Tai Zen: What’s up guys. This is Tai Zen. With me today, I have the honorable grandmaster, the great oracle of cryptocurrency, LeonFu.com.
In the previous video, we talked about having a financial edge, specifically figuring out what is your edge and when you’re trying to make life-changing money.
In this video, we want to talk about what type of edge you should be seeking. Then, how to put it to use so that it actually makes life-changing money.
To recap what we talked in the previous video, there are 3 major types of edge that you have. One is an early information edge. Two is a technology edge. Three is a mathematical edge where you create a system or a process of investing where it gives you the advantage to make money.
The question is which one we should focus on.
Leon Fu: All right. Now here’s the thing. Just because you have an edge on something doesn’t mean you necessarily will make money.
Tai Zen: Exactly.
Leon Fu: There are plenty of people who are good, but that doesn’t matter.
All of it starts with an edge. To really make sustainable life-changing money, you do need an edge, but not all edges make you money.
So we’re going to talk about what actually makes you money.
I have to introduce a new concept about something called value. Because if you don’t understand what value is, you’re not going to understand how to use your edge to make money.
It’s really about creating value. That wasn’t previously there or giving value to someone who did not have it before or making people aware of the value when they are not aware of it.
Believe it or not, value is not in the object itself. It’s created by the individuals who value it.
Tai Zen: For example, a lot of people say gold has value or silver has bad.
Leon Fu: It’s a piece of metal.
Tai Zen: It’s a piece of metal. It’s a piece of rock out on the earth that somebody took it, melted it and made it pure. Then, humans give it value.
Leon Fu: You have to understand that value is something that exists in the minds of the people giving it value.
What we have to understand is no matter what your edge is, there is a cost to that. Even if it doesn’t cost you money, at least it costs you time and energy.
It may not be a monetary cost, but they’re definitely is a cost.
Tai Zen: Usually it’s either in time, money or effort.
Leon Fu: Your effort. Your labor.
You have to realize that no matter what you’re good at, there’s a cost. When you have an edge, the way you make money is you find people who value your edge higher than the cost that it costs you to provide that.
Tai Zen: Let’s take a few examples.
That’s how he supports himself. He’s done a lot of research on how to safely store Bitcoins on a Trezor hardware wallet.
Because there are people that have dozens or hundreds of Bitcoins out there that don’t know how to safely store their coins on a hardware wallet.
So they’d rather pay him for the consulting service because the consulting fee that they pay him is much smaller than the risk of losing 100 Bitcoins.
It’s the same thing as when people approach us and they want to attend one of our cryptocurrency and investing boot camp or want to learn from us about how to invest in cryptocurrencies correctly.
The value that they get out of our mistakes our experiences is much higher than what they had to pay to attend the boot camp.
Leon Fu: That’s how value is created. It’s when the person paying you or the person that you’re providing your service to place a higher value on it than the cost it was for you to provide that service or product.
Tai Zen: We had several people that contacted us to show them how to invest in cryptocurrencies.
They have like 20,000 or 40,000 Ethers. One of the guys had like a few thousand Bitcoins
What they have to invest in us to show them how to invest in cryptocurrencies now is significantly way less than what he already has in his inventory.
Is that what you’re talking about?
Leon Fu: That’s one way, but it doesn’t have to be that. That’s a very clear example.
Basically, ie mean it will cost me much less if I just learn how to do this from someone that I already know rather than to actually go figure it out myself, which will take a lot of time.
Tai Zen: Like 4 years and several hundred thousand USD loss to learn it.
Leon Fu: That’s a value that we can provide, so, you have to ask yourself those 2 questions.
Tai Zen: We just talked about Spotify today. You said that Google is going to buy the company Spotify for $481 million…
Leon Fu: …$41 billion because they had 50 million paying customers. I think Spotify costs $10 bucks a month. Correct me if I’m wrong, but I think it’s just a small amount.
Tai Zen: it’s a small amount.
Leon Fu: It’s a small amount. Anyway, if you take the $41 billion divided by the 50 million users, we will get around $800 something per subscriber. Then, you asked me well whether we can get $831 per subscriber.
Tai Zen: Can we sell the channel for $800 per subscriber?
Leon Fu: Just like Spotify did, right?
Leon Fu: I said, “No, we are not worth it”. Then you asked me why. I said those 50 million customers they have were paying.
Tai Zen: Unfortunately, our subscribers are not paying to watch the video, so we can’t sell the channel to Google for $800 per subscriber.
Leon Fu: That’s number 1, but number 2 is they also have the infrastructure. They built the whole music on-demand infrastructure. They have relationships with artists. They have the software.
Tai Zen: They have a name brand.
Leon Fu: They have a name brand. They have an entire engineering team that is very, very valuable to Google.
Tai Zen: The $41 billion that Google paid to Spotify seems a lot to us and other people, but to them, that $41 billion is a very small fee to acquire all that value.
Leon Fu: I think they’re profitable too. They make money.
Tai Zen: All the paying subscribers and all that. That seems big, but it’s small in comparison to the big value that they got.
Leon Fu: Obviously, Spotify investors made a ton of money.
There’s a website called crunchbase.com that you can type in Spotify or any other startup and look at how much money was put into the company by its investors. They have a whole database of startups that potentially get bought up.
Typically, we talk about how many X that a cryptocurrency returns, which means how many multiples.
The kinds of returns that we get in cryptocurrency investing, tech startups, is very common to get 3x, 4x, 10x, 100x. It happens all the time.
Tai Zen: It’s just not available to the average person.
Leon Fu: We made a video about that a few months ago.
Tai Zen: The biggest coffee shop in Dallas.
Leon Fu: That’s why we are so excited about cryptocurrency investing because for the first time in human history that everyone is eligible.
Because you couldn’t invest in Spotify. Google just took them out for $41 billion. If you were the first angel investors or in the last round, you made a ton of money.
Tai Zen: If you were an early investor in Spotify, you made thousands of percent profits, but that’s not available to people like you and I and the others on the main street.
Leon Fu: That’s right. That’s a big reason why we are working on this channel so much.
Tai Zen: Let’s just summarize real quick. You identify what the edge that gives you the ability to create life-changing finances, but the edge that you have has to provide greater value than what it’s going to costs you to someone else.
All of my value, knowledge, mistakes, and profits that I have in the crypto world when being shared with is going to be significantly more valuable than what you pay me. That’s where you can take advantage of your edge.
For example, even though I had the worst art knowledge, that doesn’t mean someone else would have the same idea about that.
It just means that I’m not your potential customer.
Let’s wrap it up. In the previous video, we talked about having the early information edge, the technology edge, and the mathematical edge.
I hope you learned something from that and try to identify what is your edge when you’re looking to make life-changing money and life-changing finances. Hence, this video is following up with it and helping you to see that.
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