 Here we go Jerry, we'll go live and we'll talk to everybody and give them the best possible information that we possibly can especially with what's going on out there And don't worry usually usually when we do these live streams we get like two or three people Just no pressure. No pressure. Let me put let me Perfect, okay, let me go back and change all the different things that I have to because of how it is everybody Welcome to this impromptu live stream. I'm joined by my good friend Jerry Hall who has his own YouTube show live with Jerry Hall and he has done one of the things that a lot of people wish that you could do which is Pick up everything get out and move to Costa Rica and then just live the billionaire Crypto lifestyle just kidding Jerry's Jerry's not a billionaire yet But he's on his way and I invited him on because we were talking about exit strategies and How it all works and how the how the bull and bear cycles are coming about and really just the things that we should be aware of and and honestly a different outlook of Bull and bear market. So Jerry, thanks for coming on. How you doing man? I'm doing well. Thanks, Rob It's really a joy actually to be on your show and talking about these topics because with With the advent of this new asset class, right? So many things are new That we don't it's not like we can go to a book, right? We can't go to a book and learn about Crypto network and the growth curve and the adoption curve and Metcalf's law as it pertains to fix supply assets We're writing the book as we go Interesting time right in history to be here doing this Yeah, I think it's an interesting time. I think it's an interesting time for a lot of people who who honestly have made Just about the money, but I mean it really is about I mean the The different percentage gains that everybody has talked to me privately about it's pretty amazing You know, what's crazy is that we're just on that precipice about really getting into something big and we knew talked a lot about these cycles And you know, I think we're like between 40 and 60% you have a different opinion about bull and bear markets Which we're gonna get into in a bit, but yeah, man. I mean this right now. It is Some of the craziest times we've had I think Well, I it's Here's my I'm very public about what's going on with me, and I know you've shared your portfolio publicly on this channel. I Have a net worth now Larger than I've ever had in my life, and I've had a pretty nice life. You know, I'd never Wanted for much And there's a lot of things that come with this right it's you know I've done videos on and studied sudden-welfth syndrome, you know What are the mistakes people make when they think they have a ton of money? And I'm glad that I did that and it's through kind of through my YouTube channel and the interviews that I've done with people and a little Like I did little series. I did one called Beyond Moon where it was just about Setting up an extra strategy understanding sudden-welfth syndrome and all the things that can come with that Best practices type of stuff right for when the wealth that you've been fighting so hard to create Is finally upon you and for some of us We're in categories now of net worth that we've never been in in our lives And I'm in my mid fifties Mid fifties come on Jerry Mid fifties and and I have I am worth more now than I have ever been in any Previous time in my life. And so what does that mean? Well, I'm not at my goals. So the truth of the matter. It doesn't mean much You know, it's just numbers on a paper until I've reached kind of the goals that I want it that I was set for myself But it does I'll tell you there have been times I have entertained Buying that piece of property with the waterfall on it No, you you get I looked at four of them last week Pricing out kind of strategizing what will be my costs and that's one of the things this crypto Environment has brought to me. It's it's introduced me to a world of finance in a world that Was kind of not something I focused a lot on throughout most of my life I made money. I spent money. I enjoyed my life. Yeah Well, you should yeah, well, and I that's important But it was never a focus to really build anything for after And it wasn't until I got to crypto that I did, you know, my story is I don't think unlike a lot of people I Lived my life in the US financially Illiterate I mean, I understood making money and balancing checkbooks and things of that nature, but Creating a retirement No, I was happy to give x percent to wall street guys in some 401k plan or something like that and You know count on social security and things of that nature and that kind of that training that I grew up with was Jerry Get a job make money save some money buy a house And if you do those things you'll be fine now That worked for the baby boomers Yeah, and I don't even know how well that's working out for the baby boomers that are getting into that 65 67 year retire, you know where they are right now So maybe it worked out great for the silent generation But maybe not so much for for me and your generation because All those things are no Are no longer bedrocks. It's like your house is no longer an investment It's a place to live when you factor in property taxes and in the just the cost right the cost of owning and operating a home relative to its value relative to the Just absolute basement of our currency, which is what we base value on right? How much is it worth x amount of dollars? That's exactly right. That's exactly right So that whole thing is kind of out the window really That whole paradigm that I grew up believing was the way to do it It's coming to fruition that that That doesn't create financial security No, it doesn't although it sounds good in the beginning, right? You're like, ah, I'll just you know, save a bunch of money and then we'll get into that It sounds like the right thing to do when I was 18 You know what so everybody who's watching right now So put in the comment section. How many times have you heard as you were growing up? You got to save money You got to put a little bit in the bank You got to just set aside 10% and put that money in the in your in your savings account and by the time you're 120 you'll be financially set and that's it. Hey before we go on. I want to share something with you. This is pretty good This is from squiggly wiggly squiggy wiggins. He says hey rob And squiggy thanks for for For for commenting and and donating he says from a friend of yours rob has made money off game spot Dogecoin and a lottery tick of this year The best financial advice I can give you is be a complete idiot like me and that is no problem Squee I do it every single day. You can ask my wife and uh, that's really what it comes down to and me and jerry We're actually talking about this today before we got on because he said, you know, man He goes as far as that worth this is the most I've ever had in my life And I go well you deserve it jerry because I'm like everybody who's here right now You deserve everything that's coming to you because all those days and weeks and months and even years When people were telling you, you know what you shouldn't invest in the crypto You shouldn't do this you shouldn't do that because it's just a bad event And you're like, you know what I know where things are going and guess what here we are Look, we're at a two and almost two and a half trillion dollar market cap Most of us are up fantastically over time And uh, in my opinion, I think things are are just getting just getting going But jerry I got a question for you you talked about Uh, you've taken a study of people who became who become Financially wealthy very quick and what that means and the pitfalls that that people go through and I wanted to ask you a question I'm gonna bring up one of jerry's old old interviews. This is this is jerry hall's fantastic, uh, youtube channel go ahead and check them out, but he had a It was it was you and raul pal, right and you're laughing your head off for some reason probably something that uh, So did you did you glean any kind of information from him about people becoming suddenly wealthy or just as something that you've Actually come across as time has gone on The sudden wealth syndrome didn't much of that didn't come from raul Raul has been a great mentor to me in Like understanding market cycles, right? Yeah understanding demographics and their role In the greater economies around the world um being able to parse and parcel minutiae and zoom out to get a macro look, right? So that's kind of what I've been fortunate to build a relationship with raul pal Not that I hang my hat on that and but uh, he's a wonderful man. He's been very kind to me very I mean, I there's things I can't even talk about how kind he's been to me. It just wouldn't be fair publicly to say that but um wonderful guy, uh, what he's doing any of your folks that are interested in in Getting financially literate if you don't feel like you understand everything that's going on in the world and I still don't understand Real vision is wonderful and they have many things that are free the daily briefing At the end of each market closely to have a topic they talk about it's free um, their crypto channel is free And obviously their youtube channel everything on that is free real vision very very key in my Developing a financial literacy and understanding the greater world as it pertains to markets economies monetary policy Yeah, jerry. Yeah, everybody at home jerry's uh so much into what he's actually going for his financial advisor license Which i'm like jerry. I don't know if you need that from what you tell me But he's like no i'm gonna do it like okay go ahead and do it Well part of it part of it is just the challenge Yeah, you know what I mean just part of it's the challenge and then the other element of it Is this until they change the laws in the us? The only way you can legally get access to pre-ipo companies Is to be what they call an accredited investor and a series 65 Gives me that Yeah, so if you're just joining us, this is jerry hall and jerry hall show over on youtube And uh, again, he did what a lot of people would like to do He just got up and got out now He's in coast and beautiful costa rica live in the frugal life the the crypto millions And he's just uh, he's just here to share a little bit of knowledge so Jerry take a step back for a second talk to us about um We talked about sudden wealth right what do you see is is is some of the big problems when people because right now Some people right now are watching they're millionaires and they've never been a millionaire before What kind of advice and this is not financial advice. It's just financial opinion But if you had to talk to young jerry And say young jerry don't do this if you make your millions What would you say to young jerry the first the first thing that I would the first advice I'd give is don't Don't do anything big for the first six months Let let yourself kind of emotionally acclimate to this new financial Stratosphere that you're in right this new kind of financial level that you're in that'd be the first thing I'd say And then the next thing I'd say is you know understand that money if you look at the history of lottery winners uh professional athletes in the past Who have come into big money um You can spend a lot of money quickly right so acquiring depreciating assets um Lending money to friends that you may never see that again um supporting lots of people not that Helping people is a bad thing to do But those seem to be the biggest pitfalls that people who come into money Who aren't acclimated to it who aren't accustomed to it? They they tend to Give it away in a lot of you know in these very Various processes one buying you know depreciating assets buying that new car Yeah New cars are wonderful But maybe You can have a new car, but do it in a different way. Maybe you don't need to sell your assets Take a tax hit Buy a new car get an immediate devaluation when you drive off a lot. Maybe there's a way to structure a trust for your family And maybe you lease vehicles brand new ones instead of purchasing them It's an option and it's an option that really comes down to yeah personal you know, whatever Whatever your goals are my goals and so on and so forth makes that's I think that's uh, just one of the big things so All right, so so Jerry we talked about that But I want to get into one some of the big things that the bigger issues that we talked about which was when we Were talking about bear and bull markets. You're like no, no, I don't that's that's a That's a decent way to think of it But there's another way to think of things and you were talking about how networks and google these types of things And how you kind of compare it to what's going on with cryptocurrency So maybe these networks to talk to us real quick about bear and bull How far and then talk to us about that. How far do you think we are in these? These these network effects I think it's really important to understand the origin right the origin of of what we've What the markets have called bear and bull markets come from the traditional wall street stock market model of Business cycles right right publicly traded companies, which is all what the stock market is publicly traded companies have a tendency over time and this has been proven to go through cycles cycles uh that go up and cycles that go down and they have a tremendous amount to do With a credit The cost of capital the how expensive it is to to borrow more money Or how cheap it is to borrow more money Okay, and these cycles Would create what they would call bull runs In bear markets right bull markets bear markets based on these business cycles. Well First and foremost to understand if you understand that history looking at current Monetary policy specifically in the u.s. But it's systemic throughout every Uh developed nation Those cycles Aren't being cycles anymore. Why because borrowing money cheaply for Quote-unquote corporations Is easy There is no counterbalance. So what happens is we're in this perpetual cycle of borrowing more for cheaper Now what that does is it eliminates bear and bull markets and creates zombie companies and healthy companies companies that are still Generating revenue and cash flow based on products and services that they sell They're growing based on those things Other companies are growing just on the ability to borrow more money To pay off their old debt service and have enough to Borrow more money to carry their operation those you would call those zombie companies and more and more of those are Coming into fruition every day because the cost to borrow Is literally at zero And and you and I not for you and I but for corporate america corporate europe corporate asia That's true And wasn't that wasn't isn't that the whole point to get these businesses out? You know as soon as they they become non viable Then you say okay Well the the market will flush them out and it will usher in Another type of goods and services producer that can fill in that that gap But it seemed like it's not happening and that's the problem with the business It used to be a function of a free market, but so you got to remember free markets Don't pick winners and losers the market participants do right right however monetary policy across the globe is Taken the market participants out of that equation by a by providing Next to zero infinite amount of borrowing power Well, it's just so Bob rob if I if I told you regardless of any spending behavior you conducted I will always back your play in other words any debt that you take on regardless of how frivolous irresponsible unwarranted If you accrue the debt, I will take it on for you and I have an infinite checkbook Tell me are you going to be successful or are you going to fail? I'm always going to be successful because there's no problems there. I have I have I have you will be neither You'd be neither you would stay alive. Yeah, I was still alive, but I wouldn't go away You wouldn't go away. Yeah, that is the that is the issue That's it. There is no free market anymore. Really? Yeah So let's separate digital assets Yeah, except for digital assets which leads us to our next point So we know about the history. So talk to us about no bull runs Or no bull markets bear markets how that works in cryptocurrency because before we get going I don't want anybody to just say it was a click. First we need to understand what values a crypto, right? okay There's a token and it represents something it represents some Protocols some distributed ledger technology of some sort. Yeah, okay That token is a representation of a network And its value is derived about how much money gets put onto that network right right Well, it's a simple supply and demand beautifully simplistic model The more money comes on to the network the more valuable the token Sure That's just the deal All right, so what drives people to tokens? There's speculation i.e. dogecoin Store value i.e. bitcoin um the promise of better services for cheaper rates i.e Cardano polka dot I mean every every one of these things every one of these uh cryptos has a story And if you believe in that story you may park some money on that network and the more people parking money on a network it goes becomes more valuable because This is the first time in human history. We've ever had this networks with this fixed supply assets Right, and I think that is that is a big thing. So going back to what you said about those networks. Yeah What the what we can compare what we have going on now to the closest thing and it's not exact one-to-one ratio But if you look at the onset of networks Right, even go all the way back to the Rockefellers, right with their kerosene oil business That he turned into standard oil and became the largest oil producer supplier on the planet just as automobiles and Liquid fuel to create steam to create electricity was happening right fuel fuel Is the need for fuel? He created the network to supply it That was a network But his company made all the money not the people who put The gas in the car not the people who turned their light switch on to take advantage of what that oil Was creating the electricity, right sure These tokens on these networks represent the network So every single one of us has an opportunity to profit as the network or the protocol grows Never in the history of man. Is that ever happened? Shareholders of you know, the publicly traded companies have got to ride along But they've never been like the founder. They've never been a primary piece of that wealth creation Gotcha, we can be that See, that's the paradigm shift. It's the fixed supply asset with the token being on the network So back to how do we look at networks in the bear and bull bearable come from stock market days business cycles credit success or failure Increase and unwind these networks when we take a look at networks There's a Metcalfe's law That says each new node on the network expands the value of the network exponentially, right, right? All right So how does that apply to crypto? Well, these crypto networks are nothing more than monetary networks really? I mean some do different things But they're really just monetary networks and it's the fixed supply token and the more tokens get taken up by the masses The value rises right now Participants change Enthusiasm change sentiment change some people sell some people buy more We're going to see Something that mirrors Amazon google Facebook in that these are companies That understood they had networks And they applied things like behavioral economics to them Facebook with the like in the emojis Amazon with the prime in the special this and the special that and the excellent customer service Google with the Dematerialization and giving away for free Google maps google this google that google library google search To create these networks Now one of the things we can look at Is how does that apply to crypto and how can it help investors? Well, look at your crypto that you like Has it what how how big is it? Not necessarily in market cap, but that's a part how many people are using it. How many wallets are downloaded Where's the wealth distribution is is 90 percent of the value of that network tied up with three guys wallets Or is it dispersed over 100 million wallets? Yeah You know what I mean? You start applying kind of network Dynamics to these things And you can see that That whole bear and bull thing is kind of that that's that's a paradigm that doesn't work here We're in a new paradigm and we'll come up with new terminology. Yes, there will be up cycles and there will be down cycles So if you want to continue to say if it's in an upcycle, it's a bull cycle and if it's going down It's a bear cycle. That's okay. I think what you'll find though Is that it'll be a nice little three steps forward two steps back three steps forward two steps back And when you look over the course of the month your your head of where you were last month or on a quarter basis Gotcha bear markets used to go down to below previous lows Recessions would take markets down to below previous lows or at previous lows I don't think we're going to see that because of networks and network effects See like yeah, I can definitely see it. I can see it The thing is though is like I remember in in 2017 I always thought to myself and like why would anybody sell because this is going to be the future anyhow Why don't they just hold on and just keep stockpiling and stockpiling? Until you know, it just it just goes up to bitcoin for 10 million or whatever John McAfee said back in 2017 I think people remember that but then as time went on I realized that that there was this underlying tone of wales greed and manipulation and they knew like I think a lot of people now know is that they can Take the market they can grow it. They can crash it They can buy things back and they can get it going I think Where that stops is what you just talked about when the network really comes forth to fruition And you actually have really real use case utility in 2017. What was it jerry? It was it was white papers and smoke and pipe drinks, right? Well impromptu well impromptu, right? It was promise I'm not a promise very very good math Right very good math very good code impromptu now I find this and you brought up something I think is really important Speaking of bitcoin and speaking of other projects we have to parse and parcel. They're two totally different things Okay, right Bitcoin is at a size now where I'll bet I'd be willing to wager and I'm not much of a gambler, but I'd be willing to wager We will never see another 90 percent correction in bitcoin I think we'll see lots of 35 percent 20 percent 15 percent and 10 percent As we go through the undulations Of this network growing keep in mind It's in it. It's a network of about 150 billion people globally That's going to address about what 4.5 trillion income earning human beings So there's gonna be a lot of bumpy road along the way to that But I think bitcoins No longer going to see 90 corrections But I think for anything under 200 billion market cap That's completely realistic And people should be prepared for that and understand that and when it happens Understand what you're holding and if you really believe in it you just hold on and matter of fact Take advantage and buy more if it's something you really believe in Yeah, I think I think if we if we extrapolate what you just talked about as far as the utility moving forward Real utility comes in once you hit that like what you just talked about with the google maps with google giving away All these you know the search engine and everything that like google actually does and which google is everywhere, right? And then on top of uh the amazon effect the network all that stuff, right? Once it has real world utility I mean real real then it's it's hard to crash People don't go back Yeah, if they don't I don't think that we are there yet Especially and I know people are going to kill me in the comment section, but it's the truth Look Is cardano worth X amount of billions. I mean can it really heck doesn't have some more contracts Can ethereum do I mean all the difference off, you know Things that it was it was meant to do as far as like, you know putting everything into uh into defy and running Mortgages and putting everything on this blockchain right now. There's no way it could do that I think it can do that in time when they figure things out I don't know if it's going to be avalanche or cardano or i have no idea or ethereum But uh, I think once we get to that point where it becomes so much ingrained into our lives like a google Like an amazon like a netflix or whatever you want to say I think that's when the market stabilizes and then off you go. I think this is just a My my theory I think we're still in for a big correction. Some might call that a crypto winner. Some people might call it something else But uh, I think we're we're way we're light years ahead of 2017, but we're not there where The actual product can do exactly and everything that it can and is supposed to do that's just my my thoughts Well, and i'm in complete agreement with you. I think the the greater Digital asset space is all speculation Great technology promising promising promising stuff where We have one clear defined product that fits a need in the marketplace for store of value And as long as it continues that narrative and The protectors of the code continue to protect it And the miners continue to protect the security of it It's going to do what it's going to do in a world that needs it dramatically Right, if you understand anything About what's going on economically and from a monetary policy around the world You understand that the creation of debt And the creation of currency does nothing but the base and devalue All the other currency that's already in circulation Your purchasing power is being diminished Well a fixed supply asset on a monetary network like bitcoin does Doesn't diminish your economic energy doesn't diminish matter of fact the more people that come to the network it grows Right, so so that is that's a behavioral economic phenomenon We're incentivized to put money on the network If we want to maintain our purchasing power It used to be gold But we know how messed up the gold market is and in the fact that they can continue To mine more gold and if the price of gold goes up they're incentivized to mine a lot more gold Then a fixed supply asset really does Bring a compelling argument to the store value game But will that get me, you know Will that get me from here to the grocery store if I press a button on a Cell phone no somebody will have to create some cool app Right where there's a decentralized uber and there'll be a decentralized Airbnb And there'll be decentralized decentralized decentralized And it'll all be that very same thing that we saw all the companies that grew through the 90s in the 2000s up until today your amazons and apples and you know all those people who took goods and services And dematerialized them put them in a digital format and shift them to you for nothing I gotta tell you yeah, it's it's it's going to happen the big thing that that I have a question on There is actually a a cryptocurrency. I forgot the name dang it, but they're trying to do a decentralized uh airbnb decentralized type of service just like that and I was thinking myself Jesus how Awful might that be as far as like customer service and getting things done because like I have my airmb's And I can tell you right now with when you don't like like a centralized figure like what what what would happen if somebody comes in right and they They Just destroy your place right and of course people will say well there's a smart contract for that And you can just you know get on the credit card or or whatever is in their cryptocurrency Well, what if they destroy so much of it that whatever is on that they have in their account on their meta mask Is inefficient to actually cover that or what if there is some kind of illegal activity that is done in that airbnb I like these that these are like the bigger type of questions, which would be like a whole another Jerry this is a whole another video and not for this one that is for sure So let's uh, I don't want to confuse everybody too much So thank you for explaining to us about the the bull and bear runs and how it's kind of like it's really a network effect and how things are going so Let's put rubber to the road Let's talk about because being you are both in agreement. We think that there's going to be corrections We did we I think we disagree a little bit about how big these these corrections might be because I have my own opinion but talk about your Exit strategy that you're doing right now And things that you're doing because that I think was pretty fascinating Well, I got I got very clear early on That I wanted to amass a tremendous amount of wealth not just a little bit of wealth a tremendous amount of wealth Yeah, and when and when you start looking into the tax implications of Selling your assets to get into something else whether it be You know dollars or whatever doesn't matter what it is um Most tax code I can tell you for sure the irs tax code treats it as property And it's either a short term or a long term capital gain Right and when you start looking at those rates and you start thinking to yourself. Okay. Well Short terms 30 something percent and there's a very good chance That long term is going to be affected whether not just in the united states But in many other countries as far as because this economic stuff Nothing is an island anymore. Everything is interconnected. So if you don't understand that governments around the world have no choice but to raise taxation because Their economies are not built on building things anymore. Their economies are built on the creation of debt and the servicing of debt That's big the biggest part of GDP now Okay, so they're not making tax receipts like they used to what are they going to do? Raise taxes they have to they're forced to yes. There is no other choice So do I want to play a game where stuff is I'm going to have to sell my stuff to tax bases or tax Brackets that I'm not able to identify clearly now. No, I don't like that idea So when I started thinking about the implementing a long time ago Was a strategy of collateralizing assets to borrow money that I was going to deploy for other purposes Okay, now that's a whole topic But I'll just tell you I've developed a system for myself that's weathered Every climate for the last two and a half years And that is I never borrow more than 20 percent of the equity that I have So for instance on nexo, if I have a hundred thousand dollars on nexo, I never borrow more than 20 thousand dollars What do you do with so so when you borrow because this is a big thing that everybody talks about to me They're like, oh, you just got to borrow money and then just do whatever you want with them Like doesn't work like that. You know, you have to put that you have to make the money work for you So when you take the 20,000 out, well, it's it's a choice Yeah, let me be real clear if somebody takes a loan against their crypto They are free to do whatever they want with it Now I will tell you what I did because I want to build wealth I never took a loan unless it was going to be deployed immediately into an asset And preferably an asset that I could park right back on the the platform in which I took the loan from So for instance, I will tell you when my portfolio My very first loan was for two thousand dollars and I bought two thousand dollars worth of bitcoin And I put it right back on that platform Was that when bitcoin was worth two thousand or what was it? How much how much was bitcoin worth? You don't want to say specific But I will tell you this as the portfolio grew in that ratio that 20 ratio There was room in the 20 ratio I would borrow up to 20 by an asset and park it right back on that exchange Yeah, see with the 20 ratio I'm always earning more interest on the assets that I hold than the interest that I owe on the loans that I've taken Right So I'm constantly compounding into my principle See and that's that is that is one of the one of those big tricks So like people just think I'm just going to take the money out and I'm just going to blow it on whatever I'm like, well, you can do that and that's you can do whatever you want to do Obviously my goals aren't your goals, but you really have to think about it to me To me, it's always about Acquiring more assets and not using my own money. That's the big thing. If I can do that, it's a good day, right? But uh, you know, some people just don't want to do that They want to take it out and then do whatever else But you were talking about the exit strategy. So that's been a investment strategy, but Hear me out So the exit strategy is very similar Right. Okay. The exit strategy is when my portfolio reaches x in value I will be able to deploy a certain amount of capital from that in the form of a loan As long as my portfolio is generating more income than you know, more interest earned than the interest that I owe in the loan I don't have a problem taking out several hundred thousand dollars buying a piece of property and building my dream home Yeah, we talked about me and you talked about this before and and it made a lot of sense because you're like look If the interest rate is whatever it was five percent, right? But you're growing it at eight percent. You're like, what's the problem here? So I just I will always take it against that and I think you even have like a chart or some kind of like Worked out. I am no I am no expert with any technology whatsoever But I was able to hire a stud With the excel spreadsheet and build a custom spreadsheet that allows me to Work every angle as it pertains to yield right interest earned debt to income ratio, what's my debt obligation going to be Right. What will the compounding interest be and how long will that pay for it? Like how long will it take for the account to pay the loan off not me pay the loan off? Like I will never put money into it No, we'll let the account do that So I worked this, you know, I got the spreadsheet that does all these really great things and I can plug in all the different parameters I can even plug in my my tax base for my yield generation because Many of us always we talk about all the time capital gains short-term long-term. Well, guess what folks There's a whole world out there and it's called yield All right, and if you think for one second That the irs isn't going to get clued in to the folks that are generating yield And they're not going to want their what they call dividend interest income Which is just a function of whatever amount added to your already existing income tax If you don't think that's coming Think again because it's coming trust me Exactly So you need to know these things right? So I need to know if my account is generating me 28 let's Let's say I've got a a nexo account and it's it's generating $900 a month Even though i'm not pulling that money out I'm not cashing out the bitcoin or the ethereum or the xrp or the whatever Guess what the iris doesn't care They said jerry you're generating eight hundred dollars a month. That's income Whether you decide to utilize it or not is a whole other thing Yeah, so Exactly, I didn't know You should have known and and here's your tax bill and but I can't afford to pay the tax bill We'll see all that bitcoin you got sell some of that Okay So you should think think think ahead is all i'm trying to say That makes sense. So that's a good. So there's two things. So that's a great investment strategy It sounds pretty good and the next strategy So so talk about that. So like if you say like a negative strategy You're just gonna just pretty much just yield and live off the yield, correct? And you're like that's my This isn't a new this isn't a new But yeah, the wealthy have been doing this rob for years And it's this There are assets that they deem pristine that the world deems pristine give us an example Gold the island of Manhattan. Okay. Okay the city of tokyo The city of london the city of san francisco Beverly Hills pristine If you owned A block on rodeo drive in la Prime commercial retail real estate You would never sell it You would take a loan against it now as it appreciates You would take you need you need another 200 000 dollars Next year take out another 200 000 loan on you will find 8 000 people lined up To give you a loan on a pristine asset Pristine assets never have a problem being collateralized And then it's all the stuff that we think is valuable that other people don't think is valuable Ah, yeah, yeah, and then you run into the liquidity issues Right, and then you take that money and you make it you turn it into somehow more money Or if I have assets with it, that's what the rich have always done The rich have always done that and what they do Is is it's about the ratios? See you you markets have ups and downs They have s cycles and stuff happens all the time So the trick is never get yourself so leveraged in debt that if a downturn comes you Have to pay the man in other words your collateral Is it worth as much as the loans that you've taken out? Therefore, there's a short there's a difference What we call a margin. Yeah So never put yourself in that position I honestly believe might there's my exit strategy in a nutshell. I believe that we're in a market that has at least a monster 10 year adoption curve Which means I believe every year my port if I never put another dollar in My portfolio each year is going to be much larger than the year before and it's going to compound on itself So I think That I will be able to stay within a under a 20% debt to income ratio and continue to borrow money for the next 10 years I might deploy it into assets like digital assets I might deploy deploy it into a five acre piece of property with a waterfall And build a place to host the digital asset news first Costa Rican live conference Jerry you want first of all, I don't think you're going to get that that water property You know why because you're frugal just like I am and you're like, you know what I could get something like that Or I could just stay in my in my little place and I will check this out compound and compound and compound I know you because I know you're right. However, I went and looked at I've told you I went and looked at four properties in the last couple weeks one of them Just under two acres Beautiful river at the bottom of the property. I mean big river. I mean a big river And then coming down the side one of the property lines Is is a 20 is a 24 hour a day seven day a week 365 day a year stream with a waterfall Guess how much with an existing three bedroom house on it that is in shambles that needs to be remodeled Guess how much I could buy that under two acres for Before I say before I ask everybody at home. Just know that this is this is not in Manhattan. This is this is No, this is in Costa Rica. Okay, so so okay. I'm gonna guess I'm gonna say 750k $26,000 get out of here Jerry. I'm not lying No way so everybody at home everybody home if you if you're thinking moment it goes to rica now might be the time Hey, what's the capital gain stacks over there? The if you're a u.s. Citizen. Yeah, it's everything if there you can you don't if u.s. Citizens do not as Puerto Rico is the only place I know you can go to escape all that No other country you can't go anywhere in escape. Oh, Portugal. Maybe if you renounce your u.s. Citizenship. Maybe or something like that, but I'm not I'm subject to international tax law just like any other person Well, if you're gonna get for 26,000 dollars, sure 26,000 so basically I could sell what I've got staking with D news cardano steak pool by the way the very best cardano steak pool On the market, um, I could just take out my D news steak and buy the property I don't want to do that though. I like staking with D news. I like that passive income, baby It is it is nice, right? It's it's nice. It's nice to have passive income And you know what me and my wife were talking about this today actually because she's like Because when we went to Puerto Rico and uh, you know, we were staying over there Like we had this like this tiny little room in this tiny little place and it was very cheap and uh And I was like, I was like, yeah, okay. We just didn't that's just how we always have done things, right? And then she's she like today she goes there. She's like, hey, you know, maybe at some point we should enjoy all this that we're actually Getting I'm like, wow, what's the point? I mean, what's we don't but it's a room's a room She's like, I don't think you get it. I don't think you get it Maybe at some point we should enjoy some and I'm like, you know what at some point we will maybe after this fantastic timeframe, but I don't know but This I think is a lesson for everybody. There is a there is an ebb and a flow a yin and a yang For when you need to actually just buckle down and go, you know what this is a great opportunity I personally am going to really ride this wave and at some point you go, you know what I did all the hard work And now it's time to just enjoy life and kick back But that is for everybody's decision to make at that point me and jerry are kind of frugal. So I don't know Well, it wasn't by nature. I mean I used to live high on the hog I mean I used to make a lot of money and spent a lot of money. I had Trucks and cars and multiple motorcycles and the jet ski and the garage and just a house full of toys and you know I lived very consumerish enjoy life kind of lifestyle Coming to Costa Rica Was like for instance, I moved down here Because I could live on 350 a month, which was a budget that I set for myself While I invested my money in digital assets. It started in 2018. I've been here ever since I fell in love with the country I'm going to stay here. This is going to become my home. I mean One property I looked at rob Gorgeous on the side of a mountain Beautiful river sand Ramon at the bottom No waterfall on this particular property, but five acres coffee banana farm $75,000 The river is a million dollar view And the top building site where the first house building site could go Is a million dollar view of of the of what we call The montañas it's just these mountains that are just Lush and green and beautiful and the it's never colder Then 65 and it's never warmer than like 78 because of the elevation. I mean, it's just it's paradise For 75 grand. Hey, I'm going to tell you something Between me and you and it's it's only just a couple people watching just a couple thousand But just between me and you like I think you should really jump on these properties now because we talk about assets and appreciation Like you just talked about you said, hey if I take this if I do a loan against my my assets, right? And the interest rate is x but it's going to appreciate the y What's going to stop a lot of people after they hear like this video or in time as time goes on People like I want to get out of whatever and I'm going to go to someplace nice And they hear about this story and they go to Costa Rica and all of a sudden the property goes up The 25,000 dollar one with the with the uh with the river and the uh the overflow Is now 125,000 the 75,000 dollar one is now 225,000 dollars before you know, you're like, what the heck happened? So so here this is the time this is the time that is a wonderful thing And i'm really glad that you brought that up Because believe me I think about a lot of things But I tend to be the most rational in my decision making and it boils down to this If my thesis is that this asset class what we call crypto is got a 10 year growth cycle ahead of it and it's 100% a year Right is my estimation this is going to grow 100% a year every year for the next 10 years Yeah, I will guarantee you that outpaces any appreciation for any property Anywhere Well, wait, that's not necessarily true downtown Manhattan downtown Tokyo And Beverly Hills or the Hamptons or something like that might might do crazy stuff like that But for the most part I will get no better return on my money than in the digital asset space. So why do anything else? Why why sell an asset or leverage an asset? Right that can earn 100% a year or more just on the appreciation for something that might only grow 10 or 12 or 13% a year Yeah, you got a point. That is a that is a good point That's just the more simplistic view not to mention carry cost not to mention taxation not to mention the the possible outcomes when when you know nature does things I mean you live in austin texas need I remind you Of the storms you had where texas was without power Need I remind you of the time where texas was out without water during a four or five year drought? I mean, there are things that happen that have economic recourse And guess what in digital assets? I put my money in it capital appreciates and earns me yield It's really stress-free Yeah, it's a good point. I I I do like that, but I will say one thing I do like especially here in America as I'm living here right now. I'm off to Puerto Rico What I do like about Properties is the depreciation factor So it is nice to have that 20 year schedule to get the depreciation of those assets and offset the gains from my taxes And that is a one of the big things that I like But yeah, I mean as far as like the other stuff, of course Well, I think I think it's I don't think there's anything bad. I think what you just really did though is highlight Two different phases of an investor's path right an investor's journey Well for most of us our journey started with very little with high dreams, right big expectations But kind of small bank rolls, right? That's kind of you know a lot. I hear that story over and over again Well, here's a story where like David can beat Goliath, right? With a little bit of money and a little bit of patience and that kind of some some wherewithal You can do several different things to build Something big out of something small If you understand what you're doing, right wealth is generated in the beginning through concentration not diversification But as you develop wealth and you become wealthy Diversification becomes a way to mitigate risk right Which is important because you don't want all your eggs in your one basket if your portfolios were five billion dollars or five million dollars You want some diversification you don't want to all be in You know digital assets if your portfolio is five million dollars and you want to protect it Because everything has cycles, right? So getting some real estate might be a good idea having some gold and silver might be a really good idea You know having having emerging market stocks may be a good idea Maybe you go ahead and take a flyer on a couple of stocks in the stock market of some Technologies that you think are cool. Like, you know, maybe it's a tesla or rivion or some other You know tech company that's looking to get into this space and doing something, right? Yeah, we're doing something. Yeah, exactly All right, who knows so I don't want to bombard people with all these great information Everybody just see Into my show tonight. Yeah, check out Jerry. He's gonna have uh somebody from I think it's is a buy bit Tax bit tax bit and just as a recap we talked about the alternative exit strategy and everybody's got their own exit strategy Okay, so so for me I put pretty much 10 into cash Then I roll the other other into land and property and businesses. Also. I keep it into staking and then Also for my I trust Crypto IRA Jerry here has an alternative one which he's going to do a lot of different yield He's going to borrow against it put that money into other assets and just kind of live off that because he believes and probably so over the next decade The crypto market will just not just go straight up like this But he'll see exponential returns over the next decade. So that's the alternative strategy and as far as like bull runs and bear markets We just talked about how really it comes down to what a network is and we take a look at amazon amazon is a network Google is a network and everything that that they do also kind of relates to the cryptocurrency network effect And when things start to have like a utility and a lot of people in together Then you start to see it just becomes this network of uh indistinguishable or un Unapproachable ways to just to stop it and it becomes more stable and then off it goes just like what google has with google maps All that stuff all about so maybe there won't be these enormous bull runs someone in the comments had a really good point They said 2017 was like a speed ship where it was just kind of like going really crazy and fast And you know it would take a left and right and it was kind of a little unstable But in 2021 it's more like a cruise ship. There's still ships But it's a lot harder to slow down and move in any one direction But it is what it is. So anyhow the last question Jerry of the day I want to share it with uh, uh article that we talked about Which was about gary ginsler. I want to get your thoughts on this one before we take off, which is this So gary ginsler came out and on squawk box and cnbc He said that first he said bitcoin's a store of value But second he said this to the extent that something is a security the sec has a lot of authority Yes, and a lot of crypto tokens. I won't call them cryptocurrencies for this moment are indeed securities He didn't name specifically what is a security and what is not They said just says a lot of cryptocurrencies I thought that this might be it it could go in two ways. I thought that it would either like, you know Really tank the market and it would be a big thing or it would be like no big no big deal And if we take a look at the market itself right now, let me refresh this Over the last hour bitcoin went up 0.6 if there ain't one up 1.4 by answers coin 1.4 doge coin went up down 6% And so on and so forth. So in all honesty not much, but what do you take from that? Well, I'll be perfectly honest with you What changes let's say let's let's build a scenario He gets backing and everything in crypto is a security Okay, how does that change anything for you or I not for you and I what about for the I mean for the exchanges Did they just sell on register? Do I care? That's their problem that they they started a business Right. I I don't I'm not married to them It does not change anything I buy crypto today. I sell crypto today when I sell the IRS considers it property Guess what a stock is if I buy apple stock today sell it for a profit tomorrow. Guess what the IRS says that was property Yeah, there is who cares. I don't care. So in reality The guy on the street you and I the impact of the scc statements or even guidance that may come from that in the future Is not going to have a great impact on us As buyers and sellers because we're we're we're subject to the exact same tax treatment either way It doesn't matter here are the people that are going to have problems those companies That are in the united states That won't comply and I think they'll give I think if laws like this got passed and they became fruition I think they'll be given companies in the u.s. Will be given every opportunity to comply To start to register these securities whatever whatever the compliance is Right, if it's they got to stand on there on one foot and sing, you know, i'm a little teapot Yeah, they will do whatever it takes because the these networks are growing this industry is growing There is there is no stopping the because it's all value right when you cut when you Create more value for the end user and the creator You just intermediate the retaker in the beginning. I mean in the middle. Sorry You're creating value for both sides of the equation. That is going to that's value You don't stop value value always finds its way to happen You know what I here's what here's my question like I was looking at What was it I was Somebody who was talking about bringing their their company public And it was I want to say it was coinbase or maybe it was Voyager because they're they're both publicly traded companies And they said just how difficult it really was to bring their companies public Because they were going to have an IPO. Well, whatever it was for coinbase. It was a special circumstance or whatever So like if they did say that like hey This crypto is now a security So now security. Yeah, you're a token. I security. So let's take a so like let's take a theory Card on card on okay So card on you are this is a security. I don't know if like I honestly don't think they can do this, but maybe they can So would that mean that these companies would have to say, okay Now you have to become public because you're now a This is a a publicly part of your company and it is a security and now if you go or is that just not even We'll see here. Here's the beauty. So many of these crypto projects are Are Legal non-profits in other countries. That's true. I think I think Poker dots out of switzerland or something like that Uh, the cardona guys are out of hong kong, right? Well, iohk, but I think they're they're that's what i'm saying though. Who do you go at? Who do you go after like, okay? Bitcoin, who do you go after who does the sec? Okay, let's say bitcoins is security. Okay, great Who does the sec go after I think they know and he even said that bitcoins is throwing value and said that's not But yeah, I know what you mean. I'm saying extrapolate that all the way out. How many of these actual Ripple was one of it's like one of the use case we can go ripple has a ton of xrp They're a company in the u.s. We can go after. Okay, so they went after them But try to go after cardona try to go after ethereum That's true. Try to go after any of those people You can declare them securities in your jurisdiction in our 50 states and portorico and guam and the samoas but after that You got nothing so all those companies in the u.s. That want to do business with those things will have to become Registered broker dealers who can deal with securities Gotcha But it won't do anything to cardona won't do anything to polka dot it won't do anything to any of those Any of those entities that are out of the states That is interesting. I think the I think what it would be is it would it would be like like you talked about The exchanges would have to comply they would have to go through some type of Whatever, you know, whatever documentation and paperwork and uh transformation. They would need to go money It would be a pain in the butt. That's it. Jerry. That's what you just said. It costs money. Maybe that's it Maybe it's like hey, we need some money You know what with spending with government spending the way they are. I can't see that they would shy away from a couple hundred billion dollars from the crypto industry Damn it. That was a good one. Well, well, let's leave it at that because that that's a nice cliffhanger everybody If you're interested in following jerry hall, just go just search jerry hall It's jerry v. Hall jerry v. Hall, but jerry hall Or you know what look up look up jerry hall and Raul pow and that'll come up That'll be the first video that comes up and you can watch the interview there He's gonna have a video tonight. He's gonna do a live stream with a live stream every friday night nine p.m Eastern time six p.m. Pacific friday nights on the jerry v. All youtube channel. Excellent. So that's it for yeah, perfect So jerry, thanks for coming on. We appreciate it always a pleasure to talk to you and thanks for all that stuff and jerry v. All Everybody else. Thanks thumbs up subscribe. See you in the next one. Appreciate it. Goodbye