Top 10 Questions About Cryptocurrency Answered

Okay, so I've got a bunch of questions here that have been sent in by you guys. There's literally a dozen questions and I'm going to see how quickly I can get through these briefly.

May have to make a couple of videos, but we'll see. First question is, can a self managed super fund invest into crypto? The simple answer is yes, it can.

However, your self managed super fund has to be the correct way, otherwise the crypto that you invest in has to be set up the correct way. So as most people know, Bitcoin's only been around for 13, 14 years.

And most of the constitutions of the self managed super funds were set up long, long ago. So most of them are set up to accept investments into bonds, stocks, property, that sort of stuff which have been around for centuries.

So most self managed super funds will not have in the constitution that they can actually invest into crypto.

So it's then up to you to say, do I want to go and see my accountant and my lawyer and have my self managed super fund recalibrated so it can invest in crypto.

The other thing that we've done through the Boston Trading company is realizing it was going to cost thousands of dollars for people to change the constitution in their self managed super fund is we actually set up a holding company or a shelf company in Wyoming. So the self managed super fund can actually buy stocks and shares. It's freely able to do that. All of them, all of them have been set up that way.

So the self managed super fund actually buys shares in the Wyoming company and then the Wyoming company turns around and buys the crypto on its behalf.

So it's kind of like a holding holding situation or a transfer situation, which makes things easy and means you don't need to change the constitution for yourself. Money super fund.

It is a a little more complex than that, but obviously that's a quick and easy answer that yes, you can do it, you just have to know how to do it. Make sure your fund's set up correctly or make sure you're investing with a fund who has actually made it compliant on your behalf.

Question two, Are financial planners wise to recommend crypto as an investment? The latest stats that I've seen is there's around about 2/3 of financial planners who have actually personally invested in crypto.

However, less than 5% of them are actually recommending it for their clients. And most of that is because the financial planners are not licensed or authorized to recommend crypto.

Crypto is what they call a non compliant asset There are no rules or regulations around it as yet, although there is draft legislation coming in the us, the uk, Australia and a few other companies. So if you're a financial planner and your clients are asking about crypto, you can provide information only you can't provide a recommendation.

Boston Coin actually helps a lot of accountants and financial planners to provide information so that your client can make an informed decision. But apart from that, yes, it is a wise move, but officially you can't really make it part of your recommendation.

So if you're not a financial planner or an accountant, you won't get those recommendations.

But obviously you know the same as holding gold or diamonds or oil or something like that, it is wise to have some scarce commodities in your portfolio, particularly when we're dealing with higher interest rates and higher inflation coming down the chain. Question three, as complete beginner to crypto, what should one look for and how would one stay safe? Easy answer to that.

I'll throw up the four step coin protocol, which you can find@krillionaire.com that's the one that we use. There are billion dollar hedge funds in Europe actually using the same protocol that we issued six years ago. Now, it's one way of staying safe.

Nothing is ever completely safe. You could have bought shares in Netflix last year, you'd be down around about 75% at the moment.

You could have bought shares in Zoom last year, you'd be down around 80% at the moment. Nothing's ever completely safe. But the coin protocol, the four step protocol, will actually help you to be about 90% safe most of the time.

What is cryptocurrency in general? Man, that's a really big, broad question.

I would send that person to Krillionaire.com where they can actually learn about a lot of different cryptocurrencies. But a quick answer to the question is, I refer to cryptocurrency as the alternative stock market.

We hear a lot about the big names on the stock market, such as BHP or NAB or Facebook or Google, all that sort of stuff. So we mostly hear about the top 200.

There is, however, hundreds and hundreds and hundreds of other companies that are a lot lower down in the stock market. Those are generally higher risk, sometimes higher reward.

And crypto is basically, it's kind of off the chart with the reward and risk ratio as far as comparing it to the stock market. There's a lot of great projects out there. Some of those we invested in too early through Boston Coin.

We got into six different projects while they were Cheap. Those projects went up by over 10,000%. There are some projects, of course, that go to zero.

So you've got to make sure you do your homework, whether you're investing into stocks or whether you're investing into crypto. But a great resource is the Krillionaire website. What other types of cryptocurrencies are there out there? Again, refer to the website.

It's like asking what kind of stocks are on the stock market. You've got all sectors, all different projects. A lot of them are crap.

I would estimate there's probably 13,000 rubbish ones that will either take your money, scam you or just simply go broke. There's probably maybe a couple of thousand good ones. And the COIN protocol will actually help you to sort through the cream from the crap.

Question 6, what can you buy with cryptocurrency and how? Well, there's a lot of businesses that will actually accept crypto. My hairdresser accepts crypto, my lawn maintenance guy accepts crypto.

Tesla will accept dogecoin and Bitcoin.

If you're going to buy yourself a Tesla motorcar, there's cafes and restaurants and these places are starting to accept Bitcoin now that you can do by direct transfer. Obviously, a lot of places still do not and they prefer to have cash or MasterCard or Visa card. So you can actually get yourself a crypto card.

You preload that like a prepaid Visa card, and you can top it up with either cash or crypto.

So you can literally get your Bitcoin, transfer it onto the Visa card and then pay for your meal if the place doesn't accept Bitcoin directly, a few ways to do that. Question seven, how safe is crypto? I think I've answered that previously with the other question.

It is like an alternative stock market, high risk, high reward. You've really got to know what you're doing.

So you can invest in your own education through the trillionaire site, learn a lot of things for free there, or you can actually deal with a trusted advisor, a trusted fund manager who knows a lot more than what you do. Question 8, Regulations and requirements around Bitcoin. Currently none.

There are a couple of countries in the world, like El Salvador, Democratic Republic of Congo, I think, is the other one. They've got Bitcoin as a reserve currency, so they've obviously got some rules and regulations.

If you don't live in those places, then we're just waiting on regulations to come in from the other countries whether they will actually classify Bitcoin as a stock As a commodity, as a currency, as whatever. Something else that we haven't heard of before. That's entirely up to the regulators and the legislators.

I'm assuming most governments will try and push their own digital currency agenda and try and steer people away from bitcoin and other cryptocurrencies. But that's obviously, the government wants you to use their money.

They don't want you bartering with handing over chickens and chairs and things like that, because obviously the government can't tax people if they're just trading goods.

So governments will push their own agenda, but there will still be some legislation around Bitcoin and other cryptocurrencies because they're so widespread and used internationally. Question 9. What do the big banks and mainstream institutions think of Bitcoin?

Well, that's another big question, because there's a lot of banks, there's a lot of institutions. In Australia, the ANZ has created their own cryptocurrency.

Commonwealth bank has comsec, where you can buy stocks and shares normally, but you can now actually buy cryptocurrency. Mainstream institutions such as PayPal, you can buy cryptocurrency on PayPal.

Now some of the big investment houses around the world, such as BlackRock, JP Morgan, and these kind of guys are actually buying into bitcoin and other cryptocurrencies, issuing their own funds, I guess mono funds like grayscale, Bitcoin Trust, where you can actually own cryptocurrency without technically buying cryptocurrency yourself. So there's a few progressive ones who are coming on board first. There's a lot of laggards who are still stuck in the previous century.

And that's okay.

If you've been around long enough like I have, you'll remember when companies started first getting their websites and there was a few companies who just went, oh, the Internet's a passing fad. It'll just come and go. And the ones who obviously got in early, made a lot more money and captured a lot more market share.

So we'll wait and see what happens with the ones who are quick to adopt and the ones who slow to adopt. Question 10. Why are cryptocurrencies valuable? Well, that's a good question. Why are some stocks and shares valuable? Why is gold valuable?

Obviously, they've got to have some sort of inherent use. Gold is primarily a hedge against inflation. It's a scarce commodity that tends to hold its own value over time.

And we're talking hundreds and hundreds, if not thousands of years, 6,000 years that gold has held its value while other empires and currencies have obviously collapsed. And with some cryptocurrencies, they are not scarce commodities, they're more like stocks where a company can issue more shares.

Ethereum can create more Ethereum tokens, but Ethereum is actually used up in transactions. Like it gets burned. It's kind of like oil.

As we ship things around the place, yes, we have to pay for the oil, but you don't get any of that oil back at the end of the day. So there's different factors behind different values in different cryptocurrencies. That's a big open ended question and happy to chat about that.

Or you can again look on krillionaire and find out the difference between some of the cryptocurrencies and how they operate. Question 11, what makes cryptocurrency a viable investment as opposed to other traditional investments, stocks, real estate, etc.

I would not recommend that you sell all your stocks in real estate and put all your money into cryptocurrency, because that's crazy.

Similarly, I wouldn't recommend that you sell all your assets and put all your money into gold because you should have a diversified portfolio to protect you against different shocks and different things that come along the line. Obviously a lot of stocks and properties and bonds went down at the start of the pandemic because most people did not see that coming.

And that's when gold, silver and bitcoin actually rose during the pandemic by 50%, 100% and 800% respectively. So the idea of investment is always have your eggs in different baskets.

If you own three houses in the same street, congratulations, you're probably a millionaire. But then if rat bag neighbors move in across the road, then your real estate has just gone down.

If the interest rates go up too high and people stop buying houses, that's going to affect your housing price. And if all your money is locked up in housing and you've got no stocks, the stock market goes up, it's not going to benefit you.

So the idea is diversify eggs in different baskets and have a chat with your financial professional, have a chat with your accountant or your financial advisor, have a chat with a crypto expert and say no serious crypto expert would recommend that you put even half of your money into crypto. It's more like in the lines of 5 or 10%. It's money you can afford to lose.

If it doubles, fantastic, great, you sell off some of it, you reallocate it amongst your other holdings and you Know, if you lose 5 or 10% of your portfolio, you've still got 90% of your portfolio, so you're going to be okay. Diversification always is key. Question 12 is investing in cryptocurrencies the same as gambling? Yes, if you don't know what you're doing.

Investing in the stock market is the same as gambling. If you don't know what you're doing. Again, going back to Zoom and Netflix were the darlings at the start of the pandemic.

So if you weren't ahead of the game, if you weren't watching what was happening as the pandemic unfolded and people started to slowly return to work, then you would have lost a great deal of money.

If you were ahead of the game and you were watching what was going on, you would have sold out of those stocks because you realized they're less valuable as people return to work. So if you don't know what you're doing, yeah, everything is gambling. Crossing the road is gambling.

But if you have a bit of experience or if you have a trusted advisor alongside, then you're going to do a lot better than the average person. Last question. Will cryptocurrencies definitely make me rich? No, it depends on how rich you are right now.

As I said before, we've made over 10,000% on six different projects that we've actually invested into through Boston Coin. That's great, but we didn't have a huge allocation to any of those.

We didn't put, like, half our money into those, because what if that one ghost bust? What have you put your money into? Blockbuster Video, you know, a month or two before Netflix came out. What have you put all your money into? MySpace.

A month or two before Facebook came out. You've really got to diversify, know what you're doing. It is possible to buy, like, $5 worth of crypto. It's possible to buy $10 worth of stocks.

So you can diversify into different asset classes. Even real estate. You can get into a real estate trust for a few dollars. So there's no excuse for not diversifying.

You don't have to have a million dollars in order to have assets in four or five different asset classes.

You can start out with your weekly paycheck or your coffee money and invest into different things, keep it balanced, sit on that for the next five or 10 years. Or if you know what you're doing, obviously you can move things around.

Or if you've got a fund manager or a financial advisor who actually knows what they're doing, you can move things around. But for most people, playing it safe Diversifying eggs into different baskets is going to be a slow way to build wealth, but it's also safe.

You won't have those huge ups and downs and drops. Okay, hopefully that answers all of your questions.

Again, I'll put the links in the box below so you can access those resources and keep sending in your questions. Thank you.