WEBVTT - Decrypting Crypto 0:00:00.880 --> 0:00:16.440 She's on the Money. She's on the Money. 0:00:18.239 --> 0:00:21.239 Hello, and welcome to She's on the Money, the podcast 0:00:21.280 --> 0:00:25.000 for millennials who want financial freedom. Lately, there has been 0:00:25.120 --> 0:00:28.920 a lot of talk about bitcoin, the popular cryptocurrency which 0:00:28.960 --> 0:00:32.360 is having a huge moment right now. But what actually 0:00:32.640 --> 0:00:35.080 is bitcoin, how does it work? And is it a 0:00:35.080 --> 0:00:38.360 good idea to get involved in? Today Victoria lays her 0:00:38.400 --> 0:00:43.400 opinions on the table. Oh now, my name is Georgia King, 0:00:43.560 --> 0:00:46.760 and joining me today for our cryptocurrency chat is financial 0:00:46.880 --> 0:00:51.640 Advisor Victoria Define. Hello, Viki Dick. Hello, let's get straight 0:00:51.680 --> 0:00:55.080 into it here, v with a little quick fire around. 0:00:55.120 --> 0:00:58.279 What I want from you is one sentence answers only here, 0:00:58.320 --> 0:00:59.920 so no v tangent straight. 0:01:00.120 --> 0:01:01.360 This was not in the script. 0:01:01.400 --> 0:01:04.760 But okay, okay, Victoria. Do you own any crypto? No? 0:01:04.880 --> 0:01:06.000 I don't, Victoria. 0:01:06.080 --> 0:01:08.520 Do you recommend crypto to any of your clients? 0:01:08.520 --> 0:01:10.120 Absolutely not, Victoria. 0:01:10.160 --> 0:01:12.840 Doesn't everyone who gets into crypto make heaps of money? 0:01:12.880 --> 0:01:15.880 They absolutely do not. Okay, Well, we've really started on 0:01:15.920 --> 0:01:17.000 a negative front. 0:01:17.480 --> 0:01:20.240 But that's okay, setting the tone for things to come. Now, 0:01:20.360 --> 0:01:24.960 let's jump in with the basics. What is cryptocurrency and 0:01:25.000 --> 0:01:27.319 why does it seem like everybody in the world is 0:01:27.360 --> 0:01:28.640 talking about bitcoin right now. 0:01:28.760 --> 0:01:31.800 Okay, so everybody is talking about it because it has 0:01:32.120 --> 0:01:35.640 had such a big surge in recent history. Right, So 0:01:35.760 --> 0:01:37.959 it did have a big surge a couple of years ago, 0:01:38.040 --> 0:01:39.480 and then it kind of dropped off a bit, and 0:01:39.520 --> 0:01:42.600 now it's had another surge again. And now what I 0:01:42.640 --> 0:01:44.800 need you to understand about this, and you need to 0:01:45.000 --> 0:01:48.680 before I even explain what this is properly is for 0:01:48.720 --> 0:01:52.240 you guys to understand the emotional investment journey. And we've 0:01:52.240 --> 0:01:56.440 spoken about this on other podcasts, but essentially it's kind 0:01:56.440 --> 0:01:59.040 of like stacks on. It's like you saying to me, Georgia, 0:01:59.080 --> 0:02:02.000 oh my god, bitcoin, you need to buy crypto, and 0:02:02.080 --> 0:02:04.080 I go, oh my god. Well, Georgia said, I need 0:02:04.080 --> 0:02:07.000 to buy crypto, and there's a lot of excitement going around. 0:02:07.160 --> 0:02:10.400 But what's happening is that excitement of you purchasing because 0:02:10.440 --> 0:02:12.680 your friend was purchasing and you kind of didn't want 0:02:12.720 --> 0:02:14.320 to miss out. You had a bit of fomo is 0:02:14.360 --> 0:02:18.000 actually pushing the price higher because we're playing stacks on, 0:02:18.120 --> 0:02:21.680 and that is not necessarily a good thing, because you 0:02:21.760 --> 0:02:24.760 actually don't want to buy something while it's being saturated. 0:02:25.080 --> 0:02:28.560 That's actually the point of maximum risk in investment. You 0:02:28.600 --> 0:02:31.040 actually want to purchase when it's really low. That's not 0:02:31.080 --> 0:02:32.760 to say you should be waiting for it to get 0:02:32.880 --> 0:02:35.480 to low. We'll explain exactly what it is and why 0:02:35.560 --> 0:02:39.120 I don't personally invest in it in this episode. So 0:02:39.360 --> 0:02:41.840 now I'm not super negative when it comes to bitcoin. 0:02:41.919 --> 0:02:45.280 Albeit I have just expressed a lot of negative views 0:02:45.280 --> 0:02:47.880 about it in about a thirty second period, which is 0:02:47.960 --> 0:02:51.480 quite impressive, to be honest. But the reason I don't 0:02:51.600 --> 0:02:54.080 like bitcoin is because it doesn't fit any of my 0:02:54.080 --> 0:02:57.800 client's risks profiles, and it genuinely is such a risky 0:02:57.840 --> 0:03:00.520 asset to me, it is not worth it, regardless of 0:03:00.560 --> 0:03:04.080 what the returns could potentially be. So jumping right into 0:03:04.120 --> 0:03:08.040 what it is, cryptocurrency is a form of digital currency, 0:03:08.080 --> 0:03:11.320 and it's based on what is called blockchain technology. So 0:03:11.600 --> 0:03:13.520 all of that is a bit of a mouthful, but 0:03:13.680 --> 0:03:17.320 essentially a blockchain is essentially like a checkbook that's shared 0:03:17.320 --> 0:03:20.760 across an incredible number of computers around the world in 0:03:20.880 --> 0:03:24.720 terms of where the blockchain's name comes from. All transactions 0:03:24.760 --> 0:03:27.400 are recorded in what they call blocks, which are then 0:03:27.480 --> 0:03:30.760 added to a chain of all previous transactions. It's a 0:03:30.760 --> 0:03:35.000 distributed ledger sexy name that records all of the transactions 0:03:35.040 --> 0:03:38.600 that have been made. Now, unlike regular types of currency 0:03:38.680 --> 0:03:42.840 like dollars or yeens or pounds, cryptocurrency is what we 0:03:42.920 --> 0:03:47.640 call decentralized, which means it's completely unregulated by any financial 0:03:47.640 --> 0:03:51.960 authority and exists completely independently from the government or any 0:03:52.000 --> 0:03:56.080 type of central bank. Now, decentralization, when you explain it 0:03:56.120 --> 0:03:58.280 like that, does sound pretty good. It does have a 0:03:58.360 --> 0:04:01.800 number of perks, like crypto currency being a global currency 0:04:01.880 --> 0:04:04.800 with the same value everywhere in the world. Kind of cool, 0:04:05.040 --> 0:04:08.120 especially in twenty twenty one. However, the flip side of 0:04:08.160 --> 0:04:12.480 that is that cryptocurrency is extremely risky, which I mentioned before. Now, 0:04:12.520 --> 0:04:14.680 if we look at stats in December twenty twenty, the 0:04:14.800 --> 0:04:18.400 total value of all cryptocurrencies was he in excess of 0:04:18.560 --> 0:04:22.359 six hundred and forty five point seven billion dollars. The 0:04:22.440 --> 0:04:25.919 total value of bitcoins came to around four hundred and 0:04:26.040 --> 0:04:29.720 twenty one billion dollars. So bitcoin is the key player here, 0:04:29.800 --> 0:04:33.480 let's be brutally honest, but it's not the only type 0:04:33.480 --> 0:04:37.479 of cryptocurrency. There are more than six seven hundred different 0:04:37.480 --> 0:04:40.360 types of cryptocurrencies out there, according to a website we've 0:04:40.400 --> 0:04:43.640 never referred to before called coin marketcap dot com. 0:04:43.680 --> 0:04:45.919 I trust them so trustworthy. 0:04:46.040 --> 0:04:47.359 Let's keep it. Don't question today? 0:04:47.720 --> 0:04:50.880 Is bitcoin on everyone's lips? You mentioned before that it 0:04:50.960 --> 0:04:53.080 has had that massive surge, but it's not the first 0:04:53.080 --> 0:04:55.120 time we've heard of bitcoin. It was floating around a 0:04:55.120 --> 0:04:56.279 couple of years ago, right. 0:04:56.320 --> 0:04:58.520 Yeah, absolutely, And I think it would be naive of 0:04:58.520 --> 0:04:59.960 me to say, oh, no, one's going to make money 0:05:00.160 --> 0:05:03.239 with this, Like I genuinely know people in real life 0:05:03.360 --> 0:05:07.360 who have made bank from buying bitcoin. I'm not saying 0:05:07.360 --> 0:05:09.560 this is not something that if it appeals to you, 0:05:09.560 --> 0:05:11.960 you shouldn't invest your money in. What you need to 0:05:12.040 --> 0:05:17.480 understand is it is incredibly risky. Essentially, bitcoin could disappear 0:05:17.520 --> 0:05:21.000 tomorrow and no one will be none the wiser the 0:05:21.080 --> 0:05:23.520 end of the day. What happens if it gets taken down, 0:05:23.560 --> 0:05:27.080 what happens if it gets deleted off the internet. Essentially 0:05:27.320 --> 0:05:29.719 there is no basis for it. So if we talk 0:05:29.760 --> 0:05:32.320 about a share in a company, let's take a bank, 0:05:32.440 --> 0:05:35.560 because that's quite a bland example. You buy a share 0:05:35.560 --> 0:05:38.279 of bank A and what that share gives you is 0:05:38.720 --> 0:05:41.440 the ability to have some of their income and also 0:05:41.480 --> 0:05:43.599 have some of their capital growth. And there is a 0:05:43.600 --> 0:05:46.400 physical asset that is making that money. There are people 0:05:46.440 --> 0:05:50.679 behind it making work. Whereas bitcoin, and we say bitcoin, 0:05:50.760 --> 0:05:55.159 but that's like a brand of cryptocurrency cryptocurrency. There's nobody 0:05:55.160 --> 0:05:57.240 actually making it work. It is something that has been 0:05:57.279 --> 0:06:00.400 digitally created and we are as humans putting a value 0:06:00.440 --> 0:06:00.720 on that. 0:06:00.920 --> 0:06:01.839 And it's a currency. 0:06:02.040 --> 0:06:04.520 It's a currency, so you can trade on the internet 0:06:04.520 --> 0:06:06.560 with it. You can purchase things on the internet. It's 0:06:06.600 --> 0:06:09.760 not as common as you know, being able to PayPal something, yeah, 0:06:09.800 --> 0:06:12.839 but you can definitely purchase things. One of the reasons 0:06:12.880 --> 0:06:16.400 why people on the internet especially love this and why 0:06:16.480 --> 0:06:19.440 I guess it goes so far back. It's kind of 0:06:19.480 --> 0:06:22.839 a little bit underground, right, So you could purchase bitcoins 0:06:22.920 --> 0:06:26.560 to make anonymous purchases online, so you can imagine the 0:06:26.640 --> 0:06:30.880 types of content that people are purchasing when you know, 0:06:30.960 --> 0:06:36.240 you can be completely so it's not actually got good bases, 0:06:36.400 --> 0:06:39.359 if that makes sense. So, like you know, decentralization is great, 0:06:39.440 --> 0:06:41.279 having you know, the same value all around the world. 0:06:41.320 --> 0:06:43.720 We're seeing all these positives. It's great. But the reason 0:06:43.880 --> 0:06:46.400 a lot of people initially wanted it was to be 0:06:46.560 --> 0:06:50.160 super anonymous and purchase things that potentially they shouldn't have 0:06:50.200 --> 0:06:51.400 been purchasing online. 0:06:51.600 --> 0:06:55.240 And what is the value of bitcoin right now? 0:06:55.360 --> 0:06:58.720 Bitcoin is essentially back, I guess has gone in ebbs 0:06:58.760 --> 0:07:00.960 and flows. But bitcoin is bad because of its recent 0:07:01.040 --> 0:07:04.360 jump in value. Essentially it has gone up forty two 0:07:04.520 --> 0:07:08.720 thousand dollars each bitcoin, not a little bit, not overall, like, 0:07:08.800 --> 0:07:12.080 each bitcoin is now worth forty two thousand dollars more 0:07:12.080 --> 0:07:14.880 than it was historically, which people seem to think is 0:07:14.920 --> 0:07:18.040 the result of a wave of money from institutional investors, 0:07:18.160 --> 0:07:20.240 which was propelled by COVID nineteen. 0:07:20.640 --> 0:07:23.840 Right, okay, so tell us more about bitcoin. It's obviously 0:07:24.040 --> 0:07:26.240 the largest form of cryptocurrency. 0:07:26.800 --> 0:07:29.480 So the Bitcoin Market Journal, which is a real thing, 0:07:29.800 --> 0:07:33.800 estimated that there are over one hundred million bitcoin users globally. 0:07:34.280 --> 0:07:37.080 It was created more than a decade ago in January 0:07:37.120 --> 0:07:39.080 two thousand and nine, which happens to be the year 0:07:39.080 --> 0:07:42.720 I graduated high school Georgia, which turns out more than 0:07:42.720 --> 0:07:46.680 a decade ago, which followed on from the financial crash 0:07:46.680 --> 0:07:48.320 of two thousand and eight, which you guys would have 0:07:48.360 --> 0:07:51.320 heard of as the GFC. Yes, it was designed as 0:07:51.320 --> 0:07:54.280 an alternative to government and central banks controlling the money 0:07:54.280 --> 0:07:56.560 and the economy, so kind of made a bit of 0:07:56.600 --> 0:08:00.120 sense at the time. There are no actual physical bitcoin, 0:08:00.200 --> 0:08:02.400 so when you buy bitcoin, you don't actually get a 0:08:02.520 --> 0:08:06.520 piece of a bitcoin. There's no actual tangible cash. Instead, 0:08:06.560 --> 0:08:09.560 it's just balances on a public transparent ledger system known 0:08:09.600 --> 0:08:12.840 as blockchain. So that's where that comes in, which we 0:08:12.960 --> 0:08:15.880 mentioned before, which is verified by an incredible amount of 0:08:15.960 --> 0:08:19.120 computing power. So all of it is kind of and 0:08:19.160 --> 0:08:21.000 you can look into it and understand it deeply, and 0:08:21.040 --> 0:08:22.600 there are going to be a lot of people commenting 0:08:22.600 --> 0:08:24.760 on this being like Victoria, you've really simplified it so 0:08:24.840 --> 0:08:27.840 much more complex. Here's how it works. I get that. 0:08:28.000 --> 0:08:30.640 I fully understand that. Please do not think for two 0:08:30.640 --> 0:08:32.959 seconds that we haven't done our research here. I don't 0:08:33.000 --> 0:08:35.120 fully understand it. But at the end of the day, 0:08:35.160 --> 0:08:38.240 I genuinely don't believe that a lot of our listeners 0:08:38.559 --> 0:08:41.439 understand what bitcoin is apart from a thing that you're 0:08:41.440 --> 0:08:44.320 able to buy online that you know is worth a 0:08:44.360 --> 0:08:46.199 lot and is a bit of a hype right now. 0:08:46.240 --> 0:08:49.839 And I think it's a bit worrying because these types 0:08:49.840 --> 0:08:51.360 of people who are saying, oh my gosh, well, I'm 0:08:51.360 --> 0:08:53.600 going to buy a bitcoin. I've done my research. Like, 0:08:53.720 --> 0:08:57.079 you don't understand your risk profile, you don't understand your 0:08:57.120 --> 0:09:00.679 long term investment strategy, you don't understand what you should 0:09:00.720 --> 0:09:04.120 actually be putting into a well diversified portfolio. Yet you're 0:09:04.200 --> 0:09:07.160 jumping straight to the risky assasst that I believe you 0:09:07.200 --> 0:09:07.760 could purchase. 0:09:07.880 --> 0:09:10.800 Sure, And a lot of people would think that being 0:09:10.840 --> 0:09:13.760 well researched means like how to chat with dad. Dad 0:09:13.800 --> 0:09:15.840 bought a bitcoin. Now it's doubled in value. I'm going 0:09:15.920 --> 0:09:19.720 to do it as well. That isn't actually proper research there, 0:09:19.800 --> 0:09:20.400 so oh my. 0:09:20.360 --> 0:09:23.640 Gosh, yes, And like, please do not get me wrong. 0:09:24.320 --> 0:09:28.840 I have friends and I also have you know, acquaintances 0:09:28.840 --> 0:09:30.600 in people that I know who have made more than 0:09:30.600 --> 0:09:33.719 a million dollars from bitcoin. We're not talking they've made 0:09:33.720 --> 0:09:35.800 a million dollars this year because they bought it, because 0:09:35.800 --> 0:09:38.559 they're increased in value. I know people who bought it 0:09:38.600 --> 0:09:41.000 when like I can't remember what it started off as, 0:09:41.040 --> 0:09:43.840 but like they bought a bitcoin for eight bucks, right, 0:09:43.960 --> 0:09:45.079 and they made bank. 0:09:45.280 --> 0:09:46.199 So this is back in the day. 0:09:46.240 --> 0:09:48.320 Like this is way back in the day. Like I 0:09:48.400 --> 0:09:52.199 remember when I was in high school, I did circulate 0:09:52.280 --> 0:09:55.640 with the cool kids who talked about blockchain technology, spent 0:09:55.720 --> 0:09:58.640 all their time in the library, and at that point 0:09:58.760 --> 0:10:01.640 they were talking about it really yep. And I remember 0:10:01.679 --> 0:10:03.960 them talking about it in online forums and being like, 0:10:04.000 --> 0:10:05.600 oh my gosh, this is the way of the future, 0:10:05.720 --> 0:10:06.760 meeting like I don't get it. 0:10:06.840 --> 0:10:08.600 Yeah yeah, yeah this wow. 0:10:08.760 --> 0:10:11.439 Yeah. So at that point I literally had no idea. 0:10:11.480 --> 0:10:13.880 But it has been around for a while, it definitely 0:10:13.960 --> 0:10:17.720 has surged in popularity, and it's also come back again. 0:10:17.760 --> 0:10:20.120 But I do believe the way it's come back is 0:10:20.160 --> 0:10:23.760 because we're seeing institutions actually invest in this because they 0:10:23.760 --> 0:10:26.680 see a future in it, which makes retail investors like 0:10:26.720 --> 0:10:29.600 you are High Georgia a little bit more comfortable with 0:10:29.640 --> 0:10:32.240 it because you're like, well, if big instos are backing it, well, 0:10:32.280 --> 0:10:34.960 obviously it's safe. That does not mean that. It just 0:10:35.080 --> 0:10:38.320 means they see a potential return that they want exposure to. 0:10:38.920 --> 0:10:40.840 And can you talk a little bit more about the 0:10:41.000 --> 0:10:44.200 hype around this and how much FOMO is really playing 0:10:44.240 --> 0:10:45.840 into everyone buying into this right now? 0:10:46.080 --> 0:10:48.320 I think people genuinely just want to be involved in 0:10:48.360 --> 0:10:50.679 what they think is going to be the next big thing, Like, 0:10:50.920 --> 0:10:53.840 don't get me wrong, I get fomo. When people start 0:10:53.920 --> 0:10:56.720 really deeply talking about bitcoin, I'm like, oh, is it 0:10:56.760 --> 0:10:59.280 worth it? Maybe? But at the same time, I know 0:10:59.520 --> 0:11:02.200 me per I would not want to be exposed to that. 0:11:02.679 --> 0:11:05.520 I'm very conservative. It is absolutely not something I should 0:11:05.559 --> 0:11:08.000 be dabbling with or even playing with. But I do 0:11:08.160 --> 0:11:10.520 know people who have done it and people who are 0:11:10.559 --> 0:11:12.840 continuing to do it and enjoying it, So we're not 0:11:12.960 --> 0:11:15.600 saying here that it is a really bad thing. I 0:11:15.640 --> 0:11:18.800 think my negativity right now is actually coming from a 0:11:18.800 --> 0:11:22.199 place of concern because I'm seeing so many people post 0:11:22.240 --> 0:11:24.720 in our community and asking comments about like how do 0:11:24.840 --> 0:11:27.880 I buy a bitcoin, and like we need to educate ourselves. 0:11:27.960 --> 0:11:30.360 We need to have this conversation and just say, look, 0:11:30.400 --> 0:11:34.000 this is great. It's a form of currency. It is 0:11:34.040 --> 0:11:36.719 a form of currency that you're able to invest in. 0:11:37.000 --> 0:11:40.960 But that form of currency has no physical basis. You 0:11:41.000 --> 0:11:43.960 don't have a business behind it that maybe if they 0:11:43.960 --> 0:11:46.439 don't make profit and you don't get dividends, like it's okay, 0:11:46.440 --> 0:11:48.800 because the next year it might perform again, like it 0:11:48.840 --> 0:11:52.280 could literally disappear, and that's one of the risks that 0:11:52.320 --> 0:11:55.400 you're taking. And I think that people assume that the 0:11:55.440 --> 0:11:58.280 share market is similar to that, when in reality it 0:11:58.320 --> 0:12:02.360 absolutely isn't. And if you're only exposure to quote investing 0:12:02.960 --> 0:12:05.959 is in bitcoin and cryptocurrencies and things that you can 0:12:05.960 --> 0:12:09.880 actually lose significant amounts of cash, like, you're going to 0:12:09.880 --> 0:12:12.280 be tainted by that. You're not going to feel comfortable 0:12:12.280 --> 0:12:14.720 with investing, and you're going to put you know, your 0:12:14.720 --> 0:12:18.839 financial future at a disadvantage because you don't actually fully 0:12:18.920 --> 0:12:19.520 understand it. 0:12:19.720 --> 0:12:21.839 Yeah, I think the fact that it's not backed by 0:12:21.920 --> 0:12:25.640 any anything of substance is quite scary as well. When 0:12:25.640 --> 0:12:29.040 I was reading up on bitcoin, it was just created 0:12:29.080 --> 0:12:32.000 by some literally like some guy off the back of 0:12:32.000 --> 0:12:34.680 the global financial crissis, and it's so elusive and like 0:12:34.720 --> 0:12:37.640 he now doesn't exist and it's all it's it's weird. 0:12:37.920 --> 0:12:40.440 So it's weird, and it is one of those things 0:12:40.440 --> 0:12:43.080 that we can talk about until the cows come home. 0:12:43.360 --> 0:12:45.920 But I just really wanted to talk about it so 0:12:45.960 --> 0:12:48.200 that you guys know that we are addressing it at 0:12:48.240 --> 0:12:50.920 the same time as going, oh, I'm not exactly going 0:12:50.960 --> 0:12:53.559 to do an entire podcast on how to buy a 0:12:53.600 --> 0:12:56.160 bitcoin and what type of asset it is, Like, I'm 0:12:56.160 --> 0:12:59.440 currently doing this mini series of the four asset classes 0:12:59.440 --> 0:13:02.400 that you can investing in Australia that are safe and 0:13:02.440 --> 0:13:05.000 that are you know, going to be in line with 0:13:05.040 --> 0:13:07.679 your invested profile once you work out what that is. 0:13:07.679 --> 0:13:10.840 So we're talking cash, talking fixed interest, we're talking shares 0:13:10.880 --> 0:13:14.360 and property. Those things, while they carry risk. When we 0:13:14.520 --> 0:13:18.600 talk about risk, those risks are significantly different to the 0:13:18.600 --> 0:13:21.440 type of risk that you take when you take your 0:13:21.520 --> 0:13:24.200 hard earned money and put it into an asset that 0:13:24.280 --> 0:13:25.959 you cannot trace on the internet. 0:13:26.160 --> 0:13:28.000 It just feels like gambling to me, like I am 0:13:28.040 --> 0:13:32.720 completely risk averse in every sense, and to me, I'm 0:13:32.720 --> 0:13:35.280 just like, there's no way I would ever consider this, 0:13:36.080 --> 0:13:37.880 but obviously a lot of people are, and that's why 0:13:37.920 --> 0:13:39.839 we're talking about it. But I wanted to ask you 0:13:39.920 --> 0:13:42.760 b what the history of bitcoin has been like, because 0:13:42.800 --> 0:13:44.800 I know a few years back it did really boom 0:13:44.800 --> 0:13:47.199 and everyone was talking about it, but then it plummeted. 0:13:47.240 --> 0:13:48.959 The value just went straight on down and it was 0:13:49.040 --> 0:13:51.880 kind of embarrassing and we were like, oh, Bitcoin, those 0:13:51.880 --> 0:13:55.720 silly people, they are the geniuses. Yes they sold them 0:13:55.800 --> 0:13:57.400 or trade them or however exactly. 0:13:57.520 --> 0:14:00.200 And that's what we've got to remember. Like big coin 0:14:00.280 --> 0:14:03.319 has some really high highs and some also really low lows. 0:14:03.600 --> 0:14:05.920 And I think it's one of those assets that I 0:14:05.960 --> 0:14:08.760 wouldn't want my share portfolio to look like that. So 0:14:08.880 --> 0:14:12.440 if we're talking about historicals, at the end of twenty seventeen, 0:14:12.640 --> 0:14:15.760 bitcoin traded it close to twenty thousand dollars, so when 0:14:15.800 --> 0:14:19.240 we talk about bitcoins, we're talking about one bitcoin Georgia. 0:14:19.280 --> 0:14:22.120 At the end of twenty seventeen, bitcoin was trading it 0:14:22.200 --> 0:14:25.920 close to twenty thousand dollars per bitcoin, but twelve months 0:14:26.000 --> 0:14:28.960 later it was only worth three thousand, two hundred dollars. 0:14:29.040 --> 0:14:31.800 So if you went and purchased a twenty thousand dollar bitcoin, 0:14:32.120 --> 0:14:34.480 you'd be, you know, maybe going home with your bat 0:14:34.480 --> 0:14:36.840 and ball with your tail between your legs. But now 0:14:36.880 --> 0:14:39.880 two years on from that, it's trading at super high 0:14:40.000 --> 0:14:43.320 levels again, and one bitcoin is now worth forty two 0:14:43.400 --> 0:14:46.640 thousand dollars, So it is having a very up and 0:14:46.720 --> 0:14:49.760 down journey, but at the same time it is still 0:14:49.840 --> 0:14:52.720 just as risky as it was historically. Now there are 0:14:52.720 --> 0:14:54.520 going to be a lot of people that believe the 0:14:54.520 --> 0:14:57.160 bitcoin is the way of the future, because, as we 0:14:57.160 --> 0:15:00.560 were talking about before, it's a global currency like a 0:15:00.600 --> 0:15:04.120 bitcoin today in Australia is worth exactly what a bitcoin 0:15:04.160 --> 0:15:06.440 in London is worth. It is exactly what a bitcoin 0:15:06.480 --> 0:15:09.480 in Africa is worth, and that's kind of cool that 0:15:09.480 --> 0:15:13.280 we'd have a centralized currency system. Finally, the scary thing 0:15:13.360 --> 0:15:16.880 for me is that centralized currency system has no basis. 0:15:16.880 --> 0:15:18.920 We don't know where it came from, we don't know 0:15:18.960 --> 0:15:21.960 how that bitcoin was made. And I'm sure there are 0:15:22.000 --> 0:15:24.360 a lot of you know, really tech savvy people who 0:15:24.400 --> 0:15:26.720 are going to turn around me and be like, well, Victoria, 0:15:26.760 --> 0:15:30.360 and I get that. But if I, as a financial advisor, 0:15:30.400 --> 0:15:35.280 who I would argue is relatively well educated, cannot understand 0:15:35.440 --> 0:15:39.160 the basis of this investment or this business for me 0:15:39.280 --> 0:15:41.440 to put my hard earned money into, it's a no 0:15:41.600 --> 0:15:45.040 from me, So Georgia. At the end of the day, 0:15:45.280 --> 0:15:48.640 this isn't a stable investment by any stretch of the imagination. 0:15:48.920 --> 0:15:51.880 And though it increases and that sounds really exciting, it's 0:15:52.080 --> 0:15:55.600 just an indicative of how volatile of an investment this is. 0:15:55.920 --> 0:15:58.400 So I think that what we really need to take 0:15:58.480 --> 0:16:01.800 from this is if you want to invest in bitcoin, fantastic, 0:16:01.840 --> 0:16:04.080 But what I want you to do is go and 0:16:04.160 --> 0:16:06.760 do your research. I want you to understand each and 0:16:06.840 --> 0:16:10.080 every single aspect of it, the pros, the cons, whether 0:16:10.120 --> 0:16:12.200 it works for you. And I think that you really 0:16:12.240 --> 0:16:15.200 need to, as a human put yourself in the best 0:16:15.200 --> 0:16:18.280 possible position and go, is there something that I'm willing 0:16:18.360 --> 0:16:20.720 to risk? And you know what, if you are willing 0:16:20.960 --> 0:16:23.920 to risk that money and say, all right, well, if 0:16:23.920 --> 0:16:26.800 I invest in bitcoin, I want you to be comfortable 0:16:26.840 --> 0:16:28.800 with the idea that you won't get any of that 0:16:28.920 --> 0:16:31.600 money that you've invested back. And if you can't say 0:16:31.600 --> 0:16:39.000 you're comfortable with that, don't do it. You're listening to 0:16:39.040 --> 0:16:41.800 She's on the Money with Victoria Devine and Georgia King. 0:16:47.160 --> 0:16:49.760 Now, please don't forget, guys, that the podcast is not 0:16:49.840 --> 0:16:52.320 the only space you can find Victoria and the team. 0:16:52.360 --> 0:16:54.440 We have a booming Facebook group, one hundred and thirty 0:16:54.440 --> 0:16:56.440 thousand people in that wild. 0:16:56.360 --> 0:16:59.520 How good is that? I know, I've got so many friends. 0:17:00.320 --> 0:17:03.160 We have conversations like this one every single day, every 0:17:03.200 --> 0:17:06.640 single hour, celebrating money wins, helping each other answer money dilemmas, 0:17:06.680 --> 0:17:09.240 ad It's pretty much the most wholesome plus on the Internet. 0:17:09.280 --> 0:17:10.880 I think it's safe to say. 0:17:10.680 --> 0:17:12.919 People post pictures of their dogs and let us know 0:17:12.920 --> 0:17:15.800 what their kids are up to. It's literally so wholesome. 0:17:16.119 --> 0:17:18.400 So join us there if you're not there already, guys, 0:17:18.400 --> 0:17:21.439 but let's get back into this chat with the serious stuff. 0:17:21.480 --> 0:17:21.680 Fee. 0:17:21.960 --> 0:17:25.240 We've heard a lot of hype about bitcoin lately, but 0:17:25.280 --> 0:17:28.440 what are the dangers of bitcoin and other cryptocurrencies? 0:17:28.760 --> 0:17:30.000 Like, at the end of the day, I feel like 0:17:30.080 --> 0:17:33.199 I have covered this, so sorry to anyone listening at 0:17:33.200 --> 0:17:35.720 home and doesn't want to hear me reiterate points over 0:17:35.840 --> 0:17:37.840 and over. But at the end of the day, it 0:17:38.119 --> 0:17:41.840 is extremely risky and it is volatile. If you're going 0:17:41.880 --> 0:17:44.639 to invest, I just need you, like I really really 0:17:44.680 --> 0:17:46.920 need you to be prepared to lose some more all 0:17:46.920 --> 0:17:49.439 of your money. It's not really a question for me. 0:17:49.720 --> 0:17:52.240 It's something that says you're actually taking a bit of 0:17:52.240 --> 0:17:54.800 a punt on this. You could lose everything that you 0:17:54.880 --> 0:17:57.239 put in, and I think that that is something that 0:17:57.320 --> 0:18:00.359 you need to consider and go, Okay, well, if I 0:18:00.400 --> 0:18:02.399 lost it all, it wouldn't hurt me. Maybe it's a 0:18:02.400 --> 0:18:04.600 couple of one hundred dollars and you go, yep, that's 0:18:04.800 --> 0:18:07.399 that's the risk I'm willing to take. But if it's not, 0:18:07.800 --> 0:18:10.640 my friend, we shouldn't be doing that and to kind 0:18:10.640 --> 0:18:13.679 of put this into some level of understandable framework. I 0:18:13.680 --> 0:18:15.359 guess we can look at it from a profit and 0:18:15.359 --> 0:18:18.119 lost angle. Right, if you invested in bitcoin at the 0:18:18.160 --> 0:18:20.280 start of last year, you would have been sitting at 0:18:20.320 --> 0:18:23.240 about three hundred percent profit by the end of twenty twenty. 0:18:23.280 --> 0:18:25.880 So that's not bad. That's that's pretty quite good, it's 0:18:25.960 --> 0:18:29.760 quite smart. But if you'd invested at the start of 0:18:29.840 --> 0:18:33.840 twenty eighteen, and so many people did this is not uncommon, 0:18:33.840 --> 0:18:36.840 that was a very high purchase time, and then you 0:18:36.920 --> 0:18:38.720 sold at the end of that year, you would have 0:18:38.720 --> 0:18:41.600 lost seventy three percent of your money, which is obviously 0:18:41.600 --> 0:18:44.680 a massive fluctuation. But again, it's about when you get 0:18:44.720 --> 0:18:47.000 into the market and when you get out of the 0:18:47.040 --> 0:18:50.400 market and working out how to seize an opportunity, which 0:18:50.440 --> 0:18:52.760 is not always clear. And I know that a lot 0:18:52.760 --> 0:18:56.720 of people lost a lot of money because they thought 0:18:56.800 --> 0:18:58.760 the bitcoin would go up and up and up and up, 0:18:58.800 --> 0:19:00.920 and they left their money and what go up, even 0:19:00.960 --> 0:19:02.720 though they should have pulled it out and you know, 0:19:02.920 --> 0:19:06.280 just taken their profits and run, they didn't, and they 0:19:06.359 --> 0:19:09.159 lost a lot. And like, I'm just not I'm not 0:19:09.240 --> 0:19:13.000 a risky person. My friends and literally, just like anything, 0:19:13.080 --> 0:19:16.360 the value of cryptocurrency is can I start calling it? Crypto? 0:19:16.440 --> 0:19:19.600 Are cool enough? The value of crypto is tied to 0:19:19.640 --> 0:19:22.959 supply and demand, but it's super difficult to determine what 0:19:23.040 --> 0:19:25.760 will actually drive up and down the price beyond that, 0:19:26.600 --> 0:19:29.439 which makes it super risky because we can't say, oh, okay, 0:19:29.520 --> 0:19:32.360 new problems, like this industry's done really well, therefore we'll 0:19:32.359 --> 0:19:35.560 probably see an increase in price. Like we literally don't 0:19:35.560 --> 0:19:39.240 know what drives bitcoin or crypto for that better. 0:19:39.800 --> 0:19:42.760 Now, you said earlier that you have not invested in 0:19:43.080 --> 0:19:46.280 crypto or biggoin you don't intend to. I feel like 0:19:46.320 --> 0:19:48.280 we are getting a sense of why, But are there 0:19:48.320 --> 0:19:50.000 any other reasons you haven't mentioned yet? 0:19:50.160 --> 0:19:52.359