Investing in the Digital Asset Space

Updated: Jun 21

Blake Templeton (Boron Capital)

 



Note: transcription provided by Otter.AI, which is a technology company that develops speech-to text transcription and translation applications using artificial intelligence and machine learning.


 

Christopher H. Loo, MD-PhD: Welcome everybody to this week's podcast episode for the Financial Freedom for Physicians Podcast. And I'm your host, Dr. Christopher Loo. And my mission is to empower high income professionals to achieve financial freedom, financial independence through various means. And we talk about four types of freedom. So financial, emotional time and location freedom. And I'm always on the cutting edge, looking for people that are doing novel and interesting things and trying to bring you the best opportunities and information to you, so you can make the best decisions. So in the news lately there is a lot of crypto and NFTs. And when physicians hear about this, they just immediately shut down and think scam, et cetera. So I'm bringing experts in this field. So today, we have Blake Templeton, and he is the founder and CEO of Boron Capital, which is a crypto hedge fund. He got his start in the real estate market, and is now in this exciting space. So I'll let him introduce himself. Tell him about his story. And we'll go from there. So Blake, welcome.


Blake Templeton: Hey, Christopher, I'm so glad to be here. Guys, I am really stoked right now. Because if there was ever a time for us to actually call a timeout and cut the emotions and look at the stewardship of our investment, it’s now. The greatest wealth transfer is happening right now. And I think it's really good to come from the perspective of, I've been in real estate for 15 plus years, done 300 plus transactions, we now do with a hedge fund in real estate, and do 10, to $30 million size deals. But what I'm telling you is that everything is moving digital, and we've got to understand the basics. But what I also want to call your conviction is that when you moved into the stock market, you didn't understand how each stock worked and how they were making their money exactly, and how your distributions came. If you had an IRA, and it was going into the mutual fund, you didn't actually understand which of the 1000 stocks yours was in exactly, and how your, how they actually borrowed money or leveraged like you didn't understand everything you just invested. So think about this as like, everything is moving west, like in your neighborhood, if in a certain area of town, certain areas start dying and other areas start coming alive. And you move toward the growth because that's where the better retail is. That's where the better houses are. That's where the better roads are. So think about like in the investment world, everything's moving west, it's moving to the digital world. And this is really where the greatest wealth transfer is happening. It's happening inside cryptocurrency and I'm super excited to be here to talk about it.


Christopher H. Loo, MD-PhD: That's so awesome. I just got back from talking backstage and just got back from Miami, Bitcoin 2022, one of the largest Crypto Conferences. And it's just incredible to see the amount of innovation. And it almost reminds me of when I was a teenager during the internet era. And just seeing Amazon and all of these startups. And it's exponential. So it's double the excitement. So this is fascinating, and we'll let you talk all about it, how you got started. And we'll go from there.


Blake Templeton: Perfect. What I want to do right now is to just give you an example of what's happening, everything is moving but the speed of light. And it's like, it's like when the post office went to a new communication 2.0, with email. And at that time period, everyone was like, why would I email? Because like, I could just send a letter. And now you're like, why would I send a letter because I can email and I can get a response way faster. So the digital shift took place. And the same thing from Walmart to Amazon. It's this mindset of like, when Amazon came out and like will do two day shipping, you're like, oh, I have to wait two days to get deodorant and razors. I would never do that. I will just go to Walmart. Now you're like, why would I ever go to Walmart when I can just order ahead of time and it's going to be shipped to my door.


So I'm going to share how cryptocurrency is like shifting the way you think about your investments. Think about it, like the mindset of the iPhone. So if that's my analogy, the iPhone is software, someone might say like an iPhone is actually a cell phone, like you can make calls on it. But it's actually software. They might say, well, but it has a camera on it. Yeah, but it's software that has utility in the utility is a camera. Okay, so it's software? Well, Bitcoin is software. So if we understand the analogy, they’re both software, and the iPhone has a platform. And on that platform is where it's called an App Store. And Bitcoin has a platform called the blockchain. And the iPhone has that platform called the App Store, in the app store there’s actual utility. There's actual businesses that are now like icons on your phone that you can click into, and it turns into an actual resource.


So maybe it's a medical app, or it's a healthcare app, or it's a fitness app, or it's a spiritual app, or it's Excel spreadsheets, or a morning routine app or something. But you're paying money to most of those apps for their service. So that makes the value of Apple more valuable, because the platform has businesses, and people have had adoption, and they're using those businesses. So just like that, Bitcoin is that software, and it has a platform called a blockchain. And there's businesses on that blockchain on that platform. And so the adoption is happening, where it's shifting everything onto this digital platform. And the utility of these little businesses could be a system that allows voting to be completely accurate. And you can only vote if you actually have an actual identity in a digital form. And maybe it's healthcare. There's tons of health care businesses that are run on the blockchain. And it could be title records, like everything in real estate is moving into cryptocurrencies moving into blockchain technology.


So now I could buy a house through the blockchain. And the escrow will be held on the blockchain in a smart contract. And the title companies will disappear. Eventually, there'll be no title companies. The courthouse won't be where real estate records, like the warranty deeds are held. Everything will be on the blockchain, everything is moving there. So this is not like theory, this is already happening. Everything is shifting wages, wages will eventually all be held on the blockchain. So through smart contracts, what does that mean? You just have to understand that payroll services, they'll be obsolete, everything will be done in smart contracts that have software running them. And people will clock in and clock out and payment will happen through the system without a payroll company. So everything is moving that direction.


And you and I want to be in the stewardship of the wise steward who's investing in places where everything is going. The reason why that's so important is because inflation is now about 15%. So you now can't think like, well, I'm making double digits. I'm making 10% and 12% in my real estate or something. You've got to start to think, I have to outpace inflation, I've got to be making more money. And then for those of you who are in the stock market, I mean, like, I think it's pretty [obvious]. And we can talk candidly. Like the stock markets will be a dead decade, all the economists are on the same page, it's a dead decade moving forward, like the stock market is done. 25% of the s&p are what we call zombie companies, they can't even pay their debt service.


So everything is moving to the digital form, and you and I want to be on the cutting edge of it. And so in our hedge fund, we have a proprietary portfolio strategy where we allow you to invest in and it's just a turnkey system, just like you'd have turnkey passive income in real estate, is a turnkey system where you can actually ride that wave and create massive wealth in cryptocurrency. And when you understand that, if your dollars are being stored in your savings account that you're making from real estate, those dollars are dying, because they're in the US dollar. So inflation is going up 15%, which means, if you had $100, for just an easy example, you're losing 15% of that, it just sits there for a year, the next year, the next year, so in three years, you've lost almost 50% of the value of all your investment if it's in the US dollar. So we're moving all your money into cryptocurrency, where you can have one store of wealth, and to grow your value.


One thing else that you spoke to Christopher that I think is so important, is security. Security is massive. I mean, even our credit cards. I've had to close down credit cards and get new cards, because there's fraud on my credit cards. And that's the beauty of cryptocurrency in the blockchains is that everything is so much more secure than a debit or a credit card, the US dollar. And there's so I'm gonna just name a few things, there's two way, two factor authentication.


So some of you guys have seen that before where they are uncertain, maybe an app or something where they send you a message. And then you've got to be able to put that into something and also have access to the same email. It makes it so difficult for people that take something from you. So there's that and there's facial recognition. So when you actually hold your cryptocurrency, no one could actually do anything with it or take it from you unless you were actually able to be there with your phone and then have all the access codes that are tied to it. So it's the safest method of actually investing. It's safer than anything else you could actually do. It's more stable.


Bitcoin, you could see Bitcoin as like a digital bank, or like digital gold, like a physical gold is like a dinosaur. That's the old way of thinking. But digital gold is actually the storehold of wealth. So big picture, we've got to be moving everything west, we've got to be changing the way we think we've got to be recalibrating, and realizing our old way of thinking is not going to actually help you and help you have prosperity moving forward.


Christopher H. Loo, MD-PhD: That's so well said. And so before we talk about a little bit of the work that you're doing with more capital, so I know a lot of people like so no, I'd like millennials, Gen Z, they get it. Crypto gaming, it makes sense. For a lot of the older population here, I'll just list some of the common myths and we can discuss those. So, one, they say, okay, crypto is a use for illicit activity, we can go and then second is crypto is a scam. And then third is that crypto is so volatile, why would ever want to do that? So if you want to talk about some of the most common objections and you know how to try to correct some of these misconceptions.


Blake Templeton: Yeah, love that. So, let's talk about volatility. So, if you've had that type of plotline I mean, you're not alone. That's the net astral plotline. Even Ray Dalio. So Ray Dalio owns Bridgewater Associates, and it's the largest hedge fund in the world. And in 2017, Ray said, so it's a bubble. It's not an effective storehold of wealth, because it has volatility, unlike gold. However, fast forward in 2021, he has shifted his entire way of thinking. And now he says, personally, I'd rather hold Bitcoin than a bond. This is so drastic, because 40% of Ray's entire portfolio, the largest hedge fund in the world, 40%, was in the bond market. And in 2020, he got crushed. And now obviously, the bond market is a dead decade, you'll literally make more money being out of the bottom market than in it just by removing yourself. It was said that he was the king of the bond market. And now he's literally had to shift his entire portfolio straight because it was 40%.


So the reality is, the big names are now seeing that. I mean Mark Cuban, was the same way he was Mark Cuban, owner of the Mavericks. A billionaire. He had made it very clear it's a scam. It's volatile, it's unstable. But then now, that was in 2017. Now I'm 20. Now in 2022, he just came out, Mark Cuban said, I'm investing 75% of every new dollar I make into cryptocurrency. So you have these massive voices who hold strong opinions. And unfortunately, they had strong opinions, because they just were ignorant in the big picture. So volatility is, volatility is like, the perspective that one's seeing it in Is it like an hour by hour trading? And so what you and I have got to realize is, what does volatile really mean? Like if something loses 1% a month, and there is certainty that it can keep losing over 1% a month? Is that volatile? Yeah, I think that's quite volatile. Like it's not providing me certainty in a good way, it's providing me certainty in a bad way, well, that's the US dollar, it's 15% certainty, there's no way around it, it won't quit, it's going to go down in value 15%.


Now, the big picture is Argentina. That's how they have it now, $10 million dollars because the inflation is so big, you have to take a wheelbarrow of their cash to go to the grocery store, because it's so worthless. So it's a change of perspective. And again, I'll just say one more thing on volatility. Bitcoin has gone from one single penny is when it came became public, one single penny, to 40 to 40 5000s, what we're sitting at now per coin, so that's over a 20,000,000%, up into the right, so if you look at the chart, it's always up into the right. So the perspective shifts dollars never provided that kind of value. It's been going down in value since 1971. So, yeah, a couple of big points. Really help give some perspective.


Christopher H. Loo, MD-PhD: Yeah. It's just amazing, because the way I perceive it is crypto, because if you have a 10 year, 20 year span horizon suddenly, like 20%, especially in crypto, is really volatile. But if you have a 20 year perspective, and it's always up into the right, it's almost a sure bet. So you get in at acceptable price levels and price levels, you can afford to lose or you're okay with, and then you just just sit in hold and the more the more volatile, the lower it goes, you buy more so you just accumulate on your position. So that's how I think of it but just like people, they don't realize the dollar is just losing value every day. And then they're like, okay with it and fed printing trillions are taxes going up, that's going up. And then they don't say it's like, oh that's okay. But then crypto is like, there's like, people are like, Oh, freaking out. Oh, 10% 20%. It's like and then they just, there's no perspective.


Blake Templeton: Perspective is so powerful, and so for those of you who are like, but when's it gonna quit being volatile? Okay, well, that's a great question. So when you actually make a cruise line And when you make the ship bigger, it actually becomes less volatile in the water. So my quick story, I was on my honeymoon in 2007, and it was a very small ship. And because it was a small ship, like during dinner, we had some rough water and it was like it was being tossed around. But as the ship gets bigger, so fast forward, we go on another cruise. So instead of a 900 person capacity, this one has 5500 person capacity, it's like three football fields long and a football field wide. Okay, well, it literally doesn't move on the water all the waters getting thrown around by the ship because it has so much authority.


So in Bitcoin, Bitcoin holds a 45% of the market cap of all crypto. As the adoption continues to happen in the utility side, then it becomes wider and wider and wider. It ebbs and flows around 2 trillion in market cap for all crypto. But if you understand what that really means, it's so small in the grand scheme. Because you have the store hold of the wealth market, Bitcoin holds less than 1% of the entire market. So when institutional adoption happens, which we're looking at 12 to 24 months, you're gonna draw a good 10-15 trillion into it, if they just put one to 5% of their entire portfolio into cryptocurrency. So when that money drops in, it stabilizes drastically. The key is you want to get into the investments before it stabilizes, not after it stabilizes. So it shifts the way you think.


I have people all the time, who the writing's on the wall, Chris. And they're like, Okay, my IRA, I'm gonna lose a 10 or 15% fee, just by getting out because I'm not 59 and a half, but they say, but it's worth it. Because in your hedge fund, you're making way stronger returns. So I would rather take the hit and go jump in. And I mean, we don't have a crystal ball. And obviously everything has risk and not an advisor in any way, shape, or form. But our management's been able to create three digit returns of guys, that's 188, the 312% over the last two years. And so you can call that volatile, but it's not volatile, and you can have the results.


So one big thing to think about is like, strong returns don't equal strong risk. A lot of times now the model has flipped, because we're in unconventional events, like unconventional world events make us a good steward with unconventional strategies. And right now, the stock market is actually a larger risk for a lower payout, or the bond market is a larger risk at a lower payout, or gold, a larger risk. Why is that a larger risk? Because you're, you're still tied to a system, that you can't do anything with the gold? Inflation is at 15%. And you have to outpace that and gold is not clearly doing that. So, yeah, volatility is something that will stabilize over time, but you want to get into something before it stabilizes.


Christopher H. Loo, MD-PhD: Awesome, awesome. And so that you've given a lot of us could have a masterclass and work workshop, and we'd love to have you on as a guest on future podcasts. Tell us a little bit about bond capital. How people can find out more about you. I know a lot of people may be interested. So tell us all about your fund.


Blake Templeton: Yeah, so it's for accredited investors only. And we'd love to help you though. If you aren't accredited. Again, you can still text the link to get the master class for free and we'd love to serve in that way. But our minimum is 250,000. And again, we hold a portfolio strategy with a blend of cryptocurrencies that have a strong position and then Bitcoin itself. And we have a team full full time 24 hours a day, seven days a week that actually monitors. One thing people don't understand: this cryptocurrency never sleeps. So like the stock market, you know that trading time stops. Cryptocurrency doesn't stop, it's 24/7. So we take really good care of our clients.


And I think the last thing I'll just say is, you need something that can weather the storm, you need something that can build on itself and have perpetual growth, you need something that's certain that you can actually that you're being a good steward. And we believe confidently that cryptocurrency is the future. We've put our time, our energy into serving the physician crowd because it's so important for you, those who have worked your whole entire life, you'll work so hard to build wealth, and talk to too many physicians who say I'm really good at making money. I'm just terrible at keeping it. So we don't want you just to keep it. We want you to thrive in making it. And we'd love to serve you at Boron Capitol.


Christopher H. Loo, MD-PhD: Awesome, awesome. Bitcoin. crypto. It's the future. And how, how can people get a hold of you?


Blake Templeton: Yes, the best way would be our website, Boron Cap, Boroncap.com. And yeah, we're just excited. This is the wealth transfer. If you've ever heard about it, there is one coming. It was gonna be this this this. This is it. It's happening right before your eyes. And we'd love for you to get on the bandwagon for it.


Christopher H. Loo, MD-PhD: Awesome. Awesome. Such a fantastic episode. We're gonna have future episodes, master classes, workshops. So just Blake, thanks so much. And we'll see you next time.


Blake Templeton: Very good. I look forward to being on again.


Christopher H. Loo, MD-PhD: Many thanks again for being here. If you’re new, you can find me online at Christopher H. Loo, MD-PhD, where I have links to other episodes or links to online resources that will support you on your financial literacy journey. I’ll see you there in on next week’s show. While I bring you thoroughly vetted information on this show regarding a variety of financial topics, I cannot promise you a one size fits all solution. This is why I caution you to continue to learn. Educate yourself and seek professional advice unique to your situation. If you want to talk to me, I welcome it. Please reach out via my website or email at Chris@drchrisloomdphd.com. I read and personally respond to all of my emails. Talk soon!


 

Editor's note: This transcript has been edited for brevity and clarity.

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