Latest / Earn Your Leisure / Crypto Security & Coinbase’s S&P 500 Milestone: Risks, Opportunities, and the Future Explained

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Crypto Security & Coinbase’s S&P 500 Milestone: Risks, Opportunities, and the Future Explained · Earn Your Leisure

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• 1:51
  Speaker 3: So let's get into the crypto conversation. Last week a
• 1:56
  Speaker 3: Coinbase was named into the S and P five hundred
• 1:59
  Speaker 3: and you know that skyrocketed their stock and it's also
• 2:06
  Speaker 3: been encouraging news for the crypto community as a whole,
• 2:08
  Speaker 3: so going forward, but they also had an issue as
• 2:12
  Speaker 3: far as for sure security breach. So let's talk about
• 2:17
  Speaker 3: the security issue, and let's also talk about coinbase future
• 2:21
  Speaker 3: as far as its stock price and you know, stability
• 2:25
  Speaker 3: as a company.
• 2:27
  Speaker 4: I think the security issue is just the penality of leadership.
• 2:30
  Speaker 4: I think Brian handled it pretty well. I think he
• 2:33
  Speaker 4: was very direct and addressing it. He didn't skirt around
• 2:38
  Speaker 4: the leak of the news or the break of the news.
• 2:41
  Speaker 4: So I do like that. As far as them being included,
• 2:44
  Speaker 4: A lot of people were asking does this give crypto
• 2:47
  Speaker 4: a lot more credibility? And I'm gonna be honest with bitcoin,
• 2:50
  Speaker 4: if it's the highest return of asset of all time,
• 2:52
  Speaker 4: how much more credibility does it need.
• 2:56
  Speaker 1: It's outperforming Bitcoin or you know, bigcoin.
• 3:00
  Speaker 3: Yah crypto or all right, crypto currencies outside of bigcoin,
• 3:06
  Speaker 3: because I think I think at this point people have
• 3:09
  Speaker 3: already solidified bigcoin. Yes, when they say gave credibility to crypto,
• 3:14
  Speaker 3: I think they're talking about every other crypto currency outside
• 3:17
  Speaker 3: of bigcoin.
• 3:18
  Speaker 4: Most, I think are not institutional assets to hold long term,
• 3:23
  Speaker 4: even on the retail side. I know, I don't want
• 3:26
  Speaker 4: to cause the war between the other crypto of factions,
• 3:29
  Speaker 4: but there's only one to invest in currently if you
• 3:32
  Speaker 4: want an incredible return.
• 3:34
  Speaker 1: I think the crypto currency market at large.
• 3:36
  Speaker 4: Needs some reform and just needs better projects for sure.
• 3:42
  Speaker 4: But as far as a coin business inclusion, I think
• 3:45
  Speaker 4: it goes to the testament of people want high returns
• 3:48
  Speaker 4: and they want something that isn't necessarily tied to the
• 3:50
  Speaker 4: dollar in the current regime. Do I like moon coin
• 3:54
  Speaker 4: or or Solano the most. I mean, I think we've
• 3:57
  Speaker 4: had the conversation enough. Sharp is still fighting a good
• 4:01
  Speaker 4: fight and hopefully that make a turnaround. But if you
• 4:03
  Speaker 4: want some exposure that is not tied directly to Michael Saylor,
• 4:08
  Speaker 4: coin is a good alternative, even though I think MicroStrategy
• 4:11
  Speaker 4: is better.
• 4:11
  Speaker 1: But I think we.
• 4:12
  Speaker 4: Can be very honest to overall crypto market, there is
• 4:15
  Speaker 4: nothing to invest in but bitcoin.
• 4:17
  Speaker 1: Yeah.
• 4:18
  Speaker 2: I think that's what makes it interesting is that when
• 4:21
  Speaker 2: you Bitcoin and coin base of synonymous with each other
• 4:25
  Speaker 2: at this point, because coinbase is the largest custodian of
• 4:28
  Speaker 2: bigcoin in the world, then own twelve percent of all
• 4:32
  Speaker 2: the bitcoin.
• 4:33
  Speaker 1: Yeah, right at this point.
• 4:35
  Speaker 2: Right now, I think they said that they manage over
• 4:37
  Speaker 2: four hundred billion in cryptocurrency, which is a great uptick
• 4:42
  Speaker 2: from last year where I think they closed that three
• 4:44
  Speaker 2: twenty five billion. But they also are the largest custodian
• 4:48
  Speaker 2: of ethereum as well. And so if it's will it
• 4:53
  Speaker 2: impact the entire space, no, will it impact certain coins, yes, for.
• 4:58
  Speaker 1: Sure, he is one of them.
• 5:00
  Speaker 2: They also are the largest custodian of Solana as well,
• 5:04
  Speaker 2: and so those are three coins. If Coinbase is the
• 5:06
  Speaker 2: custodian of and you're trying to invest in the space
• 5:09
  Speaker 2: without directly investing in it, yeah, coin makes a lot
• 5:12
  Speaker 2: of sense. And it's obviously the first digital asset to
• 5:15
  Speaker 2: be on the S and P five hundred, So it's
• 5:17
  Speaker 2: it's a.
• 5:18
  Speaker 1: Major monumental moment.
• 5:20
  Speaker 2: Like you said, good coins is already been solidified once
• 5:23
  Speaker 2: it crossed certain thresholds fifty five one.
• 5:27
  Speaker 1: Hundred thousand, now it's been there.
• 5:29
  Speaker 2: But coin it, I mean, it's a good investment if
• 5:31
  Speaker 2: you're looking to be in the space without directly owning
• 5:34
  Speaker 2: those coins, well, yeah, for sure.
• 5:39
  Speaker 1: Pushback, thank you now you put that.
• 5:42
  Speaker 3: I was going to say, because for people that's listening
• 5:46
  Speaker 3: the close all right, the next best thing and not
• 5:49
  Speaker 3: owning big cooin is is owning the bigcoin etf I bet.
• 5:54
  Speaker 1: So it's related.
• 5:57
  Speaker 3: Coinbase is related, but it's not direct because some people
• 6:00
  Speaker 3: still an educational process that for sure keep in mind.
• 6:02
  Speaker 3: So I don't I want people just to fully understand
• 6:04
  Speaker 3: because we can't take it for granted.
• 6:06
  Speaker 1: Owning coin base is not like owning bitcoin.
• 6:08
  Speaker 3: It's it's related because it's like what you just said,
• 6:11
  Speaker 3: it's the brokerage. But if you do want to have
• 6:17
  Speaker 3: if you want to mimic bitcoin's performance on the stock
• 6:20
  Speaker 3: market and not actually own bitcoin and not have to,
• 6:23
  Speaker 3: you can you can buy ibit And there's other bitcoin
• 6:28
  Speaker 3: ETFs which track bitcoin. Now why would you do that
• 6:31
  Speaker 3: because if you feel like you're not one hundred percent
• 6:34
  Speaker 3: confident with crypto. As far as the security, there's no
• 6:37
  Speaker 3: recourse if money gets if your crypto gets stolen. Ibit
• 6:41
  Speaker 3: is on the stock exchange, so it's regulated. You get
• 6:44
  Speaker 3: it through the brokerage. There's some level of security. There's
• 6:48
  Speaker 3: also that's important for people to understand because a lot
• 6:51
  Speaker 3: of people still don't understand crypto. They understand bitcoin, they
• 6:55
  Speaker 3: want to buy it, but they don't understand it. They
• 6:57
  Speaker 3: don't understand it the nuances or how to keep the
• 7:00
  Speaker 3: coin safe, and the difference between the cold wild and
• 7:03
  Speaker 3: the hot water. It's kind of like mumbo jumbo. So
• 7:06
  Speaker 3: and then for the people that's like, all right, well,
• 7:08
  Speaker 3: if you don't invest in bitcoin, then ibit is not bitcoin. Yes, true,
• 7:13
  Speaker 3: but the thing about bitcoin is that is liquid. You
• 7:15
  Speaker 3: can always buy bitcoin. So if you can buy ibit
• 7:19
  Speaker 3: and at any point in time cash that and then
• 7:20
  Speaker 3: buy bitcoin, but at least you're actually still participating in
• 7:27
  Speaker 3: upward mobility of bitcoin if you feel bitcoin is a
• 7:31
  Speaker 3: good investment without having.
• 7:32
  Speaker 1: To go through all of the hurdles and.
• 7:37
  Speaker 3: Obstacles that could potentially happen because of owning the outright cryptocurrency.
• 7:43
  Speaker 1: I got to ask the minute all the question why
• 7:45
  Speaker 1: I bit over micro strategy.
• 7:47
  Speaker 3: Well, because well, so ibit tracks Bitcoin dollar for dollar
• 7:52
  Speaker 3: as far as like whatever it does.
• 7:54
  Speaker 1: Ibit does that.
• 7:55
  Speaker 3: Micro's strategy is once again that's like a coin based
• 7:59
  Speaker 3: type thing, but more centered around bitcoin, where that is
• 8:05
  Speaker 3: a bitcoin linked investment. When it's direct, so Bitcoin can
• 8:09
  Speaker 3: go up and Michael strategy can go down hypothetically, right,
• 8:13
  Speaker 3: but it's also designed to it has higher volatility than bitcoin.
• 8:18
  Speaker 3: So the micro strategy is something that if Bitcoin returns
• 8:24
  Speaker 3: ten percent, micro strategy might do twenty percent. Yeah right,
• 8:27
  Speaker 3: So it's like you get higher leverage. So that's why
• 8:29
  Speaker 3: a lot of people have done options on Michael on
• 8:31
  Speaker 3: micro strategy and then just purchase bitcoin.
• 8:34
  Speaker 1: Purchase bitcoin for the long haul. That's a good strategy.
• 8:37
  Speaker 3: Options on micro strategy, so you get that accelerated growth
• 8:41
  Speaker 3: in a short period of time, but for bitcoin to ride.
• 8:44
  Speaker 3: So I would say, if if you really just want
• 8:47
  Speaker 3: to just do bitcoin and want an alternative, I bit
• 8:50
  Speaker 3: is the way to go. Micro Strategy is a I'm
• 8:54
  Speaker 3: trying to just fast track this thing and get as
• 8:56
  Speaker 3: much money as I possibly can while bitcoin is going up.
• 8:59
  Speaker 4: Yeah, and if you get in at forty three bucks,
• 9:03
  Speaker 4: I bet it's currently at the high or not a high.
• 9:06
  Speaker 4: Fifty nine dollars almost at the high. Sixty one is
• 9:10
  Speaker 4: way cheaper than micro strategy as well. For those of
• 9:12
  Speaker 4: you who are looking for a more cost effective alternative.
• 9:17
  Speaker 2: What do we think about the appreciation potential for coinbase
• 9:20
  Speaker 2: now that it's being added to the S and P
• 9:22
  Speaker 2: five hundred? How many funds will it be in? Will
• 9:24
  Speaker 2: the price increase over the next six or twelve months?
• 9:27
  Speaker 4: I think so on the institutional side, and just from
• 9:29
  Speaker 4: a validity standpoint, it does take some of that concern
• 9:33
  Speaker 4: or worry away from is this too volitude to well,
• 9:37
  Speaker 4: if it's in the s and P five hundred, it
• 9:39
  Speaker 4: has to be legit.
• 9:42
  Speaker 1: And you have to give Brian credit.
• 9:43
  Speaker 4: He's fought through a lot of wars business wise to
• 9:47
  Speaker 4: be able to survive this.
• 9:48
  Speaker 1: So I think their inclusion.
• 9:51
  Speaker 4: Is needed and it's very good and credit to SMP
• 9:55
  Speaker 4: four including them because there's a lot of legacy companies
• 9:58
  Speaker 4: that they probably could have kept in. But I'm glad
• 10:01
  Speaker 4: that they were included, and I should get to three
• 10:04
  Speaker 4: seventy eight.
• 10:06
  Speaker 1: They were included.
• 10:08
  Speaker 2: Discover Financial was removed, but they were acquired.
• 10:12
  Speaker 1: I believe Discover Financial was acquired.
• 10:15
  Speaker 2: But essentially, like you said, like they iPod in twenty twelve,
• 10:19
  Speaker 2: here we are in twenty twenty five. When they iPod,
• 10:22
  Speaker 2: it was an it was kind of around this idea
• 10:24
  Speaker 2: like will this space even exist exist?
• 10:27
  Speaker 1: Right?
• 10:27
  Speaker 2: So he wasn't coming in with the same type of
• 10:30
  Speaker 2: favor that a lot of companies come in with. So
• 10:32
  Speaker 2: to be here thirteen years later and being part of
• 10:36
  Speaker 2: the S and P five hundred it is a monumental moment.
• 10:39
  Speaker 2: But I mean, so the security part is part of it.
• 10:43
  Speaker 2: It used to feel like the safest way to do
• 10:45
  Speaker 2: it if I didn't know anything, was to be coin based.
• 10:47
  Speaker 2: We know that not to be true from some stories
• 10:50
  Speaker 2: that we've obviously heard and experience, but I mean, he
• 10:54
  Speaker 2: put out a ransom the other day. He was like, look,
• 10:56
  Speaker 2: they try to extort me for twenty million. I'm getting
• 10:59
  Speaker 2: twenty million into the people who can find them.
• 11:01
  Speaker 1: Yes, smart move. Yeah that was okay, Brian Bryce.
• 11:06
  Speaker 4: You can't pay any terrorists, man, because if they pay
• 11:09
  Speaker 4: that twenty somebody else is going to hack an Act
• 11:12
  Speaker 4: two hundred. It's a good big business lesson. You cannot
• 11:15
  Speaker 4: pay that excursion feed.
• 11:17
  Speaker 1: Yeah.
• 11:17
  Speaker 2: And as the price of big client is going up,
• 11:20
  Speaker 2: you've seen the amount of crypto theft going up. Absolutely.
• 11:24
  Speaker 2: I mean this is as part of it. So security
• 11:26
  Speaker 2: around that space is going to be paramount, especially as
• 11:29
  Speaker 2: that price continues to climb and climb and climb, because
• 11:32
  Speaker 2: we don't see it stopping here at one hundred, right,
• 11:36
  Speaker 2: it looks like that's a right. So yes, security around
• 11:41
  Speaker 2: the space is going to be a wave.
• 11:43
  Speaker 4: Oh the last note, crypto founders and crypto megal whales,
• 11:48
  Speaker 4: up your security. I know a lot of people may
• 11:50
  Speaker 4: have seen a video where the husband and wife was
• 11:53
  Speaker 4: almost kidnapped. If you go look at the amount of
• 11:56
  Speaker 4: crypto whales that have had unfortunate circumstances the last three
• 12:00
  Speaker 4: or four years, please be mindful.
• 12:03
  Speaker 1: I will say that.
• 12:06
  Speaker 3: And it's uh two point two billion dollars was stolen
• 12:10
  Speaker 3: in crypto in twenty twenty four and so far this year,
• 12:14
  Speaker 3: first four months, one point seven billion has already been stolen.
• 12:17
  Speaker 3: And that doesn't even a count for the tool, the
• 12:20
  Speaker 3: full cryptos hacking and everything that's been going on. So
• 12:25
  Speaker 3: when you look at it from a standpoint of crypto,
• 12:27
  Speaker 3: is this security aspect has not been solved, it's not.
• 12:31
  Speaker 3: It's not an issue that has been solved. It's an
• 12:32
  Speaker 3: issue that is Actually it's only getting bigger. And we
• 12:36
  Speaker 3: posted this on Instagram, but you know there's a Michael Turpin,
• 12:41
  Speaker 3: So it's interesting this this made news twenty eighteen. Hackers
• 12:46
  Speaker 3: stole twenty four million work for Crypto from his phone,
• 12:49
  Speaker 3: and how they did it was through a SIM swap scam,
• 12:54
  Speaker 3: So they convinced AT and T to transfer his phone
• 12:59
  Speaker 3: number and or they had somebody on the inside do it,
• 13:03
  Speaker 3: and they they stole twenty four million dollars from his
• 13:06
  Speaker 3: phone and he actually sued them for two hundred and
• 13:08
  Speaker 3: twenty four million dollars. So the reason why the SIM
• 13:11
  Speaker 3: swap thing is interesting is that it actually happened to me.
• 13:14
  Speaker 3: I can't prove this, but I'm pretty sure that's what
• 13:16
  Speaker 3: happened because but my coin base got hacked. I had
• 13:20
  Speaker 3: to take my phone in to get serviced, and then
• 13:23
  Speaker 3: we went to LA and then I actually had COVID.
• 13:25
  Speaker 3: It was a whole long story, but my phone stopped
• 13:28
  Speaker 3: working for like two days, and then when it came
• 13:30
  Speaker 3: back on, that's when my coinbase was hacked. So I
• 13:32
  Speaker 3: think that somebody inside this store switch saw your Google
• 13:39
  Speaker 3: Instagram and said, oh, sim car swap. So that's this
• 13:43
  Speaker 3: is a real thing. So coin base security issue has
• 13:48
  Speaker 3: not been solved.
• 13:51
  Speaker 1: No, in the experts. What is the MAK that's insured?
• 13:56
  Speaker 1: Do we know? Is it is two hundred? Is it?
• 13:58
  Speaker 3: If you guys see, No, it's no insurance. What I'm
• 14:00
  Speaker 3: saying crypto. That's why I said if you want to,
• 14:03
  Speaker 3: if you want to safer route is I bit because
• 14:06
  Speaker 3: there's no insurance on crypto, so there's nothing you can
• 14:11
  Speaker 3: do about it, even if even if it's on coin base,
• 14:14
  Speaker 3: it's not there's no.
• 14:17
  Speaker 1: There's no insurance for that short coin base, is what
• 14:22
  Speaker 1: you're saying. That's Brian.
• 14:24
  Speaker 4: I'm sorry, but you do need you do need to
• 14:27
  Speaker 4: fix that issue for sure, triple factor authentication or something
• 14:33
  Speaker 4: triple the next leg because.
• 14:37
  Speaker 3: The vast majority of people is not going to do
• 14:38
  Speaker 3: a coal wallet, right. The coal wallet is the it
• 14:43
  Speaker 3: looks like a USB drive, this drive thing, and that's
• 14:47
  Speaker 3: when you actually have you know your code and you
• 14:49
  Speaker 3: actually own your own crypto, meaning you're the sole custodian
• 14:54
  Speaker 3: of it. But for most people, especially if you got
• 14:59
  Speaker 3: a lot of money, we're conditioned and trained to have
• 15:03
  Speaker 3: institutions hold on money like you know what I mean.
• 15:06
  Speaker 3: Most people are not going to have five million dollars
• 15:09
  Speaker 3: and just put it in a safe. They would rather
• 15:13
  Speaker 3: put five million dollars in the bank. Feel comfortable with that,
• 15:16
  Speaker 3: right If feel comfortable for five million dollars in josh wab,
• 15:18
  Speaker 3: they don't feel comfortable actually having five million dollars in
• 15:22
  Speaker 3: there in their possession.
• 15:23
  Speaker 1: So I don't know.
• 15:25
  Speaker 3: I think crypto experts are going to have that, but
• 15:28
  Speaker 3: the average everyday person I don't think is going to
• 15:32
  Speaker 3: be comfortable with that.
• 15:33
  Speaker 2: It'd be interesting to see what the encryption is, right,
• 15:36
  Speaker 2: if you're holding twelve percent of the world's big point
• 15:39
  Speaker 2: and you're managing over four hundred billion dollars of assets,
• 15:43
  Speaker 2: how is that?
• 15:43
  Speaker 1: How is that protected while being a target? Yeah? I
• 15:47
  Speaker 1: would love somebody to break that down for us that
• 15:50
  Speaker 1: that's interesting.
• 15:51
  Speaker 4: Does CrowdStrike have a crypto division or it's solely focused
• 15:55
  Speaker 4: on crypto or no, I'm.
• 15:58
  Speaker 1: Not sure give you that information momentarily.
• 16:01
  Speaker 4: Yeah, because whoever finds a way to provide it actra
• 16:05
  Speaker 4: layoff security, that's where the real money is going to be.
• 16:08
  Speaker 2: Right, that's going to be that's the way, right, And
• 16:12
  Speaker 2: we're speaking about crypto, but even.
• 16:14
  Speaker 1: In artificial intelligence as well.
• 16:15
  Speaker 2: For sure, you can see how this technology, especially when
• 16:19
  Speaker 2: we talk about cyber companies, CrowdStrike, Pale all to Z scale,
• 16:23
  Speaker 2: all these companies.
• 16:24
  Speaker 1: How important they will be.
• 16:26
  Speaker 2: Not now, but I mean definitely now, but even more
• 16:28
  Speaker 2: so in the future as that becomes more of the commonplace.
• 16:33
  Speaker 1: These companies are going to be needed.
• 16:35
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