Namaste everyone, so in this video you will
see a recording of a teaching I have done in India during a yoga training class. So I am
trying to introduce people to financial education and cryptocurrency. It's a really quick training
so I didn't go in depth, I just tried to give them maximum knowledge in a minimum amount
of time. Sorry for the sound quality I didn't have any microphone on me It was
not really planned.
So thank you enjoy and don't hesitate to leave comments below to
ask questions and give me feedback thank you. I will introduce myself because some people don't
know me here, so my name is here Julien Demaret. I used to be a normal person I would say, with a
normal occupation, I used to be working in water treatment. I have a bachelor degree in
water treatment. All this I learnt by myself trying to change my life and be more
free. So now I'm living with that, thanks to that, and so if I don't work I still
have income coming. If I want to work, I work, this is work for me now, you see this is
very enjoyable, I really like teaching. So I will try to be clear and concise
Can i say that in english? Yes.
So first I want to start with the definition
of wealth. So, you can note down if you have questions and we will do a Q&A session
after, so try to not interrupt me, at the end i will give you the opportunity to ask
me questions. So what is the definition of wealth? for most people maybe it's 1 million maybe it's 2
million, whatever. Actually wealth is not a number of money in your bank account, wealth is, if
today you stop working, it's a number of days, how many days can you sustain your lifestyle,
without working. So wealth is a number of days, if you stop working today, how many
days can you sustain your lifestyle. For example if you have just a normal
lifestyle and you don't require so much and you just 500 usd per month, I will talk
in usd here please understand me, if you just require 500 usd per month to sustain your
lifestyle and you're earning 600 usd passively, then you're rich.
You can live like this for
all your life, so your wealth is all your life. My case right now I would say 20 years minimum
of wealth so if i stop working now, actually i'm still making more income than what I use so
actually I can maybe all my life but you know you can have some ambitions to give
also, wo we'll talk about this later. So this is wealth, wealth is number
of days not a number of money. So everyday passing are you getting
richer or poorer, this is what you have to ask yourself. I will introduce you to
the cashflow quadrant, this is owned by Robert Kiyosaki, he has written some interesting books
that I really recommend you, Rich dad poor Dad, all I'm going to explain about finances is in this
book, so just read this book and you'll be fine. So the population is divided in 4 quadrants
E for employees, S for self employed, B for business owner and I for investor.
So you
have to know that the left side of the quadrant is 95% of the population. This side business owner
or investor is only 5% of the population. But this side, 5% of population, 95% of the wealth,
of the money. Money is this side. And this side, 95% of the population but only 5% of
the money shared with everyone. So if your goal in life is to be free,
to not have to work all your life, 40 years or even more I don't know how it
works in India, you have to go to a transition to this side of the quadrant. So you will say
ok maybe i have a job and i don't have time I'm already working 8 hours per day. Yes,
but what are you doing after your 8 hours, this is when your real work starts, when you
have to work for yourself so you have to start a business, at least part time job is your job.
This job is not your job, if you're an employee, you're working for someone.
If
you're not working for your dreams, someone else will hire you to work for his dreams,
i have chills when i say that. So this is very important to understand, if you want to be free.
I'm not saying being an employee is not good, you should actually target your job to learn
skills, not to be paid. So you learn skills here and you apply them this side, you start doing
your own business, it can be many things, you can start learning many things online.
Nowadays, online business like this crypto, do a shop on shopify you can try to do
dropshipping, and you can try and fail and this is how it works, you will try and fail
and try something else and learn again, and one day you will find your thing and it will work for
you, but no one has succeeded for the first time. You can see only the top of the iceberg, you
can see me right now, but you never seen me when i was alcoholic depressed so this is the
bottom of the iceberg, really deep, so you can try and fail and learn, and one day you will
succeed, if your goal is to be financially free. So this is for the introduction,
I'm going to talk about crypto, a bit of history to understand, in
1971 in the usa Richard Nixon decided that the creation of usd will not be linked
anymore with gold, so you have to understand FIAT currency, usd, euros, INR, indian
rupees, this is FIAT.
It's coming from latin, so it is decided by governments. FIAT currency
normally is emitted according to a stock of golf of every country in his national bank. Gold is the
measurement of wealth for a country. According to that stock of golf you can print bank notes,
but this was before 1971. in 1971 Nixon said we are going to print money without any gold to
back it. This is magical money, this is how it works now since 1971. So this creates inflation.
Inflation is you have no wealth creation but you are doing more bank notes, so there is more notes
in circulation but the wealth is the same so mechanically, the value of one note is going
down.
So i hope this is understandable. So FIAT currency creates inflation. Also it is unlimited
because now they can only print it when they want. You know TESLA without the magic money of the USA,
there is no TESLA. TESLA has not made any profit yet, they are just fed by USA. actually they are
stilling money from you. If you just save money, this money every year is using
value. So if you just save money actually you are loosing money. 5% per year
at least. You're loosing when you're saving. Also it is centralized, because
emitted by the government. They control, the population is not
controlling, the government is controlling. So in 2008, the sub primes crisis occured, big
recession in the USA, because of this magical money, banks were landing loans to people who were
not able to pay off their debts, so the prices of real estate were going very high.
Everyone
was getting a loan, so everyone wants to buy, if everyone wants to buy the prices go up,
prices were going dramatically up. But when it was time to pay off the debts noone could pay
the banks so the banks crashed. After this event, someone or a group of individuals who is calling
himself Satoshi Nakamoto, they decided to create Bitcoin. Bitcoin is born from this fiat currency
recession. This is why bitcoin is here now. The purpose of bitcoin is to give money,
i'm talking about bitcoin because it's the first crypto, it's the king of
cryptocurrency and the first one. How bitcoin decided to counterbalance
the negative effects of fiat currency. First it has a fixed supply of 21 million
bitcoin, there will never be more bitcoin. you cannot print magical bitcoin.
now 19 million in circulation, every day new bitcoin is mined and estimation
in 2100 more, all the bitcoin will be mined.
Fixed supply is preventing inflation, if
you have a fixed supply and people want to buy, there is no offer but there is more demand, this
is the law of market. I hope you are familiar with offer and demand,
like mangoes during mango season, mangoes are very cheap because there is a lot of offer but no one
want to buy it because there is so many so price are going down. But then when there is scarcity,
when there is limited supply, prices are going up. Then it is decentralized, it means it is not owned
by someone, it's not decided by a government. Every minor in the world, they own the blockchain.
How does bitcoin work? there is a mechanism called consensus, proof of work. it is exactly
like gold if you make a comparison, why are we indexing fiat currency on gold? because gold is a proof of work also, gold is very hard
to extract and concentrate, so you have to produce a lot of work to do this, to do the
final product. It takes time to produce, this is proof of work. It is exactly the same for
bitcoin.
It means that people, anyone, were just hosting the blockchain.
I have explain first what is the blockchain. Blockchain is
like an electronic register in which every transaction from the very beginning
of bitcoin is written. This wallet A has sent to this wallet B one bitcoin, and
this, from the very beginning it is written. This is owned by everyone who has the blockchain
on his computer, so the more people have this blockchain on their computer, the more the
network is secured, because you cannot falsify every version of everyone. So it very hard to hack
bitcoin because nowadays there is a lot of people involved. Proof of work is, you
are dedicating your computer power, electricity, your computer calculation
system is calculating equations to solve, you have to be the first one to solve equations
to be paid in bitcoin, solving equations actually allow the transactions to be done.
This is a
bit technical I don't have time today to explain deeply. So basically If I want to send money to
Maheesh Ji, i'm going to tell my bank to send to his bank to send to him. The blockchain
is removing third party trust, because it is written and everyone can see online. You don't
know wallet A belongs to who, but you know wallet A has sent to wallet B. Everyone can see I have
sent, no one can know it's us unless we say it's us. This process is possible because people
are giving their computer power to enable this transactions to be done. So this blockchain is
allowing bitcoin to be decentralized.
Why? because every time one block is created,the block is
just a succession of so many transactions, when this full block is done the person who has
resolved this equation is paid money in bitcoin. This is how the 2 million remaining will be
delivered because people are mining it so there is incentives to encourage you to mine. If you
stop mining, I will start mining because nowadays there is a lot of competition so
it takes a lot of electrical power, people have full buildings of computers,
you cannot do it alone anymore. Before there was no competition you could do it, now you
have to be associated with people so it's very conccurential. So if you stop doing it , it will
be less expensive, i will start doing it. This is how this network is keeping
decentralized because everyone can be part of it and no one is ruling it. That's
how bitcoin stay stable and decentralized. So this was just a little explanation
about bitcoin so now you have to know that it started in 2009 it was worth nothing,
like 1 cent usd, today it is 30 000 usd, it has been to 72 000 usd.
So ATH all time
high value of bitcoin some months back 72 000 usd so it is going higher and higher
because more and more people are getting interested. Adoption phenomenon is starting
to come. And because of the limited supply, more people are buying so the price goes up.
It is actually giving back the financial power to the people, it's not in the hands of
the government anymore. That's why a lot of governments of earth don't like this. They are
very opposed to it.
People who are ruling the world today, keeping you poor on purpose,
they are loosing their power with this and they cannot stop it. China tried to stop
it for example. We don't allow mining in our territory anymore. Minors just unplugged
the machine , went into another country, plugged the machine, this is bitcoin. If every
country in the world is trying to prevent it, maybe they can stop it. !97 countries need
to agree. Now in Salvador, they have already recognized Bitcoin as a legal official money
because they have a lot of problem with inflation. Fiat currency is worth nothing, it is just a piece
of paper, if the gold in stock in the bank of the country compared to other countries, your money
is dropping so much there is no value anymore, so bitcoin is a solution for this also that's
why it's already official for some countries.
There is also other cryptocurrencies, but most
of them will not survive, it's like when internet was created a lot of website starting going
out but now it's only google amazon facebook. So now we are more than 20 000 crypto in
circulation. a lot of them are just shitcoins as we call it. anyone can do a crypto easily.
without any project. Bitcoin has a solid strong purpose behind it and everyone
understand it that's why it's the king of the cryptocurrency, there
are other leaders of the market also. Basically the top 10 top 20 top 50,
like ethereum, is allowing other crypto to be hosted on its blockchain. So you
have bitcoin with bitcoin blockchain, then ethereum with ethereum blockchain, they
allow other projects on their blockchain and other cryptos are doing as ethereum but not as
good as ethereum so maybe they will not survive.
I will talk about the prerequisites to invest.
Let's say you are right now like 95% of the population you are an employee or you are self
employed. Employee you're working for someone, self employed you are working for yourself.
But still this is very important, here you are selling your time for
money, so when people are hiring you and sign a contract they are telling you
your life is owrth 5 dollars per hour, you sign and you say yes. So this is what
happening with 95% of the popoluation. You're just selling your time for
money, but time is limited like bitcoin, you have 24 hours in a day so by selling your time
and being paid by the hour you will never be able to be financially free because if you stop
working tomorrow there is no more income. On the other side, investors for example,
like me, using their money to make more money so I am not working for money, my money is working
for me.
So let's say today you're an employee, if you want to financial freedom you have to go
to the other side also, you will tell me ok my time is limited, but what are you doing after
your work, are you watching netflix or whatever useless things towards your financial goals.
I'm sure you have more time, 2 ,3 ,4 hours in a day to work for yourself.
here you are not working for yourself you are working for others.
So if you first have no debts, if you owe money to someone there is no reason to
invest, first you need to give back the money. I am not talking about loans to buy a house, but
all the other things like credit card in the USA. In the usa they never release chains on your feet,
because from the childhood you don't have finances after you go to study and you take a loan to
study, when you start working you are paying back, then you take a loan for your house, then they
tell you if you have a bigger loan you will pay less taxes, so you take a bigger house, and this
is all becoming very crazy so please don't go in this vicous circle if you can avoid it.
So you are working you know that you can plan you have monthly income,
it's going well, also you have started a business, maybe you want to be a yoga teacher you can start
doing yoga business online using social media, you can instruct and make a course and sell it, this
is passive income, once you have worked hard to design your course, people are buying it they are
watching your videos you can do something else. so there is many way to build this.
So now you have steady income, control your expenses, if you are earning 10 000
usd and you are spending 10 000 usd, then you have nothing left to invest.
So you have to know
what expenses are very necessary and what is not. It is just about your focus,
do you want to work smart and also hard for 5 years of your time and after
you can relax, or you want to enjoy a bit everyday let me look netflix let me party with my friends,
i have time. Then all your life you will struggle. Easy choices, hard life, hard choices easy life.
I have done some hard choices and now i have easy life, it didn't come like this, i wasn't born this
way and my family is not rich, so everyone can do this, no matter your citizenship also.
on your phones you can choose to look at instagram or you can try to use your phone to get some
knowledge and do something with your life.
Now that you have done all this and you
have extra money that you don't need and can afford to lose it, and still
able to pay your rent, to give food toyour children, complete your
duties. Now this extra money you can invest if you can be relaxed with your emotions.
If you are emotionally attached with your money, investing is not for you. Or find some investments
that are safe, but bitcoin is not for you. investing is the end of the
game so first you need to do all this steps, also have 3 months worth of savings.
when you start investing, the end of the game is crypto, crypto is very volatile very risky so
first you need to know yourself as an investor, you can start playing around with 100
usd and just see how your emotions are, can you sleep at night, if you wake up in the
morning and first thing you do is look at bitcoin price, this is not for you.
Know yourself and go
for more secure investments, there is always risk but the risk is according to the reward. The ratio
risk and reward, you have to go towards low risk low rewards if you cannot handle your emotions,
or if you can handle your emotions you can use some of your money to go into volatile
investments. So you can take your money to go for 10% per year profit, and then with those 10%
per year profit you can go for volatile things. There is no way you put all your money into
bitcoin, you have to diversify yourself. Also i should have mentionned this before I am
not a financial advisor, this is just educationnal purpose, I am not telling you to make investments.
i am not givinv advice I am just giving knowledge. This is how to be reasy to invest, when
you are ready how you can invest in crypto, you have to pay yourself first.
It means when you
have your income you should know your expenses, know how much money you can take, but
don't save it at the end of the month, take it from the beginning.
pay yourself first because otherwise you are paying everyone. first you are paying your
country, because even before you see your income, taxes are taken, after you work for your bank
to pay for your loan, at the end of the month nothing left, and you have not even paid yourself,
so for who are you working? pay yourself first. The compounding effect, there
is a book called like this. 10% saved every month invested
on a 10% per year profit for 40 years becomes very significant money. So let's
say 100 usd per month, you place this into a 10% per year profit investment, for 40 years, becomes
more than 1 million usd. This is the compounding effect because you do 10% on 100 usd but after
you do 10% on 110 and after you do 10% on 121 usd. You're not doing 10% from the beginning, it's
always going up and you 10% on the growing amount. This is very powerful. So don't think
that 10 usd is not significant.
Just start now, the best time to start investing
is today, if you have the prerequisites. DCA is dollar cost averaging it is the easiest way
to invest in crypto if you don't have knowledge. There is no investments risky for
everyone, or not risky for everyone. The more knowledge you have the less risk
there is in the investment you're doing. But you can start investing in crypto
with very basic knowledge with the DCA method dollar cost averaging. At the beginning
of each month when you're paying yourself first, you can try to focus at least 10% of your salary.
If you cannot save at least 10% of your salary you have to do something different in
the previous step i explained before. this 10% you buy at a fix time
every month the top 10 crypto for example.
They are the rulers of the market
mostly the chances are they will keep going. By buying at a fix time you will do an average
between all the prices of the market that are fluctuating. It's always going up and down but
if you just ignore the fluctuations and just buy on fixed term every month, you
will make an average price. IF you don't know you have to go
for long term, all the markets always go up on the long term.
So markets are doing like this. Financial markets most of them
they do like this, very simplified. IF you look at s&p 500 for example, the
500 most powerful companies in the USA it is in average taking 5 – 10% per
year. On the long term you will always be successful, no matter the entrance price.
Short term is for people who are skilled, you just buy and hold for 5 10 20 years. If you want
to do more than this you have to have knowledge. Fear and greed , when you enter the market
you have to hold as i said. if it goes down fear is coming "bitcoin is dropping it will never
come back again" and everyone is selling when the price is low and then everyone
"bitcoin is waking up again, so i should buy now because it will go up even more"
and then everyone is buying when it's high. When I'm saying high and down, there is no such
thing as high price and low price on the long term but if you look at the all time high of bitcoin
72 000, what i call a high price is close to the all time high what i call a low price is far to
the all time high or close to the all time low so right now bitcoin is around 30
000 it is more than 50% discount compared to the all time high so
i would say it is correct price. Once more i'm not telling you to buy
anything i am just giving knowledge. on the markets you have to go against
the normal people, as i said before, 95% of people are selling their time for money, ifyou
want to be rich you have to go with 5% people. same here 90% of people on the market are just
loosing money because they are listening to their emotions, fear when it's going down and fear of
missing opportunity or greed when it's going up. In your life in general, if you just do the
opposite of the average people, look at the average person, are they happy are they fullfiled
in their life? Most of the people are like this. Most of the people in the world are very miserable
in their mind or in their physical life, whatever. just try to do the opposite as everyone does,
you will be fullfiled.
You are already doing the opposite, you came here to learn yoga, most of
the people don't care about it. So you are already part of this 5% people. Now you just have to
push it forward in other fiels of competence. Now very practically speaking how
you can buy crypto, it is very easy you can look on youtube tutorials,
there is a difference between CEX and DEX, centralized exchange
and decentralized exchange, for example binance coinbase, the
leaders, they are centralized exchange, you can send your Indian rupee on the
exchange then you exchange for bitcoin.
On a centralized exchange you have a wallet, it
is not your wallet, please understand this. If you are on a centralized exchange it is owned
by someone, it is not your bitcoin it is mine. Of course we are centralized exchange that
are very popular and can be trusted. But still bitcoin on a centralized exchange it is
not your bitcoin, so you can just use it to buy your bitcoin, and after you send it to a
decentralized wallet, this wallet is your wallet. your wallet is only 12 words on 24 words, this
is a seed phrase, if someone has these words, he has your wallet. So when you have a
decentralized wallet, you have a private key and you have 12 or 24 words this
has to take very confidential, don't put it online don't take a photo of it.
Don't put it on your computer write it down on a piece of paper and burry it into your garden.
One day it will come, everyone will want to join the train of crypto, there will be no space
for everyone anymore.
You can choose to go in crypto consciously or you can go in crypto
forcefully because you will have to use it later. There are lots of tutorial on
youtube, you can find a lot of books, there is a indian centralized exchange Wazir X, it
is very popular and has partnership with binance, you can trust, you can go and buy from this and
after you put on a decentralized wallet like metamask, you can just search on internet.
Everything i said today is on internet, i just tried to make it easy to be grasped.
So now questions and answers. "Why shouldn't we sell low and buy high?" So when it's going up it's not time to buy, mostly
people will do the opposite of what's necessary. When price are going up like this,
do you think it's a good time to buy? If the prices are going up, it's not a good time to buy.
but most of the people because they are afraid of missing an opportunity, because they think
it's going to higher quick, they want to buy. But this is when you have to sell.
I didn't talk about the smart money.
Smart money and normal people. normal people
are loosing and smart money is winning. To sell you need someone to buy, so
smart money is creating enthousiasm around the market so that normal people will buy, so that they can sell to someone.
after when the prices are going too much up, they are selling everything and they want
to drop because the prices are too high, so they are ceating an atmosphere of fear around,
and then when it's dropping they buy again.
Questions about CEX and DEX.
When you have a wallet you are using an app or you phone or a website, when
you're creating your wallet, you will be given 12 words or 24 words like rose window house chair,
this will be a succession of words. These words are the access to your wallet.
Anyone having these words have your wallet. These words you will see them only one time at
the creation of the wallet, when you see them write it on a piece of paper, not on nothing that
can be hacked, keep it with you and you share it only with your son or your parents or your
lawyer or someone organizing your succession if you die.
That's it. Nowadays you need to have a bridge between fiat
currency and crypto, between your rupees and crypto, you need a bridge, it is the centralized
exchange. you need this to enter the market. Decentralized exchange is only between
cryptos, but not fiat to crypto. If you want to go in the market or out
of the market, centralized exchange. In the meantime, you hold in decentralized wallet. don't keep on centralized exchange if
your goal is long term. Short term, 6 months one year you can keep on
centralized exchange like binance or WazirX. because also there is transaction fees. Bitcoin
blockchain is like 20 usd per transaction, some blockchains are very low, some are very high
so if it's only short term there is no need to move it too much.
But short term is for people
who know what they are doing as i said before. questions about Wazir X and sending
money from indian bank to wazir X. Unfortunatly because i am not indian
myself i don't know the options you have. Maybe you can just find a bank that is
crypto friendly in India and send your money on WazirX through this bank. So, this a phenomenon I was talking about
before, because bitcoin is giving back financial power to the people, banks that are normally
the one who have power, they are against it, so they are not letting you easily into it, but
you have to find a solution there is a solution for sure. You can go online and
find some indian crypto investors, community online that will be able
to tell you what to do. It's only profit, if you buy 10 000 usd and you sell for 13 000 usd
you have made 3000 usd profit you give 1000 to the government, this is like this in france also.
In Thailand if you don't have your money in Thailand you don't have to pay taxes.
About dogecoin and shiba inu So this is as I said before it was a joke but
because Elon Musk twitted it went up, dogecoin can have a utility because it is very fast ans low
cost transactions.
But I have no opinion on this. And as i said before I am not financial advisor
so i'm not going to tell you what you have to do. If you want to be a bit more safe in your
behavior you buy top 10 crypto top 20 crypto. "Bitcoin is too expensive" You can buy any part of bitcoin you want, the
smallest amount of bitcoin is one satoshi, 100 million satoshi is 1 bitcoin, you can buy 1
satoshi. So with 50 dollars you can buy bitcoin you don't have to buy 1 bitcoin.
You can buy any
amount of any crypto with any amount of usd. If you want to buy 50 usd ethereum, you will have
0.0… you don't have to buy 1 full bitcoin. WazirX in India is good, it has a partnership
with binance, binance is the biggest in the world. If your bank is not allowing you to
go directly from your bank to wazirX you find another bank that is crypto
friendly you send from your normal bank to the crypto friendly bank and
from the crypto friendly to wazirX. I will put this video on youtube, if you type my
first name and last name you will find my channel and if you know telegram, I'm using
telegram to communicate with people.
