0:00 [Music] so since we have eric today i thought it'd be really cool to uh talk about some of the most common nft misconceptions oh yeah help me i don't know ████ yeah because we have a lot of stupid questions about it and i'm sure like maybe in nfts there's no stupid question but um dumb dude it would be great to clear up a lot of like popular things that people get wrong about them okay yeah you know cool uh i'll start is there really like a environmental impact that's like disastrous when it comes to nfts yeah so that's a good question right great question guys that's a really smart question that comes up a lot so it depends on what chain chain is basically what blockchain the nft is built on so there's a lot of popular ones now solana is a new one ethereum is one there's even nfts are built on the bitcoin network and so the way that that we're
0:51 looking at is every transaction that happens on one of these chains electricity is being burnt to make that happen so ethereum network is probably the biggest i guess perpetrator of what we perceive to be environmental impact because it runs when you validate one transaction or emit an nft it needs to be validated across all of these like thousands of computers around the world and each of them are burning a little bit of energy so right now ethereum is on what we call proof of work network meaning like it has to be run by computers so each time an nft is minted or sold that gas fee that covers a transaction just think of it as like electricity you can burn all around the world but the hope is in the next couple of months or years ethereum is going to move to what they call eth 2.0 and that becomes proof of stake so that means every time a transaction happens
1:41 you buy an nft or you mint an nft or you do a transaction on ethereum it's not burning a ████ ton of electricity now it's just being validated against this like internal like transaction system but right now that's like the thing a lot of people are talking about is like every transaction and just in crypto in general bitcoin ethereum each transaction happens burns electricity all around the world how much electricity is that in relative to let's say like a household like appliance or something like is it really that much more than what a person normally uses yeah yeah it is pretty i don't i don't remember the exact amount but it is pretty significant for each transaction because just imagine there's tens of thousands of computers validating these transactions and each transaction has to be validated across all the computers so it's all the electricity everyone's using put together yeah yeah cause a gas fee could be like a couple hundred bucks sometimes you're like what the ████ yeah there's a
2:31 point in time when there's um actually a couple weeks ago hugo labs which created the board yacht club project there was a project that they just dropped called other side land which you know i ended up minting it was so hotly contested people wanted it so bad that just to pay gas to mint it it was about two thousand dollars in gas to mint one right so if you can imagine the demand on the network so many people are trying to hit the network all at the same time all these miners are validating all these transactions just imagine how much electricity is burnt to mint like one of these like these digital monkey lands wow i have a question for um like is there a specific type of demographic that's into nfts that's a good question so like for some context like i run in accounting and tax
3:21 practice and we focus a lot on nft founders and nft platforms we do accounting for some of the biggest players out there when it comes to the demographics a lot of them are marketing too they typically are in a younger generation like typically it's 18 to 33 year old type of an individual mostly men and guys are into into the nft space there is a small contingent of women that's starting to come into it which i think is really cool but it's usually like younger guys that are into it because a big like venn diagram that i see at least on my instagram is like sneakerheads and nft is like i don't know if it's like hype or height beast or whatever but just seem like there's a huge overlap there there is a big overlap and that started happening about fall of last year when the profits of like flipping jordans wasn't as profitable anymore so they all moved over to the nft space and becoming
4:11 nft flippers so there is a big intersection of like the hype beast sneaker heads in the nft i saw that with nba top shot and like sneaker heads yeah so nfts are prime like as i understand them right now they are basically just bragging rights more or less and you're fighting for like that exclusivity of having this thing right it's not but you're not even owning the like a limited edition sneaker yeah but it's like literally just this like digital token right that you have ownership of right sort of kind of so think of an nft as like a irrevocable proof of ownership of someone yeah so right now what we're seeing in the market is we're looking at in terms of digital art even though like some of these things if we look at like that's ugly as hell like that's not art right so it's a digital token representing you have exclusive ownership of this particular thing but in the near term we're seeing
5:02 companies like starbucks using it for membership cards ibm is investing billions of dollars into creating nfts for intellectual property you know we might see it come out for real estate in terms of title but right now we're seeing in terms of okay you're buying it nfts you're buying a piece of art but what's the underlying piece behind it so a lot of folks are buying nfts like board ape yacht club for example or um crypto punks because there's a membership or there's an exclusive access to a community so we call that a velven good so developing good is something that has tangible value above and beyond what it is so there's no real difference between like a chanel bag or a coach bag they just they hold the same thing right why why are they different one is more exclusive one has a certain luxury cache so same thing with nfts when you have it it's like a flex you could show people hey i got a boripe
5:52 yacht club which is now worth 200 grand yo this is what i got how do you show it like on your phone do you show proof like i'm a member of the yacht board apes some people they have it on there they could load it up on their phone you know instagram photo people have merged like twitter has validated um profile pictures based upon that so there's a lot of different ways and it's like a digital flash instagram's going to do that too right instagram is working out too yeah what if i like show people my costco membership is that pretty exclusive it's business yo it's the black card y'all buy a kinja bang in bulk the exclusive one i mean the executive one or that's pretty sweet dude is it a red one or a black i'm jealous because you could buy the pizza which now we can't yeah you have to be a member to buy the food court stuff yeah even if it's outdoors yeah even if it's outdoors lying about his costco membership on record he's lying always triple a
6:43 though five year five-year-old five years if i get a flat tire that'll come in three minutes sometimes even sooner so i'm not with new cars they come with the thing you don't need aaa what thing you just call the company's towing thing that that comes in the roadside assistance yeah yeah yeah that's a new luna dude well it comes pretty quick though dude like it depends on no it depends on where you live it depends on where you are and when you call them ron was telling me during our like little naked walks he was saying that uh in the tow truck space with roadside assistance it's usually a contractor that dispatches to all the tow truck companies but all of them the number one priority if they get 20 calls that come in aaa is the number one he's trying to get his company aaa certified because that's when you get most of the jobs
7:35 talking straight about triple a over there that's more worth more than a board here's a question how what percentage of nfts um on the market do do you believe are intentional worthless scams and how do you tell them apart yeah that's a good question so like in the nft space and in the crypto space in general we hear this term called rug pool right rug pulls basically where somebody creates something with no intention of actually building it they take the money and run so there is a facet in the nft space where there are a lot of drug pulls like i've collected over about a thousand nfts at this point and 700 of them are complete dog ████ that's just the nature of the beast right it's a lot it's a numbers game it's a numbers game so there right now there is an aspect of like people that are scamming in the space and anytime you come into an emerging technology just like in the dotcom.com era back in the
8:26 late 90s a bunch of it was complete garbage right same thing in the crypto markets the ico space a lot of it was complete garbage same thing in the nft space so i personally believe and there's a lot of other like big players in space that leave probably about like 98 of the stuff out there is gonna disappear but two percent is like gonna be like the amazons or the apples of the googles of today so it is a lot of big numbers and obviously this is not financial advice do your own research um but um there is a lot of scams so you gotta be careful how do we pick the two percent tell us the secrets now and there's there's really no like big secrets but it's just like investing and i use the word investing loosely because a lot of it is like a gamble but it is like if you're looking to be an angel inside of a new company you want to figure out who the founders are the do they have a track record of success in
9:17 the past right what are their promises is this realistic timeline of what they they're looking to do they call them should we have done that with doe quan failed the stable coin once already why are we even trusting this guy didn't come out until after yeah oh yeah a lot of this stuff no no no no one knew yeah no ████ dough quan dude it was dough anyway i think something else i thought we just hate him i just got him tattooed on my ████ ribs i love that logo and everything oh man one of uh one of my friends has a uh like a v friends nft yeah and then so um i i was like that's i don't know what the whole like like value of it was but i think with it oh the garyvee one yeah you can go to his conventions with trump which are huge which is this weekend yeah and if you don't have it you can't even go to his conventions
10:08 which is kind of cool so that's that's a big part of it so that the easiest way to parallel for those aren't that are in the crypto or not in a thesis think of a country club right the only people that could go to the country club are the ones who paid right membership sorry that's right that's right right um so like having an nft in certain some of these projects is like a membership pass to be part of like this country club right so same thing with v friends to go to one of garyvee's events you have to have a v friends nft and it's like it's artist's objective you look at it it's gary actually scribbled his own stuff and you look at this picture of a bear you're like that doesn't look like a bear looks like something a five-year-old kid had scribbled right but again it's like they're using this as a token to validate you have ownership or membership into this organization and then that's how you get
10:58 into these events yeah what do you think about uh how the food industry's been adopting nfts with you know like a fly fish or with a andy nguyen open the board and hungry restaurant yeah for the yacht club members yeah so so andy and his one of his partners kevin good friend of mine like they've created this project that we've been launching that's called food fighters now andy is known in socal as like the the food guy yeah right he just sold after his ice cream and all that stuff like that i sold it he just said that do you know how much you sold it for i don't know i don't know can you find out right now in columns um so it's a white guy huh probably a country club yeah food group they have actors at every clubhouse now and all the courses
11:49 we sold it to kirkland dude i knew it i knew it proud sponsor of the pga tour afters so what their what their project is doing is they're intersecting the restaurant space with digital consumers so what we're seeing is we're gonna see all these like really interesting and novel ideas come up and come to place so their first line and things might have changed since they first gave me the white paper but the first line is like the first layer of folks that come in they're part of this exclusive club where they can go to exclusive tastings and support other restaurants and create this little ecosystem and then they're going to launch a bigger project that the consumers could come into and also interface with these different restaurants so same thing like like garyvee's fly fish he bought this exclusive like sushi restaurant and in order to go to sushi restaurant and rub shoulders with other digital celebrities and stuff like that you had to have this membership right
12:40 the fly fish nft so that what we're going to see is we're going to see some really interesting intersections between this digital space and the real world real world space even starbucks they're looking at changing their reward system into an nft and then people go in to validate that to show that they have the nft to be able to get certain rewards do you want to know the best use they could have for nfts that'd be the most ultimate cash in you can only edit your drink if you have an nft yeah that's something tell me everybody wouldn't get that yeah everyone's getting it otherwise you have to have it as it is but if you're like i want to have no no the sugar soy bug please do you have the nft are you a holder [Laughter] now imagine like if you hold an nft and i'm working with another restaurateur in socal with this if you hold the token or the nft and you scan it it unlocks a
13:31 secret menu that only nft holders could have you can get a frappuccino animal style pickles thanks for being a holder thanks delicious
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