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Tom Bilyeu's Impact Theory
How To Prepare For The GLOBAL RECESSION & Build Wealth In The Process! | Raoul Pal
Sep 3, 2022
02:41:28
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Quick takeaways
- Building personal discipline is crucial for achieving goals and reaching financial stability.
- Exploring additional income sources and investment opportunities can provide growth and long-term financial change.
- The global economy's heavy debt raises concerns about stability and systemic risks.
- Understanding the value proposition and network effects of cryptocurrencies like Bitcoin and Ethereum is key for long-term investments.
- Maintaining a long-term perspective and sticking to an investment strategy can navigate market volatility and potentially benefit from asset growth.
Deep dives
Building Personal Discipline
Discipline is necessary to achieve goals and reach one's potential. It involves doing difficult and stressful tasks, even when they are boring or scary. Building personal discipline is challenging but pays off in the long run.
The Importance of Income, Optionality, and Investments
Income is essential for covering expenses and achieving financial stability. Creating optionality by exploring additional income sources or starting a side business can provide opportunities for growth. Lastly, identifying investment opportunities that can provide long-term financial change is crucial for building wealth.
Understanding the Financial System
The global economy is heavily indebted, with governments and corporations borrowing extensively. This raises concerns about the stability of the financial system. Collateral values and debt levels, if not carefully managed, can lead to systemic risks and economic crises.
The Power of Scarcity and Network Effects in Bitcoin and Ethereum
Bitcoin offers scarcity and a store of value, with only 21 million units in existence. Ethereum, on the other hand, provides a platform for programmable money and smart contracts, creating network effects for various applications. Understanding the value proposition and network effects of these cryptocurrencies can be key to long-term investment strategies.
The power of conviction and dollar cost averaging
Having conviction and staying committed to a strategy is crucial in navigating the challenges of investing. Dollar cost averaging, the practice of consistently investing a fixed amount over time, can help mitigate the risk of market timing and capitalize on market fluctuations. This approach allows for the accumulation of assets at different price points, resulting in a lower average cost over time. By focusing on long-term trends and maintaining a steady investment strategy, individuals can navigate the volatility of the market and potentially benefit from the growth of their investments.
Understanding leverage and its risks
Leverage, the act of borrowing money to make investments, can amplify both gains and losses. While leverage can provide the opportunity to increase exposure and potential returns, it also comes with significant risks. In the context of cryptocurrencies, leverage trading allows investors to borrow funds to increase their positions. However, leveraged positions come with the possibility of liquidation, where the exchange or platform forcibly sells the investor's assets to cover losses. This can happen rapidly if the value of the asset declines below a certain threshold, resulting in potential losses and the removal of the investment from the market.
The importance of a long-term perspective and recognizing market trends
Maintaining a long-term perspective and recognizing market trends can help investors avoid panic-induced decisions and stay focused on their investment thesis. Markets, including cryptocurrencies, can experience significant volatility in the short term. However, when examined over a longer time horizon, trends often become clearer. By zooming out and looking at charts on a logarithmic scale, investors can gain a better understanding of the overall trend and reduce the emotional impact of short-term fluctuations. Additionally, having a strong conviction in one's investment thesis and sticking to it can provide a sense of clarity and help navigate market volatility.
Recognizing the potential of cryptocurrencies and the democratization of investing
Cryptocurrencies have emerged as a new asset class, offering unique investment opportunities. The rise of digital currencies has allowed retail investors to participate in markets historically dominated by institutional players. The democratization of investing in cryptocurrencies has leveled the playing field, enabling individuals to front-run institutions and potentially reap the benefits of early adoption. Retail investors who stay informed, maintain a strong conviction, and take a long-term approach to their investments may be well-positioned to capitalize on the growth and potential of the cryptocurrency market.
The Power of Tokenization: Real Estate, Artwork, IP Rights, and More
Tokenization allows for the attachment of smart contracts to the blockchain, enabling the recording of ownership for various assets. This includes tokenizing real estate, which has the potential to democratize access to high-value properties and distribute returns equally among investors. Tokenization also extends to artwork and other digital assets, creating scarcity and value by providing unique ownership rights. Additionally, tokenizing intellectual property (IP) offers creators the ability to directly benefit from the use and sale of their work, ensuring ongoing revenue streams. Ultimately, tokenization enables the creation of digital communities and economies, where like-minded individuals can coalesce around shared interests, leverage the power of decentralized finance, and collectively build value.
The Shift from a Globalized Order to Regionalization
The current global order is undergoing a transformation, moving away from a centralized, globalized system to a more regionalized one. Countries like China are actively seeking to establish their own networks and alliances to reduce dependence on the US-dominated financial system. This shift is driven by efforts to detach from the US dollar's influence, reduce exposure to geopolitical risks, and gain more autonomy in economic decision-making. While this change may appear disruptive, it aligns with historical cycles of globalization and de-globalization. It is important to embrace the opportunities and adapt to this evolving landscape, recognizing the potential for regional economies, digital currencies, and new alliances to shape the future.
On This Page: Wishing your way to wealth and success, complaining about who is wealthy, and riding the wave of misplaced time, money and effort is not why you’re here. Stock markets, investment portfolios, 401Ks, and bank accounts look like the stuff global disasters are made of.
You’re living through weird times and having a biological experience of unforeseen proportions when you look at the global economic sh*t storm we’re in. So the top 5 ideas and people you’re spending your time with really matters, perhaps more than ever before. Perspective is key, and you get to decide if you’re living in a friendly or hostile world.
Raoul Pal, CEO and co-founder of Real Vision, has some ideas that can certainly help average up how you think about getting through our current recession. Whether your money is all in crypto, in a 401k that’s reduced by half, or in none of the above, the ideas that Raoul shares in this episode may be some of the most important ideas you’ve ever heard.
Are you still living and acting based on an American Dream that died decades ago? Does the thought of buying during a market drop scare you or excite you? Listening to these conversations between Raoul and Tom is going to break some of your ideas apart and allow you to put together a new and improved perspective that will allow you to thrive during this recession and maybe even get a little excited.
SHOW NOTES:
0:00 | Introduction Raoul Pal
0:27 | Thrive in the Economic Collapse
41:39 | Crypto 101 Masterclass
1:11:59 | Recession 101 Masterclass
1:41:51 | The Biggest Opportunity
2:13:30 | Adapt to the Changing World Order
Follow Raoul Pal:
Website: https://www.realvision.com/
Twitter: https://twitter.com/RaoulGMI
Are You Ready for EXTRA Impact?
If you’re ready to find true fulfillment, strengthen your focus, and ignite your true potential, the Impact Theory subscription was created just for you.
Want to transform your health, sharpen your mindset, improve your relationship, or conquer the business world? This is your epicenter of greatness.
This is not for the faint of heart. This is for those who dare to learn obsessively, every day, day after day.
Subscription Benefits:
- Unlock the gates to a treasure trove of wisdom from inspiring guests like Andrew Huberman, Mel Robbins, Hal Elrod, Matthew McConaughey, and many, many, more
- New episodes delivered ad-free
- Exclusive access to Tom’s AMAs, keynote speeches, and suggestions from his personal reading list
- You’ll also get access to an 5 additional podcasts with hundreds of archived Impact Theory episodes, meticulously curated into themed playlists covering health, mindset, business, relationships, and more:
- Legendary Mindset: Mindset & Self-Improvement
- Money Mindset: Business & Finance
- Relationship Theory: Relationships
- Health Theory: Mental & Physical Health
- Power Ups: Weekly Doses of Short Motivational Quotes
Subscribe on Apple Podcasts: https://apple.co/3PCvJaz
Subscribe on all other platforms (Google Podcasts, Spotify, Castro, Downcast, Overcast, Pocket Casts, Podcast Addict, Podcast Republic, Podkicker, and more) : https://impacttheorynetwork.supercast.com/
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