More Knowledge, More Wealth Ep. 203 - Bitcoin ETF

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[00:00:00] Good day. This is Gabriel Shaheen, certified financial Planner and your host of More Knowledge, more Wealth here on every weekend, talking about all important topics of personal finance. My goal is to give you the knowledge you need to increase your wealth. Now to the listener, you can always reach out to myself or any one of my colleagues here at Falcon Wealth Planning.

[00:00:53] Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon. Like the bird, or visit our website@falconwealthplanning.com. That's falcon wp.com for short, where you can get this episode or any one of our previous episodes and even a video cast option of this episode. And feel free to visit the knowledge center where you can get a whole bunch of helpful hip, uh, helpful hints.

[00:01:18] Excuse me. And looking at. Our YouTube videos that has so many strategies available to you. We've already had a million views in less than a year. Now, folks, I'm the president of Falcon Wealth Planning. We are a fee non-commissioned, true fiduciary folks, and our goal is to talk about all important topics of personal finance that goes over where you are today, how retirement looks like, taxes, investments, insurance, state planning, folks, you name it.

[00:01:40] Anything that involves a dollar sign, we would love to help and we help people nationwide. Folks, we've got offices all over. We'd love to give you one to two hours, one to two meetings of our time folks at no cost. Our phone number is (855) 963-2526. That's 8 5 5 96. Falcon like the bird where we can help talk about anything that involves a dollar sign, folks.

[00:02:03] Today I want to talk about just some news that is stirring around and that is about Bitcoin. The Bitcoin, e t F. You know, BlackRock recently put in a trans, uh, a request through the s e C for a Bitcoin e t F. Now they're the biggest company, uh, asset management company out there, folks. I mean, it's a really big deal when they talk, people listen and so for them to put in a request that is maybe a telling sign, and there's been dozens of now applications to follow.

[00:02:32] Uh, BlackRock because of a Bitcoin e t F. Now let's take a big step back. There was a whole bunch of drama with Bitcoin and so on. Uh, and, uh, cryptocurrency, we'll call it, uh, some people like to call it digital assets, and that is of, is it a security or not? So like, is it a stock or is it currency? Now our SS e c had says Bitcoin and Ethereum and some others are currencies.

[00:02:58] And I've made comments in this previous show that says, then why not approve it if it's a currency? Right. If it's not a security, I mean, you have a, they approved a securities. Future, or excuse me. Uh, well a futures e t F to E t F, but not in, uh, to Bitcoin. But not a Bitcoin e t F. That makes no sense. So how does it make sense to approve the futures Bitcoin, but not a Bitcoin e t F?

[00:03:19] So listen, and I'm not here saying Bitcoin is a good investment. I'm not here. It's a safe investment. I'm not here saying you should do it. All I'm saying is yes, it has gone a little bit more mainstream, but there is still extreme warnings about this technology and about this. Quote unquote currency. This digital currency, especially when there is still not enough regulation and mandating and even know who formed this thing.

[00:03:46] And yes, it's buyers and sellers that come together and yes, the government has had put their hands on it already and clawed back money like the $5 million of uh, what happened a couple years ago. When they, uh, clawed back 5 million of a ransomware that was paid in Bitcoin to Russian hackers. This was, uh, oil pipelines when they were hacking that, uh, they were a US government was able to call that back.

[00:04:07] That's a big deal. That doesn't normally happen. You get what I'm saying? So all I'm saying is now it's about to go more mainstream yet again just because it's gonna go mainstream and there could be potentially billions of dollars that's going into this. And historically speaking, when billions of dollars go into something, the price goes up.

[00:04:26] That is. Logic now in the exact concept of logic, where you have a company that outperforms earnings by billions of dollars and still drops five to 10%, how is that logical? You get what I'm saying? So just because all this is happening, you're gonna be hearing a lot more noise about Bitcoin and validity.

[00:04:45] Just be weary that it may not increase at the level that people think it's gonna increase 'cause of billions and dollars of going into it. Because here's the thing. Maybe, well, I'm not the only person that knows about this. Maybe the price today of Bitcoin is based on the future expectations of an E T F getting approved and billions of dollars getting into it.

[00:05:08] Have you ever thought about that? Now you've gotta start thinking outside of the box. Once you understand that concept, where we already know that eventually, most likely an E T F is going to get approved, and then we know at that point billions of dollars will go into the Bitcoin space. Well, if we already know that, wouldn't the price of Bitcoin today already reflect that?

[00:05:31] I think we already know the answer. The answer is yes. So don't think. That just because of these Bitcoin ETFs are gonna come out in the market, don't just assume it's gonna go up. And lemme tell you this, let's just say these come out and they're anticipating $50 billion to go in in the first month. I'm just making up numbers, by the way.

[00:05:52] And only 40 billion go in. Uh oh. Well, does that mean it drops 20%? 'cause it was 20% less? Is it now a direct indicator since it is an E T f an index that tracks Bitcoin or is that one segment of who holds it? I recently read that 70% of all Bitcoin out there is only held by 0.2% of the users of Bitcoin.

[00:06:21] So this is where you really start to have to question and think. So yes, maybe our government is recognizing it as a valid currency, but still who controls the money manipulation of it. Like for example, and I've said this before, when it drops 75%, the price of anything is based on supply and demand. Are there truly, does the ledger truly say that 75% of the users dumped it?

[00:06:49] That doesn't make any sense. Especially if 70% of all Bitcoin is owned by 0.2% of people that use it, are they the ones dumping it? Is it truly money manipulation? This is the issue that s E C is gonna have to figure out. This is what you have to figure out. This thing can go to zero I'm, or I'm not saying it's either that or to the moon.

[00:07:14] You ever see those rocket emojis? I'm not saying it's one or the other. I. Hell, it could stay flat and just move with currency in general. By the way, folks, if you're just joining me, you're listening to Gabriel Shaheen, certified Financial Planner and. Have more knowledge, more wealth here on every weekend, talking about all important topics of personal finance.

[00:07:34] If this sounds like something that's intriguing to you, this sounds like something where you have exposure. If you're looking to invest, if you want a second opinion, if you think long-term, what is the best investment philosophy, which personally and professionally I don't think it is. I would rather go into a globally diversified portfolio.

[00:07:49] And by the way, these companies, these public companies are already have an exposure in there. And if you wanted to go in this gold rush, a Bitcoin who made money at the latter end of the gold rush. Not the people looking for gold, but the Levi's that were selling the jeans for people that needing jeans to mine for gold of the material and the equipment needed to mine for gold.

[00:08:11] Well, that's what people are doing now is mining for Bitcoin and the cost of every four years, the price of Bitcoin readjust the the cost is gonna be much higher to mine. Does that mean it's gonna slow down? Well, the logic that the Bitcoiners will say is, well, that's why they have to write the price of Bitcoin to make it more enticing for the miners.

[00:08:33] Folks, this is a Pandora box if you want to get into it. I'm just saying be careful. On one hand, I like the fact that now you're having these master massive companies like BlackRock now involved where they are getting their hands in the Bitcoin market so you don't have to go through third parties and frauds that are out there like the F T X, like Binance, and a few of these companies where they are not.

[00:08:55] Doing their job of protecting you, and this is where the s e C gets mad, and this is where they're going after Coinbase and Gemini and a few of these other places that are doing Bitcoin. Because some of these Bitcoins, excuse me, some of these cryptocurrencies are deemed to be a security, not currency, which means they have to be registered.

[00:09:18] A lot of these are pump and dump schemes. Like, oh, by the way, the O T C over the counter market for Penny stock, which famous movies like Boiler Room and Wolf of Wall Street, was based on where people were making millions and millions and millions of dollars by selling crap to poor investors. I. The regulation was designed to protect you.

[00:09:36] My whole point is, isn't what I'm saying, hurting your head. It's hurting my head just to have to explain it to you. It's annoying. It actually puts a bad rep for everybody else out there in the industry. Why does your investments have to be either go to zero or go to the moon at a thousand percent rate of return?

[00:09:54] Like, are you kidding me? That's a thousand dollars investment being into a million dollars, like that's hitting the lottery. Why does your investments have to be a binary approach? Or I can lose all my money, or, oh, I'm gonna make a million bucks. Okay, you know what? That's called a lottery ticket. Why waste your time with the securities market and having fraud taken advantage of?

[00:10:16] You just play the damn lottery. How about, here's a thought. Uh, you look at something that is heavily regulated, investing in tangible items like corporations. We all use, like the Googles and Microsoft, the Apples, the Walmarts and McDonald's of Johnson and Johnson. Just things we use every day. Those are by no means recommendations.

[00:10:34] You should be investing in those. But just the logic, right? I'm trying to say invest in stock, which is goal is to grow at over a 10% rate, plus kicking out dividends. For some of these companies, their goal and some of 'em is goal is to grow at 20, 30, 40 plus percent. How about you invest in those companies?

[00:10:50] Oh, by the way, it's a liquid and regulated and secure. If your money is held at a E-trade and E-trade goes outta business, doesn't mean your money is gone. Well, why is that? Well, because the stock is still there, it's still registered in your name, who caress. If E trade goes outta business, you are fine and protected.

[00:11:12] So why do you need to try to go for a thousand percent return or lose 100% of your money, which now I'm deeming as by the way, gambling. Or you could just invest in normal companies and if you can't choose individual stock, which nobody quite frankly can on a consistent basis, go with the indices. Since 1926, the stock market has outperformed over 10% a year on an annualized basis.

[00:11:38] That's doubling your money every seven years. Now, the art of compound interest, you could be 50 years old. You have a quarter million dollars by 70 years old, you have a million dollars assuming, and that's at a 7% rate of return. By the way, 7% rate of return. You have a million dollars after 20 years, assuming you haven't contributed one penny to it.

[00:11:56] Like, why do you need, I'm trying to understand why do you need to try to strike gold? It makes no sense to me, and here just looking at the basic concepts is people don't know. The reason is people don't know what they should be doing. People don't know how they should be investing in their money. The rate of return that they need, they just don't know.

[00:12:18] So that's why I'm trying to say that you should be developing a plan, understanding your specific situation. Maybe it makes sense because you have so much money to do a small allocation to some of the stuff, and should you be going into Bitcoin or have an index that has a multiple magnitude of digital assets or cryptocurrency.

[00:12:38] Point is, is these are why you should be talking to a professional who doesn't get paid when you're buying Bitcoin. Right. Don't talk to your insurance agent about insurance when you, they only get paid if you buy their insurance recommendations. You get what I'm saying? So you should be able to have this conversation and feel comfortable with it.

[00:12:57] Folks, if you need help, give us a call. Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon like the bird. We can help put an assessment to you to answer these questions that you may have. Whether it's about digital assets, cryptocurrency, Bitcoin, E T F, or just how about you stick to your goal and if you are already gonna pass your goal and you just wanna see about gambling, then we could talk to you about that.

[00:13:24] We can. We can plan a trip together to Vegas. How's that? We can say this. Hey, you have a hundred thousand dollars. How about this? We spend $10,000 to go eat like kings. Stay at a really nice villa. Maybe buy our spouses something 'cause they let us go to Vegas for the weekend, first class flights over there and take the 90,000 leftover.

[00:13:44] Assuming you wanted to invest 190,000 and put on either black or red by doing that, you have an infinite times better chance than doing that, than trying to time the markets or choose individual stock. And guess what? If you lose, at least you have a fantastic trip out of it. Fantastic stories. Spending 10 grand a weekend.

[00:14:05] Folks, we're gonna go to quick break and we're gonna talk about more about just making sure you are properly invested and not following fads that are out there. We'll be right back after a few words. I.

[00:14:17] This is Gabriel Shaheen, certified financial Planner, your host of More Knowledge, more Wealth. That's on every weekend. We're going over all important topics of personal finance. We're going over retirement planning, making sure you're prepared for retirement, social security and strategies, real estate taxes, avoiding them now and in the future, investments reducing.

[00:14:36] Fees, commissions, and so on. Insurance and estate planning. Folks, we are offering a free financial assessment that you could take advantage of. We have offices all across Southern California, including the Inland Empire. Give us a call to take advantage. Our phone number is (855) 963-2526. That's 8 5 5 9 6.

[00:14:54] Falcon like the bird, or visit our website, falcon wealth planning.com. That's falcon wp.com for short. Enjoy the show. We look forward to serving you.

[00:15:04] Welcome back folks. This is Gabriel Sheen, certified financial planner and your host of More Knowledge, more Wealth here on every weekend, talking about all important topics of personal finance. And that first segment was a little bit longer than normal, but we discuss just in general what's going on with the Bitcoin, E T F and this fad that's coming out there.

[00:15:21] And we're, I personally think it's gonna come out. But the idea to think that it's gonna go to the moon is something you have to re. Analyze, because we're not the only people that know this. Ebit, E T F, uh, Bitcoin ETFs is gonna come out and there's still other cryptocurrencies out there. And the s e C is still saying that some of these cryptocurrency is a security and not currency, and they're, right now the s e C has deemed that Bitcoin and Ethereum and a few others is actually a currency, which is good for the markets.

[00:15:49] Because if you think about it, the currency market is way bigger than the securities market. So you have to really factor. What makes sense and when you factor in, what makes sense for you and your situation, you have really have to factor is the risk and reward piece to this. And I made a joke last segment talking about going to Vegas and investigating, right?

[00:16:11] That's a joke. Please don't call me for a Vegas trip to go and put a hundred thousand dollars on the roulette table, right? That was a joke, and my wife would be infuriated. So no, Sophia, that is not a solicitation. That was a complete joke to discuss the stupidity behind trying to either think they're gonna strike it rich.

[00:16:32] Or lose all their money. You should be looking at a consistent return. Take a look at how much you have today, and I said, if you had a quarter million dollars today and you're 50 at 70 years old, at a 7% rate of return, you'll have roughly a million dollars at 10%. You'll have almost $1.6 million at a 10% over that period.

[00:16:51] That's what the s and p 500 does. It's no guarantee you know that. You really need me to read a disclaimer. But because company's goal is to make money, because companies publicly traded companies, has a board that they have to abide by. And now CEOs can be sued and imprisoned by not following those rules and breaking laws.

[00:17:18] So because of that and the oversight and regulation that's required, this is why is deemed to be the best. Form of investments is the US stock market better than real estate, better than gold? Which, oh, by the way, look at our YouTube channel. There's a few thousand views of that which count. Even outbeat inflation.

[00:17:39] Some people still like gold. God bless you. Universal currency, right? America falls under. What are you gonna do? You're gonna do with your Bitcoin? Well, I don't know. That seems a little weird to me. Oh, you're gonna have gold. You're gonna chip a piece of gold of your big stack to go to McDonald's. They're gonna give you back a, a coffee and a Big Mac.

[00:17:56] Uh, and what do they give you? Change in silver. Like if there's a reason the United States got rid of the gold standard and they traded in your gold, and that's why they came out with those $10,000 bills back then. Right? Because they were, people were changing 'em in and Americans is still the safest country, the most secure country.

[00:18:20] The most regulated country. Some of you out there are saying things are rigged and it's corrupt, whether it's from politics, elections, whatever the case is, propaganda. We have the worst propaganda. We make fun of Asian countries for their propaganda. America's the worst. And so, right, because the media controls our mind.

[00:18:37] Well, now it's social media that controls our mind. What's the difference between that and the newspaper controlling our minds? Like, why are we beating up on Mark Zuckerberg here? What did he do different than the newspaper a hundred years ago? Or the TV 50 years ago. I'm not here saying, I love you, mark Zuckerberg.

[00:18:53] I can care less for the guy, but I'm just saying like, this is normal. And the problem is technology is so fast, it's a lot easier to catch 'em in their lies. And because media's out there and we can see what's going on and read and hear what Congress is bringing up because we, the people are able to ask our congressmen to look into it.

[00:19:12] And it is working, so say what you want. But in other countries, you can't just shake down a billionaire and ask them to talk. By the way, folks, if you're just joining me, you're listening to Gabriel Shaheen, certified Financial Planner. You're host of more knowledge, more wealth here on every weekend, talking about all important topics of personal finance.

[00:19:29] And the purpose of this conversation is to discuss the simple concept of just investing. All I'm trying to tell you, I just want you to be successful. Literally, that's why I entered this profession. If you go to our website, Falcon Wealth Planning, you can see the front page, the Our Founder's video. My Founder's video, why I founded the company.

[00:19:47] It's a passion. It's a calling. If it was about money, we would stop. Right now, we would cut our staff into by 75% and we could service the clients we have right now. I can make, I can make 10 times what I currently make, but it's not about that. It's about helping people. And a firm like us should have two to $3 million minimums, but then we'd only be helping the rich get richer.

[00:20:13] We like to help to be aspiring, become financially independent. We like to help them define what money means to them, and for that is why we continue to serve. This is why we offer this podcast, which now we converted to Videocast. We have our YouTube channel. We wanna be able to answer. The questions that you have, be a resource for money to you.

[00:20:35] Whether you do it on your own, you need some help or you wanna delegate it out to us, that's what we can help with, and that's why we're offering our free financial assessment to help relate the show to your specific situation. Folks, give us a call. We've got offices all over. We can help nationwide. It doesn't matter where you are.

[00:20:50] Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon like the Bird, or visit our website@falconwealthplanning.com. That's falcon wp.com for short and go to our knowledge center where you're able to get this episode. Any one of our previous episodes as well. Sure you can get 'em on podcasts and you can get on Spotify.

[00:21:14] But the point is, is you're able to get access to our YouTube channel. You could subscribe, get new videos out there. And these are videos of strategies that can help you. I mean, it was designed for internal use, by the way. 'cause we have sometimes the same conversation 20 times a year. People asking, what's a good rental property?

[00:21:29] Well look at the video that will tell you what are your opinions of gold? It's not even opinions. How about we talk about the facts of gold? So many people tried to talk about the opinions of gold. You know what the funny thing about that is? The more extreme the person is, the more the media wants to put 'em on.

[00:21:42] It's funny how that works, by the way. So they're looking for those crazies on tv. If you think about it. I'm just here giving an and not even an opinion. It's a professional stance. I tell you when I'm giving you opinion, none of this is an opinion. The only opinions I had was the first segment when I was talking about if just because E T F, uh, uh, Bitcoin, E t F were to come out doesn't mean it's gonna go to the moon because the price of Bitcoin already understands that people put in professionals, institutions put in for an E T F.

[00:22:16] So they're already anticipating inflow going into that. So my comment to you is be weary if you invest. Only invest what you're comfortable to lose. I still feel it's the extreme wild west when nobody understands the movement of monies going in and out. I mean, dollars aren't as volatile. Euros are, aren't as volatile.

[00:22:43] Ys aren't as volatile. How come Bitcoin is as volatile when it's just a. Currency and not a security. It doesn't make sense. So I'm saying proceed with caution. Understand that each situation is different, and when you put money to work for you, something like that could be considered a gamble. And I would, if you were to just say you want to invest, I would recommend no more than 1% of your total portfolio.

[00:23:11] What does that mean? If you're a millionaire, you have a million dollars in your portfolio. I wouldn't recommend more than $10,000. That is 1% a 1% exposure. It is still too early and we still don't understand the volatility of it. It's not logical for it to drop 75% of value. That doesn't, does that mean truly 75% of the people have dumped it?

[00:23:31] And even if that's the case, isn't that enough money manipulation where you have to worry about, what do you think's gonna happen when the CTF comes out? Do you think they're gonna do the same thing? I mean, if I had, you gotta think the market capitalization of it is what? $500 billion. And you have 70% of the people, or excuse me, 70% of all of it out there.

[00:23:52] Which is, which is what I mean. You know what I'm saying? $350 billion owned by 0.2% of the Bitcoin holders be weary. I mean, my God, if that was me, I would dump it. You get what I'm saying? Like logic. Absolutely. So be careful on what happens when the major players start dumping it. What do you think is gonna happen?

[00:24:19] Maybe they're selling for the institutions to buy. I don't know. I really don't wanna find out folks, if you need help with this, if you have questions, give us a call. We would love to help. Our phone number is eight five five. 9 6 3 25 26. That's 8 5 5 96 Falcon like the Bird, or visit our website@falconwealthplanning.com.

[00:24:42] That's falcon wp.com for short. Folks, that was a Fastas show. I wanna thank you for tuning in with us this weekend. Feel free to reach out to myself or one of my colleagues here at Falcon Wealth Planning. Our phone number is (855) 963-2526. That's 8 5 5 96. Falcon like the bird. We would love to put together a personal assessment to help relate this show to your specific situation.

[00:25:06] Folks, I want you to have a fantastic weekend. Have a great week, and God bless

[00:25:11] I had to, I had to ask. My younger brother what that meant. I guess that's a direct message. I know some of you are laughing at me. And yes, I have social media accounts but I just, a DM.

[00:25:24] I didn't, I didn't know. You know, listen, and they kind of bait you in to giving some good content.