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May 4, 2021 11:58 am
Plan for success in planning matters radio and welcoming to planning matters.
Were you, I am John Brown director Sean planning happy to be joined by Joseph, is he on today's program. He is the founder CO of strategy marketplace and has performed a tax Robo advisory and a turnkey asset management platform after day going to be talking about some recent news with the IPO of Queen basin are pretty well versed with the crypto's and digital currency right Joseph. Very well versed in the good way of introducing made maybe a little bit of an understatement. There will you know to me it's it's funny because I was probably part of the skeptical advisory community. Early on, and I slowly kept dipping my toe into it and I remember at one point this had to be around 2013 2014 I turned my now wife a ghostlike mind going like this. I don't think the steps going to go away.
It seems good. Try try to seven. You know that we gotta talk ourselves out of so fast forward to where we are today and it's it's crazy that crypto currency is now mainstream. As of yesterday, right now the financial industry has been a little slower to adopt and I think that that's because in its infancy. A lot of the crypto currency marketplace was actually purposefully under the radar, so to speak and and not trackable traceable well in order to legitimize that we gotta be able to tax it so more and more right that the government and the financial institutions as a result have been adopting crypto currencies and actually giving investors a number of different ways to invest the IPO of Queen-based simply the most recent yeah you know it's really a scene I ended up talking to some of the VPs acquiring base a while back I was trying to integrate him with some stuff that we do and what it's hard for the adaption of it like he said with the institutions and in the advisory community as a whole was that this idea that people were throwing away a hard drive and lost. You know $1 million of that coin or $10,000 of it or whatever the at that amount was that it could be literally on a computer system and banish.
Or, you know, people used it for CD you know business transactions early on so that was kind of you know seen doing a negative spotlight and what's even more interesting about it is that we claim based did they actually legitimate legitimate eyes themselves. The bank, and I was reading some early interviews that they did and they they put security at the forefront and as you know is a financial advisor.
It's the same thing is like recommending an alternative asset you want to know that it's still secure because ultimately you're responsible for your client's portfolio.
You're responsible for their investments you want. Picture your client's money at risk and something that not that secure, but will will now they kind of know enough to say that security is 100s and gone hundred percent gone with traditional banks but coin base has managed to do some layering of their security protocols that can make sure that your money is a little more secure than you know some of the other crypto custodians or platforms that were out there in the past and out.
Let me ask you a question that as an advisor.
I get asked by my clients. Where is the proper place for crypto currency as part of the average investor's portfolio and and and how does it compare to gold grade questions now.
Early on in the claim ACO's will tell you that they were positioning themselves as the alternative to gold and actually a lot of the data suggest that people have pulled back from gold recently a lot of caches and submit aside.
And in the not even in the markets until basically the rally.
The last couple days and and they think I'm going to crypto me crypto when it started in 2012 was about $50 million of currency out there. It was trading at $66 per bit coin and the plane was the only coin out there. Now you talk about true trillion dollars of assets 56 million users across the US and you know now lending institution to banks and Reagan into book to your question.
Where where you put inside investment portfolio and what we clients do with it as maybe a gold alternative look.
I never told plaintiff that 100% of their money and call us if we want to invest in gold list carve off a little piece and let's put it over here it tolerance of every investor is different people to say all take 10% you knowing carve out or maybe 10% for crypto while having you know, it's hard to say if you have a younger investor has little more time horizon who doesn't care as much about volatility or doesn't know affect their market reactions as much. Maybe they could have a little higher. You know, positioning crypto currency can be very volatile. I think a good introductory step for people if they don't want to invest directly into bit coin coin, you know, Queen base is a perfect offering because now you're betting on the banker betting on the actual casino if you well. They're the ones there the platform that all currencies of trading on their the first of many there there. You know the goober of the rideshare program right there I can go on with you know the first ones to really break that barrier so that might be a good you know position for now until other star come to market, but you don't depend upon you race pay by your risk tolerance. Maybe start with the most labor is again replace gold know will be a good alternative. Time will tell. Nobody really has that crystal ball if that's can be a good alternative for not but $2 trillion. That in this market space says it is going to be around for long for the long term and is again replace you know other currencies around the world meet in a form it's a digital currency. It is a currency we don't like I've made the comment will what's the new gold standard.
Gold is the new gold standard, but Credito has has taken a spot as that store of value that that reserve space and Once upon a time, the largest ETF by volume was GLD the gold ETF and and now were seeing all kinds of ETS lift rate and maybe some money moving away from gold into crypto because people view it as a store of value in a different way than gold, not necessarily the same. And I know they were not here to talk about gold, but I think that the care comparison has been made and and therefore when talking about crypto having that conversation and mentioning that there is a comparison there is appropriate.
Now we are here visiting. On April 15 the IPO for coin base was yesterday, April 14, the announced opening price was $250. You really couldn't get in at 250 almost immediately after the bell prices were significantly higher prices came down during the day it peaked in and and then felt a little bit and you mentioned that Queen base was the first and that there could be others coming into this space. There's been a lot of talk in conjecture about where the price of coin base ultimately is going to go is going to go much higher is going to go much lower.
Where you see that and how could those other players stepping into this space affected yeah that that's kind of question on everybody's mind and you know first and foremost it's it's gonna be a little more volatile than other ETF's other stocks. Stocks of this case in the market anyways just because it's somewhat closely tied to the volatility of the currencies of which is the are some big players out there Geminis.
One of them. Bitwise is another player out there there eventually going to go public. You know it's not a matter of if it's kind of the matter is, when I think there's still room to grow in this category. Again, already from 50 million just less than 10 years ago to $2 trillion in assets so I don't think this is going to be that the Of of coin base.
I think it's going to continue to rise. I'm personally I I don't like buying on IPO days are days when things just come out. I told a couple euros. My buddies and reclines the inhalants.
Let's wait you know maybe a couple days till next week would see were the prices at that price you know dips down pretty well then maybe we'll get some positions into it, but I do see it for the long term going up because again, you're betting on the bank, you're betting on a platform and even when others come out yet. It does pull a little bit of the price back. This is just to be getting acquainted. You know I don't I don't know if you were to go here. Not that they didn't do an IPL direct listing.
That's significant in itself because their revenue is so high and has basically almost 10 asked what they did this time last year. So the fact that they have that much capital. The effect they have human capital a big force behind them.
It continued to get creative and they're just starting to touch the institutional side of the business, so I only see it going up from this point. Now does that speak to the number of new investors in the bit coin in space or the crypto currency space. The that the influx of new users and does the revenue and the profitability possibly speak to the transactional costs that coin base does assess when when buying or selling a crypto currency. Yeah, I mean there there are tons of tons of more people entering the space. I actually think it's really good for the younger millennial investors because this is actually get them excited about investing. They've been sitting on the sidelines for so long because they saw the.com bubble happened in the early 2000's. They saw the market crash of 2008 and they started entering the job market right after the market crash. There was a brutal world for them so they even have money to really invest in the markets, and so they've it really just starting to grow families and invested buying homes and all that stuff right now. Anything what's really interesting about crypto it's it's it's bringing more people into the fold and were seeing that with the numbers but it's not only than the newer generation. You also have the people who are established were also looking at you know what because you know when things are in the news when when things are excited you were saying was like the new enter.
You know me, that's good. I dry some more users and adaptability. You know, from that standpoint.
So the only thing that's that will change were stainless with some of the major custodians like your TD Ameritrade your Charles Schwab's and infidelities are all fighting over trading costs, so will probably see the cost go down but as these companies as Queen base gets on the institutional side where they're starting to get the mainstream firms. The RA firms the broker-dealer firms. You know the banks on board that's going to keep driving that profitability up and that that some banks doing now they they have those institutional clients don't make money. It will make money all around.
But knowing they have free commission free trades. You know, as as Charles Schwab and TD and on all these guys have now.
I think eventually years he coin base and other custodial partners like that go down the road where fees are to be compressed out so bitcoin sort of the, the originator and the one that is most commonly talked about but there's a proliferation of different crypto currencies out there now. Anything from the theory of the light coin to ripple in many that you probably never heard of Elon musk is certainly making the name for the doge coin of the doggy coin, whatever you want to call it there, as well as those on on Reddit forums and and twitter talking about that on the Robin Hood platform so comparing investing in the crypto's themselves which a lot of people really look at kind of speculative gambling and and maybe don't feel comfortable enough to know what they're doing there versus the more traditional ability.
Now with coin base being listed where we can invest in something that is more traditional stock market investing yeah you know here's here's what I told if you friends and clients about the luck if you wanted if you read invest directly. I'll tell you exactly how I I put some money in a coin base.
I took 50% of that money I put it into big I took the other 50% and I spaced out over the next top five crypto currencies and I created myself a mini portfolio by diversifying against the crypto's right biggest Monday bitcoin.
Obviously, most other crypto currencies are counted tied to the bitcoin volatility, but it's a long term place and put your integrated do it add some money to it hold onto it hole under seats because it's going to be a wild ride because we seeing the volatility of of the market with the coin thus far all is a is some bad legislation or some type of regulation or some something that's going to happen where you'll see a big spike in a big drop, you know, kinda come down, it'd still be a temporary plan, you know know it will go back up because the beauty of what they've created with crypto currency is you know it can't really be regulated by any one government that was kind of the you know them. The appeal to it early on and I don't know if you know this but this is the first time. No digital currency has been introduce this deal. Currency was actually introduced OSA the early 90s might might have my timeframe that, but when they try to do off the bat was they tried to say it's a new credit card. They went to regulators right off the bat and then they got shut down where bitcoin hit crypto currencies they said were not worried about the regulators were completely decentralized and we can create this whole banking system without you. And now the regulators are scrambling saying how we become a part of. Yeah, sort of trying to catch up and figure out how they can be traced, tracked and taxed right basically that's what they're trying to do well Joseph I appreciate you joining me on the program. Kind of a historical launch and and a milestone in the world of crypto and and crypto investing with with the launch of the coin base ability to invest. We appreciate the time now.
Again, you formed a tactical Robo advisory and that is strategy marketplace. You got some turnkey asset management platforms. When I hear turnkey tactical doesn't always necessarily correlates like turkey. I set it and forget it, but you gotta Robo that does have the tactical aspects to it.
Talk about what that means and and what advantage that can provide to investors. Yeah so I mean this is why am also interested in crypto cards and so much because of me personally I'm not. I don't buy into the buy-and-hold methodology because after dealing with clients for so many years to come to realize that people really don't like writing the market way. I mean, they love the market highs. But when there's a pullback but think we just experienced with the coronavirus last year in February, March, the market� 30, 35% in less than five weeks people's stomachs begin to turn and so since ever since I've been in the business since 2010. I was kind of under this mentorship of tactical money management in our firm has a couple great strategies that we work with and what that means is that it uses math based on the rhythms. It uses momentum a lot of different indicators and when the markets start turning some other triggers and indicators to Ken and it can pull people out on the market and sometimes echoes the cash. Sometimes it was the goal. Like you said I we have gone to crypto yet within those algorithms, but does we were not looking into it and then when the markets go the other way they come back in. We tend to get in a little sooner so it's really about risk management.
And that's really what we we do with tactical so the reason we put this platform together is because where were at is as far as a history's first were written this were still in this bull market.
Even though we had that blend with coronavirus we have this economy is just going crazy but there are inflation fears, nurse fears that you know price is going to get out of control it so you need to come to hedge your portfolio and having a tactical strategy and it could be a portion of the portal.
It doesn't have to be the whole thing, but having a tactical strategy to help you help mitigate some of that risk in the market. That's why we built this platform and it's turnkey for the advisor community because were we have a lot of resources for them on board. Clients easily to make paperwork streamlined and to get them into an auto investment platform without them having to worry about what strategies to put a man it's made for them. It's created with the AI that's what does he is Joseph Gissing is he did I say that right just get you set it right. All right, founder, CEO of strategy marketplace here talk a little bit about coin base among some other tactics and strategies that you may want to consider for your financial progress and and processing, and Joseph. We appreciate the time. Thanks for being here and join me on planning matters radio of thank you for having appreciated since been planning matters radio the content of this radio show is provided for informational is not a solicitation or recommendation of any investment strategy you were encouraged to think investment tax or legal advice from an independent professional advisor in any investment and/or investment strategies mentioned involve risk and possible loss of principal by jury.
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