WHAT BANKS ARE HIDING ABOUT CRYPTO
WHAT BANKS ARE HIDING ABOUT CRYPTO
What is cryptocurrency and blockchain?
The "crypto" in cryptocurrency comes from cryptography, which involves securely transmitting messages from point A to point B. Cryptography has been crucial for secure communication throughout history, such as during wars or exchanges between tribes. Today, we use digital cryptography to secure information, meaning data is encrypted in a way that only a unique key can decrypt it.
Cryptocurrency uses peer-to-peer technology, like the technology used for MP3 and MP4 file sharing in the past. However, for digital currency, you cannot have perfect copies like with music files; each transaction must be unique to maintain value. This is where blockchain comes in. A blockchain is a digital ledger that tracks each transaction, ensuring transparency and security.
Most money today is already digital—wires, direct deposits, Cash App, Venmo, etc., are all digital transactions. Cryptocurrencies represent the next iteration of moving money digitally. It provides a way to transfer value which is not created or controlled by a single government or entity. This ties into Web3, where blockchain technology enables decentralized financial systems and applications.
How can business owners leverage blockchain and decentralized technology?
We are no longer in the information age because information is abundant. The challenge now is how to filter it, separate fact from fiction, and find trusted sources to make informed decisions. This doesn't have to be expensive, but getting it wrong can be very costly. Many people lost money during the crypto hype, driven by celebrities and high-profile endorsements, without understanding volatility or the presence of bad actors like Sam Bankman-Fried.
The crypto ecosystem isn't ideal for criminal activity because its records are public. The Department of Justice uses blockchain forensics to recover millions in assets by following the money. Most cryptocurrencies, like Bitcoin and Ethereum, are public-facing and not anonymous.
For business owners, even if you're not investing in crypto, consider how you can leverage this technology. Using a first-mover advantage to deliver or recalibrate products and services is crucial. This includes integrating artificial intelligence and decentralized technology to avoid dependence on big tech, allowing for more control and flexibility.
Decentralized tech and cryptocurrency can enable transactions across borders, which is critical as we move towards a more collaborative and decentralized digital economy. Even if you don't invest now, learn how your business might be disrupted and where opportunities lie. A first-mover advantage is fleeting, so start exploring these possibilities now.
What must business owners learn to adapt to changing financial markets?
I had to experience this myself, and I’m grateful I didn’t sell certain assets. In a bull market, everyone is happy and there isn’t much to discuss until the market behaves as markets do. One of my free masterclasses, "The Bitcoin Bounce Back," demonstrates this by comparing the early days of the Dow, the S&P 500, and the New York Stock Exchange. Back then, it was a chaotic scene under the Buttonwood tree, which led to the creation of the SEC and regulations to stabilize the market. This stability attracted more retail investors, and the markets grew over time.
When you look at any market over time, there are rises and falls, bull markets and bear markets. For example, a pandemic can drastically change the market, regardless of how sound the assets were before. This experience taught me that I knew nothing about money, markets, or banking, despite my education and background. I followed traditional advice—get a good job, earn a high income, buy a house, invest in a retirement account—but that’s not enough when the world changes.
Traditional approaches are not sufficient in a rapidly evolving world. Banks and governments know this. Much of the fear, uncertainty, and doubt we see is intentional disinformation to keep people on the sidelines and dependent. If you want the same results, keep doing what you’re doing. But there is a new way and a new opportunity—the only barrier is our willingness to learn.
What are some effective strategies for building wealth with cryptocurrency investments?
While learning, you should still have some exposure to markets. This isn’t legal or financial advice, so always do your own research using reliable sources. I am excited about exchange-traded funds (ETFs). Alongside dollar-cost averaging, or "Satoshi cost averaging" in crypto—buying small amounts over time—you can set it and forget it, similar to regular contributions to a retirement plan. When markets dip, it's a great opportunity to buy more, as your money goes further when prices pull back. Every asset class experiences this.
With crypto assets, you can use decentralized finance (DeFi) to become your own bank or lending institution. You could lock up assets like Ethereum to earn yields or take out loans. Loans against your assets can be tax-free, and you decide how to pay them back. Companies like Lolli allow you to earn Bitcoin while shopping online. You will also see more merchants accepting Bitcoin, and companies like Visa and MasterCard finding ways to facilitate these transactions in the background.
It's more than just buying and holding—it's about leveraging these opportunities to maximize gains. You can only benefit from these strategies if you’re actively involved.
Why should business owners integrate cryptocurrency into their business models?
Decentralized technology allows us to leverage large language models outside of big tech, unless we choose to opt in. This is a game-changer. For digital products and services, we need a liquid payment method that isn't restricted by borders. This is where cryptocurrency comes in. We must integrate it into our products, services, and business models as we move from hyper-competition to a more collaborative and decentralized space—something promised with Web 2.0 but never fully delivered.
Even if you never invest in cryptocurrency, understanding how your business might be disrupted and where opportunities lie is crucial. This knowledge positions you as a first mover, but remember that a first-mover advantage is fleeting. Start now—start slowly, but start.
What are the benefits of joining a mastermind group?
We are shifting from a hyper-competitive, siloed model to one of hyper-collaboration. This aligns well with the concept of a mastermind. I’ve been in masterminds and found it easier to connect with and empower people through this collaborative approach. I strongly believe in small cohorts. For example, I'm hosting one for lawyers and other professionals this summer with a group of 10, where we also have one-on-one time.
The power of community lies in continuous learning—being around others helps you think differently and challenges you. There is a unique energy when you aren’t isolated. Even as an only child who loves solitude, I know that for intellectual growth, it's essential not to be the smartest person in the room. The "iron sharpens iron" concept is powerful in a mastermind setting. I use this in my teaching as well.
I haven't been in a physical classroom for four years, partly due to research leave, personal leave, and the pandemic. This pushed me to find ways to create meaningful digital exchanges. Despite the challenges, there is immense power in connecting with like-minded people who lift each other up, leading to exponential growth.
*This interview has been edited and condensed for clarity.*
