Thinking of investing in Bitcoin? In this episode, George Goognin, founder of his own cryptocurrency called Karma, spills all the beans about cryptocurrency, giving us an honest and practical approach into how and when to invest in cryptocurrency, plus the best uses for it today.
He also shares his struggle of promoting his business in a world where the media is so heavily under the influence of the big and powerful corporate companies.
My Guest: George Goognin
George Goognin has a PhD in Math Models and Economy and started the first federal online startup in Russia, which he personally presented to Vladimir Putin in 2009.
With eight years of experience in automation at big FinTech firms including Apple, Samsung and Nike, George created the first Blockchain experts chamber in the Russian Parliament. He and his team have been actively participating in creating and editing the legal environment for crypto. He is now working on his own cryptocurrency, Karma, and recently raised $10 million to fund his company.
Pivotal Moments:
Started his own business at the age of nine and was wowed by the experience of raising his own profits.
Opened his company ADV web engineering, a software development company.
In 2013 was trying to get a bank loan to grow his business but was turned down because of regulations requiring him to provide collateral worth three times the value of the loan.
Realized that there was huge potential to provide lending solutions for SMEs, so founded a peer to peer lending company as a side hustle, reaching a turnover of $5 million by 2017.
Developed the company from manual to digital, eventually creating his Karma cryptocurrency.
George recently raised a $10 million investment to fund his company, and is now working on developing and growing Karma.com
The Advice:
Testing a Business Idea
When starting out with a new business idea, it’s totally ok to begin with manual staff and paperwork. Once you have proven that this paperwork and manual process is attracting clients, has an audience who are interested in it and can generate some income, then you can begin to develop some software and an online interface for your clients to use.
Investing in Cryptocurrency
Tips for Investors:
What’s the deal with cryptocurrency? Is it safe or worthwhile to invest in it? Here are some tips if you are thinking about going into the game:
1. Never get a loan to buy cryptocurrency. Because it’s so unstable, you could easily lose the money and you won’t be able to pay back your loan.
2. How much should you invest in crypto? As much as you would invest in the lottery. Maybe it will work, maybe it won’t.
Usage for Cryptocurrency:
Currently, the most useful function of cryptocurrencies is managing the huge cross border commodity trade deals and money transfers. Some countries charge huge bank fees for sending money abroad, and in some cases the tarrifs can be more than paying income tax, making cryptocurrency a great solution for cross border trade.
Stability:
Cryptocurrency has a reputation for being notoriously unstable. However, some currencies are tied to conventional currency, such as the USDT which is tied to the US dollar, and another which is tied to the SDR (a stable index on multiple currencies).
The Struggle:
George struggles with PR and using the media to publicize his business. He feels that the media is heavily under the influence of big companies like Google and Amazon, meaning that in order to catch their attention, you need to do something very freaky or outstanding.
The Breakthrough:
Promoting your business and attracting the right attention is not just luck. There is a straightforward process, including creating a pitch or headline, catching your audience’s interest and convincing writers to showcase you in their articles. et people to write about you. For more about the ABCs of PR, listen to our anniversary episode with Ashley Crouch (see Resources and Links section below).
Resources & Links:
For Part 1 of this episode, where you can hear George’s journey, go to estierand.com/60-1.
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