What's up, everybody? Welcome back to Capital University. The number one business podcast in the world. If you guys are listening on a podcast, don't forget to rate it 5 Stars subscribe and leave a review tell us if we're shit or not. If you guys are watching on YouTube. Don't forget to like comment subscribe and we have a very very actually have two special guests today and they're twins you guys might know guys, we've got Cameron and Tyler Winklevoss. You probably are aware of them.
From The Social Network the movie they got into Bitcoin back in 2012. They
hold a ton of Bitcoin and other
cryptocurrencies their big proponents of the
space. They've also built a great crypto exchange Gemini. You can go check out this conversation was really fun. I think Bryce learned a bunch about Bitcoin and crypto and we hope you guys enjoy
it. So Cameron Tyler maybe just start with explaining everyone kind of your story with Bitcoin and how you guys came across it and then what it took to kind of make your initial investment.
Sure, so we found Bitcoin in the summer of 2012. We actually were on vacation in Ibiza of all places and someone recognize this from The Social Network movie and he was from Brooklyn. He said hey, have you guys heard about Bitcoin or virtual currency and like know what's that all about? So we started talking at first. It didn't really make a whole lot of sense, but after it started to really make a lot more sense and then we got Stateside we
to to sort of do a lot of reading research and then within a matter of length weeks if not shorter we started to I did a lot of our first Bitcoin timeout box, which is the earliest exchange from fantasy imploded a couple years later, but it was yeah, it was like a wild west, you know, and that was our how he first found Bitcoin and the big moment for us was when we realize hey, this is the first money that's actually
Ali was built for the internet and the way to think about Bitcoin is it's very similar to Gold be considered gold 2.0 because it has the same properties that make gold value, but it's actually Superior than gold with those properties. So gold is a scarce and precious metal and coin supplies actually fix and will always be fixed. So when we discovered Bitcoin having a vacation in Ibiza, and then recognize that it was cold, too.
Well built for the internet. We're like hmm. That sounds like a pretty big idea. We should become a part of that.
And so when you guys first decide to start buying you didn't do it in a timid way you have actually bought a lot of Bitcoin just talked about kind of how you thought about how much you were going to buy and what the risks to that were and what the upside was.
Yes, so we had trouble figuring
out how this wasn't going to work is it was really cool 2.0 it's too centralized money. So to stop it you'd have to basically stop the internet and most countries aren't going to do that then maybe in North Korea so we didn't see how this thing wouldn't work. And if it did work it was going to be really big and we just passed and remember to have I don't know 1% sounds pretty good. Let's go for it. You know go bigger go.
Holmes I think once you build your thesis and your conviction around an idea, it's important to get skimming skin in the game in this case. I guess we threw our body in the game. You definitely don't make generational wealth by playing it too safe. That's not to say you should go out and be a cowboy on to greatest Wells are made by people who start companies and everything's in the company, you know, they're not Diversified, you know, whether it's just a socio.
Owns pretty much all this wealth is one thing Amazon, you know Mark Zuckerberg or you know, the Google guys like so when you really have conviction in something a great idea definitely going hard into it is makes a lot of sense.
So, how big do you guys think Bitcoin is going to get or any crypto currency for that matter?
So we have you recently wrote a piece this summer in August and we basically think that the price of Bitcoin conservatively will go to five hundred thousand dollars per coin. So today's price is
around 1000. I will hear we're
so that's that's an open question. We think within the next decade though, so it's really early and the think the reason why we think that
Is because really like institutional money biggest money like Wall Street money. The biggest investors still really aren't into Bitcoin. So in baseball terms instead of like the bottom of the first inning in terms of you know, the pig coin story and if it really is gold 2.0 then it's market cap has to be greater than and Golds and right now Gold's above-ground the above-ground gold Supply market cap is 9 million.
Bitcoin summer on 200 billion. So the quick math. There is a Bitcoin could appreciate 40 to 45 times. If it's going to be worth nine trillion in equal gold and sounds Pig coin is going to just rub gold then it's got to be worth at least as much or more and that's how we backed into that's how we get to a nine trillion dollar market cap of Bitcoin from to billions. Hey, and that's how we back out simple rhythmic tank into.
Thousand dollar a Bitcoin in like Cameron said we actually think that that's like a conservative. It could be worth quite a bit more.
So do you think cryptocurrency is going to take over the physical dollar eventually like there's not going to be a physical dollar. It's only going to be Technology based currency. The
short answer is we think that it's going to cannibalize disrupt gold Bitcoins really an emergent store of value. It's where you place value that you want to protect.
The dollar is more like a medium of exchange you want to use the dollar to buy things and we think the dollar is sort of challenged by some of the money Printing and all the time that's been going on that people are going to move a significant portion of their wealth or should into things like Bitcoin. So the physical dollar we don't think exists even even the US government will make dollars primarily digital and really they are you know, you look in your bank account.
Number you wire money, but the question is compliment money. The supply keeps expanding right? So we kind of joke that like the dollars becoming toilet paper because they're printing so much you experiments going into so much debt and inflation is going to happen. And so historically the way people protect themselves from their value getting depreciated by holding cash is that they would go into gold our thesis is that
Coin is a new better version of cold. So that the best way to protect from all the money printing from the devaluation of the dollar that's going to happen over time because of the lockdown but endemic and mismanagement. We think gold coin and to a lesser extent gold are the right answers for your portfolio. If you keep everything cash historically you lose a lot of value and dollar has lost 97 percent of its purchasing power.
You since the 70s so like you can buy so much little are used to be stores that were like the 99 Cents Store. You could buy things for 99 cents. Like there's nothing in this world that's ionizes anymore. It's like becoming the ten dollar store
that's justified by Source or Five Below. Yeah,
so but Bitcoin because it's Supply is so scarce think of it this way, right if there's only a hundred apples in the world and you own 10 of them you only like 10% right if all of a sudden there becomes
apples and he only owned 10 Yuan five percent, right? So you hold the same amount of dollars, but that Supply keeps growing what bigger right with Bitcoin you hold one Bitcoin. There will only be 21 million Bitcoins and you don't have to own one Bitcoin. You can own a fracture that quite a lot of people don't realize that they think oh I Gotta Buy $12,000 Bitcoin. That's a lot of money. You can buy $100 a day. You can buy $50 a big point on to supply of Bitcoin is always fixed. Whereas the supply even the supply of
Old as technology improves as demand increases people mind more gold. So it slowly expands out like the dollar but like there's more and more gold being mined every day. Whereas Bitcoin is the only asset in the entire galaxy that has a fixed Supply is never getting larger than twenty one night. That's why we think it's so interesting.
So do you think I should buy that:
absolutely
that's waited about it and tweeted about buying a Bitcoin. I wanted to hear a little bit more insight.
How did it go? Did you buy it or you're thinking
about probably gonna buy it like now? Yeah,
we know where you should buy it.
Oh, yeah. Yeah. Where should I wear? Should I buy
it? There's this awesome place called Gemini Gemini.com. Check it
out. Great plug great plug. I
hear it's pretty good. We have a we have an app for Apple iOS and also in and
Out do that too.
That's sick. So guys Cameron Tyler you guys obviously, you know, you've bought Bitcoin. You've built a fantastic Exchange in Gemini. How do you think young people should just think of investing in Bitcoin versus other things right there kind of learning as they're getting into investing. They see the stock market. They see Bitcoin to see all this stuff. How would you kind of just really talk them through that or not as to give advice but just guidance around Bitcoin versus other things that they could invest in.
In there that portfolio for a young person.
Yeah, so, you know Bitcoins like we're saying the supplies fixed. So it's like hard money. It's a very we think it's a really exciting long-term investment. It can protect you and insulate you from inflation and basically all the pendemonium that's happening in the world all the stimulus packages the lockdown all of the money printing all the craziness that's happening with the fiat currency regimes and when I say that I mean God
It money like the US dollar the Euro the pound whatever, you know, you don't want all your wealth there because things go wrong Bankers make mistakes Wall Street, you know has problems there's bubbles or crisis Bitcoin over here is your hedge against all of this craziness over here. So we think of it a long term bet like the idea of day trading is pretty tough and let unless that's all you do. So we take a very conservative buy-and-hold sort of value investment.
Approach and you know, I think in the next 5-10 years I think patients is a name of the game with investing but if you're patient, you know put an allocation a bit into Bitcoin and it's going to be a great lifetime bet for you and and and most likely your children and next Generations. Yeah. I think I think just to add to that. I think buy-and-hold when it comes to bitcoin makes sense by it with the ten year time Horizon and don't necessarily like look.
it you know every day or every week maybe every you know month or two or whatever because it's really a Buy and Hold Ding and I'm like, obviously you want to invest
things and think about like the companies that you use the technology companies that you use day-to-day that are really part of your life. That is they were to go away, you know, it would be a lot different so things like Netflix all the all the saying companies Apple Netflix Google and whatnot. I think that's like an easy way if you use the products and their big part of your life and their technology companies and they're probably well-positioned to keep changing and stay ahead of the Curve.
That's also like that's kind of an easy way to think about it. I also think that Bitcoin is is a stepping stone into the larger cryptocurrency universe. We talked a lot about Bitcoin because it's the first project, you know, it's the first crypto as we know it but there's a lot of other cryptocurrencies. There's etherium there is decentralized finance Revolution. These are all happening, but you're not going to really learn these things unless you put a little bit of skin.
And the game I'm a Believer in putting some you know, something on the table which focuses you to learn more to get involved, you know around in their little bit and then you'll learn about the next thing and the next thing you know, so I think that people too often times like don't place a bet even a small bet and so it never focuses them to actually learn and dig deeper and understand more about what's happening. So I'm a big fan of just
In the game getting comfortable playing the game and then you learn about these next things and all these other things Bitcoins just like the starting point but like crypto is it's here to stay. It's the future. It's a movement. It's a technology, but it's also like a philosophy of the way the world is going towards decentralization. There's so much to learn and do I don't we've been in it for eight years now and I don't pretend to know half of it but just being in it and swimming.
In at least we're like understanding where the world's going. So, you know get a couple of markers on the table. And that's the same thing also with with equities in the stock market, you know, like Cameron was saying the biggest drivers of the US economy had been the same companies like the Facebook Apple Amazon Google and Netflix Microsoft get in there understand what it's like to own a stock. Even the small piece see it go up and down read earnings report see how it reacts to the news. I
The the biggest risk is really doing nothing at all.
So as people kind of think about Bitcoin and they want to buy it maybe explain a little bit about how Gemini Works before we finish up.
Yeah. It's as easy as basically going to an online brokerage
account.
It on Amazon.
And then you can download the app. You can download the app and do that. But also you can just add your debit card and literally you can be you know, at dinner or whatever and start buying or learning. So we've tried to make it super easy because when we got into big it was like super kind of a scary hard experience, you know, we had to wire money offshore jump through all these groups these hoops and rings of fire and it was kind of sketchy but we try to make it like super easy.
Gemini and how people you know get involved and once you're there you'll be like, oh it's not so mysterious. It's pretty cool and you start seeing things and and then your Journey Begins, you know, and this is a pig, you know, lifetime journey of understanding money Works in this new, you know value Revolution that's upon us and it was here to stay.
That's awesome. All right guys. Thanks so much. Thank you. Thank you guys for coming on to the podcast appreciate it for having us.
I also appreciate you guys pulling over on the side of the road. That's fucking epic shit right now. Hey
anything for you pop? Hey guys, I've been doing this while driving now just get
you guys. Have a good day. We'll talk soon. Thanks guys. All right, you guys. All right. Thank you guys so much for watching all the way to the end. If you watch it on YouTube again. Don't forget to subscribe hit that like button if you listen to on Apple podcasts appreciate you as shit done, right the podcast five-star.
Scribe will see you guys next time. Peace.
