A lot of crypto is in the hands of the wrong people for the wrong reasons

Why have people been buying crypto?

What issues does it cause for the market What can we do?

Join The Our Shawn McBride ⭐️ 🌟💥 (aka R. Shawn McBride)or the Future Done Right(TM) Show as we explore what we are seeing and what we need for the future.

Here is the YouTube video:  https://youtu.be/Y5zbl1DetaU

REMEMBER: More videos on the future economy are available at http://futuredoneright.com

Below is a machine transcript of the interview —


00:00:00.989 –> 00:00:06.299

Hey everyone to see our show and welcome to another edition of the of the future done right.



00:00:06.720 –> 00:00:15.750

Show. Today we’re gonna be talking about cryptocurrency and why cryptocurrency may be in the wrong hands and what it means for the future of crypto



00:00:16.230 –> 00:00:25.440

And what we should be thinking about now. So for those of you that don’t know me as well on the are Sean I’m a corporate lawyer by training. I’ve spent years in the financial transaction space.



00:00:25.860 –> 00:00:31.080

I also act as a speaker and I speak to a number of organizations about building and executing plans.



00:00:31.560 –> 00:00:37.770

And recently, I’ve spent a lot of time on the future economy, looking at the future of business where we’re headed.



00:00:38.280 –> 00:00:44.610

What’s evolving and what we need to be looking at as far as managing the future of our business and relationships.



00:00:45.180 –> 00:00:57.150

The show future done right shows dedicated to helping you, the listener viewer business leaders understand what the future economy is all about and the changes and shifts. You can be making now.



00:00:57.750 –> 00:01:03.780

To build your businesses for the future and to preparing your careers in your lives to get ahead of things.



00:01:04.260 –> 00:01:14.580

So today’s show we’re talking about where Cryptocurrency is currently being held, and what some of the problems are, I remind you that we have a comment contest going on.



00:01:15.150 –> 00:01:26.640

So if you write your comments, wherever you’re viewing this whether it’s the are Sean on LinkedIn or its McBride for business on Twitter or it’s



00:01:27.120 –> 00:01:37.050

The future done right YouTube channel, wherever you drop your comments will be reading them and looking at those and the best comment of the week. It’s invited onto the show.



00:01:37.590 –> 00:01:44.490

As always, we do not give investment advice or legal advice during the show we recommend you consult your own advisors.



00:01:44.880 –> 00:01:51.180

Everything here is just for your general knowledge and education will give you some ideas will give you some tips will tell you what’s going on there.



00:01:51.540 –> 00:01:57.180

You can figure out how that all fits together in your world and talk to your advisor about implementing it.



00:01:57.870 –> 00:02:16.890

So here’s what we’re seeing the crypto markets have gotten to be very volatile. I don’t think I’m breaking any news to say that there was a huge price run up in 2017 and then a stabilization through 18 and then now recently a drop in pricing.



00:02:18.510 –> 00:02:22.530

The problem has been the holding of the crypto currency.



00:02:23.730 –> 00:02:31.140

Cryptocurrency is currency. I mean, it’s meant to facilitate transactions, not necessarily to



00:02:31.500 –> 00:02:41.460

Be held like a physical product like gold or other currencies, we’ve had in history, right, if you look back at history with that gold. We’ve had salt.



00:02:42.000 –> 00:02:51.150

We’ve had pork. We’ve had a lot of things as the store of value usually something that has a long term value separate from its uses currency.



00:02:51.720 –> 00:03:00.930

On modern economy. We use a lot of fiat currency, where it’s just by cover by government eat it, that it has its value doesn’t necessarily have a backing.



00:03:01.470 –> 00:03:10.200

But generally throughout history, there was some physical backing and the thing that was physically backing the system had some inherent value in it.



00:03:10.860 –> 00:03:20.250

It could be used for ornamental or industrial purposes or other economic purposes, causing the the currency to have a store of value.



00:03:20.880 –> 00:03:28.590

A Cryptocurrency is is designed to be a way of facilitating transactions. That’s what it’s designed for



00:03:29.040 –> 00:03:35.850

However, and this is why we’ve seen a lot of activity from the regulars. Many people have been buying it speculatively as an investment.



00:03:36.330 –> 00:03:47.070

Let me get ahold of some crypto because it’s going to go up in value. Now what’s interesting about cryptocurrency if you work through it cryptocurrency actually has the ability to



00:03:48.510 –> 00:04:02.850

Increase in value potentially with its usage. So let’s let’s take the example of the US dollar, the Federal Reserve Bank, the first Federal Reserve Bank of the United States was capitalized with about $10 million



00:04:03.870 –> 00:04:12.240

If we look back at historical records that is a paltry some based on today’s economy, there’s there’s single individuals.



00:04:12.660 –> 00:04:21.060

That whole well in excess of $10 million in fact numerous individuals. I mean, we have we have 100 plus billionaires in the United States.



00:04:21.480 –> 00:04:30.750

And we’ve got, you know, lots of people that hold $10 million. So that was the entire scope of the US economy now.



00:04:31.380 –> 00:04:43.380

As time went on, there was inflation and we’ve gotten to think of inflation as being a natural improbable consequence of the economy is the home expands. We have inflation.



00:04:43.920 –> 00:04:51.780

And in fact, our central bankers and others talk in terms of having inflation happen and expect it as being quite normal.



00:04:52.830 –> 00:05:02.010

That that puts a side, there’s no inherent necessity to have inflation and system other than when you have denominations like dollars.



00:05:02.790 –> 00:05:12.330

They’re not necessarily divisible below a penny current and current systems because physically attendees, the smallest unit of measure we make



00:05:13.050 –> 00:05:23.340

So if we had a overly deflationary cycle, we’d have a liquidity problem in that you know you a penny might become very valuable if there was only $10 million



00:05:24.000 –> 00:05:35.790

In the US economy right now a penny would be a very valuable item because they’re really be $10 million divided over the 300 plus million people.



00:05:36.570 –> 00:05:45.060

Which means the average person would have under 30 some sense. So you can imagine the store of wealth, it would be in a single penny.



00:05:45.720 –> 00:06:02.130

So that that itself because the unit measure has forced inflation cryptocurrency doesn’t have the same issue because it’s divisible much much much smaller. So if we had a deflationary cycle or cryptocurrency increased in value.



00:06:03.240 –> 00:06:14.670

We could actually use smaller and smaller units of cryptocurrency per transaction which would be interesting because transactions happening in 2020 for the same products at the same



00:06:15.210 –> 00:06:27.720

relative price. We actually have a lower cryptocurrency number which does live lend some credence to the idea of a buy and hold strategy for crypto currency, because if indeed we do have a closed system.



00:06:28.170 –> 00:06:39.240

With rules on how much can be offered it could increase in value just from the fact of increasing usage, because there’s a fixed base, unlike our current system where



00:06:39.870 –> 00:06:46.620

It appears that as there’s been more and more usage. What has been the answer has been to the government has just issued more



00:06:47.160 –> 00:07:02.340

cryptocurrency so we want to get away from that and we want to move towards a system that provides a little more predictability. So that is the first piece of kind of this crypto bubble crypto issue is people are holding it.



00:07:03.420 –> 00:07:23.580

For asset purposes, they’re viewing it as an asset, they’re viewing it like gold or salt or silver or some store value rather than viewing it as currency, most people that get currency, get in and out of the currency relatively quickly right you receive currency made deposit in the bank.



00:07:25.110 –> 00:07:31.590

For their rush you buy it investment or you do something else. Um, you don’t necessarily



00:07:32.580 –> 00:07:43.170

Take your currency and storage, just because you’re hoping that the currency will get more value, that, that, that seems like a very abstract and in a likely possibility.



00:07:44.070 –> 00:08:00.900

The problem for this, however, is what happens to the crypto MARKET RIGHT THAT PEOPLE ARE STARTING TO ACCEPT cryptocurrency we’ve seen Dubai accepted for tax payments now State of Ohio is accepting it. People are using it for one off transactions, we see large purchases of crypto



00:08:02.010 –> 00:08:11.580

But in order to have a transaction system, we need to have liquidity. I mean this cryptocurrency needs to be moving from person, a two person beat a person see



00:08:12.060 –> 00:08:16.200

I, in order for the market to work if everybody’s buying and holding it.



00:08:16.830 –> 00:08:26.700

Like gold. You know, there’s nothing. There’s no unit of chain exchange gold can be held because it just hasn’t ornamental value and some limited industrial value.



00:08:27.300 –> 00:08:39.900

And it can be hell and it doesn’t really change the usage of gold or the availability of gold. However, if everybody was holding their US dollars because they were expecting deflation.



00:08:40.380 –> 00:08:53.490

We’d have a problem. So people buying and holding crypto while from an individual level may make a lot of sense right there. We’ve talked about the fundamental reasons this thing may become more valuable, particularly if it becomes used more often.



00:08:53.940 –> 00:09:01.350

It may actually be a good thing to whole crypto from an individual standpoint, but this is one of those things where



00:09:01.740 –> 00:09:08.550

When we apply it across and mass and we look at how its effect works across many, many people



00:09:09.060 –> 00:09:18.300

Now we’ve got a problem because everybody holding crypto means there’s very little crypto moving people don’t want to let go of their cryptocurrency



00:09:19.020 –> 00:09:24.990

And the US regulations have not helped the IRS classification of cryptocurrency as property.



00:09:25.710 –> 00:09:33.510

And the inherent tax issues of that in that each time you buy crypto, you need to calculate a basis.



00:09:34.110 –> 00:09:42.690

And then each time you sell crypto, you need to calculate a gain or loss. This creates an accounting challenge for anybody that’s using crypto regularly.



00:09:43.440 –> 00:09:51.840

Because they may potentially have to disclose all their transactions to the IRS may have to explain what happened. And of course, produce



00:09:52.410 –> 00:10:03.750

A very cumbersome tax returns with large tables of all these crypto transactions, a particular somebody who might be using crypto on a daily basis, perhaps, let’s say somebody has an account of crypto



00:10:04.410 –> 00:10:16.620

And every time they make a purchase they convert crypto to US dollars if that were to happen, that person will have a very large tax return to me. It’s very easy to imagine your, your common



00:10:17.610 –> 00:10:30.570

Consumer to have five to 10 consumer transactions per day, particularly on a weekend. I mean, you might go somewhere, you might buy something you might pick up a train, you might get a coffee. You might buy food somewhere else.



00:10:31.230 –> 00:10:43.890

Next, you know, 510 15 transactions. A day times 365 days, but now you’re providing quite a table to the IRS. Not only is that cumbersome to produce, but it also



00:10:44.790 –> 00:10:52.110

It provides a lot of information that many people may not want to provide to the IRS regarding their spending habits consumer behavior.



00:10:53.220 –> 00:11:09.540

wants, desires, etc. So we got a real issue on that piece of cryptocurrency both the regulations and the speculative nature and the possible deflationary use of cryptocurrency means that people are holding it.



00:11:10.590 –> 00:11:18.270

We don’t really have much knowledge of what would happen with Fiat and a deflationary environment because the central banks have been unable



00:11:19.170 –> 00:11:27.930

To hold themselves into a situation where they don’t print more currency. They just keep adding liquidity at different times in human history.



00:11:28.680 –> 00:11:36.180

For various reasons we don’t have really a full experiment of what happens if we had a true currency that was stable.



00:11:36.630 –> 00:11:44.520

We would expect that more people would hold it for speculative purposes. Your incentives to deposit it where to invest it become lower



00:11:44.970 –> 00:11:56.160

If the currency in and of itself is become more valuable. There’s a store of value there and so. Some have speculated from the conspiracy theory side that perhaps



00:11:56.940 –> 00:12:07.830

This inflationary measure this devaluation of the currency is designed to force people to transact and to remain participants in the economy.



00:12:08.430 –> 00:12:17.910

Because otherwise, if you had deflationary pressures people could withdraw from the economy hide a lot of their transactions or perhaps go back to barter systems.



00:12:18.990 –> 00:12:25.230

And remember currency is largely used as the facilitation of barter. I mean, the classic



00:12:25.710 –> 00:12:32.430

history book example is, you know, people with different products that don’t want each other’s products. But once you participate in the broader market.



00:12:32.970 –> 00:12:43.650

That’s why we had currency in the first place is to give a common unit of exchange the dentist may not want sheep and the sheep farmer certainly wants their tooth fixed



00:12:44.400 –> 00:12:51.480

But the dentist does want something else in the marketplace, you know, perhaps dental tools, perhaps a vacation.



00:12:51.930 –> 00:12:59.100

And there’s somebody willing to provide it, that person. Ultimately, he wants sheep or what something from somebody who wants sheep or down the line.



00:12:59.940 –> 00:13:05.910

Point is that that having that common unit of measure and atomic currency allows everybody to get coordinated.



00:13:06.450 –> 00:13:18.750

Much faster than barter. You don’t have to bring 568 people to one transaction in order to get that to happen. You know, if in our example with the dentist and the sheep farmer. If the dentist.



00:13:19.890 –> 00:13:30.900

Took in, you know, said I don’t want sheep and the sheep farmer had to go find somebody who wanted something the dentist wanted the sheep farmer would not only be an agony much longer about their particular tooth problem.



00:13:31.440 –> 00:13:40.350

And dental need but also the it would slow things down because the sheep farm. We’re doing a lot of things are not specialized it. This is the magic.



00:13:41.010 –> 00:13:48.990

Of currency today is that it allows things to move very very quickly and efficiently. So that’s a good thing.



00:13:49.950 –> 00:13:59.190

What’s not a good thing is people holding this and not participating, right, because now we’re back to potentially either a barter system.



00:13:59.550 –> 00:14:12.480

We’re having to use fee if everybody is holding their cryptocurrency and keeping it locked up, it means it can be used to facilitate trade and exchange, it’s, it’s like having currency that doesn’t exist.



00:14:13.500 –> 00:14:18.690

It’s great for somebody to put currency into the system. If everybody locks it up as soon as it comes into the system.



00:14:19.500 –> 00:14:24.600

We end up in a system where we don’t have enough currency. We don’t have the liquidity as the central bankers would say



00:14:25.200 –> 00:14:32.760

So from a cryptocurrency standpoint, we need to figure out how to encourage people to get their cryptocurrency out and get deployed.



00:14:33.480 –> 00:14:43.950

One thing I do see is increasing uses of cryptocurrency for market transactions and I recently even saw a conference which offered a cryptocurrency discount



00:14:44.640 –> 00:14:53.910

If you purchased in US dollars. It was one price if you purchased in crypto currency. It was actually a lower relative price.



00:14:54.660 –> 00:15:02.070

That encourages people to move through the cryptocurrency system to let it go. That gives people are reason to get over some of that friction



00:15:02.460 –> 00:15:11.700

So we may see more people that are leaders in the cryptocurrency space encouraging people to use it. And I think that’s important. The market.



00:15:12.300 –> 00:15:22.200

Needs to unlock itself. We need to have transactions and cryptocurrency and the real thing that will probably drive that is either discounts or exclusivity.



00:15:22.890 –> 00:15:35.280

To use cryptocurrency. So perhaps we have conferences or events or companies that only accept cryptocurrency and this will start moving people across the ledger, they’ll have to figure out how to use the cryptocurrency



00:15:36.120 –> 00:15:46.680

To facilitate that transaction and build that habit of using it. So that’s a ways down the line. But the big thing we need right now is we need people using



00:15:47.430 –> 00:15:52.770

cryptocurrency right we need them buying and holding and getting this stuff.



00:15:53.640 –> 00:16:08.490

Out for transactional purposes. So buy it, hold it until you need to facilitate a transaction. Then use the cryptocurrency to keep things moving. I think that’s critical that we move to that stage, we just need to fair, how to build the bridge from here to there.



00:16:09.600 –> 00:16:16.320

Encouraging more people to buy cryptocurrency for speculative purposes as the regulators are worried about people doing



00:16:16.980 –> 00:16:20.400

encouraging people to buy and hold cryptocurrency long term.



00:16:21.210 –> 00:16:30.720

Certainly that will help increase the value because it has that store of value value and that causes the relative price of the cryptocurrency to go up. So



00:16:31.140 –> 00:16:42.390

Buying and holding on one side is good for cryptocurrency but a locked market means that will never get to the point of being interchangeable and never be the basis of payment and facilitation.



00:16:43.110 –> 00:16:50.190

At the level. Many people hope. So I encourage you to take a look at that. Think about who’s holding a cryptocurrency why



00:16:50.550 –> 00:16:57.930

If you’re a participant in the market and you’re excited about the future of blockchain and crypto currency and other technology as I am.



00:16:58.680 –> 00:17:08.130

What can we all do to facilitate more use of cryptocurrency, could you accept cryptocurrency for payment of your bills.



00:17:08.910 –> 00:17:20.070

Could you use cryptocurrency within other aspects of your business. Could you call it some way of facilitating cryptocurrency transaction can you offer a cryptocurrency discount



00:17:20.700 –> 00:17:28.290

All these types of things will encourage more and more people to jump in to the cryptocurrency space.



00:17:28.890 –> 00:17:36.870

So check that out folks would love your comments and thoughts. Want to know what you’re seeing out there, how you think our path to liquidity is



00:17:37.410 –> 00:17:51.510

You know, the goal of the show is the wake people up, you know, we asked you, like, comment, share let other people know what you’re seeing have them jump into the conversation have them be part of the solution would love to hear from them.



00:17:52.710 –> 00:17:54.000

Would love to hear what you’re seeing



00:17:55.470 –> 00:17:59.940

The comment contest is on going. So if you know anybody who



00:18:00.990 –> 00:18:12.060

Or if you comment, it will be reading those comments. If you know anybody tell them about it as well. The more comments that better because it lets the search engines know this show is out there and it also



00:18:13.350 –> 00:18:25.260

It also broaden the reach. So we’ll be reading your comments. I want to remind you that we’re looking for a handful of motivated individuals to join the team here at the



00:18:25.710 –> 00:18:34.560

Future done right show. So if you know somebody who might be a future leader who wants to get involved have them. Check it out, have them come to



00:18:35.340 –> 00:18:49.020

Planning done right, Tom. That’s planning done right com slash in terms. And we have some great internet opportunities available for some motivated folks to get it on the inside of this



00:18:50.580 –> 00:19:03.300

And to be a part of the future. So we would love to hear from you. Or maybe somebody motivated that you know that wants to get into space and build some amazing skills so looking forward to hearing from that.



00:19:04.350 –> 00:19:16.590

My contact information. You can reach me as the are Sean are Sean McBride. I have one LinkedIn. I’m on Twitter. I’m on Facebook is our Sean McBride fans that audiences.



00:19:17.100 –> 00:19:27.690

Of course, the YouTube is the future done right channel, so look for all of those out there. And I remind you, we do not do investment advice or legal advice on the show.



00:19:28.290 –> 00:19:39.780

Everything on this show is just for your education so pay attention, learn, get some ideas and then go talk to your professional advisors, whether that’s your accountant.



00:19:40.320 –> 00:19:50.970

Or your lawyer or whoever you work with to say okay I watched the show I saw this idea, do you agree or disagree, which by specific strategy based on my specific situation.



00:19:52.800 –> 00:20:03.030

As always, I want to congratulate you on doing the hard work, you know, take a moment pat yourself on the back, say, hey, you did a great job you’re investing in yourself, you’re investing in your future. This is critical.



00:20:03.450 –> 00:20:10.950

Not enough people do this, and then I’ll do it right and you are, you’re, you’re looking to your future. So that’s a great thing.



00:20:11.910 –> 00:20:19.980

Take a take a look at some past videos at future done right calm when you get a moment if you go there, you’ll see some episodes of the future done right.



00:20:20.700 –> 00:20:30.450

Show get also find links to the to the predecessor of this and you’ll get some great information. Either way, you’ll learn about the future of business and what’s happening.



00:20:31.050 –> 00:20:41.310

And and things that you need to be thinking about your business. I guarantee you, every, every show has some hidden hidden tidbits and nuggets that you can use for your benefit.



00:20:42.120 –> 00:20:51.990

And what’s more, if you go to future done right. COM. Not only can you see past episodes. But you can also see upcoming episodes. So you’ll see who’s coming on the show.



00:20:52.530 –> 00:21:07.980

What topics, they’re covering and the links, we generally record at seven noon and 5pm Eastern that’s our set schedule. We are transitioning from the old schedule where it was 710 and two Eastern



00:21:08.700 –> 00:21:15.810

So you’ll see shows and those various times the table at future done right column will tell you what’s coming up when



00:21:16.230 –> 00:21:21.630

But go ahead and block your calendar for a quick update 20 minutes to 25 minutes is our normal length.



00:21:22.410 –> 00:21:35.850

at 7am noon Eastern and 5pm Eastern and over time you’ll see we’ll start moving to that calendar as we make a transition and our email list is that future done right calm.



00:21:36.630 –> 00:21:46.140

Feel free to sign up there, see what the future is looking forward to seeing you all on a future episode love your comments drop them after the show.



00:21:46.530 –> 00:21:58.170

Also feel free to join our live audience and send your comments as the show goes on and the Arshad folks to pleasure doing a show for you. It’s a pleasure, getting the information to you. I look forward to connecting with you again very soon.


Powered by WishList Member - Membership Software

%d bloggers like this: