Welcome to Car Talk. This is not talking about cars. This is talking inside of a car. Today’s topic is why I am not involved in Bitcoin. Several months ago earlier in 2017 I did a video talking about why I was not getting involved in Bitcoin then and over the last few months anybody that looks at anything with financial news, anything on LinkedIn, anything, it’s all the gold rush, the Bitcoinsers, invest in Bitcoin, make 1% daily. Now, first things first, I need to quantify what I’m saying with I think that Blockchain technology, the Blockchain is going to have a significant impact on the world, the technology of transactions, escrow, buying and selling, that technology is very transformative, and will have a big impact on the world. So that I will say first. But am I involved in Bitcoin? No, I could have easily put money in last year or this year and probably made a significant amount of money. If you’ve been following Bitcoin you know it’s up 10, percents, all the time. So yes, that happens, and I, and I saw it coming. I easily could have made some money with that. I didn’t get involved for several reasons and I continue to not get involved for several reasons.
First things first, the first reason I don’t get involved in Bitcoin is that I do not put money in places where I know eventually it might evaporate, and I know everyone’s gonna say it’s, Bitcoin’s gonna change the world and all of this, and Bitcoin might change the world. What’s gonna change the world is Blockchain, which is not the same thing. Things can be built on top of things and it’s like saying that Netscape was gonna change the world when in fact it was built on top of the Internet, and the Internet changed the world. The technology behind it changed the world whereas the applications built on top of it don’t always change the world in the same way. And I don’t like putting money in things that I know eventually are gonna have significant corrections, because then it’s just a timing game, ’cause yes, stock markets have corrections. I get a lot of money in stocks and investments and so much of that is tied to the stock market and for stock prices to go up and down, and yes, there could be a 10 or 20% stock market correction. If that happens, it’s not that huge of a deal. A correction in Bitcoin is gonna be 70, 80, 90, 95% and when it happens, do I know when that’s gonna happen? No I don’t. It’s still increasing very, very rapidly in value and eventually that’s gonna happen and I don’t get involved in things that I know is strictly a timing game. I get involved on things that can build legacy and grow over time, years, decades. That is what I get involved in. I do not get involved in things that I know I got six months until, or a year, or two years, I do not do a game like that because that’s not how I play. Now maybe you’ve made a mountain of money in Bitcoin and I am sincerely, truly happy for anyone that’s made a lot of money in Bitcoin, or continues to.
But if you think that Bitcoin is gonna go up forever you’re kidding yourself. So you know eventually, eventually there’s gonna be a significant thing in that ’cause there’s already rulings against Coinbase to make them disclose things for income tax and I’m not sure the government realizes entirely yet that you can use this kind of technology to pay sexual predators and human trafficking and drug dealers and all of this stuff, easily, internationally, and while they’re, I bet 99 out of 100 uses, usages of it are for fine things, the fact that it does get used for bad things or can be used for bad things, the government loves to get involved in these things, and note, can the government stop it? No, but they can make it illegal to do certain things and that will make it difficult. It might not stop it, but it will make it difficult and do I wanna be involved in a business where it might be illegal to transfer money through it? No I don’t, no I don’t. Also, how I sleep at night is very important to me. I’m fortunate to make a decent amount of money and how I make that money is equally as important as how much money I make and as these coffers of Bitcoin swell up, swell up, swell up, I do not sleep well at night thinking that I will make a lot of money off of people that are gonna lose a lot of money, because when it does have a significant correction, and it will, it will have a significant correction. When that does happen, lots of people are gonna lose a lot of money, a lot of kind of money, over night because those Bitcoins that were traded at 11,000 are now worth 50 bucks, and there’s gonna be a big issue there. Now whether that’s next year, the next year, I don’t know when that’s gonna happen.
I don’t think anybody does, but it’s gonna happen eventually, and I don’t sleep well knowing that if I was struggling to make ends meet that might be something that would be more appealing to me, but I feel much better about my life knowing that how I earn a living I get to provide a true value for people and really help building a brand, a legacy, something that can last for years and decades, and that’s what I wanna be involved in, things that I know don’t have a, aren’t gonna have an expiration date, because then you’re chasing fads, and people can make a lot of money chasing fads, but then you’re always chasing the next thing and that’s not something that I wanna be involved in. So if you are in Bitcoin, if you make a lot of money in Bitcoin, I’m happy for you. It’s not for me, because I don’t get involved in things I know have an expiration date. Even though I don’t know when that expiration date is, I don’t wanna get involved in that. Yes, Bitcoin’s worth a lot now. Blockchain technology, which these things are built on top of, Blockchain is gonna have a significant impact on the world forever as it gains acceptance. Bitcoin, I’m not sure it will. I could be wrong. Of course in five years you play this video, and everyone’s gonna say Tyler, we told you that Bitcoin was gonna change the world and you were wrong, and maybe I will, but either way, I’ll still be in the nice house with nice cars. So I’ll take my chances I suppose. And that is why I am not involved in Bitcoin. Car Talk, Tyler Douthitt.