of decades and was revived in the job site but it says you can test the waters which means you can go out there? Lawyer but you should have a lawyer advice on this and say hey let me try and see what people think about it the problem with that is after people have been asking what people think about it you have a good acid seat and apply for exemption to collect money what you need a lawyer for which once again becomes expensive and not the like-minded so
00:23:26should we have protection for people being sleeves of course in the US. Protection is a certain way other countries is not should we be like other countries okay well maybe we should move Wimbledon of the country so philosophical question do we want to protect it be protected how much protected and if you want to change that right let's go to Congress and have them change the wall which just happened by the way reggae has been changed from 50 million maximum being raced in 75 which I think is pretty sure you know and in your right I mean a lot of these crypto companies are raising a substantial amount of money now I have done some research on you I was familiar with you you have advising umn work with you know what is it like over 250 different initial coin offerings in the past in the past year so you've seen a lot of different things
00:24:25Chinese companies in so maybe you know what is it that you seen from the successful coin offerings about what is it that they need to succeed and you know what is the blueprint that you kind of look for whenever you're looking for companies to work with while I mean there's also there's two two aspects of that that I like to focus on a is who I want to work with and be so I wanted and that's thing for me is when they reach the thresholds wish you could take them a couple months to get to and for me to work with them and being advisor the thresholds lower and you know I'll be there not at the point where I'm going to invest but they're at the point where I'm entertaining trick treat know what I see is it strong management team with a good experience as well as a good strong bug bites when they actually are groups that will complement this world comics and allow them to be open-minded background of the board visors
00:25:25they picked shows us that they're willing to listen the willing to listen to other Industries, the idea that they might not have a solution but what is gapless changes if they've had exits before which means they made shareholder value count for the shareholders in the past dentist and the Dynamics of running a business and raising capital and by default that always gets me excited. We have a couple of companies that we work with the guys and had a hundred million dollar exit if they created a company and they still run a million dollars they made money for the shareholders which means they know how it works and it's done it once before you like Luca them do it again is very high especially at that level of the things I'm looking for my look at a company of course the secondary and tertiary thing is are you solving a real problem yesterday market place is big enough for it
00:26:26and those are the typical questions decease I am I wasting my time is this thing can't grow bigger than Brooklyn which by the way has more people and sweet New York might have more people that's actually you're fluent in 6 languages while it depends on how
00:26:55tipsy you or I am okay I want you I want you to say stay bad in every language you know my love in French law and do a lot a lot build
00:27:13they got a kiss all good. You know this is really tongue twister good job right and you got involved in this looks like back in 2011 so let's talk a little bit about your personal feelings about Bitcoin and projections for you know where you think it's it's going to go here this year and then long-term question before he was going to be cold but her because regulation has been put in place of regular she's starting to downplay stripped off Facebook and Google Now play it it says he hasn't give me a direction log on 17 going to be putting a lot of pressure on it but it's come around when you start seeing that the regulations coming in place on certain has been removed
00:28:13country star irrelevant have giving direction what they want to do Japan Stanley you being changed Korea switching back and forth but now it's saying no no no but developers of the world living in China they can't run an Ico so
00:28:35accounts that back to government being able to control the money flow and some government says I'm going to brace it and we're going to just say go ahead run with it like Japan Korea what's going to happen is that the situations they want to cut a check that's a ten thousand times better than anybody else coming to the play is because a the custody issue people getting ripped off and the toad is getting stolen left or right trip just getting taken away I really feel safe that gives you the money to eat there unless only overnight somebody stole it resolved this has been commercialized the solutions are there but he hasn't been a commercial ice in the proper way of streamline the process is intuitions can see that it's safe
00:29:36and they can actually put money in and have a way to the public market will say hey we have an index for tracking companies to do services but we don't try companies are actually buying it because find that might get stolen so went as Custer's been resolved by one way of doing it as insurance would be great I give you money you turn it to eat there or Bitcoin or whatever if you get ripped off you make sure I'm getting paid anyway back sass FDIC Insurance $50,000 account is wrong with being short attorney $50,000 Solutions have been put in place but the templates haven't started marking it in April when she start doing that more moisture should we start getting into the game cuz it will feel that your money safe and that includes
00:30:32are the public companies past managers and had slots and go into the marketplace that I was going to have to spend money on whatever sliquid top 10 companies in crypto are liquids have enough liquidity that if you sell tomorrow will be enough to mantis you feel it so obviously these huge checks are going to go in next 3 months I'm going to buy the top 10 because they have the quiddity and that's all going to see over the next 3 to 6 months when can be pushed straight up because so much money is going on so I'm very bullish and I said before
00:31:12if it's half-price good time to shop Demarcus I maybe should wait cuz it's what I've learned last year is these two tokens of going up and down in value at 2240 every other week and I can't even look at Token Valley anymore because just too
00:31:33two tumultuous for me what are you guys you guys still it's like not enough we are not financial advisors in any respect and that's a running gag your word is a couple guys talking crypto and you know we're both bullish on on blockchain the technology is is incredible you know Bitcoin is is the Granddaddy and it appears to be the digital store well and you have people we just had an interview with John McAfee here recently and you know he's standing by his projections that Bitcoin will be you know a million dollars in 2020 and he says for him it's pure math based on the remaining level of difficulty yeah he's
00:32:23we actually ask them about it yet for those of you who haven't heard it bad cold out I and 40/100 episode number 100 in my Travis asked the first question and that was what he asked them and you guys have to tune in to see what he said I don't ask you a question around this so we want the masses to use crypto right and that's why we set up bad crypto you have to teach the masses how it works so we can we keep it at an elementary level and we as we grow in our knowledge base we become more intermediate we've been talking about different things but what is it going to take to get to know you know regular folks to use cryptocurrency and not just Bitcoin right but some of these other tokens cuz there's so many of these Ico tokens that that you 1500 + of these tokens now but how many people use those on a regular basis it's almost like they are in some in some regards it does seem like it's a security because people are holding them and
00:33:23waiting for them to go up in value but what is it going to take for people to actually use these tokens more for their original intended use Within These ecosystem while look look over stock.com it taking a beating last couple weeks to have only leverage in the cripple space but Factor Manny's that heats up a couple hundred different cryptocurrencies to buy Overstock products he saw that as an opportunity and I think that leads into what you're asking has to become mainstream unfortunately
00:34:02it is not an East acknowledge the axis electric dough that's easy to use the interface is have to become better it has to be more streamlined and become more efficient are you an example in our work with a couple of credit card companies or rather one called digits simple and they're going to say where can I launch a new credit card
00:34:32we're going to have you take any credit or debit card you have in your pocket guitar site type in your credit card number and I do so you can have your trip to account for whatever it is to that debit card credit card and guess what you can pick if you want to pay when you crypto with your credit card and you don't have to wait for new car to apply for new card we just going to set it up so you can pay for it
00:34:59it's still not still sit still not seem right you stepped understand crypto and have an account with the currencies but it's one step in the right direction of saying merge what we know today with West a new version and as soon as we make this more more seamless other than more it becomes acceptable in normal you know one of my directors technology Bill Davis Around the biggest European mobile catering company 5 years ago and CEO easier to use
00:35:38and more transparent easier for everybody to understand it right away then this is too complicated Technologies too complicated this to me Made Simple so you know those challenges exist exchanges sniffing everything else I've been a PC user forever in fact I'd a TRS-80 back in 1980 so I've dated myself here and I remember using Dawson having to finagle you know with interrupts on your graphics card and all this crazy stuff typing commands in Windows you know Anna and by virtue of the you no connection and apple you know the Mac with the you know when click is what brought home Computing to people in masses and that's kind of what we're missing in the Crypt the world is point click and you know why because your ego in January 2017 we had 11 million users of Wallace allow them to use crypto today we have 23
00:36:34that's not even 10% of the US population. You're right we're missing that easiness abusing giving coinbase is not easy to use which is one of the biggest in a way of getting into crypto today in the US so I think we're steps away maybe 3 to 6 months away for making for making that happen will happen again we need apples we need the Apple solution to says hey you make it simple you see Krypton you press the button and what up boo you have it and that hasn't happened yet so you don't moving forward hear you mention you mentioned a few things over the next 3 to 6 months that there's some things that are popping up what are some things are awesome so different tokens or different ico's that you have your eye on that that it that's coming up over these next you know couple few months that you think you have a pretty big impact
00:37:34well you know some of the critique of ether which has been the most common smart contract out there because it allows you to say if this happens then you automatically ask you that's what they eat their does is smart contract if you give me $1,000 when I hit you my tokens you will automatically get 2000 tokens in competition launching you know they got companies like Stellar who is operating other companies operating and I personally you know I'm excited by POS I put money into it no remember I'm not a visor I'm not generating revenue or income from talk about what I'm excited about but EOS was created to create a much faster version of ether and they've been selling their tokens every month
00:38:25it's a mass-market by auction that ends in June June 1st that stops which means they stop issuing new tokens as I'm standing in June 1st and I still haven't really lost their technology and you know what John Oliver was making fun of them call them like really erase a billion dollars and you don't even have it technology at operating which is true I'm still bullish on them and you know they got a lot of heat from that advertisement for that section of John Oliver couple weeks ago but you know the promise and my knowledge I be involved with them is that they going to be Farm up more faster than ether I Never Promised of operation quicker and it's going to be a new companies new tokens coming out there's going to take over either and it's going to become more efficient faster better
00:39:25what's a David is is the fact that you know you mentioned this earlier you said that if you hadn't had an entrepreneur who done it before and accident and had a successful well that's kind of what he office is right with Dan Larimer he's done it with steam and he's done it with big chairs and this is his third time going around and one thing about what about Steam and bitshares is that it makes it really easy to say and like if you just have the letter T letter W 73 you can send me pictures like you don't need this big old huge long address and I think maybe he takes that Simplicity in the Eos you can really have something and you know what I'm big into yes I put money into it but you know what this 20 more yet again they might be 500 there just crap
00:40:12there are y'all Dodge Coin started as a joke and has it what to build in our valuation so you know I don't I think it's submittal more mass hysteria and we're starting to learn right now how to evaluate this company's we have not experienced in history like myself haven't looked at 250 ico's to say you know what there are certain things or comment and they're awesome things that's going to be hold true in the future you're one of those things are corporate America in corporate companies around the world sexual the value for Mike shareholders by taking loyalty program a saying use me over and over again and make a loyalty program a crypto wish to be changed and traded that exchanges and if I issue only 20% the bad crypto to changes they pretend I'm holding or shareholder value for people trusted me so the point of it being that
00:41:09corporate companies in hedge funds and public companies are entering the space quickly and they are easy to underwrite because they have real Revenue real operations for a long time and that's why I called this year trip to Wall Street the last year cryptocurrency and the days of Anarchy just a little bit teary ends up becoming more and more diluted because the mass Market Wall Street Annapolis the walls in the US and New York Wall Street I mean corporate in this Industries in the science area across the world are starting to see the value of having a liquidity for liquid assets as well as well to program what about the value of crypto kitties dated because this new story just came across my feed on Fortune cryptokitties wins 12 million from Andreessen Horowitz your thoughts on that
00:42:07my thoughts is thank God the Visa waking up the Reese's like Andres Horowitz and Sequoia put in what sport to 800 million. Box in 2 telegrams you realize we've been resilient in Silicon Valley and pushing it back and we don't want to embrace crypto cuz its challenges hours at Germany being the boys club of investing in the best of the best but crypto is changing everything and Egypt company in the world can raise Capital online before they have a product that's true too challenging status quo for BC's Norwich putting money into it
00:42:53listen can explode please open our mind we're going to be in there early on before we lose out so that's what he's telling me what about you what we are we covered the crypto kitties at Great length You Know Travis and I were fascinated by it when it came out and we had a hysterical episode I was just it was a riot to talk about it and then we got the interview their team and obviously they are there in pressing people out there with this business model I thought they were kind of dying off but maybe they're going to bring new life to it now with some serious fun day and now it says it's fascinating every week we see something new happening in the street across the board right on so I'm in a very insightful interview come on the show what would be you know some advice that you might have for folks out there who are wanting to learn about crypto maybe they've not invested or they're just there they're trying to educate themselves
00:43:53what is some what is some advice that you might give them to kind of leave them in the right direction which is to tell them look it is very complicated even the easiest thing like opening up in the Aether wallet it's extremely complicated so don't feel that you don't get it but rather feel like they haven't traded user interface that's simple enough for people just do it secondly maybe go to coinbase which has been able to create a mechanism in process is somewhat easier to open open an account but not as easy as you as you would like to thirdly definitely don't invest a lot of money and get excited in it the very best to learn how to open an account for somebody and give them my birthday gifts of Christmas gift I feel early for Christmas gift but it might be earlier and to give them 10:20 bucks
00:44:51or more than a certain point in a better give him 5 to 10 different coins for 20 bucks because a they have to learn about those coins they have to learn about what business online it is behind it in the mechanisms working which really educate some inadvertently and you too because you're going to have to text me as a question and that help the whole industry to massive. Because now we all have to learn about what we have in our pocket so that's why I sent you know push little bit of money into it as a gift to somebody and then everybody has to learn about it be an evangelist of crypto crypto the gift that keeps giving David Drake ldj capital.com is a website David thanks so much for joining us today thanks for having
00:45:40and there's your edit Aaron. David appreciate it this will go out in a week or so as I was reading your bio here I noticed that you guys do a lot of conferences and events if you see an opportunity for a for a blockchain related event Travis and I do bad crypto live on stage and bring a real entertaining elements to do these otherwise sometimes dry blockchain conferences all week we've done four of them so far and we're getting booked to to travel around and MC in and do our show from the stage so I just something to keep in mind we sponsor you know at least the conference a week now sometimes too
00:46:28so if you guys need more exposure I can definitely help you guys and if that's the case let's do an email tomorrow and I'll get my sales team start selling you guys so they will be fantastic also we are going to put on the first year anniversary of the show we're going to do bad crypticon here in Denver where I am and bring weekend or Layman for about 400 people here on this first one so maybe there's some Synergy there as well
00:46:56can you guys send me what you guys would charge to do your back to throw it in the bed and I will have my cell C and starch figure out a way to make you guys money sounds like a winner to me also that one thing that I did everything I wanted to say we have working with all these different ico's we have 1 episode 1 of Spotlight that sponsored show or we have up to four different ico's on that if you have one that's just like a really Kick-Ass one that's what you think is going to just blow up we would love to maybe have them are like somebody's paying you that works to write so how about you guys tell me these things and we chilled 201 that we work with that you are by default on the podcast promoted and we want to work with and they should be passing your events
00:47:52that would be great you know what will do is will connect you with our business manager Chris pulley and you can hook us up with whoever you need to on your team to talk about getting us at events and we have we have a lot of things to explore here this is a great relationship welcome back joint venture take care let me know if you need me yeah
00:48:21what's the average income of a show and valuable information there around you know I see ya in and I think we definitely know some of these gas will first one I've enjoyed all the gas but you know some of these people I really want to make sure that we have back because especially when you're talkin regulation you know we have him back in the future will be able to look and see you what's what's taking place cuz this is a moving Target and by the way that also that the feedback to John McAfee episode has been phenomenal and in my mind I think I've already decided that he'll be episode number 219 think that just would be going to have him back in for 2 I know he said we can call him in 20 25 but I think we're going to call him before then that's not a bad idea to laugh at my jokes but I have to say
00:49:21my regular joke there with David right I was pretty mail
00:49:35and write via the contact form at bad crypto podcast. Com click the link to the form you can do that too he says a question regarding the US embargo in cryptocurrencies I was watching the Venezuela Petro coin and I thought crossed my mind since the u.s. have sanctions against Venezuela if you were to trade in that coin are you not going against the sanction embargo acts and does this apply to any sanction or embargo that the US has in place since many exchanges are now reporting to the IRS would there be some kind of flag showing the script was trading could you be held accountable just curious thank you love Dad and stay bad you know we talked I think in the last episode that Trump has signed an executive order Banning US citizens from trading in the Petro
00:50:25so yeah you can get in trouble so. And it's also good for me it's one of those moral issues like the dictator of Venezuela is bankrupt that whole country going to support him stealing the wells out of the ground and using a tokenizing oil in a large tater tater tater it was a great interview on our show he said Jack was solid and we'll link to the the band about the Petro in the show notes and why do people write us to ask questions they also call the bad crypto hotline what's that number Travis 7090
00:51:14230 Joel does that's exactly what Jeff did you can you give us your opinion about proof of work proof of stake and delegated proof of stake and some of the different coins that use them and after listening to the show for about six I know to Sonic on y'all are not right and I liked it well you have called crypto podcast my friend and we are Googling for you because this is we talked a little bit about proof of work and proof of stake before I proof of work being that the computer doing the work is the proof that you know the transaction has been mined and proof of stake is that you're holding the tokens are the coins you're staking them in and I got out
00:52:14work is that you had mud on your boots and blisters on your fingers yeah so we we find article on steemit that it is really probably more information than then you want to know and so we're not going to go over all of us here but you cannot go to the show notes and in check it out so what this says here is that the main goal of proof of work is to deter denial-of-service DDOS attacks by requiring the computational work to be done before block submission so in order to mine a block of Bitcoin you have to spend or have the computational power or energy can I see that's one one way proof of stake is I also require stop
00:53:14sectional power but it requires that the minor has a large amount of the crypto that that's what it means to stake it is now those are actually using what's called Master note and you need to have X amount of their tokens to have a masternode which the other things later down the road chain 2000 and I think you know if you hold a certain amount and then that'll actually there's actually a Democratic or future tense of a delegated which users of the delegate vote for delegates in witnesses to serve on it so that way you can make changes to the more effectively
00:54:14yes Joel said there's a great article in our show notes a wood steamer that friction put out and I really goes in death on at all I wonder if his brother is Lambeau so basically these systems of consensus are there to help keep cryptos safe against attack to keep decentralized and to make them secure and it's not as much as I even want to know about it I just know that the stuff works but in fact there's a tweet buy a Bitcoin developer an entrepreneur by the name of Jimmy songs and we'll link to in the show not so you could read the whole thing but he makes the case that proof of stake doesn't make sense that it can be manipulated so you know if you want to dive deep in that go ahead and dive though the water's fine this is a cool you can dive into Dory it's deep enough are you won't hit your head or anyting talking about
00:55:14what is a POS
00:55:16piece of steak steak steak a filet
00:55:29Stellar is is going on with the lightning in 2018 year this year meaning Steelers going to be coming out super-fast said but you get a little Jed McCaleb who was one of the early guests on the show says that scalability is one of their primary focus is over the next year and that's why they're they're going after this so you know I guess you can never be fast enough because they're thinking growth and a stellar gross because that's the intense it can slow things down so why not be proactive with this you know get get lightning implemented ahead of the curve actually it was a joke calm I believe this is Jed McCaleb was our very first bunch of shows before we had a guest on now we got so many you now that were immersed in is blotchy
00:56:29space and seen that there are so many amazing people as I can cuz I want to listen to us talk all the time one of your
00:56:41so here's actually this is an interesting leap because you know IBM has a partnership with stellar and the story sags into an IBM story IBM Addison way Telegraph I would say this because IBM reveals blockchain computer smaller than grain of salt to track objects and devices they announce the world's smallest computer it actually is smaller than a grain of salt and it's going to use schemes blockchain these guys are innovating I've there's a quote from IBM research had arvind Krishna he said they'll be used in tandem with black jeans distributed Ledger technology to ensure an object's authenticity from its point of origin when it reaches the hands of customers so they're going to embed these pink dots are tiny computers in everyday objects in devices
00:57:41as an ink look like an eight. Wow that's pretty good I just wasn't sure what it sound like I kind of like it it's worth me but that's really small I mean things are being tracked don't even know so but the company is definitely investing in a blockchain startups and they have a dedicated fund for this so I remain bullish on blockchain when I see you no Fortune 500 100 companies getting now this is you know we told you that there was one part of the show that might not make you smile and this is it right now because if you're not careful according to the story in the next web the Bitcoin blockchain could land you in jail retro
00:58:41alright so you know I'm watching transactions in his first transaction was Hal Finney and I don't remember off the top of my head What that particular but what has happened is other people use that same thing and even coated URLs to child porn was in the blockchain so if you actually download the whole Bitcoin blockchain you might have violated several you put links in some of them and guess what you know the blockchain is immutable unchangeable they can't go back and right now without a change in the code right
00:59:41there's researchers that looked at this and they found more than 1,600 files that were in a computer code in hexadecimal are binary on the blockchain which contained more than 99% text or images and in these files they found content such as Bitcoins logo a tribute to Nelson Mandela Catholic prayers but also highly objectionable content such as links to images depicting the sexual abuse of children not good no boy no probably 1600 total files so huge right very small portion content I mean put those links on there and when we finish up here on an up note that the other G20 which you know basically these are the the ID describe these people the top 20 country
01:00:41in the world based on their economy I believe okay so they meet annually and you know those people that have been wondering are they going to crack down and crypto or they going to ban crypto and what they're saying is right now we're moving slow they are not intending to create any decisions about crypto regulation this moment Lisa this organization they're going to revisit it in July but this says this is positive and make some people think that there's some bullsh news out there and perhaps you know that I believe personally that the bull market you know barring any massive negative regulation is is going to be coming soon cuz it's been you know pretty suppressor the beginning of the year but I am not a financial advisor and don't really know and you should listen to me listen to
01:01:41and you know you have friends that that should hear and not listen and we depend upon word-of-mouth we really don't do a lot of paid marketing dabbled with Facebook ads a little bit but you know Facebook and Google and none of the Twitter soon none of those places like Krypto and him won't be going to running at so you are in the show enjoy it tell a friend then that's how we grow and spread the gospel of bad crypto the gospel of bad crypto you can actually send us a self-addressed stamped envelope too bad Joe podcast care of CC p0740 Avenue that's in a l l Avenue Suite 115 Kansas 66211
01:02:41free stickers for sending you 5 of the bad logos that's pretty rare we don't have very many of those and I think we will be with those actually I think like if you send us a sticker let's find a place there in the office Travis that can put those on you know like a big poster board and we'll take a picture of it periodically and show how it fills up with the stick we can do something cool with Emmett bad crypto cock that's an idea as well well send your stickers as well if you like in the envelope will that whether you do or not will definitely send you a back stickers and then
01:03:40that was pretty pretty much swag and stickers much love and respect the show and now they have a family dinner meetings once a week were they all I do is talk and one of his friends is a doctor does YouTube video discussing the psychological
01:04:28so cool awesome well lot of State bad messages so many messages stickers all you got to do is that a stamp and envelope put your address on it and put it inside an envelope will mail you out sticker and that will help you to stay that
01:05:01the bad crypto podcast is a production of bad crypto LLC the content of the show the videos and the website is provided for educational informational and entertainment purposes only it's not intended to be does not constitute Financial investment or trading advice of any kind you shouldn't make any decisions as to finances investing trading or anything else based on this information without undertaking independent due diligence and consultation with a professional financial advisor please understand that the trading of Bitcoins and alternative cryptocurrencies have potential risks involved anyone wishing to invest in any of the currencies are tokens mentioned on this podcast should first seek their own independent professional financial advisor is regulation of the crypt he's not making noise
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