Bitcoin Investment Strategy/Digital Assets with Gary Cardone.

Arthur (0:01): Hello, everybody. Welcome to another episode of Arthur's Roundtable. Super grateful to have Gary Cardone here, and a shout out to our dear friend, Magena, for making the introduction. Gary and I don't know each other. We're just getting acquainted now, but it's all McGinnis fault.

Arthur (0:16): So take that. Thank you, Gary, for doing this. Let's let's start with, the sort of the beginning of your journey, if you're willing to share, and we'll just take it from there. Is that alright?

Gary Cardone (0:26): Yeah. Sure. Yeah. I grew up, grew up in Lake Charles, Louisiana, the West Side Of Louisiana near Texas border. So opposite of New Orleans, five children, all separated by five years, except for me and my famous twin brother, five minutes.

Gary Cardone (0:46): Italian Sicilian family, my dad was a stockbroker and he dies at eight years old. And that moment I realized, oh, wow, this world doesn't really do any guarantees. Does it?

Unknown Speaker (0:56): No, it doesn't.

Gary Cardone (0:58): You know? I mean, that was a very interesting lesson that that probably has helped me a lot.

Unknown Speaker (1:06): Formative. Right?

Gary Cardone (1:07): Yeah, it just really smacked me in the face and no matter what everyone says, hey, time reveal all things where they just had not ever been through that experience. It most certainly didn't hear it. The time hasn't hear that event but I think it made me pretty tough in a world that you you're not gonna no guarantees or full guarantee like you know so so moved I moved to college did economics marketing living a mom that was 12 out she was 42 and she hired us so she's 52 years old two 10 year old boys that are just putting for piss and vinegar another a 15 year old brother that is trouble. I didn't know we just had a lot of energy right and no male mentoring and like I'm going to take my hat off to my mom as a pool today. I'm like wow I don't know what how she put up with us because really really rude.

Gary Cardone (2:05): The greatest gift she gave me was at 20 years old. She said, I'll get that off out of my house and don't ever come back. I wear my they were dirty women. I'm not cooking meals. You guys have no respect for me so get the f out and stay away that was that moment asking to every parent that moment is the greatest thing my women ever go to because it really she made me man up really made me mad I would have been moved up in prison if she would have kept her glass in my face she really needed to kick us out and if you have a kid that's being disrespectful kicking the fuck out of the house and tell them to go grow up or die.

Unknown Speaker (2:48): I mean, like, give me it up.

Arthur (2:50): Definition of tough love, right?

Gary Cardone (2:52): Well, totally Arthur. And it is a really great lesson that I need to remember. So I went off to a real student got a job got into oil and gas business that was really really you know I felt really fortunate for that is the noob that it all gets out pit if now what would be called banners into the marketplace for jobs in the biggest recession we've ever seen now with you one here's another one oh I could sit there I hold these kids to go going oh what am I gonna do a lot there's no jobs I can't afford a 800,000,000 house and I'm like 30 calls you've been dealt man don't forget my fault that you came onto this crazy and sown planet and 2026 and you're ready to go into the workforce. I didn't do this to you. Okay.

Gary Cardone (3:45): Like it's just the other cards fell and those must be some great lesson in there for you because I think God could do exceptionally well in the world you're going into with the mindset I've had. I just think you're have to be very, very adaptable and expect no guarantees from anyone And boom, isn't it

Arthur (4:06): true? It's not your circumstances. It's what you do with them. Right?

Gary Cardone (4:09): Yeah. I mean, I've won very big card games with a six and a four off suit. You know, and just like blaming the situation is not gonna solve anything. Yeah. I'm actually worried about my children because, you know, they want to build a safety net that I had.

Gary Cardone (4:33): I mean that's certainly it's not gonna be like I'm a pull over yard guy from my drum but I did you know my lifestyle wasn't anything near theirs and I just sometimes wonder you know, can they, can you man up without having these really horrible events? Cause I never think they've been very, very successful. They make a big difference in the world. Every one of them had some kind of damage in their background.

Arthur (5:00): Yeah. Trauma, damage, experience. Yeah, it was instructive. I've seen that also. I think it's pretty resolved that people who've had some hard times come out of it stronger.

Gary Cardone (5:16): Yeah. Yeah, most certainly. So I'm working for an oil and gas company in Houston, big name, big company. Making Southern New Jersey. Well, I'm 26 years old and I was so miserable I could not imagine working in a big building with three levels of people on top of me that understood less than I did about what we were doing and I wasn't being arrogant I was just like wow I don't think this was the time when the entire energy market was undergoing this massive transformation that the government tried to initiate through lobbies from guys like me that were looking for a free market.

Gary Cardone (5:58): And I watched every one oil and gas business that had any experience want to hold on to the past they did not like the change of a regulatory change that would create competition I'm one of the biggest oil companies in the world big pipeline companies I'm twenty twenty five years old and but I'm because I had no baggage or was a membership fees to a cartel a club a group of people that group of people happened to do their own gas business they look like they were competing with each other but in reality they weren't competing with each other they were going to country clubs, playing golf, having dinners. One guy would go from Conoco with Phillips full of Simoval. You know, I would always get like, Hey, I need to do that. It's a little bit like the legal world, you know, you go into these lawyers. They're all buddies.

Gary Cardone (6:54): They're buddies defending me for $40,000,000

Unknown Speaker (6:56): And they go in, do battle in the courtroom and then share notes outside.

Gary Cardone (7:02): Right? Exactly. And show more than notes. Yeah. Think it was so The one used to do in big long contracts took a lot of time.

Gary Cardone (7:14): Was no no one ever judged people made decisions by committees and we were talking about pricing energy one day one hour at a time making it super efficient right and the last thing they wanted to do was have transparency I mean for instance I went to my boss we have a 36 inches pipeline from Mexico to Houston Texas from El Paso to Houston Texas it's completely empty 36 inches pipeline massive pipeline holds a billion plus cubic feet a day my job is to fill the pipe up I'm 23 years old. Okay. I mean, this was awesome experience contracts this big worlds. Didn't even understand. I hold the world force majeure.

Gary Cardone (7:57): I'm like, my god, what is that? But that education, just getting out of school, to getting into a platform that's really speak to the families and the kids, like, look for a platform where you can be exceptional. Might not be the best team. It might not be the Harvard team. It might be the level or other level team where the ocean is not so big that you can't make a difference you know I think some people go into the IBM's Morgan Stanley's thinking ah this is the deal right like then you get lost yeah you get lost you lost and so yeah I'm doing this and I look at the guy said well the contract offers him $67 and 36¢ and I'm like the next pipeline is 800 miles away man That probably cost him $2 why don't we offer the guy $7 even?

Gary Cardone (8:49): He said nah we're not messing around with nickels and pennies. Nickels and dimes I think. That was a billion cubic feet a day do the math on penny. Now it trades at 1 tenth of a penny. But my point is they just weren't comfortable or used to they had never really negotiated with each other on half a cent.

Gary Cardone (9:07): For one it would be disrespectful. Right? What I wondered if this is that massive turbulent time high recessionary pressure massive area of oil change and new kid 25 years old walks into the oil and gas industry and then walk out by the age of 41 having one full multi billion dollar energy companies and it was just simple because I was willing to go with the full I had no baggage to carry I and was like, somebody wants to trade for a penny. There's a spread there. I can do value.

Gary Cardone (9:44): Let's split it even. Right? And that that education really set me up to never I ended up losing a big corporation and went to work for a startup company called natural gas clearinghouse there was 12 other people there and I would never go back and work for another corporation ever again I wouldn't be doing them and then I didn't want hey when a company gets to be 150 people you need to get out you need to get out and go build another one this small because I'm really good with the smaller groups I don't want to manage 150 people I don't even worry about HR It's not where my skills are. And I have a very negative view on HR.

Arthur (10:26): Yeah. What a nightmare. Was that during the Enron years?

Gary Cardone (10:30): It was once. I was born to a lady of Inland. She and I I don't know if you were married at the time, but we were most certain to sleep in the same bed. We controlled 90%, maybe 95% of all the molecules that were sold in California, man. Sleeping in the same freaking bed.

Gary Cardone (10:52): Two phone calls from San Diego Y'all saying like it was crazy times. The industry today I just remind people the industry we're getting ready to move in into this what I call digitization upon earth 25 and 28 and 29 year old men reformed and reshaped the entire energy construct electricity and natural gas and they did it in eight years it like it has moved the whole Inman era like Inman is really right on so many things about the commoditization of the market where transparency is introduced like ultra transparency today and those markets should settle at fractions of pennies they become hyper efficient too bad they ran out of money ran out of time, and they oversold what they were doing. But certainly, the construct was right. And it shows that outsiders always make these massive step changes. The insiders never do it.

Unknown Speaker (11:57): Because the legacy thinking, right?

Gary Cardone (11:59): Correct. Google I mean, Google will not win the game in AI. It's gonna be the outsiders. It's all these Mega's problem. I don't think Meta survives this because they don't bring any true value to the planet.

Gary Cardone (12:11): And that's where I hope that's where we're headed. Your value is understood. Basically rewarded. Quantified. Yeah.

Gary Cardone (12:20): Well, we want we've quantified everything, but we don't qualify very much. Yeah. I think value is grossly misrepresented in the market. It's everything's price, but I think value is priced properly.

Arthur (12:37): So what's, what do you think of, just as an aside? Because it was super entertaining, Landman as a representation of what it's really like down there.

Gary Cardone (12:50): Extremely accurate. The first films I watched I was watching with a friend of like, oh, I can't even watch it with you because I know all these people. I mean, the people they're listening. I'm like, Oh, wow. I know where their offices are.

Gary Cardone (13:04): I mean, I've got drunk with these people, right? I mean, it's very accurate still. I think the mindset's accurate. See, I would send this to they're very hard, especially people that are young and they're convinced that Ruben and Soyer can solve the problems.

Arthur (13:21): Yeah, that little segment where he made the speech with the lawyer, which is all out there. He basically called everybody out and said, you can, you can say you want to do all this. It's, I get miffed regularly because there's a lot of people in the world that really are well intentioned, but if you don't measure something, it doesn't get better. And so they come out and they do this virtue signaling and said, I want the world not to burn because of climate change. And then it falls flat from there because they don't do anything.

Arthur (13:56): Or they just say that because they want to be perceived as a good person. And I'm using climate change as as just an example. There's dozens and dozens of people that come out and say, here's something that sounds good, but then that's it. It falls flat.

Gary Cardone (14:13): Yeah. Well, you know, wind, I mean, if people just look at how much concrete it takes, the main point is to fund it, to fill it, to use capital, then to maintain it, how many birds it kills, how long it lasts. You would be more disabused that wind is everything other than a joke.

Unknown Speaker (14:36): It is a joke.

Gary Cardone (14:37): Joke. And it's going to make Europe become a favorable continent. Their energy policy is going to prison the entire continent of Europe and only the agents are going to survive this. It's going to be the Eastern European and the Southern European countries that survive this and everyone else is going to get between Norway and the South they're going to get they're turning into a poison plant that's what I think the continent of Europe is they have no energy they have no logistics or capacity to produce and move energy. They had no agriculture.

Gary Cardone (15:16): There was no manufacturing whatsoever. And now they had no fucking tourism. Yeah. Because it's dangerous to be there.

Arthur (15:24): It's dangerous to be there. And what they said in that segment was that you can say, tell me if you think this is still accurate. You can say whatever you want about oil ruining the planet, but everything we do needs it. And we have, we are struggling to get enough of it to satisfy the appetite of the population. So say what you want.

Unknown Speaker (15:47): If we stop making it, the whole thing melts down.

Gary Cardone (15:52): Well, we won't stop making it. We never want out of this type of energy. Fossil fuel energy, we're not gonna run out of. The price of it, maybe a different question. I think actually the price will come down forever and that in my lifetime assuming I live to be 90 or so we'll see cool down at 10 or $15.20 dollars and we'll see the energy companies making money more margin than they were making wound and solar solar may be a thing but look we're forgetting what happens if there was a technology I mean I understand Sweden or Denmark are expanding with electricity that has no wires right now you've already seen some of these battery storage devices you can you know not even plug your phone into.

Gary Cardone (16:46): We deliver long technology well let's talk about the Iran thing we suppose a little of six to 11 to 20,000,000 barrels I'm a very little different view on this than most people I think 35% of all the energy we use is a bucket of energy in certain locations we will have constraints and problems But I think 45%, maybe 45% of all the energy we use is convenience energy. You and I probably have very comfortable homes. I take at least one hot bath. Dairy don't care how much hot water I use. I don't know anyone that turns off the PC at night.

Gary Cardone (17:27): Tells me electricity was too cheap. I went so long ago for all the spared Americans. They won't know that 40% of the entire population of planet earth still cooks on wood isn't that amazing I cooked on wood a long long time unless it was for a picnic to impress my kids how stupid I was at building a fire right so I don't even know when that 70 '2 I could have any of the 82 I don't have to go on that trip I'm most certainly not buying an airline ticket it was 400 miles at $84,000 and that's what they remember. I mean all airlines have moved to 10 dairies somewhere between 4x and 7x a private jet from Tampa to Vegas and back was $83,000 a year ago now it's 27

Unknown Speaker (18:21): yeah

Gary Cardone (18:23): so we want you to understand what the impacts of

Unknown Speaker (18:27): oil are

Gary Cardone (18:27): and everyone is gonna be oh it falls down to our companies there's bad companies didn't do this Nobody want this to happen.

Unknown Speaker (18:36): Did it.

Gary Cardone (18:36): Right? No. The government did this, man. Two countries did this. I don't think Well, mean, well you blow up a pipeline that was that was going to work four years ago called March train someone blew that up it did not happen by two guys smoking the cigarette in a rowboat I suspect we did it we strangle choked Germany building in France now Germany so freaked out they have the most expensive UK and Germany have the most expensive electricity in the free world five times more expensive than manufactured in The United States no one is going to manufacture anything in The UK not a cup of tea not a cup of anything by the way they stopped producing anything many wars ago many I can't even remember that the Mercy Airfields are drained The regulatory process it is almost like fascist.

Unknown Speaker (19:49): Yeah, I mean, it's impossible. No one would go to business over their tax policies.

Arthur (19:53): Yeah. Same thing with France, right? You can't own a business in France.

Gary Cardone (19:58): Yeah. Well, France is interesting because they are nuclear. Okay. So I think we'll roll things up because they have now seen that they don't have access and they don't have a pipeline that has access to the cheapest energy in the world Russia. They're going to become a net importer of everything and have very little control I don't even know how they survive I don't think the continent of Europe survives this I think Halliburton's innovation are gonna make a humongous amount of money out of new boredom you can't move up into fifteen minute Terracin's like I think it's gonna be hey let's run the exponent right here from a man across all the continent of Europe I do CBDC's digital information can only drive this far you can only go this many times out of the country I didn't know how to handle the irrigation issue that they let go for 20 plus million people for the last twenty years with no assimilation whatsoever.

Gary Cardone (21:05): Let's just lock them all up.

Unknown Speaker (21:07): Yeah. It's all of those, those,

Unknown Speaker (21:12): the television is

Unknown Speaker (21:13): happening live right now. It's insane.

Gary Cardone (21:16): Right? Yeah. I mean, six months ago, said, hey, won't travel to London because I'm scared. I love London. I'm scared.

Gary Cardone (21:24): They won't let me in or out. Yeah. Because you don't know, like anyone's being monitored right now, what they're doing. Seems like all the politicians have gone completely off the edge of reality and it's going to bite us. It's biting us right now.

Gary Cardone (21:43): We've seen gasoline flow to go from $3 to $450 in less than four weeks. It doesn't impact me at all. Okay. But it impacts everybody else, man.

Unknown Speaker (21:53): It does impact a lot of people.

Gary Cardone (21:55): It's $10 in Italy. If you can get it, I have a friend near The UK. He's out of diesel. Can't get diesel. We're just starting here.

Gary Cardone (22:07): This is just stalling man it's not a massive problem okay those are AI chips made without helium

Arthur (22:14): right 40%

Gary Cardone (22:17): of the helium supply goes through the Strait of harmless Fertilizers yeah nitrogen. I mean, it's still impact food supplies. We've been impacting the food the entire supply chain since before Ukraine. Someone keeps interfering. See, I think COVID was a supply shock intervention that correlated inflation and then massive deflation.

Gary Cardone (22:43): Right? And what we're doing right now is we're, I think we're doing COVID two point zero. It's been sick. Yeah. Like this is not cool.

Gary Cardone (22:55): What we're doing, this is really impactful for the world economy for a long, long time.

Arthur (23:00): So what do you think since we're talking about it? There are forces in the world that allegedly want chaos simply because it lets them do what they otherwise would like to do. And so that, and I'm not sure that makes sense, there's chaos all over the place and it seems to be, you know, the people who are protesting on the streets aren't there because they feel strongly about free Palestine or this or that or the war. It's because someone's paying them. Because it's pretty clear that most of them don't know anything about why they're there.

Arthur (23:48): So why do you think someone would want to sow chaos? You know, what's the end game there?

Gary Cardone (24:00): I was reading a paper just today and it was talking about, you know, three companies have 82% of all the energy supplies in The United States and three companies control 62% of the steel market and three companies control their banking and an hour there I had two companies that make a 51% and a 46% gross operating profit control 72% of the credit card market 51 and for the family offices come on 5146% gross operating margins for two companies that we're not going to say these are high-tech companies it's things are MasterCard and no one's gonna disagree with me they are really charging more than the homeowners a 3.5% on every transaction, they're monitoring every transaction. They know that RF to ID chip is more than a transaction chip. It is a monitoring chip.

Unknown Speaker (25:05): Yeah. Data collection.

Gary Cardone (25:07): And we continue to allow it to occur. I heard the other day that the Europeans were a little concerned about Visa and Mastercard pulling all their cards. Like this is more because we've done it twice to the Russians. Okay these are not public companies that you and I know man these are servants of a government pretending to be public companies yeah a lot of the America that you and I grew up to be which is a free marketplace nothing there was not one industry here including by the way our great friends and I'm sure massively trustworthy industry titans Mark Zuckerberg and the gully barks they're only 7010% of all the social media okay we have the medical industry insurance all wrapped up and like they would do free companies United Healthcare is touching everything on the planet it's a lot of new health free markets we are a fascist cartel country man I can't even be Donald Trump or executor every morning and force a lot of what we're doing here. It's so obvious to me.

Gary Cardone (26:12): This is a scam. I grew up thinking that I could compete on my merit. I could compete on my merit and innovate and bring solutions and nobody would stop me. That's just not the way the market works today. It's it's and the consumer has been completely Roger.

Gary Cardone (26:33): Because of no choice, real choice, lack of ability to migrate, a lack of understanding of any agreement or been forced to sign online electronic signatures g d g I d p o l all these security things k y c a o n the policies you wrote in Europe g p o d a lot of cars yeah these have been basically intelligence gathering activities in a way to block competition any financial came here and tried to provide credit card services they last a year Visa mask Visa mask to provide insurance to consumers that allow consumer to commit fraud against the retailer and they make billions and billions and billions of dollars from it.

Unknown Speaker (27:23): Doing it.

Gary Cardone (27:24): It's like the market has become so bastardized from what we grew up learning and believing the quote phone to the government should just move into all services I mean maybe that's where your head is the sovereigns just saying everything like every other country but it's getting rid of all the middlemen okay because I don't need to pay Visa MasterCard I'm just a Bank of America in fact let me just go straight to the Federal Reserve we get rid of Bank of America Wells Fargo Visa MasterCard and about a 100,000 payment processors we're literally clipping 300 to 500 basis points on retail products that you and are paying for. It really brings no value to anything.

Arthur (28:09): So one would argue that you know, that we so let me let me ask it this way. When you and I grew up, we felt like the American dream, things were pretty well managed. If you worked hard, you could like it was meritocracy. Like you could go for it. Grab, grab the world by the throat, Work hard like you did at the oil company like I did in my my businesses and you were rewarded for being innovative, working hard, being smart, that sort of thing.

Arthur (28:49): When did you think? When do you think the wheel started coming off? To make it so by the way I agree with you there's there's there's little escaping the big brother right everything is data right Even though they're clipping. Well, I'm

Unknown Speaker (29:08): moving to me at. We will head wound into that. Doctor. Say it again? Doctor.

Gary Cardone (29:13): We will head wound. Doctor. This data. Okay. Our W did not protect us.

Gary Cardone (29:19): DOJ most certainly did not protect us the FTC the Federal Trade Commission is supposed to protect consumers they must have spent four years and millions of dollars trying to prosecute me for something that after two and a half years. I built a credit card payment technology to stop always chargebacks on Visa and S card. I'm like, wow, what a scam. I mean built a business making $70,100,000,000 dollars a year around protecting the merchant from Visa MasterCard and their consumer abuse by $200 per shoes and go hey I didn't get them and so expensive fraud right oh it's total fraud cyber fraud they call it friendly fraud they they hired a lobby team to come up with a name fooling fraud they're like being friendly fraud enemy fraud it cost the retailer the same and guess who's paying for me the good consumers paying for this unnecessary bullshit right I mean in China can't come in here and be a bank and provide credit card processing because they don't have the ability to provide insurance chargeback insurance just says if the card schemes these cartels are unhealthy and I started it with my story in 1981 in the mortgage business I said hey why don't we give the guy $7 not $736 he says ah we won't trade on nickels and dimes yeah that's not in Finchant okay that was not my job my job was to fill the pipe up with cheap fuel not to overpay not to underpay and how do I know if I'm overpaying on your pain if there's no competition they're on when we get to competition and to marginal pricing and that's what crude oil is the symbol of the greatest commercial market in the air every quarter is very difficult to control crude oil prices we've won that over 40 meters now OPEC, OPEC on, OPEC super, OPEC one of these guys broke up because Boeing's had a way of moving around, you can't stop them.

Arthur (31:29): Yeah, so let's go back to your example. The chargeback business that you built, why did they want to crush that? Forget about the legal issues. Why did Visa and MasterCard want to crush that? You would think that Visa and Mastercard would want to figure out how to keep that friendly fraud from happening.

Gary Cardone (31:57): Well, not when we were not when we were allowed to go buy 10 companies and then provide the only insurance policy against that very fraud.

Unknown Speaker (32:07): So they were underwriting insurance.

Gary Cardone (32:09): This is my problem with these closed schemes like they're allowed to buy companies then close the whole market off. They sold me a $27 product and say, hey, you cannot price this under $50 so they're managing price that's what I didn't trust fucking I don't trust the way they're saying I cannot sell below $50 to a particular customer and they're not selling the same product for $48 okay it's not it's not that is not allowing competition work and by the way I spend $22,000,000 a year with them I mean literally going around the world people here get spending money with them so one thing we want to know is all these companies will go oil credit card players the global plan is too big for all these companies they were so narcissistic and they're they're so insane to think that they can be everything to everyone including Facebook's at all. Facebook just did an $80 write off. Eighty one six years old changed their company name from Facebook to Mata because Mark Zuckerberg was going to be a synthetic infinite being in his mother universe who just said we're done with Mata fuck meta that was a dumb experiment and boom dollars man how did somebody get away with that okay yeah come on this is the same guy that bought it a one to two and said that multiple divorces inside The United States required him to give up his data he didn't follow the shareholders all the time he didn't tell the board and like I think he's already committed to sending his phones it's unbelievable he's a public company his job is to protect his shareholders not to talk to the government.

Arthur (34:00): Yeah. Right? That's pretty it's pretty clear that he had a gun to his head. And I mean, let's just blame the prior administration for doing what they did. Right?

Arthur (34:12): It doesn't need to be political, but that administration is the one that held the gun to his head. And he either acquiesced to that, or he didn't, and he did, right? So, I give him credit for coming out and saying it publicly, but he had nothing to lose at this point

Unknown Speaker (34:29): by coming

Arthur (34:30): out and saying it. Right? It's all history. It's just that most people didn't believe that the government would actually do that. Right?

Arthur (34:39): But they did.

Gary Cardone (34:43): Well, it's it's nice it seems to me we just got a 200 it moved to a $254,000,000 segment because we have used children's data this is after that that you know he became a good human being in public with what's what chlorine was getting ready to be discovered anyway I give the guys zero credit for doing anything that like one of the most heinous products in the history of mankind. Is not healthy.

Arthur (35:14): Facebook is as has caused so many people. This

Gary Cardone (35:21): is what I don't understand. I see a company like Exxon, mobile. They go to work every day. They they lose lives over fun. It's energy man it's stuff we use and people bitch about the oil companies and then we watch Facebook and I'm like wow you should be complaining about the poison they're putting in your kids brains man

Unknown Speaker (35:44): Right.

Gary Cardone (35:45): When I get diesel put into my tractor, know what it is. I know what's in the diesel. So we've gotten really far off base, but

Unknown Speaker (35:56): it's totally okay.

Gary Cardone (35:58): Look, I'm trying to go to that. Think that we've gotten really a long way away from transparency and every time you move away from transparency, you end up in this opaque world, the black box and that is where all the crime mistakes and errors are hidden

Unknown Speaker (36:19): and fraud in the audience

Gary Cardone (36:20): where there is opacity there is a lie there is a mistake there is something that's being hidden and it is never good for you it is never good for the masses ever ever ever and it should be our motto going for the next forty years transparency is the key you can be my president let's be transparent you want to get his taxes cool we won't be spending them on I'm happy to give talks money I'm not happy to kill any more people though like my money now I'm not kidding oh wow my money has been used to build weapons to kill innocent people and if we all stood up and got really open voice and transparency that you said hey let's not get political we're going to have to get political at this point we can't go well listen oh 51 in a 36% gross operating margin 50 more companies that is that that's being allowed to that that's not even being allowed. That is this is what we want we want two different players we can make a phone call to that is a real scary world to me because they want white guys like you and I man there's not gonna one guy like me who brings value Because I bring a lot of value.

Unknown Speaker (37:41): I bring truth. And the I don't They take a lot of

Unknown Speaker (37:46): would throw us under the bus in a minute.

Unknown Speaker (37:48): Exactly. Yeah.

Unknown Speaker (37:51): Exactly. Let's talk about what aside from being political, which is totally cool. What I I'll

Gary Cardone (38:00): hold it. I'll hold it. But I just I think I don't think you can leave that part of the city's that that their deal out because it's cool to me. It is part of the commercial landscape now. You you can't I'm not involved in the toaster on some of these.

Unknown Speaker (38:15): That's not cool. Yeah. Oh, don't get what? Oh, you're just involved in the big boys. The club.

Unknown Speaker (38:22): You know, they all be there. I swear to the house. Until they start realizing, well, this is getting ready to get rid. Oh, wow. It's getting ready to expose a lot of people.

Gary Cardone (38:35): You know, was trying to get to this of transparency. Yeah. Well, that's why I love AI because I don't think we can do any worse. The evolution in New York as a country or a race, I don't think you can do any worse now. Okay and a lot would be a better lover a better teacher a better parent than most points I don't know I'm below the most points I would most certainly be consistent they're not going to get on drugs they're going to be able to teach your kids soccer too is not soccer they'll also be able to teach your kids soccer perfect soccer by the way you don't have to have a coach and then they can learn how to do Chopin at night and you walk my dog.

Gary Cardone (39:23): I pay somebody for a $100 or not to walk my dog. Now I have my dogs walk perfectly. You want to have dogs that are consistent. We all trained on every I mean, there's a lot. I am hoping that's where this takes us.

Arthur (39:37): I think there's going to be a lot of good that comes from it. We'll talk more about it offline, but we're knee deep in all this stuff too. But if it's okay with you, I want to touch on, you know, part of what I can do and perhaps others and what you can do to thwart some of these problems besides being active to fight it is I'm just going off the grid. Like, I'm I'm taking my stuff and right? Because even though there's lots of fraud and bad actors in that business, my digital assets are out of the hands of anybody who's overseeing me.

Unknown Speaker (40:28): And so that might be my

Gary Cardone (40:30): Talk about crypto? Are we gonna talk about mid July sale wall?

Unknown Speaker (40:34): Yeah. We could do that.

Gary Cardone (40:38): Yeah. Like so go so so you you you're not talking about lower off the grid. You're talking about having the option to be be off the grid.

Arthur (40:45): I'm actually talking about both. Right? But for the time being, I still have to live in this world, and I'm gonna be off the grid to some extent, but not forever because I have kids and grandkids and I want to be involved in all that. But I'm talking about this, where, you know, I don't need everybody knowing my business, right? Not because I'm a bad actor, not because because there'll be plenty of bad actors and there have been in the crypto and blockchain world.

Arthur (41:17): But, you know, if the shit hits the fan, and there's things that I just don't want people to know. Period.

Gary Cardone (41:33): Mhmm. Hopeful that the block chain and digital assets like a bitcoin give you more anonymity than anything else.

Arthur (41:43): I don't think that the bitcoin gives you anonymity and I because it's pretty public what that's all about. Right?

Gary Cardone (41:51): Yeah. But I'm trying to hang with you on the, hey, I don't want people to know what I'm doing or what I have. And how that pulls into the crypto piece because I think that's I I just don't know if that's real. Right? Like, it seems to me like everybody knows pretty close to what everybody has in crypto.

Arthur (42:16): Yes. It it's it has been, I I think what I'm getting at is I'm off the Visa and MasterCard rails. Yeah.

Gary Cardone (42:30): Using other technologies and apps other than the typical roles. Yeah. This is why, you know, I started energy salt natural gas go from and I've been natural gas in all a while like kids are they define if you're a full second or third world nation so they're more important than t jerks well if they go well it's really significant if you took if you took the credit card industry and where I don't think that anything's gonna be a problem I just make it oh wow we need natural gas from $7 people have been telling me always going to go to 300 forever and ever it's never done that we introduced transparency and what we find is that there's 10x the volume that's shown up producers are drilling to the futures market because they're lower markets there we have world inefficiency though because we have really transparency I'll look at the Bitcoin store I'm like wow this is awesome this is awesome finally we've been talking about today DOJ FBI FTC all these guys that are supposed to manage the rules we're supposed to open a free world with free voice and free choice and open access and open markets but the truth is we don't because the transparency over the last twenty years has just done this wow wow just gotten smaller and smaller and smaller I've seen Bitcoin like oh no central authority to be able to buy off the shares or to be able to buy off with a hey I realize that you you know you're all fighting gold sex on solid nights at two zero one how you like these pictures by the way I'm a disfavor from you that's really cool okay to have to be able to go to a church I grew up being Catholic and then at 22 years old, we realized, woah.

Gary Cardone (44:30): There's a lot of pedophilia going on in my in my club. And I I saw the management team and the management team team was like, I'm like, I'm out. If you're the buildings out and your management team and you're clean as the people that did whatever so I go out of that group every group I get into I'm like oh wow another human great Bitcoin offers me who wants to know human error risk and human error includes evil people right honest self just a genuine mistake I am the only person in the Bitcoin world that has any element of risk associated with my holdings and I get to choose how much risk I want to take or not take I mean it's really a zero cost it costs 30¢ a month. Just hold me with me. 30¢ a month to store a unit of natural gas.

Gary Cardone (45:27): It costs $5 a month to store a bowl of oil, and there's a shitload of it being stored right now on ships. And it costs money to store gold bulldog every month. I don't know exact price. I can store a billion dollars worth of Bitcoin in my wallet in my front pocket next to my Glock and put zero storage fees for our biller see I look at Bitcoin really different I'm like oh my god no storage fees awesome I don't want to talk to everybody. Cool.

Gary Cardone (46:06): I can look that morning on Saturday afternoon and buy a company. Bought note for the one on Saturday afternoon with Bitcoin. No one in the world could have transact voted to sell and I was a buyer. And I was able to buy a company because I had liquidity on a Saturday afternoon, that crazy? This is awesome.

Gary Cardone (46:27): Well, is why I got my brother into this. I'm like, bro, I want to do it I want to just sell a bolster fund and just have Bitcoin sitting in the fund and we just won't hey banks and just sit knocking me back hey if you guys want to do a $400,000,000 deal let us know Right before the covenant is breached on Monday morning at 9AM, you give me a call on Sunday. Okay? I can transact. You may not like to remember, but you're welcome remember more than in your complaining who will start launching this shit at nine 9AM.

Gary Cardone (46:58): Right?

Unknown Speaker (46:58): I like I love that idea. Distressed asset on Saturday afternoon. Right?

Gary Cardone (47:11): We're just sitting here just go, no, just bullshit buying. Right? But but who who looked at that quick? I'm like, who doesn't want me to steal your liquidity? I think they're doing well to understand.

Gary Cardone (47:25): There there are very few products in the world and you can sell on a Sunday night. You're buying them. I mean, I'm brother maybe first came to this thing. He was okay. Now, I'm gonna move here and buy a thousand Bitcoin, you know, said, oh, wow.

Gary Cardone (47:39): Cool. That's awesome. That's you should buy 10,000. But okay, I'll let you step in. Think they're boy that you are and I'm teams in my long and he says, gonna move the market.

Gary Cardone (47:52): Yeah, I've been trading my whole life. Like I have moved markets before I'll just lift it my brother. Dude. You want you want me to study this? Like it at you.

Gary Cardone (48:00): He said, well, how long do think it's gonna take me to buy a thousand Bitcoin before before I move the market? I'm like, about a month. $50,000,000,000 a day trading Bitcoin. Bulls, thousands of Bitcoins about a $100,000,000. They don't even feel it coming.

Arthur (48:20): And and but what caused him to think he was gonna move the market just because it was a slug of money?

Gary Cardone (48:26): Well, it's a slug of money and Bitcoin sounds like a really tiny market to me. If you asked all your legacy people, none of your family offices will know it turns how much? Yeah, one of biggest markets in the world. And no one knows about it for as far as the liquidity goes yeah who's looking for and the audience may not understand this but the banks are only opened about three and a half days a week and compared to Bitcoin they're probably open less than four days a week This is open seven days a week every minute of the day and this is something very challenging for the banks.

Arthur (49:05): Yeah and by the way Gary we know this but when the banks say you only can bank during banking hours and you can't wire money this and it takes time with that and ACS this and each it's all nonsense. It's all for the float because they can all those rails exist.

Gary Cardone (49:22): Right? Anything. Anybody in the entire audience is like every digital. Yeah. You want me digital.

Gary Cardone (49:30): This is not a change. The bank that I do business with, I'm so social you know, I'll do a lot of stuff on social media, and they follow me, and they're like, man, you're beating us up. You're doing this. On a good. It's ridiculous.

Gary Cardone (49:42): Dollars 35. Well, things I do one week. I'll burn twelve minutes in your staff time. They didn't call me back. I'm dropping 100 miles down the road.

Gary Cardone (49:50): They're giving me a 17 digit PIN number. I'm like, wait,

Unknown Speaker (49:53): I'm supposed to confirm that. Right?

Gary Cardone (50:03): Now I'm probably one of maybe say to people, but I just made a mess and all you get about it. Now I do $90. They just made $35 fee. I did it in two minutes, man. It's sick as shit.

Gary Cardone (50:13): It's shit something different to watch us. All you're doing in this this bill, this digital bill, anybody that's got political connections, go to these people and say the banks are really really doing the digital bill okay they're qualified of stating the real consumer 200 basis points for doing nothing okay and you should be a fan of yourself Jamie Diamond you should be showing yourself that you you know so we can do something better than my 200 basis points and then take it from my grandmother yeah it's it's like you all love your country if you're doing 100 people proud and don't even want move them you know having vampires just attach it it's so sick this is what I hope to move this far I do something that will know Netflix is gonna charge the goal mile on a Wednesday and she does not have enough money to get the 140 money she has enough money no banging for $23 lately. Yeah. Yeah. I think we're making progress.

Gary Cardone (51:16): Did you see the bill? I didn't. Netflix, deal with the Christian change in the employment and said, we're finding you 400,000,000 fucking dollars. You can't do that. And every neoprene country behind them oh really

Unknown Speaker (51:31): ah I didn't see that

Gary Cardone (51:33): this is pretty cool this is really cool because the performers just being warned of the subscription fees if they didn't want to lose the details Right? Yeah. They're saying it's not off. They had no legitimate news in the raised places. You're a software company.

Gary Cardone (51:49): It's the new growth response.

Arthur (51:52): Wow. So let's let's before we wrap it up, if you're willing to make a comment about where Bitcoin is now and why, and why it doesn't matter or does matter. You know, lot of people are saying it went up to the high, what made it go down to the low, was it the people who really are moving the market like we talked about earlier? Is it not that? What is it?

Arthur (52:18): What is it that caused it to be $1.31 or whatever it was now to 60 something?

Gary Cardone (52:23): Well, they they moved to $1.46 off of the off the prior house '69 which was three and a half years ago it's back at 71,000 a day it's at $40,000 just on Mr. Crude orders or diagram news Bitcoin has the most successful in ETF in the history of ETFs if that means anything to you it means something to me that I mean there's thousands and thousands of ETFs and all of them bit coin just pops up two years ago and becomes not by a little bit but like by 10x the glorious ETF the most interested most localed. We use a mighty sand we just launched the doors yesterday and today at the cheapest rates by the way point 17 basis points of fees than any other ETF in history see what I'm saying all the data is coming hey things are dropping while volumes explode in a highly transparent market just looking in the commodity market they explode and the legacy guys hate it because they're not they're like okay make it up and volume right important they have to report to their analysts hey our 24% margins going to 12 next month next quarter and we need a year to make up in the volume so book calling differently what I like to explain I full call for one I'm moving four or five six years early to transition like this and this is all I have ever done.

Gary Cardone (53:59): I didn't mean to do it but I've always ended up in disruptive. I'm looking on Gap. Alright I look for gaps and I saw the credit card for my house don't know why's the credit card industry but this is funny it's interesting let's go figure it out so I go okay I'm always in the area you know I saw the people before me come into this Dan Tapiro Dan Hill once you guys before me and their personalities in their buffering to mine they were even earlier they were willing to take much more risk than me now maybe I had more money than they had when they took all these years because buying something at $30 or 300 a thousand times it's not the same as buying 78,000 or 7,000 times Yeah, most of the market we have right now. Now, I will give you a different spin or I think prices are doing what they're doing. We're $5.01 in coins currently.

Gary Cardone (54:58): We're held at I think below. Let's just call it below $1,000. We're near the $71,000 mark this is the world's world's OG coins you can pretty much do this on the blockchain if you look deep enough in it I think these people are part of the problem and I know lot of people in crypto and they want me say this all the time. I love you guys and you're weird but look when you bought something at 400 well viewpoint and incentives are very different than someone buying something at 71,000 Here's one for instance if 400 you lost four fucking rolling coins it's 71,000 you haven't lost a coin. What do you want me?

Gary Cardone (55:40): Oh, wow. Maybe it's respecting your coin more. So people take different handles with it also maybe the buyer is more mature today which I most certainly think that's true I think the buyer that you've seen in the last four years are people they have standing power that crypto has never seen before This is real money. We're raw material decisions. We don't panic.

Gary Cardone (56:05): We don't like oh I'm a chase 120 Storks. I have $57.62 $6,566,000 dollars bids comfortably and that is I think the crypto people especially even on this in this like one thing I didn't want to understand I think the crypto over pitched it was Bitcoin's gonna run away from my perspective is if you're patient and this one Bitcoin will come to you it will really come to me you do not need to panic you don't need to freak out what I do is I look at this is I Bitcoin at 71,000. I can go build me on a business that'll cost me a million dollars at least a 10 Bitcoin probably a 100 Bitcoin but 4 Bitcoin I get to hire HR. I get to sign a bunch of induaries. I get to, I get to hire some pool pool.

Gary Cardone (56:59): I've got to come up with a good idea. I've got to get an office space. I'm by setting, I could go do a franchise at Popeyes or ortho. Let's go run a Popeyes franchise, 2 and a half million dollars. I now have a party with you.

Gary Cardone (57:11): I have to do K1s. I have employees. I have to buy insurance. I have to buy grease. I know I'm going get sued.

Gary Cardone (57:17): I'm probably selling poison and I'm going to hate my life.

Unknown Speaker (57:21): Yeah. That's what I was going to say. What kind of lifestyle is that? No, thank you.

Gary Cardone (57:24): I get to work $20 a day and I make less than my employees or I could buy Bitcoin, $1,000 franchise into a, I think the great, the whole goal of monopolies that has more DOJ exposure right okay and one of DOJ exposure that's all there and I get to pick this business up and take it anywhere in the day that I want and it gives me an option both a put and a call a put on the past legacy oil right and a call on the future of future preservation and I call no option premiums and it never over expires. Yeah, twenty fourseven. Varn is an interesting product. I've never seen that product before. Yeah, I don't know any at all.

Unknown Speaker (58:19): You you you would get you would leave almond on your four walls just restoring it. Yeah.

Arthur (58:28): The storage is a problem across the board because it's friction that people don't think about. It's just a perfunctory requirement.

Gary Cardone (58:37): And the way I tell the A and B community is, hey, look, look at Bitcoin in this 71,000 is it's too difficult to get. This was really misspelled the friction points it took voodoo national fifty two years to get credit cards in everyone's pocket nothing that y'all are making it so difficult it just needs to show up I don't you know it's just a lot of friction points and that's just about somebody coming up with a better solution the ETFs most certainly are a gateway into Bitcoin for very big formants and pensions they're not going to self custody and I think this is a message your people should bring to the crypto people families who have a billion dollars are not being self custody for all billion dollars They're gonna it for a police but they're not gonna it's too much risk.

Arthur (59:33): Yeah the ETF's a good solution I can't believe it's that low. That's good to know.

Gary Cardone (59:40): Didn't mean that low. Oh on the fees?

Unknown Speaker (59:42): Friction yeah. Friction

Gary Cardone (59:43): Listen, is as you're going into it, just picked because I don't know where the market's going I just bought STRC which pays an 11.5% dividend monthly 17% tax rate that's just $1 from every mutual fund.

Unknown Speaker (1:00:04): What STR what? I'm gonna write it down.

Gary Cardone (1:00:07): It's my strategies dividend product it's a so it's 305 percent you've seen him $5,000,000 I've got $5,000,000 with this stuff two days ago because I've got cash I don't know what to do with it it's loan sitting in monthly at 11.5% and I can liquidate it anytime I want no fees no insurance no exits and it's a more market accounting I can get my bank and dude I don't sitting in your 2.5% thing you need it to FDIC. I told him yesterday it was like wow that's an awesome product for a tax week for business.

Unknown Speaker (1:00:47): Yeah so why is tax rate one that you know?

Gary Cardone (1:00:55): They know who pitched this door under the the laws of how it's relevant. It doesn't matter. It's different than me fools if I make a million dollars in income from a dividend on paying out all your income right from a Chevron dividend. Well, we can call it something different, it just has a different tax I believe it's because he's giving me monthly dividends and he saw mrs. Your principal back.

Unknown Speaker (1:01:25): Yeah, he

Gary Cardone (1:01:26): was calling with something slightly different. Who knows? This is to me very interesting. I went to my bank and I have some loans with them and I said look you got me $5,000,000 where the Treasury is at three I want you to talk to this management team about moving all of that over to STRC and they say they're always how long has it been around nine months are they'll never do it it's some it's sending it to MSTR dude I know we'll do it so you'll look at it twenty four hours later they'll tell me to prove you it took 60% of the funds out of the bonds and maybe the SJRC that tripled my world

Unknown Speaker (1:02:07): right

Gary Cardone (1:02:07): now don't think that bank isn't happy yeah the bank the full bank guys are going hey this is a good idea dude we should get all our guys in this shit

Unknown Speaker (1:02:15): yeah exactly yeah

Gary Cardone (1:02:16): Unknown I'm willing man, don't you be pushing this product?

Arthur (1:02:20): Unknown Yeah, Gary, you got to tell me it's s trc.

Gary Cardone (1:02:23): Unknown Yeah, all to a March built the preferred dividend product of MS to a micro strategy or what's known as strategy day. It's micro storage company. Yeah. Sailor. Now now listen to the one thing I brought that up.

Gary Cardone (1:02:39): Listen to us. He has spent 11 and a half percent to borrow money to buy Bitcoin. Now I don't I'm not gonna borrow it 12 bit. I think it's pretty fascinating. I think he's offering too much.

Gary Cardone (1:02:54): He didn't want me to offer that much but wow you had a great product it competes with real estate it competes with money market it competes with every punching 11 and a half percent in perpetuity when it's covered up with koala. I think she's it's so it's the most covered up koala you're ever gonna see in a in a you're gonna you're doing product like that. So the world and it's huge man. I mean, it's a massive that I mean, you can imagine why people like it right now.

Arthur (1:03:31): Yeah. And and it is it backed partly by micro strategies balance sheet?

Gary Cardone (1:03:35): It's backed by the Bitcoin separate and apart from. Yeah. And it's senior too. Yeah. So

Unknown Speaker (1:03:44): why let's think about that. What I'd like to talk about this forever, but I gotta run. Why is why is why is he doing that what's in it for micro strategy

Gary Cardone (1:03:56): this maybe longer than you have but I think if you look at Solar's business model it was really really the only selling of the Bitcoin too he realized he wasn't able to buy Bitcoin not wrapped up the way it was wrapped up and sold so we called this public and he was able to sue y'all the fund one of the funds that had probably not done it correctly. They had probably not done the Bitcoin ETF correctly. He realized all the ETFs are gonna come out. I think he actually like it said I'm gonna create a product where people can buy an equity if they're used to and comfortable with and I'm gonna support it with the Bitcoin underneath it so Gary's like more the Norwegian pension fund when they dumped the was rollers they said we're not doing business with the was rollers anymore they made half $1,000,000,000 into not Bitcoin but in that you are right because it is an easy product the push is already qualified to buy equities and they bought half $1,000,000,000 worth and put a buy the SGLT product I thought to answer your question I think he started buying yours he saw the money market yours and he said I am going to make this so attractive I'm gonna suck as much cash out of money market accounts as possible different rates freaking out the banks.

Gary Cardone (1:05:22): Yeah, I mean, there's this in the digital because they're like, hey, we just had to say I just put like sale is taking business from my guys.

Unknown Speaker (1:05:32): Exactly.

Gary Cardone (1:05:33): For sure. Okay. Like like a move from four to eleven. Four to eleven, that is a massive change. And I have no tolerance.

Gary Cardone (1:05:44): You probably don't have a product like that. You probably almost all your products to do is give me thirty days notice. I'm getting paid mostly. Don't have to date the whole year. Yeah.

Unknown Speaker (1:05:57): So, and it's covered up. I don't know yet any of my bonds are covered up with collateral. I have no clue. I'm assuming you're not covered up at all.

Arthur (1:06:03): You're right. Exactly. No, there's the, the bonds are they're whatever the underlying thing they're, they're the company they're invested in. Who knows?

Gary Cardone (1:06:14): Yeah.

Arthur (1:06:14): I mean, the credit quality on the bonds is suspect anyway because of what we went through with 2008. So that's that nonsense is still happening. All right, Gary, do you know what, if it's okay with you, I super appreciate you doing this.

Unknown Speaker (1:06:28): You're awesome, man.

Unknown Speaker (1:06:29): I'll tell I don't, I don't want to lean on you again, but can we do another one and just talk about this stuff?

Gary Cardone (1:06:35): Yeah. Let's do. And if you want some more information, I mean, I'm, I'm hooked up with some really cool people. Know a whole group of to only study in SGR and SGRC products. So anytime you want to, you know, import sometimes we do will be a space on this and maybe this roll down into the entire product suite.

Gary Cardone (1:06:56): It's cool. I mean, from your thing is an awesome place for them to come to not to have to listen to some bank guy who doesn't roll know what he's talking. Just read

Unknown Speaker (1:07:04): it or doesn't care. Right?

Unknown Speaker (1:07:06): And he doesn't really care. Well, you don't kill when you don't really 3nine know. Yeah. Question to come across. So happy to do it, man.

Unknown Speaker (1:07:15): Yeah, I

Gary Cardone (1:07:15): appreciate your questions, sir. That helps.

Arthur (1:07:18): Yeah. I really appreciate you being here. And let's let's do that follow-up.

Unknown Speaker (1:07:22): Yeah. All right.

Arthur (1:07:24): So thanks everybody for being here.

Unknown Speaker (1:07:26): Yeah. Thank you.