The Good, The Bad, And The Ugly - Silicon Valley Bank Gets Stampeded, & Web3 Begins To Go Mainstream

burke]: 00:00:02

Ello, I'm Bruce Burg, Welcome to the Bullet Point Bulletins weekly. Wrap up for the week of March twelfth, twenty

burke]: 00:00:09

twenty three. I'm here with my good friend and co host Ted Huff of Fintec Confidential. Now I'm going to send

burke]: 00:00:16

it over to Ted so he can please share with everyone the new stories will be discussing today, Ted.

confidential]: 00:00:23

So today we're going to be just covering a handful of things. This week has just been bankers

confidential]: 00:00:29

with some of the news, but we're going to start off with a couple really happy stuff, so

confidential]: 00:00:35

we're gonna be talking about how there are rumors that Amazon is going to launch an n f t

confidential]: 00:00:39

Market Place project in the next month or so, with about fifteen collections. The other thing

confidential]: 00:00:45

we're going to cover is coin bases, new wallet That makes Web three integrations easier than

confidential]: 00:00:51

ever, and we can Go this week's episode without talking about the S v B Sunami that has hit this

confidential]: 00:01:03

week. So there's so much to talk about with the S v B thing. But let's dive first into the

confidential]: 00:01:12

Amazon and F. Ts.

burke]: 00:01:15

Yes, it's it's it was bound to happen. I mean, by starting to do him, it seems like even thou, the journalist

burke]: 00:01:26

and the media have all pronounced N f T is as a thing of a past and something that nobody cares about any more,

burke]: 00:01:36

and a flash in the pan that n f t s continue to grow. And it's not just about a board ape any more, it's about

burke]: 00:01:44

a lot of different things. According to the article I read, they're going to be issuing uh digital tokens along with,

burke]: 00:01:55

like say, a few bought a pair of genes very similar to the company we talked about a few years few few weeks ago

burke]: 00:02:03

that was issuing the clothing with the digital tokens

confidential]: 00:02:08

Oh yeah, the one that J Z is supporting. Yeah, yeah, yeah,

burke]: 00:02:11

Exactly exactly exactly.

confidential]: 00:02:13

So I think it was also interesting. You know. what's this? Is going to supposedly be launched to

confidential]: 00:02:18

us customers first, and then gradually get rolled out to everybody else. Um, starting with

confidential]: 00:02:26

fifteen n f T collections is actually a bit underwhelming for such a company like Amazon.

confidential]: 00:02:34

And you know you're going to be able to buy these just with your pay with Amazon. so they've

confidential]: 00:02:41

really reduced The overhead or the confusion that comes when you're You're doing the web

confidential]: 00:02:48

three on ramp. Um, and what I read also is that this was supposed to go last year, but F

confidential]: 00:02:58

t x. You know that whole thing. We'll talk more about that later, but f t X collapse caused them

confidential]: 00:03:04

to delay it a little bit. But you know one of the things that I've been thinking about

confidential]: 00:03:10

and talking about, and I read another article about this as well Is when I start thinking about

confidential]: 00:03:16

how block chain could be used from an Amazon perspective, somebody else came up with this idea

confidential]: 00:03:22

as well, So obviously I'm not the only one thinking about it. But if you're using block

confidential]: 00:03:27

chain to track to manage the delivery of products, verification that you actually got the

confidential]: 00:03:34

product verification that the product is actually the product you received. There's so

confidential]: 00:03:39

much stuff that you can do with these n f Ts and the smart contracts Along with it. and

confidential]: 00:03:45

if you're leveraging the delivery truck as another part of the smart contract, and the address

confidential]: 00:03:55

you're getting it delivered to as another part of the smart contract. I can really see how

confidential]: 00:04:02

how they're going to leverage these n f ts as a way to reduce the consumer fraud of I didn't

confidential]: 00:04:10

get my package or I didn't do this, or hey, Product I received isn't the product that was

confidential]: 00:04:15

shipped. I'm really starting to see that how this will tie into the supply chain and really

confidential]: 00:04:22

reduce their losses around these types of goods. Now, I know that's not what they're talking

confidential]: 00:04:27

about here. This is more of the artistic side of the house, but I can see us moving over

confidential]: 00:04:32

to that. Especially You know they're They're going to be leveraging chain link for the node

confidential]: 00:04:38

creation, so I just I see so much more going into this beyond the games beyond The collectibles

confidential]: 00:04:46

beyond all that offense.

burke]: 00:04:48

There seems to be a common thread happening of like you said, trying to get rid of those hurdles and obstacles

burke]: 00:04:57

for the average consumer to engage in the n f T market right, Starbuck's

confidential]: 00:05:02

Hm.

burke]: 00:05:03

launched a new U n f T this week. And you know because I'm part of the

confidential]: 00:05:09

Did

burke]: 00:05:09

auto

confidential]: 00:05:09

I

burke]: 00:05:09

C

confidential]: 00:05:09

miss

burke]: 00:05:09

program

confidential]: 00:05:10

that

burke]: 00:05:10

right, They set me a thing like two days ahead of time Like Hey, you know, let us tell you how to get ready

burke]: 00:05:16

for when we dropped these n f ts. Go ahead and put your credit card here right, and set up your credit card

burke]: 00:05:22

and set your alarm for this time and I did. And and guess what they sold out of what? Two thousand n f Ts, and

burke]: 00:05:29

like twenty minutes out of hundred dollars a pop using ordinary credit card purchases, Uh,

confidential]: 00:05:35

They're just

burke]: 00:05:35

And

confidential]: 00:05:35

doing it

burke]: 00:05:36

and

confidential]: 00:05:36

on ramp.

burke]: 00:05:36

this also leads right into the know, the coin base thing of. Let's make it easier for people to get on board right.

burke]: 00:05:43

Let's let's remove the obstacles. Let's remove the hurdles and less. Uh, let's make it so Grandma can join Right

burke]: 00:05:52

and Grandma can get it right.

confidential]: 00:05:54

Well, I mean with with coin base in their new A P. I. Really, what they're calling it? Wallet

confidential]: 00:05:59

as a service. So while it is, the service is what they're calling it. And this is kind

confidential]: 00:06:04

of what we've been talking about. The inner operability. It still drives me nuts. That is

confidential]: 00:06:09

centralized on coin base, but it is. it is offering a first step into interoperability

confidential]: 00:06:19

across multiple different projects across multiple different Solutions, So I'm not not

confidential]: 00:06:27

a huge fan of it being centralized, but I think it's headed in the right direction.

burke]: 00:06:32

Well, the interesting thing to me, on the V P of Engineering, his name is Danger, Will Robinson, Danger, Will

burke]: 00:06:40

Robinson,

confidential]: 00:06:40

Yeah,

burke]: 00:06:41

And he's posing with the robot from Lost in space, but He's His comment is the same as My comment has been like

burke]: 00:06:52

all along. You know, this thing is all set up backwards when you want to go and engage with a brand, a web three brand.

burke]: 00:07:00

Let's call it that right, and you want to get into you know that their project or their you know, release, or whatever

burke]: 00:07:09

is going on,

confidential]: 00:07:10

Hm,

burke]: 00:07:11

you get there and they say, Oh, insert your wallet. Well, you don't have a wallet yet. Well, now you got to go in

burke]: 00:07:17

the wallet Right and then so so then you

confidential]: 00:07:19

Yeah,

burke]: 00:07:20

leave their spot right, and you go and set up your meta mask or whatever other wallet that you're going to set up,

burke]: 00:07:26

And now you got this whole thing and that kind of you know that set up and everything that you got to do your

burke]: 00:07:32

seed phrases. You gotta do this. You got to do that and then you got to find some way to store that thing and

burke]: 00:07:37

you know, kind of set it aside and set it somewhere where you're going to be. You know comfortable having it there,

burke]: 00:07:46

and then you have to go back And then you have to insert your wallet before you even

confidential]: 00:07:51

Hm,

burke]: 00:07:52

know what you're doing Really right. And I think like he said, that that flow is backwards and essentially like

burke]: 00:08:01

shopping carts. In the days of your people are abandon it right. They get there. They want to buy an ape. They

burke]: 00:08:07

want to you know. Participate in the project. They want to you know. Do something and it seems like too much and

burke]: 00:08:15

they just like you know, Forget it right and they Bandon the cart

confidential]: 00:08:18

Yeah,

burke]: 00:08:18

before they even put in a bennet. You know,

confidential]: 00:08:23

I mean, I get where you're coming from. I just I worry that we're just making a web. tue

confidential]: 00:08:31

point one, um, with these wallet as a service, because it's again is centralized. Where

confidential]: 00:08:36

S a meta mask is a decentralized wallet infrastructure. Um, and that is that is huge, And that's

confidential]: 00:08:46

really what the whole purpose of having these types of wallets are, And that's just one of

confidential]: 00:08:51

the concerns that I have. but Companies like Floor and Moon Ray and Third, Web and Token

confidential]: 00:08:57

Proof are saying Hey, this might be a quick way to help our customers. and and they're probably

confidential]: 00:09:05

doing it, as this is like a stop gap until we can figure out how to manage something fully

confidential]: 00:09:09

decentralized, So

burke]: 00:09:11

It's a simplified on boarding right. It's simplifying to, you know, getting a customer in

confidential]: 00:09:16

Yeah,

burke]: 00:09:16

Right, And that's number one right. I mean that's that's number one thing that every company should want. Let's

burke]: 00:09:22

let's make it as simple as possible for somebody to do business with us right. But

confidential]: 00:09:26

Hm,

burke]: 00:09:26

at the same time, how do you maintain that decentralized integrity? If that's a term right, I just made up a new term,

burke]: 00:09:33

Fred.

confidential]: 00:09:34

Yeah,

burke]: 00:09:34

It's It's decentralized integrity Right. But and you're Credit amongst your other web, three effecialanatos that

burke]: 00:09:45

you know, your project is sitting right alongside of right, So

confidential]: 00:09:49

Yeah,

burke]: 00:09:49

it's It's an interesting kind of ah h. positioning Also right. I mean, a lot of this is positioning and a lot of

burke]: 00:09:59

people I think are saying well, Web threes gonna be like this, But there's not really a whole lot of Web three

burke]: 00:10:07

yet. You know what I mean, You know.

confidential]: 00:10:10

Yeah,

burke]: 00:10:10

so it's

confidential]: 00:10:10

I guess I look at it. So do you understan, So what is your perspective on what this coin

confidential]: 00:10:20

base wallet is a service? What do you? What is your perspective of the problem that it's

confidential]: 00:10:26

solving?

burke]: 00:10:28

It's essentially helping the people that are writing to it and including that wallet a P. I in their code, a way to

burke]: 00:10:41

quickly get customers into their Echo system. But if they don't want to use a coin based wallet and they want to

burke]: 00:10:52

use another wallet, it's counter productive or if they have Another wallet, writ is counter productive, so I

burke]: 00:11:02

don't know if all the companies that are writing to the coin base a P. I, are only going to use the coin base

burke]: 00:11:09

wallet as a service, or if they're goin allowed to use of other wallets. That's something that the article really

burke]: 00:11:17

didn't reveal. I read quite a few different articles about it and none of them really talked a whole lot about how

burke]: 00:11:24

the companies are using, other than just simply writing to the A P To get customers on board right and make it

burke]: 00:11:31

simple for those customers to do business with him.

confidential]: 00:11:35

So When you, when you're having to go from, that's what you're you're you're talking about the

confidential]: 00:11:41

Starbuck experience Right? So you're in the Starbuck's experience and it says you need to

confidential]: 00:11:49

set up a wallet. right? Okay, So why is it having you go set up an a wallet? And and I guess

confidential]: 00:11:58

I kind of look at it, And you know if you look at Starbuck says you need to go set up a

confidential]: 00:12:02

wallet, Then you go to Meta Mass, And they have you set up your wallet, Then you have to

confidential]: 00:12:09

go back to Starbuck and then you have to tell Starbuck you're using Metamaskeand. you have

confidential]: 00:12:13

to validate and verify that Metamask has access to the star box. Then, like you see all these

confidential]: 00:12:20

back and forth what I see. This is what their attempt to do here is the biggest issue that

confidential]: 00:12:28

that block chain will be able to solve. And that's identity verification. Because, because

confidential]: 00:12:35

if I knew it was Bruce, and in Bruce's block, we knew that Bruce had interfaces with all

confidential]: 00:12:45

of these networks because of that block, And we can validate Bruce in that block and we

confidential]: 00:12:52

knew his Based on that. I can then just give my address to where I wanted to go, And that's

confidential]: 00:13:01

kind of how I'm looking at this. Is that the reason why this is so important? right? Ow.

confidential]: 00:13:05

it's because we don't have a unified identity verification process. We don't know it's Bruce

confidential]: 00:13:12

doing doing this and it hasn't even had to be Bruce. Just as like we don't know that it's blocked

confidential]: 00:13:18

one, two, three four, and I know it's not that way, but block one, two, three four has

confidential]: 00:13:23

been validated, so we can actually tie this this object to this, this validated block and

confidential]: 00:13:33

you can't do that, And that's the inter Ability that I keep talking about, and this is a short

confidential]: 00:13:39

cut to getting to that because what coin base is doing with their wallet as a service? Is there

confidential]: 00:13:43

validating the individuals identity or the identity of the receiver or the delivery person?

confidential]: 00:13:51

And so now you're just you're in identity verification and validationareas. So I'm I'm thinking

confidential]: 00:13:59

this is. That's why I'm calling it like a web to dot one, two, dot two, two, dot five. whatever

confidential]: 00:14:03

you want to call it, Because This is that stop gap until we figure out how to have an interoperable

confidential]: 00:14:10

verification of identity. And once we have that, then you can start to manage things

burke]: 00:14:17

In everything I've read about Web three Right, all the white papers. All you know, the big thing pieces that

burke]: 00:14:27

I've read about it. You know. the idea is the wallet that you're bringing to a web. Three property is not just a wallet

burke]: 00:14:36

for money. it's a wallet

confidential]: 00:14:37

No

burke]: 00:14:37

also, for you know, identification is bringing your creations with you. Not just your collection, right, but

burke]: 00:14:45

if you created something right, also Right, but it's also supposed to bring your friends your. your. you know

burke]: 00:14:54

everything right. You're essentially bringing your wallet in. You're plugging it into wherever you're visiting,

burke]: 00:15:00

Right and your stuff isn't already there. By putting in a user ide and past word, you're bringing all your stuff with

burke]: 00:15:07

you to that network and your plugging it in with the wallet. And nobody has that yet. The closest one I see that

burke]: 00:15:14

actually has that, and it seems to be work Towards that is Polly Gon with what we talked about last week with their

burke]: 00:15:21

zero knowledge proof wallet, Right and it's scalable apparently, but nobody. still. Everybody's got the you know there's

burke]: 00:15:30

there's. you know. We talked about at least a dozen wallets, and in the past couple of months, right, uh, they allow

burke]: 00:15:37

you to bring your n. f. T. S. They allow you to you know, hook up your accounts to him. You have some kind of

burke]: 00:15:43

identity. You can put up your p. f, P, right of your favorite n f, Right, Uh, and that's about where it stops

burke]: 00:15:51

and where it starts right. There's not much

confidential]: 00:15:53

And

burke]: 00:15:53

to it right And so

confidential]: 00:15:55

well,

burke]: 00:15:56

it's

confidential]: 00:15:56

and that P. P is just just a visual representation for people to quickly and easily verify

confidential]: 00:16:03

and validate the identification. I mean, there are so many different ways to do it. And what what

confidential]: 00:16:10

I want to to have everybody think about is This wallet right here is the most decentralized

confidential]: 00:16:21

wallet that you can have. Right

burke]: 00:16:24

Yes,

confidential]: 00:16:25

like it's not connected to anything. It's like it's not. There's no, like I don't have to

confidential]: 00:16:31

get permission. I don't to verify with anybody to pull driver's license. A credit card Money

confidential]: 00:16:42

out of her. I don't have to do that right. I can do it without asking for permission. Um,

confidential]: 00:16:48

and I think until we get to the point of of having a truly decentralized wallet where I don't

confidential]: 00:16:56

depend on anybody else other than myself,

burke]: 00:17:00

Yeah,

confidential]: 00:17:00

Um, it's going to be really hard to have the interopperability and that's why I think as

confidential]: 00:17:06

much as everybody laughs at me when I say this, I think having a hardware wallet is going

confidential]: 00:17:10

to be The key to success in identification verification. To be able to like you, Talk about

confidential]: 00:17:18

to take the stuff with you

burke]: 00:17:20

Yeah,

confidential]: 00:17:20

because these are bits and bites of data that we can

burke]: 00:17:22

And bring

confidential]: 00:17:23

take

burke]: 00:17:23

it with

confidential]: 00:17:23

and move

burke]: 00:17:23

you that you know,

confidential]: 00:17:25

right

burke]: 00:17:26

and the network is aware of all the different things that you're bringing to it and it has a place that. essentially,

burke]: 00:17:36

when you get there you you know, insert your your thing right, and it all kind of opens up like a peacock. Is you

burke]: 00:17:43

know what I'm seeing right and then you know, like

confidential]: 00:17:45

The

burke]: 00:17:45

everything

confidential]: 00:17:45

same time,

burke]: 00:17:46

there right

confidential]: 00:17:47

but at the same

burke]: 00:17:47

if

confidential]: 00:17:47

time,

burke]: 00:17:47

you're

confidential]: 00:17:47

when you,

burke]: 00:17:47

allowing

confidential]: 00:17:48

when you go

burke]: 00:17:48

others

confidential]: 00:17:48

to the

burke]: 00:17:48

to see it right.

confidential]: 00:17:50

right, and when you go to certain areas, they're only able to see the things that they're

confidential]: 00:17:55

able to see. So just because my wallet has five credit cards and seven bills in it, If I go

confidential]: 00:18:04

to Bruce's network and all Bruce can see are the American Express cards and my driver's

confidential]: 00:18:10

license. Guess what. Bruce only sees my driver's license and my American Press cards, Because

confidential]: 00:18:16

that is one of two things. I've said He can see them or two. That's all he's able to see,

confidential]: 00:18:22

and I validated that he can see those. Now I can go. I can go to another network or another

confidential]: 00:18:30

system and they can see everything. They've built out the capability to see everything, but I don't

confidential]: 00:18:37

want them to see everything. So when

burke]: 00:18:39

Yeah,

confidential]: 00:18:39

I connect the wallet, then I go. Okay, you can see this and you can see this and you can

confidential]: 00:18:44

see this. And so that's that's how, and that kind of, is that that helicopter float thing that

confidential]: 00:18:50

I've talked about Right

burke]: 00:18:51

Yeah,

confidential]: 00:18:52

Is that like when when I land in there they know It's then I can. I can tell them they can

confidential]: 00:18:58

identify that who I am not by name but by my block. Um, and then I can say Okay, hear all

confidential]: 00:19:05

the things that I'm here for And here's what I'm willing to authenticate with, but I just

confidential]: 00:19:10

I, really. I keep going back to the hardware. I think hardware wallets are going to be the

confidential]: 00:19:14

key to success This area, and the more we try and turn it into software, it's going to

confidential]: 00:19:21

be It comes back to centralization. You just

burke]: 00:19:25

I think a lot of the people are. Uh, you know we've talked about in the past that you know. Banks just replicated

burke]: 00:19:35

the paper experience digitally,

confidential]: 00:19:37

Yeah,

burke]: 00:19:37

Right skemorphics almost right. You know,

confidential]: 00:19:40

Yeah,

burke]: 00:19:40

even the checks look like you know check, right,

confidential]: 00:19:43

It looks like a check

burke]: 00:19:44

Kent from the pay show on Las Vegas, Right. He had the the check writing software right, And when you went on

burke]: 00:19:50

line to fill out the check, it

confidential]: 00:19:53

Looks

burke]: 00:19:53

looked

confidential]: 00:19:53

like

burke]: 00:19:53

like

confidential]: 00:19:53

a

burke]: 00:19:53

your

confidential]: 00:19:53

check.

burke]: 00:19:53

checks and your check. Right.

confidential]: 00:19:55

Yeah,

burke]: 00:19:55

Um, and people are so used to you go to a store, right, You don't walk up when you go the store. You don't walk

burke]: 00:20:04

up to the cash. yer here and go. Hey, you know, I'm going to go do some shopping around in your store. And what

burke]: 00:20:10

not? So here's why Wall, go ahead and hold on to that and I'll catch you after I've gone through the store and

burke]: 00:20:15

picked up some stuff right, So people are not used to that behavior and I think for a lot of people the first time

burke]: 00:20:24

Arrive at a Web three property and it's like Hi. So and so insert your wallet. Not even like you know who are

burke]: 00:20:33

you, or you know what your phone number or what you know. Do you want to set up an account or anything else?

burke]: 00:20:38

It's like Hi, you know. Give us your wallet right, and you don't even know what you're doing, So a lot of people

burke]: 00:20:42

are like you know, because they've heard all this crazy stuff and the news and everything right and they're like

confidential]: 00:20:49

Hm,

burke]: 00:20:51

you know.

confidential]: 00:20:51

Yeah, but I mean that comes into the overarching experience, right Aneverythe First time

confidential]: 00:20:58

you get asked for that a few times, and until you go through it, Like if you go to a store,

confidential]: 00:21:04

right, So if you go to a store and so, because are you ready to check out? But you don't see

confidential]: 00:21:09

a cash desk right, You're kind of kind of thrown off a bit because you used to go in to

confidential]: 00:21:15

a cashier's desk

burke]: 00:21:16

Yeah,

confidential]: 00:21:17

and then you go, they say Okay and I'm using apples. An example.

burke]: 00:21:20

Yeah, they got the

confidential]: 00:21:21

Okay,

burke]: 00:21:21

thing at

confidential]: 00:21:21

cool.

burke]: 00:21:21

the end of the table right.

confidential]: 00:21:23

Well, they reach out of their back pocket a device and they go cool. Let's scan. Scan. Or do

confidential]: 00:21:27

you have a card? Do you have it on file? That and you're like, Oh my God, I just I just wanted

confidential]: 00:21:32

to pay you with cash right, So it's the same kind of experience. I just I think that because

confidential]: 00:21:42

we over sensational ize all of the bad things that can happen that it's It's only made it

confidential]: 00:21:50

worse, and people are Or are scared to make a mistake and guess what. we're all going to make

confidential]: 00:21:57

a mistake. We're all learning at this stage, so we just we just have to be cautious. Have to

confidential]: 00:22:04

ask. why, have to ask what? and just have to ask questions along the way, just as if you

confidential]: 00:22:11

were handing somebody cat. So that's really kind of my perspective. I mean, I like the idea

confidential]: 00:22:19

of the wallet is a service. I can see it. I'm a big fan to Meta Mask because it's a decentralized

confidential]: 00:22:24

online. It has plug ins into all the browsers, which speeds up and makes it really easy. I

confidential]: 00:22:29

mean, done the really good part. Um, I'm just really

burke]: 00:22:34

Do you

confidential]: 00:22:34

looking

burke]: 00:22:34

think they're

confidential]: 00:22:35

forward

burke]: 00:22:35

starting to

confidential]: 00:22:35

to the

burke]: 00:22:36

gentrification

confidential]: 00:22:36

hardware.

burke]: 00:22:37

too early? Because that's what it is. It's gentrification When you're when you're putting something out like this, you're

burke]: 00:22:43

making it so you know anybody and everybody, and it's mass, main stream mass appeal. That's the reasoning behind

burke]: 00:22:50

all this right is. should we go through the new process? Should people have to go through that new process first?

burke]: 00:23:00

And you know, or is there? Is there a hybrid of The two?

confidential]: 00:23:06

I think by going down the wallet is a service. Is like I mentioned a Web to Dot Five. It

confidential]: 00:23:13

is

burke]: 00:23:13

Yeah,

confidential]: 00:23:13

the introduction into it right, And so you get into it and you, you're like Okay, Well, this

confidential]: 00:23:19

is really cool. I'm using the coin base, and you may not know it's coin base. You may think

confidential]: 00:23:25

it's a moon ray or a third Web or a token proof wallet. Right, because it's branded that

confidential]: 00:23:30

way, And so so now you're just used to that experience And when Comes time to do another

confidential]: 00:23:37

wallet? You're not going to be as scared And so you may have multiple. I'll tell. I've got

confidential]: 00:23:42

multiphysical multiple physical wallets right And so I think we're going to see that happen,

confidential]: 00:23:50

But this is a nice way to, because coin base has a huge user base, right, and so

burke]: 00:23:58

And largest

confidential]: 00:23:58

you can use it

burke]: 00:23:59

by trading volume?

confidential]: 00:24:01

Right. So you take the second largest customer based by trading volume, as you mention, and

confidential]: 00:24:08

you say, Hey, guess what. you don't need to go. set up a meta mask. You don't need to do

confidential]: 00:24:12

that. You can just use this this one And then now I go and I look at. Let's just pretend

confidential]: 00:24:18

Starbuck is using it. Now I go and Starbuck sends me a thing and says Hey, go ahead and

confidential]: 00:24:25

get this. The N. F. T Guess what I get to do? I go cool. Boom, and you don't even know that

confidential]: 00:24:34

you're using the coin based wallet? You just know that it's there and it's available

burke]: 00:24:37

Yeah,

confidential]: 00:24:37

and I think that's that's the first step.

burke]: 00:24:42

The question that came to my mind when Starbuck said Hey, you know, go connect your card right. They didn't even

burke]: 00:24:48

really want me to set up a wallet. They just wanted me to insert my credit card into some special place, and the

burke]: 00:24:54

N. the within the n f t autos aspect of their app right, which is kind of a. There's kind of a separation between

burke]: 00:25:02

buying a couple of coffee at Starbuck and buy an n n f T. some

confidential]: 00:25:06

Hm.

burke]: 00:25:06

Starbuck, Ers. there seems to be a line down in the middle, and I was Like Well, why can't I just fund by existing

burke]: 00:25:13

Starbuck's wallet for a hunder bucks with my credit card like I have been doing, and you can take it out of that

burke]: 00:25:21

right. Like why you know? Why aren't we co mingling coffee and and apes, you know, like why isn't that happening

burke]: 00:25:28

And I'm sure it's a

confidential]: 00:25:29

M.

burke]: 00:25:29

regulatory thing. I'm sure it's you know. there's got to be some legal reasons behind it. They want to keep it

burke]: 00:25:36

separate. Who knows right, but I think Probably they didn't want to make it too easy for somebody to mistakenly

burke]: 00:25:47

buy an n f t H, when they're really just trying to order a cup of coffee. Right, that sort of thing, right? what's

burke]: 00:25:54

this hondo dollars? right? I just wanted a lot ground, you know or whatever, right? So

confidential]: 00:26:01

So I think I think it goes a little bit deep. I'm not saying you're wrong. I think when

confidential]: 00:26:05

I look at it and I look at what the financial institutions and what the card brands require

confidential]: 00:26:11

when purchasing N f Ts, and doing all that fun stuff. It is quite different from when you're

confidential]: 00:26:18

purchasing a stored value purchase. They're totally

burke]: 00:26:23

Yeah,

confidential]: 00:26:24

different.

burke]: 00:26:25

yeah,

confidential]: 00:26:25

Um,

burke]: 00:26:25

because that's all

confidential]: 00:26:26

and

burke]: 00:26:26

I

confidential]: 00:26:26

so

burke]: 00:26:26

was doing. I wasn't actually giving them my credit card. I was buying twenty five dollars worth of Starbuck's credit

burke]: 00:26:32

that's sitting in my wallet waiting to be spent Right. So

confidential]: 00:26:36

Right,

burke]: 00:26:37

it's yeah, it is a different type of transaction. That stored value is a lot different than an n. f T. right, so

burke]: 00:26:45

it totally makes sense that they have it separated. But the fact that they're making it so simple, I Will help gain

burke]: 00:26:55

adoption for Web three, But

confidential]: 00:26:57

Hm,

burke]: 00:26:57

at what cost right? will it Or will it just gain adoption for we? two point five. Right and people go. well, I

burke]: 00:27:10

feel safe. stop in here and I don't want to go. You know, any deeper into you know the meta verse than this right.

burke]: 00:27:18

I'm happy with this right, you know. So in order to really become Web three, you know with everybody right with

burke]: 00:27:30

Star bucks with polygon with right, Uh, Amazon by all these different companies that are now offering up N f

burke]: 00:27:39

Ts, right, Read it right.

confidential]: 00:27:42

M.

burke]: 00:27:42

You know,

confidential]: 00:27:43

those are digital

burke]: 00:27:43

they gave

confidential]: 00:27:44

collectibles.

burke]: 00:27:44

every. They gave away a ton of them and you didn't even have to have a wallet right. That was just it was a collection

burke]: 00:27:51

and you could grab it and you know it was a profile identifier.

confidential]: 00:27:56

So he, here's here's where Star bucks and that are similar, Right? So it's a digital collectible

confidential]: 00:28:03

that is on a closed loop system. So so it is, It is on a private chain, private network, Ferredit.

confidential]: 00:28:13

And that's why you don't have to set up a wallet, and Star Bucks has set up their own private

confidential]: 00:28:21

chain Using So, And if I remember right,

burke]: 00:28:25

Yeah,

confidential]: 00:28:26

Um, and polygon, it was polygon. It wasn't salon polygon, Um. in there. And so so now there they're

confidential]: 00:28:34

separated, which makes it so they're not inter offerable And so

burke]: 00:28:38

Yep,

confidential]: 00:28:38

we're back in the same place where If do you want simple, or do you want it to truly be Web

confidential]: 00:28:44

three, And that's where we keep getting stuck in that middle where we're trying to pretend

confidential]: 00:28:49

to be Web three and keep it simple. And it's really web. two dot, one or two, o five, or

confidential]: 00:28:56

whatever you want to call.

burke]: 00:28:57

O. Does there need to be a Web Three Standards Board or a, You know, an association or organization that sets

burke]: 00:29:08

down Okay. In order to be certified, you know, stamped as Web three, you need to have this capability, this

burke]: 00:29:15

capability, this capability and this capability in your platform.

confidential]: 00:29:19

No, No, because it's super central, simple, decentralized like it's supposed to be And be

confidential]: 00:29:30

able to be portable. Those are the only two things that. really. It's super simple.

burke]: 00:29:38

Yeah,

confidential]: 00:29:38

It has to be interoperable

burke]: 00:29:39

I'm just like.

confidential]: 00:29:40

and

burke]: 00:29:40

I'm

confidential]: 00:29:40

decentralized.

burke]: 00:29:40

just thinking of the ober driver that gave me a ride the other day and I started talking to about the Amazon

burke]: 00:29:49

thing right and started talking to him about Amazon selling n f Ts, and that sort of thing, And he was an older guy.

burke]: 00:29:56

He was around my age right, So he liked to part about the Will Robinson and the robot right, But when I started

burke]: 00:30:02

getting off into companies and and h, n f ts, and tokens and Ins and wallets, and all this stuff, this guy started

burke]: 00:30:12

saying things to me that he had heard and what he had synthesized in his head from what he heard, and

confidential]: 00:30:20

Hm.

burke]: 00:30:20

he was coming at me with. Oh, well, yeah, when bit Com did this, and when you know and I was like, What are

burke]: 00:30:28

you talking about? he grabbed a little bit of information, right, The ice cherry picked some information that he was able

burke]: 00:30:36

to retain in his head, and it was Gobbledygooke and he had no clue what he was talking about from somebody who

burke]: 00:30:43

you know, listens and reads this stuff all day long, and I fear that that's the general public when it comes

burke]: 00:30:49

to this stuff, and he was probably a little more immersed in it than others. He's like, Yeah, all my friends tried

burke]: 00:30:56

to you know, get me to get into Crypto, And you know you know all that right, and he's like I didn't ever do

burke]: 00:31:01

any of it Now. I'm laughing at. you know, unless I was like, it's I am concerned

confidential]: 00:31:09

Guess what?

burke]: 00:31:09

that that's more of what the general public thinks of all this stuff than what we think of this stuff.

confidential]: 00:31:18

So I mean, it's the same with stocks. It's the same with bonds. it's the same with cities.

confidential]: 00:31:24

it's the same with. I mean, just list anything that has variability in it, whether people

confidential]: 00:31:32

in the same way with weather. So so I mean,

burke]: 00:31:36

Yeah,

confidential]: 00:31:38

so I guess I look at it is. you can be as intelligent or as ignorant as you choose.

burke]: 00:31:46

Oh yeah, absolutely.

confidential]: 00:31:47

And And And so what ends up happening is, depending on how you believe, it impacts you and

confidential]: 00:31:54

the perception that you have. that it impacts you and your life. and and how important it is

confidential]: 00:31:58

to you is going to vary greatly between person to person, and

burke]: 00:32:03

Yeah.

confidential]: 00:32:03

the level of depth that they go into will be based upon their interest in their. believe that

confidential]: 00:32:08

it's going to make a difference in their life. Like for me, I believe that this is going to make

confidential]: 00:32:12

a huge difference in my life, my kid's life, And it only makes Sen For me to dive so deep into

confidential]: 00:32:22

this to truly understand it, because I see from my perspective how amazing the world could

confidential]: 00:32:33

be if we continue to grow, leveraging block chain, smart contracts, and non, like distributed,

confidential]: 00:32:46

Leger technology, As well as non centralized wallets in the digital economy. Like I see

confidential]: 00:32:55

how big and how wonderful it could make things everything from, And me and a friend of

confidential]: 00:33:05

mine talked about this a couple of years ago when I started really getting crazy into the block

confidential]: 00:33:10

chain. Imagine imagine if every penny that you spent in Ta As you could trace using the

confidential]: 00:33:21

block chain to where that penny

burke]: 00:33:24

It

confidential]: 00:33:24

went

burke]: 00:33:24

went right, yeah,

confidential]: 00:33:25

and where it was spent, and by who and win,

burke]: 00:33:30

Yeah,

confidential]: 00:33:31

Whoa. Now,

burke]: 00:33:32

Yeah,

confidential]: 00:33:33

that's kind of scary because

burke]: 00:33:34

yeah,

confidential]: 00:33:34

there's going to be different types of people that fall into this. We can go on that wholly

confidential]: 00:33:38

different, whole different category, But in my mind is it you could get to that level.

burke]: 00:33:44

Yeah,

confidential]: 00:33:44

You could literally get to where every

burke]: 00:33:46

Red sand,

confidential]: 00:33:46

last

burke]: 00:33:47

as they say right,

confidential]: 00:33:49

is accounted. for. You know where it went, whether you liked it or not, At least knew where

confidential]: 00:33:56

it went.

burke]: 00:33:57

Yep,

confidential]: 00:33:58

You could also do that with. You could identify Which one of your representatives had done

confidential]: 00:34:07

that, and where it went and who that was tied to the end. On top of that, all of this is

confidential]: 00:34:13

public would be publicly available. It would all be out there. It would be full transparency, which

confidential]: 00:34:21

has never been seen before. And if you could get to that level of transparency, Ud be unreal

confidential]: 00:34:29

unreal

burke]: 00:34:30

But

confidential]: 00:34:30

So

burke]: 00:34:30

what I see that needs to occur is a lot of education. You know, you know we talk about, you know, getting people financially

burke]: 00:34:40

literate. you know, which is kind of why the first hash tag Pay deep dive is going to be around. Like what is Web

burke]: 00:34:49

Three right? Let's let's get people there first. Right like I don't. I think if if I stood out in the street tik

burke]: 00:34:57

tok style with my microphone and ask fifty, There's by

confidential]: 00:35:01

M.

burke]: 00:35:01

what is Web three it would be like watching it on Jimmy Kemmel. I think you know I would

confidential]: 00:35:07

Oh

burke]: 00:35:07

get

confidential]: 00:35:07

yeah,

burke]: 00:35:07

lie

confidential]: 00:35:07

yeah,

burke]: 00:35:07

awitinthes

confidential]: 00:35:08

totally.

burke]: 00:35:08

news, right I would. They would just be making crap up and they have no clue. I don't think. I don't think one

burke]: 00:35:14

in fifty could probably tell me

confidential]: 00:35:18

I mean this. this kind of rolls into our last subject of the day is really the S. B B collapse

confidential]: 00:35:25

and the sunami that it's creating right. And you know, I just was mentioning talking about leveraging

confidential]: 00:35:31

block chain to track taxes, But imagine being able to use block chain technology to track

confidential]: 00:35:37

where the deposits that I put into a bank where they've gone. Where Where did the money

confidential]: 00:35:44

that I put into the bank where the hat Is it?

burke]: 00:35:48

Right now.

confidential]: 00:35:49

And

burke]: 00:35:50

Yeah,

confidential]: 00:35:50

right at this at this exact moment, where is that money? And you know we, That's some of

confidential]: 00:35:57

the things that I think about. and like all these investors and all these other guys and girls

confidential]: 00:36:04

and people that have have put their faith in that financial institution Are now realizing

confidential]: 00:36:13

that what happened to F. t. X Can

burke]: 00:36:16

L.

confidential]: 00:36:16

happen

burke]: 00:36:16

c.

confidential]: 00:36:17

to

burke]: 00:36:17

s.

confidential]: 00:36:17

a bank to Celsius Voyage, or you name it right,

burke]: 00:36:20

Yeah,

confidential]: 00:36:21

Any time there is panic and people

burke]: 00:36:24

Over gate,

confidential]: 00:36:24

are worried,

burke]: 00:36:26

Yeah,

confidential]: 00:36:26

Silver Gates, another one, But but any time there's panic that people think that their money

confidential]: 00:36:31

is not safe. And and then the Us. we've We've trusted banks for forever, But if

burke]: 00:36:37

Yeah,

confidential]: 00:36:37

you go to other places in the world, nobody trusts the bank.

burke]: 00:36:41

Trill in South America, most people don't even put their money in the banks. It's you know

confidential]: 00:36:45

No,

burke]: 00:36:46

elsewhere right and I think may be moving forward. There's going to be a lot of people that maybe don't do it here

burke]: 00:36:55

in the U. S. right. one of my friends commented

confidential]: 00:36:57

Yeah,

burke]: 00:36:59

on on the cartoon I put up. You know the guy in outer space sweating right, banks

confidential]: 00:37:04

Yeah,

burke]: 00:37:04

are a scamp. You know banks are a. Sam, put all your money in crypto, and the other choice is cryptos and Sam

burke]: 00:37:10

put all your money Banks. It,

confidential]: 00:37:12

Right.

burke]: 00:37:13

you know the men of the week, right, He's like. Suddenly my mattress is looking a lot better right,

confidential]: 00:37:20

Hm,

burke]: 00:37:20

you know, And that's the sentiment that's out there now, Right and I think a lot of people are going to start stock

burke]: 00:37:28

piling cash. Right and start, you know, I read recently about a house that somebody bought from like it was

burke]: 00:37:36

built in the nineteen Twenties or something in you know the forties during the recess, And the whole wall was

burke]: 00:37:43

insulated with stacks of cash. The guy who ever built the house, you know, was just squaring a way o money in

burke]: 00:37:50

there and apparently never told anybody. And you know the house was insulated with money, you know absolutely

burke]: 00:37:57

insane right.

confidential]: 00:37:58

That is some extremely expensive insulation,

burke]: 00:38:02

That's a lot more than that pink stuff. I don't. I don't care if you're getting the spray stuff, the pink stuff,

burke]: 00:38:06

the the wool bats. I don't care. Money is

confidential]: 00:38:10

Ash

burke]: 00:38:10

a lot

confidential]: 00:38:10

insulation

burke]: 00:38:10

more expensive.

confidential]: 00:38:11

as much that it is, but I mean, and so if you look if we look at Silicon Valley bank, so

confidential]: 00:38:17

I'm just I'm going to just do like a really quick recap from my perspective, right So Silicon

confidential]: 00:38:23

Valley Bank bought a bunch of bonds, had I believe, like, one point seven five per cent

confidential]: 00:38:31

and two point five per cent. And you know they saw that happening, they aren't going to get

confidential]: 00:38:36

the returns and I, really, that's no big deal, because it'll It will eventually pay out

confidential]: 00:38:40

And they eventually get their cash. But they noticed that their deposits had continually started

confidential]: 00:38:45

to shrink, and so, in order to protect themselves from potential liquidity crunch, they decided

confidential]: 00:38:54

to sell about two billion dollars worth of those things at a loss to shur up their finances.

confidential]: 00:39:04

Now here's here's here's where I see. They're being too big as she's not. I've been on on zooms

confidential]: 00:39:13

and calls and interviews by a bunch of people about this over the last few days. I think

confidential]: 00:39:19

one. This was just bad timing that they did it the same day The Silver Lake decided that that

confidential]: 00:39:28

they were going to ask the f d i C to help them Re. structure. Second, they told everybody

confidential]: 00:39:35

to stay come. Which always works And which means it.

burke]: 00:39:40

O

confidential]: 00:39:40

There

burke]: 00:39:40

men.

confidential]: 00:39:40

was

burke]: 00:39:40

Carry

confidential]: 00:39:40

a.

burke]: 00:39:41

on.

confidential]: 00:39:42

There was a failure. communication failure. Um, And so what ends up happening Is that communication

confidential]: 00:39:51

failure, along with timing freaked out people that had money in the bank, And I mean, there

confidential]: 00:39:58

was a run on the bank to get deposits out, and there's still coming down coming up with all

confidential]: 00:40:04

the numbers around that, but I mean the f d I c is taken over the bank. They completely shut

confidential]: 00:40:11

down the bank on Friday. the D c is taken over the bank first thing on Monday morning. you

confidential]: 00:40:16

know over the week end what they're doing here, putting a bridge bank in place. Same they

confidential]: 00:40:21

did for a moo back. Gosh. it's been. I can't remember how long ago it was.

burke]: 00:40:25

That was a wild bit.

confidential]: 00:40:28

Um, two thousand and eight actually,

burke]: 00:40:30

Yeah, yeah, right after the the Helen collapse, That's when that occurred.

confidential]: 00:40:36

And so, S. V B had also been working with financial advisors to try and find somebody to buy

confidential]: 00:40:43

them before it failed. And it just they couldn't get it. Um,

burke]: 00:40:49

There's quite

confidential]: 00:40:49

but

burke]: 00:40:49

a bit going

confidential]: 00:40:49

it's just

burke]: 00:40:50

on from some of the stuff I've been reading and some of the stuff I've been watching. Also, there's a lot of

burke]: 00:40:56

commentary out there on it

confidential]: 00:40:59

Here's

burke]: 00:40:59

one.

confidential]: 00:41:00

a lot of

burke]: 00:41:00

the

confidential]: 00:41:00

bad commentary too.

burke]: 00:41:02

yeah, and there's a lot of different perspectives. The F d i C. S perspective on it was kind of unique and different

burke]: 00:41:08

To see it from the Federal reserves. I guess

confidential]: 00:41:11

M.

burke]: 00:41:12

F d i C. Federal Reserve. It's kind of you. He. same thing.

confidential]: 00:41:15

Those are. No. they're

burke]: 00:41:17

I

confidential]: 00:41:17

so

burke]: 00:41:17

know, there

confidential]: 00:41:17

different.

burke]: 00:41:17

are two different things, but they kind of The same view point. Let's say right from the federal government

burke]: 00:41:23

perspective, Right because,

confidential]: 00:41:24

Okay,

burke]: 00:41:26

but apparently the there's a. There's also an investor fund that's a S v B investor fund that's trying to garner enough

burke]: 00:41:39

cash. And what not to kind of take over Silicon Valley Bank, and kind of be the one that steps in and kind of

burke]: 00:41:44

takes it back from the F. d i C, and kind of moves forward with it. I was Watching our friend Bret King. He got

burke]: 00:41:52

on B B C. as a result of this story and was asked his opinion, You know, like they put on people on Squak Box and

burke]: 00:41:58

and other shows right. He got three minutes on B B C, and his perspective on it was something I hadn't heard.

burke]: 00:42:09

He. He mentioned a rumor that Peter Thiel, which is a huge, huge investor, probably one of the biggest as far

burke]: 00:42:17

as Sillakan Valley, Was the one that started the rumor that all the V C's should tell the people that they've

burke]: 00:42:26

invested in to go get their money out of Silicon Valley Bank. right. So it started, Let's say at the top Right.

burke]: 00:42:35

And so it started with a big v C. That told other V C's that I'm sure told other V C's right. That told there the

burke]: 00:42:44

people they're investing in, Right and man, that's you know, that's going to cause A stampede. you know, not a run,

burke]: 00:42:52

a stampede on the bank. And that's exactly what happened.

confidential]: 00:42:56

Yeah, and so it's interesting to bring that up. I don't know if it was that deep into it. I

confidential]: 00:43:03

think just the overarching fear. Um, because my friend and also partner in in in a consulting

confidential]: 00:43:13

business advisory business is not really consulting, but it's mostly advisory and helping

confidential]: 00:43:18

banks and Fin Text get placement in different places as soon as the announcement came out from

confidential]: 00:43:26

From Silicon Valley bank. When when they talked about opening up for shares to be bought

confidential]: 00:43:32

to get some additional liquidity right to them selling off the bonds. Them doing all these things.

confidential]: 00:43:42

It went nuts with people going. Oh, shoot, I need to find a new bank to put this in, Because

confidential]: 00:43:52

if they're trying to show up their finances, I don't want to be at a bank that's trying

confidential]: 00:43:59

to show up their finances plain and simple. And so these guys are trying to pull money

confidential]: 00:44:06

out and they are a ton of people who had wires. That had just been like everybody was rushing

confidential]: 00:44:15

to go wire money out of one account and into another, and a lot of the wires just didn't

confidential]: 00:44:20

make it. They just

burke]: 00:44:22

I

confidential]: 00:44:22

didn't

burke]: 00:44:22

read a couple

confidential]: 00:44:22

make

burke]: 00:44:22

of stories

confidential]: 00:44:22

that

burke]: 00:44:23

about the guys. Like we sent the wire. They charged us the fee, but you know it didn't happen right. I read that

confidential]: 00:44:29

Right.

burke]: 00:44:30

Breck Bre Breck was somebody that a lot of people flocked to to take their money from Silicon Valley bank. The

burke]: 00:44:41

one that did get it, and the ones that had other money. that they were probably going to take the Silicon valley

burke]: 00:44:46

right in the next week or so right, and they put it in bricks, so That

confidential]: 00:44:51

It was. it was about that was only about two billion dollars went into Brek. Uh,

burke]: 00:44:56

That is that all it was that they refused

confidential]: 00:44:57

yeah,

burke]: 00:44:57

to comment on it. In

confidential]: 00:44:59

yeah,

burke]: 00:44:59

the article

confidential]: 00:44:59

it was about

burke]: 00:45:00

I read, They didn't

confidential]: 00:45:01

so.

burke]: 00:45:01

want

confidential]: 00:45:01

So

burke]: 00:45:01

to talk

confidential]: 00:45:01

rumor,

burke]: 00:45:01

about it.

confidential]: 00:45:02

rumor is, it's about two billion dollars, but Rex isn't even a bank. So Brek is is a neo bank

confidential]: 00:45:09

that leverage other banks, And so those deposits, Wen of those other banks. But you know

confidential]: 00:45:15

I'm not going to share the name of the banks, but I know a few other banks that received

confidential]: 00:45:20

a large number Of funds ranging you know from a couple million dollars up to you know, tens of

confidential]: 00:45:29

billions of dollars. And they were traditionally other fintech banks.

burke]: 00:45:35

Yeah,

confidential]: 00:45:35

We were talking to a number of them over the over the dates, and that one of the things that

confidential]: 00:45:40

Janet Yellin said that really drives me nuts is and to have somebody in her position say this

confidential]: 00:45:48

is what really irritates me. If in And I'm gonna, I'm going to bascardize this quote, but

confidential]: 00:45:54

basically it was if I had money, I would not put it in a regional bank, which is really

confidential]: 00:46:01

scary to have someone of her stature of her position to be able to say something like that

confidential]: 00:46:07

and not have any repercussions, Because think of all these regional

burke]: 00:46:10

Doesn't

confidential]: 00:46:11

banks

burke]: 00:46:11

say much

confidential]: 00:46:11

that can

burke]: 00:46:11

of regional

confidential]: 00:46:11

actually

burke]: 00:46:12

banks right. It doesn't say much of the federal opinion of regional banks. For one, right

confidential]: 00:46:18

Right. but at the same time, J P. Morgan Wells Fargo City group, I mean all these guys who's

confidential]: 00:46:26

at, say they're any better right. Who's to say that they're doing things any different And

confidential]: 00:46:33

so

burke]: 00:46:34

Banking is banking. I mean, what can you do with money? Once you got it, you invest it to hopefully make more

burke]: 00:46:39

money, And that's pretty much

confidential]: 00:46:41

Hm.

burke]: 00:46:41

the beginning and the end of it. What's really concerning to me? You know, there's a lot of different statements

burke]: 00:46:49

that are coming out, and a lot of statements are kind of just being said, kind of willy nilly. It seems like right

burke]: 00:46:57

to people. Are you know making condemning type of statements? But think about this. think about your v. C. right,

burke]: 00:47:04

And you invested in some start up right. Let's say you just gave the guy. Let's say five million Right. That

burke]: 00:47:11

seems

confidential]: 00:47:11

Yep,

burke]: 00:47:11

to be a good central number. Right, And so now you've got your your bits of stock. You know that you got big,

burke]: 00:47:18

throwing your five million in. Right if you didn't go in as an angel, right if you went as an angel like Forget

burke]: 00:47:24

it. You got nothing now. But even then a lot of these startups are not making income yet because that's kind

burke]: 00:47:32

of a thing with a start up now, right. I mean, we just talked last week about Revolute. Finally Is is profitable

burke]: 00:47:37

right and there, What? Five years in right and and pushing millions and millions of dollars through their bank

burke]: 00:47:44

or their card or their platform or whatever you want to call it, And you know just this year were profitable

burke]: 00:47:51

and just because of some, I'm not going to say manipulation of our book, Because that, but you know they did

burke]: 00:47:58

some things different right and that made them profitable. Finally. so think of this Small startups right that

burke]: 00:48:05

all these vices have invested in that aren't profitable yet. Some of them don't even have any income yet, and their vendors,

burke]: 00:48:14

their employees, their landlords, their equipment, financing, their, you know, their services.

confidential]: 00:48:21

Yeah,

burke]: 00:48:22

everything is just going to be, you know, and a lot of people are going to be out of jobs right. But then also

confidential]: 00:48:32

A

burke]: 00:48:32

think, think of the V C that You know, take in his money. put it in, and he's got some stock now. and if that

burke]: 00:48:39

company's in dire straits, that stock is pretty much going to be worthless. right. So as a v C, do you take more

burke]: 00:48:45

of your money and re capitalize that company and keep it going. You know, so you don't lose what you've already

burke]: 00:48:53

already lost, Or you know how do you go from there right?

confidential]: 00:48:58

Yeah.

burke]: 00:48:58

You know,

confidential]: 00:48:59

Well, I mean, and

burke]: 00:48:59

there's a

confidential]: 00:48:59

that's

burke]: 00:48:59

lot. A lot of people are going to be affected in a lot of different ways. Is what I'm saying

confidential]: 00:49:04

And that's That's why I'm calling it the Svbsunomi right. So so you see this huge wave

confidential]: 00:49:09

of all this stuff coming in, and when the wave goes out and everything calms down, you actually

confidential]: 00:49:17

get to see the level of destruction that has happened, And and you're going to have people that have

confidential]: 00:49:24

the means to rebuild. you're going a find the people who don't have the means to rebuild.

confidential]: 00:49:29

You're going to find bodies everywhere. And So it really comes into. and this is. this is.

confidential]: 00:49:39

The scary part is those who were on a path to generating revenue who had a clear path to

confidential]: 00:49:48

generate revenue. I believe that you're going to see people get re capitalized into that.

confidential]: 00:49:53

If they believe that there's a way to revenue, they're gonna recapitalize if it was just a

confidential]: 00:49:58

hunch. Probably not going to get it

burke]: 00:50:02

When they say

confidential]: 00:50:02

right,

burke]: 00:50:03

it is one out of a hundred. Is the unicorn right? That actually makes it right. So you know how much is this going

burke]: 00:50:10

to affect? You know, with the V C s losing the V C, S are really the one that lost right the money that they

burke]: 00:50:16

gave these guys. those guys lost to right. But the V C ultimately is at the top and you now hand it over to

burke]: 00:50:22

stack right. So he's the one that really lost money or she. And so how much is this going to affect investment? Other

burke]: 00:50:32

companies moving forward, I know a lot of them. Are you know, big, and I've done a lot, but a lot of them were

burke]: 00:50:38

also involved in. You know, H, f t. X, you know Celsus Voyage, or you know Genesis Silver Gate. It's It's been

burke]: 00:50:50

like Fin Tech, Because mostly, if you talk about checking and sell Kind Valley Bank, you're mostly talking about

burke]: 00:50:58

fintechbecause. That's what kind of becomes the unicorns. Not much else become G.

confidential]: 00:51:02

Ind,

burke]: 00:51:02

A

confidential]: 00:51:02

of

burke]: 00:51:02

corn.

confidential]: 00:51:02

kind

burke]: 00:51:03

You

confidential]: 00:51:03

of

burke]: 00:51:03

know,

confidential]: 00:51:03

yeah,

burke]: 00:51:04

So

confidential]: 00:51:04

but

burke]: 00:51:04

how much is this

confidential]: 00:51:05

but looking

burke]: 00:51:05

going to affect our industry Right? generally, as a whole, right,

confidential]: 00:51:12

So so the way I'm looking at it, and this is just my perspective. Um, I think you're going

confidential]: 00:51:21

to continue to see investment go into the industry because all this is just like the f. t.

confidential]: 00:51:28

X collapse. Just like a couple of other things. People are going. Okay. this just happened.

confidential]: 00:51:36

What can we build? What can we create? What can we combine? Keep this from happening again.

confidential]: 00:51:47

And so you're going to see a shift. And and this is something we've already started to see.

confidential]: 00:51:53

At least I've already started to see. By looking at the technologies and everything in the

confidential]: 00:51:57

industry is you're seeing a shift from how do I deliver really cool things to customers

confidential]: 00:52:03

To how do I deliver tools to financial institutions to mitigate risk? How do I deliver

confidential]: 00:52:11

tools to these men Text to mitigate their risk and the banks risk of this? because as much

confidential]: 00:52:21

as we we hate to think this right now, and and probably for the foreseeable future, Um, the

confidential]: 00:52:28

center of gravity for everything we're talking about is a financial institution.

burke]: 00:52:32

Yeah,

confidential]: 00:52:33

So if we're not helping them manage risk, if we're not helping them manage all these different

confidential]: 00:52:39

things, and we don't have things in place to really mitigate the stuff. That's where we're

confidential]: 00:52:45

gonna have issues. but I think that's where the V C stuffs going to go into. and just just to

confidential]: 00:52:49

be clear, I mean one of one of the things that I read, and I haven't had a chance to dive

confidential]: 00:52:55

really really deep into it, But there was, there was some legislation that got rolled back

confidential]: 00:53:02

a few years ago. Think like, four or five years ago that would have actually protected all

confidential]: 00:53:10

of this from happening. Um, so I haven't gotten deep into it. Yeah, but I know there is some

confidential]: 00:53:15

legislation around how to manage liquidity, How to manage what your assets? All of that

confidential]: 00:53:21

fun stuff. and you know I've had the benefit of men spending time with the former chief risk

confidential]: 00:53:31

officer of West America Bank, who was also at Bmoharris and a handful of other very large financial

confidential]: 00:53:40

institutions, and just kind of talking about What happened and you know his his perspective

confidential]: 00:53:50

was was like this. This is a failure of some of the basics of maybe reaching a little bit

confidential]: 00:53:59

too far. Um,

burke]: 00:54:01

Being unbalanced

confidential]: 00:54:02

when we, you look

burke]: 00:54:02

that

confidential]: 00:54:02

at it from the risk management

burke]: 00:54:03

they're unbalanced

confidential]: 00:54:03

perspective,

burke]: 00:54:04

you. you know they re unbalanced Right. So you were

confidential]: 00:54:07

It wouldn't

burke]: 00:54:07

talking

confidential]: 00:54:07

have been a

burke]: 00:54:08

earlier.

confidential]: 00:54:08

problem.

burke]: 00:54:10

You were talking earlier about from a consumer standpoint, What if every dollar that you paid into the federal

burke]: 00:54:17

government, you know, was on a block chain, and you could see where every single penny

confidential]: 00:54:20

Yeah,

burke]: 00:54:21

of your money went, So now let's

confidential]: 00:54:22

yeah,

burke]: 00:54:22

shift the perspective of this. What if the federal government was able to watch every penny that came into a bank

burke]: 00:54:31

Ink and was able to see where it went, Not the consumer, but now the Feds, the regulators, I'm speaking of,

burke]: 00:54:38

specifically right, and they could now watch that bank and really see that that bank is being managed well right,

burke]: 00:54:48

It's balanced. Its Ou know it's not too heavy on one side. You know, it's not too heavy on the start up side.

burke]: 00:54:54

It's not too. It doesn't have too much junk bonds right. It's got good investments and it's got A variety of depositors.

confidential]: 00:55:04

So this is. this is where the regulators come into play right, so the regulators come in

confidential]: 00:55:08

and audit the banks on a regular basis to make sure that that exactly

burke]: 00:55:11

They got a fleet

confidential]: 00:55:12

is

burke]: 00:55:12

of.

confidential]: 00:55:12

not happening

burke]: 00:55:12

They got a fleet of people that go out and do that stuff all the

confidential]: 00:55:14

Right.

burke]: 00:55:15

time.

confidential]: 00:55:16

So they're doing this on a regular basis. Now If you were to bring in a technology like

confidential]: 00:55:21

block chain, and you are allowed to just pull that information, I think it would be more real

confidential]: 00:55:27

time, but that still doesn't solve the problem that we have. because,

burke]: 00:55:32

Think,

confidential]: 00:55:32

because,

burke]: 00:55:33

let me ask you this, and I've been thinking about this for a while back when money was backed by the gold standard

burke]: 00:55:40

here in the good old U. S. A, which we don't have any more. We had a Fort Knox that held all the gold that standardize

burke]: 00:55:48

the money right. Does cash need to just stay in a place as cash When it's deposited? I know not so much money

burke]: 00:55:57

is deposited as cash any more right. But because cash is Digital now right, Could we even do that to begin with?

burke]: 00:56:06

Right and does something like that need to happen? So when a bank says you know, Yeah, we get your cash. they physically

burke]: 00:56:14

have your cash and they're not out using it, But I know that's how banks make money. Right Is you know investing

burke]: 00:56:19

it and you know you know slight risk right, not not much risk, slight risk, you know, but it just seems like

burke]: 00:56:28

the technology could be used from the regular Here's to the banks, also not just from the consumers to the banks.

burke]: 00:56:36

Right.

confidential]: 00:56:38

So, the idea of having Access liquidity of all the cash has ever been deposited in your financial

confidential]: 00:56:48

institution, The only way to do that ever is to have a state sponsor financial institution

confidential]: 00:56:57

If if it is owned by the government, that's the only way you'll ever do that.

burke]: 00:57:01

Yeah,

confidential]: 00:57:02

And honestly, I can't ever see us getting in if we do get to it. I'm scared, but having

confidential]: 00:57:08

a a state sponsor Bank,

burke]: 00:57:12

We would become China.

confidential]: 00:57:13

M,

burke]: 00:57:13

Essentially we're China. Then

confidential]: 00:57:15

Exactly exactly,

burke]: 00:57:16

Yeah,

confidential]: 00:57:16

But, but what we do come into play here is

confidential]: 00:57:24

Roblem. That we have here is is too many people being worried that their money is not safe

confidential]: 00:57:36

at the exact same time, and part of the conversation you and I've had over over the months

confidential]: 00:57:42

and years is getting people comfortable and feeling safe about where their money is located.

confidential]: 00:57:52

is is have That transparency. And and again, I think if we could provide the level of transparency

confidential]: 00:58:02

to the companies or individuals that have deposited the money in this, they can see where it's

confidential]: 00:58:09

at. Then I think they're going to be more comfortable and so this is all about trust, which

confidential]: 00:58:20

has been lost and being able to back it up. And

burke]: 00:58:24

You think like you and I have worked at companies right our whole lives, and I've worked at a lot of companies

burke]: 00:58:30

where the accountants are regularly pooped by the c, e, o or the leader. You know the president. whoever, right.

burke]: 00:58:40

you know. they're like.

confidential]: 00:58:40

Hm,

burke]: 00:58:41

Well, we really shouldn't do this right now, because x y n z, right and the guys like Damn the torpedoes full speed

burke]: 00:58:48

ahead, right Nd. we're just going to go out. You know, this is my vision and we're going go out and kill it and

burke]: 00:58:53

we're going to ignore your advice, So you know we're just gonna stampede

confidential]: 00:58:56

Yeah,

burke]: 00:58:57

forward right. You've seen it. I've een, it. It's happened more times than I can imagine right. so even having

burke]: 00:59:07

the transparency, it still comes down to the behavior right n

confidential]: 00:59:14

Transparency will change the behavior And then that's kind of where I'm getting at, Is it?

confidential]: 00:59:17

by having a level of transparency where anybody and everybody can see it And it's not just the

confidential]: 00:59:25

regulators that are seeing it, And yet you could go dig through a bunch of stuff at Bab

confidential]: 00:59:31

blah. But if you could programmatically do it, and you as Vic's and private equity firms and family offices,

confidential]: 00:59:40

there's a reason why they hire quant. They can do quantitative Alysis on all this information

confidential]: 00:59:46

with what they're given. But if you make it truly transparent and you give them all the data,

confidential]: 00:59:52

they're going to be able to figure it out. They're smart people. They're very smart people.

confidential]: 00:59:57

And so that's kind of where I get at with a lot of this stuff, is it? We've obvsicated so

confidential]: 01:00:03

much of the data of the information and only given up what we had to in order to get to where we

confidential]: 01:00:09

wanted to be That we're getting into the next level Of data transparency. And I mean, give you

confidential]: 01:00:18

an idea, The stable coin peg, and this is one of the articles and one of the things we were

confidential]: 01:00:24

talking about with circle circles. Stable coin wasn't so stable over the last few days

confidential]: 01:00:33

because of their ties to S. V B. And but they've already recovered, they've already gotten

confidential]: 01:00:41

back, so it's back stable again

burke]: 01:00:44

The run. The

confidential]: 01:00:45

and

burke]: 01:00:45

run is over now, Right so the run on them is also over. Do, let me ask you a question. Do you think the run occurred

burke]: 01:00:58

Or was heightened exponentially by all the recent collapses of F T, X, Silver Gate et Cetera, et Cetera, et Cetera.

burke]: 01:01:08

Do you think

confidential]: 01:01:08

Dude,

burke]: 01:01:08

that caused more panic than it would have caused six months ago?

confidential]: 01:01:14

Ally, and that's that's what I was getting at earlier when I was talking about timing and

confidential]: 01:01:20

messaging right. So the timing of it was horrible. I mean, we just had f. t. X. and and everybody

confidential]: 01:01:27

started to get over that and then Silver Gate the same week, Like the week before, they said

confidential]: 01:01:34

we're in trouble Right

burke]: 01:01:37

Yeah,

confidential]: 01:01:37

then then I think it was

confidential]: 01:01:42

Last week. Yeah, last week, several gate says I'm in trouble and we're trying to figure this

confidential]: 01:01:48

out.

burke]: 01:01:49

Yeah,

confidential]: 01:01:51

And then then they ask. On Thursday they asked F. d. I, C. Hey, help us Re, structure this

confidential]: 01:01:58

so that we don't. we don't go under. Although they've pretty much already gone under by

confidential]: 01:02:03

that, And on the same day within hours of that, That's when that's when S. V B decides

confidential]: 01:02:12

to make do the sell off. Make the announcement. Say everything is fine. I mean it. Just the

confidential]: 01:02:20

timing is horrible

burke]: 01:02:22

And

confidential]: 01:02:22

if

burke]: 01:02:22

not

confidential]: 01:02:22

they

burke]: 01:02:22

to,

confidential]: 01:02:22

had done

burke]: 01:02:23

not

confidential]: 01:02:23

it. If

burke]: 01:02:23

to

confidential]: 01:02:23

they.

burke]: 01:02:23

mention that they handed out the bonuses the day to all their I don't know as eight thousand employees. Something

burke]: 01:02:30

like that. they handed out their annual bonuses to all their employees the day before the F. d. i C took control

burke]: 01:02:36

of Silicon Valley Bank. Anywhere from twelve hundred to hundred and forty thousand dollar bonuses for their employees

burke]: 01:02:46

based on the banks performance for the year. You know,

confidential]: 01:02:51

Yeah,

burke]: 01:02:51

So That's that's not a good look right for the bank. I mean, it's an annual thing, and nobody can really say

burke]: 01:03:01

anything about it and just happened the fall right. It's a annual thing and it's scheduled, and but it happened the

burke]: 01:03:08

day before the f. d. I C took control of the company right, I'm sure

confidential]: 01:03:11

And I'm

burke]: 01:03:11

the employees are all like. Thank God, you know that I got my bonus, but you know.

confidential]: 01:03:16

I mean in. so the like annual and four bonuses almost always fall at the same time right.

burke]: 01:03:22

Yeah,

confidential]: 01:03:23

I've been in the industry long enough that they almost always fall on on the first Friday

confidential]: 01:03:32

of March. They almost always follow in Right. And so this has already been sitting in the

confidential]: 01:03:38

pay roll for forever, and realistically they probably thought that they were going to Fine.

confidential]: 01:03:48

They probably thought that they were going to be able to pull this off. And you know it,

confidential]: 01:03:57

Bank, and the V C's and the companies, Yes, I feel for them and everything.

burke]: 01:04:03

C. O. What's his name? Beecher, Garry Beecher,

confidential]: 01:04:07

Hm.

burke]: 01:04:08

He's like It's with a heavy heart, Right And they started this whole thing over an in a poker game. The Silicon

burke]: 01:04:14

Belly bank, you know, started

confidential]: 01:04:16

Hm,

burke]: 01:04:17

at at a poker game back of a napkin. Kind of a thing right, you know,

confidential]: 01:04:21

Yeah,

burke]: 01:04:23

so

confidential]: 01:04:23

but

burke]: 01:04:24

go ahead. I'm sorry I interrupted

confidential]: 01:04:25

I

burke]: 01:04:25

you.

confidential]: 01:04:25

was just going to say like, no, no, No, No, So so I'm sitting here thinking about it like

confidential]: 01:04:32

S. v, C. S. they're going to be fine, Um, but the employees of Silicon Valley Bank, and

confidential]: 01:04:40

the employees of these tech companies that had billions of dollars sitting in there where

confidential]: 01:04:47

there d be roku. Whether it be companies like that that have a bunch of money in their circle.

confidential]: 01:04:55

You name it right.

burke]: 01:04:57

Let's think of a little guys, too. I mean, you know there's there's. you know, there's a few big ones, but there's

burke]: 01:05:04

a lot of little ones and that actually hurts the echo system more than a few big ones Right because it's that

burke]: 01:05:16

now all those employees and all their customers right are now also afraid of bank collapse. Right because

confidential]: 01:05:26

Yep.

burke]: 01:05:26

it's Affect them too right. It's not just affecting those companies that's affecting. You know, you know, down the

burke]: 01:05:32

line down the line. And so how does the Federal government or the Federal Reserve, or you know other people that

burke]: 01:05:44

are involved in banking? How do they turn this sentiment around? Because there needs to be some damage control

burke]: 01:05:51

right. Just

confidential]: 01:05:52

Yeah,

burke]: 01:05:53

just fishing these guys out of the water and making them whole, And which I don't think is really going to happen.

burke]: 01:06:00

How did they change that public sentiment? You know, we don't trust the banks. Banks aren't your friends, like

burke]: 01:06:08

Alex Micinski said, right, you know.

confidential]: 01:06:11

Well, I think a lot of it's going to come into play over the R. the next course of the next

confidential]: 01:06:16

few weeks when the f d i c h starts to dole out the hundred and seventy five billion dollars

confidential]: 01:06:24

and customer deposits that fall under the that fall under that control right so, I think

confidential]: 01:06:29

you're going to start to see that, but let's not forget that the quantity quantitative easing

confidential]: 01:06:37

and the raising of the interest rates and all of these things, the Interest rate change is what

confidential]: 01:06:42

caused this to happen.

burke]: 01:06:44

Yeah,

confidential]: 01:06:45

I mean,

burke]: 01:06:45

the

confidential]: 01:06:45

we,

burke]: 01:06:45

bonds

confidential]: 01:06:45

we, we

burke]: 01:06:45

that

confidential]: 01:06:46

can't

burke]: 01:06:46

they were making two percent on wasn't enough. when they went to sell it. It didn't have the same value that

burke]: 01:06:53

you know they bought it at. And especially when you're trying to sell it quickly. Right, If you can wait to sell

burke]: 01:06:59

things, you can usually get a fair price right. But if

confidential]: 01:07:02

Right.

burke]: 01:07:03

with something like this they're trying to like, Hey, we need to turn these things over so we got cash so we can

burke]: 01:07:07

give to our customers, and that's

confidential]: 01:07:09

So

burke]: 01:07:09

where you lose. right

confidential]: 01:07:11

so so part of part of me, part of me says Well, the government caused it by the Fed, caused

confidential]: 01:07:21

it by raising the rates. Maybe they should fix it. Maybe they should fix it And this is. this

confidential]: 01:07:27

is me being altruistic, right. It's like you caused the problem. Fix it. And and you know everybody's

confidential]: 01:07:36

worried about interest rates continue to Go up. Inflation is continuing to go. It's like we're

confidential]: 01:07:45

using all these old school methods to try and stop something that no longer work. So let's

confidential]: 01:07:52

why do we keep doing the same things over and over again and expecting a different result

burke]: 01:07:58

Here's the thing. prices keep going up, So companies are now bringing in more money because prices are going up, So

burke]: 01:08:08

companies can

confidential]: 01:08:08

And

burke]: 01:08:08

afford

confidential]: 01:08:08

the process

burke]: 01:08:09

to

confidential]: 01:08:09

will

burke]: 01:08:09

start

confidential]: 01:08:09

continue

burke]: 01:08:09

paying.

confidential]: 01:08:09

to go up.

burke]: 01:08:11

Companies can start afford to can now afford to pay employees now more wages because they have more money coming

burke]: 01:08:20

in because prices are going up right and a lot of

confidential]: 01:08:22

They

burke]: 01:08:22

companies.

confidential]: 01:08:23

have to pay more money for the interest rates on the loans that they took in order to get

confidential]: 01:08:28

the stuff. And so now your cost of money just went up. So

burke]: 01:08:33

Yeah,

confidential]: 01:08:34

you have to, in order to keep in business, you have to spend more on on all of this stuff.

burke]: 01:08:40

Yeah,

confidential]: 01:08:41

And so the last person to get any more money is going to be the employee, because the business

confidential]: 01:08:45

is trying to maintain at least the revenue that they were generating before, so they can keep

confidential]: 01:08:50

paying the people what they were Paying them before. But the cost of the dollar is now higher

confidential]: 01:08:56

because the interest rates are higher. So if they have to buy anything with with money or

confidential]: 01:09:02

capital that is on a loan, then now it's like it's this perpetual cycle.

burke]: 01:09:07

Yeah,

confidential]: 01:09:07

It's a perpetual Syce.

burke]: 01:09:08

so six months ago, let's call it a year. If you want to really go out there, We had a zero interest rate and

burke]: 01:09:14

essentially money was free and everybody could get as much money as they wanted free of

confidential]: 01:09:19

It

burke]: 01:09:19

charge.

confidential]: 01:09:19

was.

burke]: 01:09:20

Pretty much

confidential]: 01:09:20

it was. T was some sub one percent

burke]: 01:09:22

So they've added points. They've added points. they've added points. Where is it now? What is the actual fed

burke]: 01:09:30

interest right now? What is it? Do you know? Is it

confidential]: 01:09:34

Last

burke]: 01:09:35

seven

confidential]: 01:09:35

time

burke]: 01:09:35

per

confidential]: 01:09:35

I

burke]: 01:09:35

cent?

confidential]: 01:09:35

looked Last time I looked, it was around seven per cent.

burke]: 01:09:39

That's a big jump in less than I'm going to say in less than a year. I'm going a guess. it to be about eight

burke]: 01:09:46

or ten months since they really started. You know, let's call it aggressively, you know, raising interest rates,

burke]: 01:09:54

and they even said last week that they had thought that a quarter point raised was going to do it, And they didn't

burke]: 01:10:02

think that the quarter point was really accomplishing that, and they were going to take it up to another three quarter

burke]: 01:10:07

point was going to drop Instead of a quarter point. You know

confidential]: 01:10:11

Well, and that's that is why. Um, I. I look at it and I'm like this. This isn't working. It

confidential]: 01:10:24

isn't working. folks. Way you're doing is not working. Quit making it worse. I'm trying

confidential]: 01:10:32

to find it right now. Just please

burke]: 01:10:33

Would, I would say

confidential]: 01:10:34

bear

burke]: 01:10:34

it's right

confidential]: 01:10:34

with

burke]: 01:10:34

around

confidential]: 01:10:34

me.

burke]: 01:10:35

seven. I heard right around seven recently, but I don't know if they've levied that three quarter point that

burke]: 01:10:39

they said they're going to levy the other day. It was just a couple of days ago that I saw that article. Um,

burke]: 01:10:47

Well, I can say this. It's going to be all the talked next week at Fintchmeta, In last

confidential]: 01:10:57

Yeah,

burke]: 01:10:57

I alknoist. Want to go and see if I can find Day the cell, Con Valley Bank T shirt to wear around to us Our conversations.

confidential]: 01:11:08

So I'm looking here. I'm just I'm looking three days ago. The Fed raise. I'm just I'm trying

confidential]: 01:11:17

to find,

burke]: 01:11:19

What's the sum? total? Right

confidential]: 01:11:24

So it's

burke]: 01:11:24

Would say,

confidential]: 01:11:24

looking.

burke]: 01:11:24

it's been at least six raises. Uh, if not seven raises that they've done over the course of the past six months,

burke]: 01:11:34

maybe eight.

confidential]: 01:11:35

Yeah,

burke]: 01:11:37

I don't know. I don't have it in front of me and to go find it is, you know, an exercise and futility sometimes

burke]: 01:11:44

because all you're going to get is add from banks, push in interest rates that you know. Uh,

confidential]: 01:11:49

That's what I'm getting, but I think I found

burke]: 01:11:52

waiged through all that.

confidential]: 01:11:53

a couple of things.

burke]: 01:11:55

Yeah,

confidential]: 01:11:56

Yeah,

burke]: 01:11:56

it's it's not the free money that they're used to, but in my mind, like you said, the V C's vs aren't invest

burke]: 01:12:06

in cap, But all they can't afford to lose right in most cases, unless they're you know a small investor right,

burke]: 01:12:16

they're You know. they're throwing money at a hundred companies, Knowing that one of them is going to, you know, come

burke]: 01:12:23

out smelling like a rose. right? so they throw away a lot of money and know that they're throwing it away when

burke]: 01:12:31

they're throwing it away,

confidential]: 01:12:33

Mhm,

burke]: 01:12:34

But um, I don't think that you're going to see the level of investment that we have been seen even know, post

burke]: 01:12:45

f t, x H, you know, and definitely not the level that we saw the last couple of years with you know, money being

burke]: 01:12:55

almost free, right, that's you know. It was. the stock market was wild. the investments were wild, the evaluations

burke]: 01:13:03

were insane. You know. Uh, you know, they were writing checks to everybody and their brother right, So

confidential]: 01:13:09

So

burke]: 01:13:10

it's going to be crazy.

confidential]: 01:13:11

yeah, all right, So the Fed discount rate right now is four point seven, five per cent A

confidential]: 01:13:18

year ago, it was point two, five percent, the current prime rate, which is what everybody

confidential]: 01:13:25

bases Um interest rates on loans and things of that nature is at four. Sorry is at seven

confidential]: 01:13:31

point seven, five per cent, and a year ago it was at three point two, five per cent.

burke]: 01:13:42

S a

confidential]: 01:13:43

It's a heavy

burke]: 01:13:44

doubling?

confidential]: 01:13:44

increase.

burke]: 01:13:44

That's a doubling on the one.

confidential]: 01:13:46

Yeah,

burke]: 01:13:47

the loan of money

confidential]: 01:13:47

on the

burke]: 01:13:47

right?

confidential]: 01:13:49

well, I mean, it's even more if you look at the Fed discount right right,

burke]: 01:13:52

Yeah,

confidential]: 01:13:52

so you can see. You can see that the prime rate is not increasing at the rate that the Feds

confidential]: 01:14:00

increasing, Because everybody understand that if they increase that fast, it's just going to

confidential]: 01:14:06

grind everything to a halt

burke]: 01:14:08

Yeah,

confidential]: 01:14:09

like everything will just stop.

burke]: 01:14:11

Yeah.

confidential]: 01:14:11

But oh my goodness, Well, so I'm going to close this out by saying, this is not financial

confidential]: 01:14:17

advice.

burke]: 01:14:18

Yeah.

confidential]: 01:14:18

We are not financial advisors. This is purely for educational informational purposes. Please

confidential]: 01:14:25

do your own research to determine what you see is factual. What you see is important to you and

confidential]: 01:14:31

make your own decisions. So

burke]: 01:14:34

Are you reading that off or something?

confidential]: 01:14:37

I'm actually not, but I've said it so much

burke]: 01:14:41

Yeah,

confidential]: 01:14:42

that yeah,

burke]: 01:14:42

it's

confidential]: 01:14:42

it

burke]: 01:14:42

a.

confidential]: 01:14:42

happens

burke]: 01:14:42

It's a good thing to say. Yes, we are. we are. not, neither not. I or Ted Is offering financial advice on any

burke]: 01:14:50

of your money. Your n f, Ts, your tokens, your stocks, your bonds, your treasury bills, your junk bonds. Whatever

burke]: 01:14:57

your buying, we're not given financial advice on it. my advice. All my money is tied up in cash.

confidential]: 01:15:06

Well

burke]: 01:15:06

That's

confidential]: 01:15:06

and I will, and I'll say it this way. Um, we are here to provide our opinion and our perspective

confidential]: 01:15:14

only, and you should take and listen to professional advice around how to manage your money

confidential]: 01:15:21

and what to invest in and when to invest it in, and how to manage it and make that yours.

confidential]: 01:15:26

Make it your decision and do the research. So Bruce,

burke]: 01:15:31

Never never invest your money off of free advice that someone gave you

confidential]: 01:15:37

Real H, done that a couple of times And

burke]: 01:15:41

A.

confidential]: 01:15:41

yeah, I still don't have that money. But hey, so Bruce, you'd mentioned the fact that the Fintech

confidential]: 01:15:47

meet up is coming up next week, the nineteenth through the twenty second in Los Vegas,

confidential]: 01:15:52

Nevada, at the beautiful and wonderful Area, hotel and casino. Um, I will definitely be there

confidential]: 01:16:01

and talking to a number of folks and getting scheduled up for some one on one Interviews.

confidential]: 01:16:07

And Bruce, I think you might be joining me as well. there, Um, doing about a lot of the same

confidential]: 01:16:13

stuff, but you want to fill us in on some of the other projects you're working on.

burke]: 01:16:18

So let's start at the top.

burke]: 01:16:25

Been doing the bullet point bulletins for a number of months now, and I wanted to expand beyond that if you're a

burke]: 01:16:31

first time listener, and I wanted to get back into interviewing people from the industry and doing in depth interviews.

burke]: 01:16:39

so I started hash tag pay interviews. I resuscitated the pay brand from twenty nineteen and started pay interviews,

burke]: 01:16:47

And now that's manifested into a website which I just launched at eleven o'clock last night. Uh, it's just rudimentary

burke]: 01:16:58

form factor. It's nothings final there and it's always going to be a working document. There's always going be

burke]: 01:17:03

new duff added. but pay interviews dot com, P, a y, i, n t, e r v, i e w s. dot com. Um, and what we're going

burke]: 01:17:14

to up there is the bullet point bulletins, video vineets, The two or three minutes short news features that we're

burke]: 01:17:23

doing. we're going to have the more in Pay interviews where I'm interviewing luminaries from Web, three fin tech block

burke]: 01:17:30

chain, a crypto currency, et cetera, banks et cetera, and then also a a group of pay, deep dive research and reports

burke]: 01:17:42

where I'm diving a little deeper on a single selected topic like gene to or web, three or block chain, or something

burke]: 01:17:54

similar. So Uh, I'm currently looking for a sponsor that's going to help me, uh, uh, uh, cover the cost of going

burke]: 01:18:06

to find tech. Meet up what I have to offer. Ise your commercials will be in the videos. You'll You'll essentially

burke]: 01:18:15

be a sponsor of all the videos that I produce and the videos that I'm going to produce and the videos that Ted's

burke]: 01:18:22

going to produce will both be play On both channels. So you're going to see Ted's interviews from Fintech Confidential

burke]: 01:18:31

on my Youtube channel and vice versa. Right. The interviews I do will be on Fintech Confidential And so everyone

burke]: 01:18:40

will get more visibility more. You know availability, and and gain a lot from it. So if you're you know, launching

burke]: 01:18:49

a new product if you're releasing a new book, if you're re inventing your Corporal Ation, and you know, like you

burke]: 01:18:57

should every two years putting out something new. If you just want to establish, start establishing thought leadership.

burke]: 01:19:04

This is a great way to do this. We're always looking for companies that have quality products and services that will

burke]: 01:19:13

benefit are r, our audience And you know they're well qualified audience, And you know is a great opportunity.

burke]: 01:19:23

Pay me up, or I'm sorry. In Meta, I'm already named my company. Fintehmetup is a Neil Argowall that started T back

burke]: 01:19:36

in the day, and then he started money, twenty twenty, and then shop talk behind that and now it's Fintechmetu. So this

burke]: 01:19:43

is somebody who's very successful in those channels. This is a big deal. This is not a little fin tech Me up right.

burke]: 01:19:50

This is not ten people meeting together that I believe

confidential]: 01:19:54

Over

burke]: 01:19:54

there's something

confidential]: 01:19:54

three thousand people attending

burke]: 01:19:57

Right,

confidential]: 01:19:58

that

burke]: 01:19:58

and

confidential]: 01:19:58

are registered to attend

burke]: 01:20:00

and and going through and setting up meetings with all the different people I've already registered. So all the

burke]: 01:20:06

different companies that are there, and looking through all the different companies there's start up. There's

burke]: 01:20:11

the major banks, there's all the process, there's there's fin text, there's web three, there's there's everything

burke]: 01:20:17

there And you know it's going to be a big event and the area is a really great place. March is a really good

burke]: 01:20:26

time to be in Las Vegas. This is probably there saying this is the big quarter one event. You know for the year

burke]: 01:20:34

right, if you're in the financial services space, So if you're going out to the show, I look forward to meeting

burke]: 01:20:41

you there. Please hit me up, Bruce at pay interviews Dot com. you can reach me. Also, you can find me on you tube,

burke]: 01:20:49

But at Bruce Burg, that's going to be changed over to pay interviews. I'll let you know when that's happening, and

burke]: 01:20:58

Also on other socials. I'm Bruce Qburkso and I'm starting to establish pay channels. You know, profiles for all

burke]: 01:21:09

those different social network. so uh, it's a lot to build a new brand or rebuild a brand. I'm I'm one guy. going

burke]: 01:21:20

at it to the nail. I could use a little support and a little helped to move things along. And anybody who Interested,

burke]: 01:21:28

please reach out and Ted. what are you doing? I know you're going to fine confidential, but you're doing something

burke]: 01:21:33

else this this coming week. Where are you going?

confidential]: 01:21:36

This week. Believe on it this week. I'm actually doing a little bit of a pre visit to Las Vegas,

confidential]: 01:21:43

so I'm going to Las Vegas and going to be meeting with a handful of folks while I'm up

confidential]: 01:21:47

there ahead of the show, but then going to be turning back up on the nineteenth, so we'll

confidential]: 01:21:53

be returning back up to the nineteenth for vintechmeetup, Be there with Fine confidential

confidential]: 01:21:59

and in a handful of other different things, But it's going to be really cool. We've got

confidential]: 01:22:05

all that going on. Leasing a bunch of additional episodes. Uh, been a little bit difficult

confidential]: 01:22:11

to get a lot of these episodes done. I've been spending a lot of time on all of these bank things

confidential]: 01:22:18

that have been going on, so, uh, you know, last week was in New York and was in Chicago, so

confidential]: 01:22:27

it's just it's lots lots of busy travel and really just diving in and learning from all these

confidential]: 01:22:33

different folks, So really cool stuff. If you want to learn about what were Doing, we've

confidential]: 01:22:37

got the Telegram channel for a web three with F. t, C or Fine Confidential. You can go ahead

confidential]: 01:22:43

and sign up for, and you get news sent to you just about every hour on the hour. with great

confidential]: 01:22:50

information. You can also follow us on Instagram Face book, and linked in at In Confidential,

confidential]: 01:22:56

and of course, Twitter makes it always so fun for us. It's at F T confidential dot com. If

confidential]: 01:23:02

you want to get a little bit of insight into who Ted Huff really is, check me out every Ere

confidential]: 01:23:07

at t, e d d h u f F. If you just do a fun little Google search, you will be able to find

confidential]: 01:23:13

me just about anywhere, so we're wrapping up for this week, but next week we'll have even

confidential]: 01:23:19

more information and Bruce. let's let's play us out. Man.

burke]: 01:23:24

Let's let's hope for some some more uplifting news this next week, And

confidential]: 01:23:30

Yeah,

burke]: 01:23:31

you know, I try and keep it on the positive tip, but this week it was just overwhelming, but

confidential]: 01:23:39

So

burke]: 01:23:39

at the

confidential]: 01:23:39

much.

burke]: 01:23:40

same

confidential]: 01:23:40

going

burke]: 01:23:40

time

confidential]: 01:23:40

on.

burke]: 01:23:40

still very interesting. But thanks again, Ted for participating this on the weekly basis. Look forward to seeing

burke]: 01:23:49

in Las Vegas. I'm setting my intention and intention on the fact that a sponsor. It's going to cover my costs to get

burke]: 01:23:58

out there and help help launch Pay in a bigger way, It's going to help. Even though I'm going out as a, you

burke]: 01:24:06

know, a Finteg confidential. Give me the opportunity to kind of spread the word about hash tag, pay and get that rolling.

burke]: 01:24:14

So there's a lot going here and we really appreciate you guys like follow, subscribe, and share, and we'll see you

burke]: 01:24:23

next week right back here At Bullet Point bulletins.