← Konnected Minds Podcast with Derrick Abaitey
Konnected Minds Podcast with Derrick Abaitey
Segment: 'The World Is Becoming Digital' - Why Ghanaians Must Own Digital Assets or Get Left Behind
00:08:26
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Transcript21 lines
- [00:00]
A
Notice I've taken you through Gold Land stocks and now Derek, I look back and I have always wondered for the individuals in our community who feel like they are priced out of maybe buying land or buying multiple real estate properties, what opportunity do they have to create generational wealth? And I waited all of my life diligently searching chain for the answer and in 2016 I stumbled upon it. Derek, the answer is Bitcoin in your view? Yes.
- [00:44]
B
Gold Land stocks, Bitcoin, which one grow my money faster.
- [00:48]
A
Bitcoin by far.
- [00:50]
B
Over what period are we looking at?
- [00:53]
A
I want people to think about bitcoin in centuries. Ideally I want them to think about it in centuries. But let me just say this. 2017 one Bitcoin was 3000 cities or 3000 US dollars today. 3000 cities in 2017. Today Bitcoin is roughly about 90,000 US dollars and approximately. So the actual number is 960,000 cities but approximately 1 million cities. So someone could have taken 3000 cities, invested it in Bitcoin in 2017 and they will have 1 million Ghana cities today in the in the same way someone in the US would have invested $3,000 and they'll have close to US$100,000.
- [01:50]
B
For those that don't understand what bitcoin is, what is it?
- [01:54]
A
Bitcoin is the first digital asset, or if I should expand on it, it is the first digital scarce asset. This is the first time that we have a property that is something you can't see and that's something that many people have a problem with. My close friend Anwar Hans me, I don't Bitcoin, I can't even see it. I can't touch it. I like to feel my money. I want to walk to a property, touch it and know that it is there. I say to him, do you think the world is becoming more physical in nature or more digital? And if you say digital, with the advent of AI and all of these incredible technologies, if you think the world is becoming more digital, then my simple answer for you is do you own any digital wealth? Because if the world becomes solely more digital, it's the holders of digital assets. They are going to be the pioneers. The Andrew Carnegie's, the John D. Rockefellers over the next 10, 20, 30 years.
- [03:08]
B
Why are you so sure?
- [03:11]
A
I have studied this asset class on average three to five hours every single day since 2016. In fact, 2016 I discovered this asset skyrocketed up and then fell about 60, 70%. And I said, who this thing is a scam. I knew it was A scam. So I ignored it for About a year, 2017, I was going about my day and this article popped across my screen and it said that the individuals who had invested in PayPal, Peter Thiel and you know, his buddies, they were coming together, creating some kind of consortium to invest in bitcoin and other digital assets. And I said, why are they investing in this scam? So it's one of two things. It's either me, Hans, I don't know what I'm talking about, so I'm wrong, or they, the billionaires are wrong. So who could be wrong? Obviously, if you judge by our net worths, clearly it was me. So what did I have to do? I had to be humble enough to go and educate myself in the bitcoin space. It's called going down the rabbit hole. So I went to study Bitcoin digital assets every single day, three to five hours a day at 2x speed, to understand it. And I still do that up until today. Well, as you know, here for family.
- [04:40]
B
I was watching a video of this young man who was interviewing an Asian man. And the question was what business he did. And he says he invest in digital assets. Now, what was interesting was that the guy asked the question and said, can you tell me, you know, one of the most craziest things, things you've done in your business? And he says, I paid 4.5 million to have lunch with Warren Buffett. Yeah, just lunch with Warren Buffett.
- [05:04]
A
Yes.
- [05:05]
B
I said, cool. I wanted to hear more. Then the guy goes, when he met Warren Buffett, it was worth the money. But Warren Buffett said he shouldn't invest in bitcoin and that's why he invested in bitcoin.
- [05:16]
A
Yes.
- [05:17]
B
And his wealth has grown. He's a billionaire.
- [05:20]
A
Significantly, Warren Buffett is part of the old school. You know, I'll never forget a statement that I heard says, back in the day when antibiotics was created, the older people, they said, oh, this thing won't take it. It's not healthy, it won't work. We will not take this antibiotic. So do you know what had to happen? The individuals who didn't take it, obviously, they unfortunately will pass away quicker. And then the younger generation who were more open to embracing the new technology, began to take antibiotics. And now it's standard. It's a subtle way of me saying that Warren Buffett did not grow up in a digital economy. Most of his investments have been outside of technology. But do you know the funny and interesting thing? The number one investment that created the most wealth For Warren Buffett was Apple stock. So it's quite fascinating for a gentleman who was not so into tech, tech was what created a significant amount of his wealth.
- [06:26]
B
Right. So what are you telling an older auntie who has got some money at the bank? They don't understand what you're saying.
- [06:33]
A
Yes.
- [06:33]
B
How would you tell them to invest their money in digital assets?
- [06:38]
A
I'll tell them that they have to understand what Bitcoin is.
- [06:42]
B
Where do they start from?
- [06:43]
A
Out of this interview, let's say that and then I'll expand beyond that. So you had asked Hans, what is bitcoin? And I told you, it's the first digital asset. Let me go a bit deeper. So around 2008, 2009, the real estate market was crashing in America. Why? The financial industry, at some point from 2002, 2003, they felt like a house is the safest investment. So because of that, we can build financial products on top of homes. Started calling them cred, credit default swaps, and all of these financial instruments. And around 2007, interest rates started to increase. And by the way, leading up to that time, because there was this boom in real estate, the mentality became, oh, everyone should be a homeowner. So whether you qualified, whether you had the income, whether you had the ability to afford a home, they felt like, let's just allow people to buy homes. Yeah. So that became the norm. And at a certain point when interest rates started to increase, people could not afford their mortgages because the majority of the loans that were sold to people were adjustable rate mortgages, which means that the interest rates on those loans adjust every, let's call it two to three years. So they couldn't afford it. So people stopped paying their mortgages. And then the housing market crashed. And when the housing market crashed, even though the wealthy bankers took all of that excessive risk, America and other European banks could not afford to let the system crumble. Connected Minds podcast.