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Unpacking Cryptocurrency, NFTs, and Investment with Dr. Hans Boateng | Ep. 316
Episode 31611th April 2024 • Money Talk With Tiff • Tiffany Grant
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Welcome to another engaging episode of Money Talk with Tiff! Today, we're thrilled to have Dr. Hans Boateng join us to unravel the complexities of digital assets, NFTs, and the broader spectrum of investment diversification. If terms like cryptocurrencies, NFTs, and blockchain sound like a foreign language to you, then you're in for a treat. Dr. Hans offers a deep dive into the potential of these digital assets in our investment portfolios and how they can significantly impact wealth-building strategies, especially within our community.

We'll explore the rollercoaster world of cryptocurrencies, the average returns versus the S&P 500, and discuss the inherent risks involved in chasing higher gains. Furthermore, Dr. Hans illuminates the concept of NFTs beyond just the quirky pictures of apes and penguins and shares his innovative approach to NFTs with The Royals project—a cultural milestone connecting the African diaspora through blockchain technologies.

Tune in as Dr. Hans demystifies investing in the digital age, the value proposition of NFTs, and how they authenticate ownership in ways far transcending the current hype.

Remember, this is not investment advice but an insightful conversation to empower your financial knowledge.

About Our Guest

Dr. Hans is the ideal person to teach you about investing. He was able to climb the ladder of financial success from the bottom 10% to the top 1%. He is an accomplished professional with a wealth of knowledge and experience in finance and investing. He holds an MBA with a Path of Distinction and a Doctorate degree. He grew up in Ghana, West Africa; when he arrived in the US, he recognized the lack of investment literacy in immigrant and minority households. This fueled his passion for teaching others how to build wealth. He spent 13 years mastering the subject of money and has worked with over 10,000 members. Dr. Hans has been featured on Bloomberg and Business Insider and is trusted by the communities he serves.

Connect with Dr. Hans

Royals Experience: https://www.ghanaroyalgala.com/

Instagram: @theinvestingtutor

Facebook: The Investing Tutor

Twitter: @investingtutor

Connect with Tiffany

Website: https://www.moneytalkwitht.com

Facebook: Money Talk With Tiff

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Instagram: @moneytalkwitht

LinkedIn: Tiffany Grant

YouTube: Money Talk With Tiff

Pinterest: @moneytalkwitht

TikTok: @moneytalkwitht

Timestamps

[00:00] Diversification essential for catching up in investments.

[05:45] Upside potential comes with downside risk awareness.

[07:55] NFTs: Unique digital tokens, not interchangeable items.

[10:32] Authenticating ownership via blockchain, accessible to all.

[14:22] Token holders had invitation to visit Ghana.

[18:00] Black identity, NFT potential, and African heritage.

[24:02] Ankara NFT offers big discounts on travel.

[25:56] Thankful for conversation about tech investments and connections.

Key Themes

  • Digital assets in investment portfolios
  • Cryptocurrency and Bitcoin returns
  • Understanding and managing investment risks
  • Introduction to NFTs and their function
  • Authenticating ownership with blockchain technology
  • The Royals NFTs and cultural representation
  • Lifetime access through NFT membership benefits

Additional Links & Resources

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Copyright 2024 Tiffany Grant



This podcast uses the following third-party services for analysis:

Chartable - https://chartable.com/privacy

Transcripts

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You know what it is. That's right. It's time to talk money with your money

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nerd and financial coach. Now, tighten those purse strings

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and open those ears. It's the money talk with Tiff

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podcast. Hey,

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everyone. I am so excited because I have Doctor Hans on the line

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now. We met back in 2022 at Fincon, and

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his expertise is in digital assets and

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nfts. And so I wanted to bring him on, on the podcast to kind of

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talk about that with us because I am no expert. I'm

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just gonna be real. So, hey, Doctor Hans, how are you?

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Oh, very, very well, Tiffany. So, so, so great

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to. To be on here. Yes. Thank you so much for coming

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finally. Yeah, it's been a long time in the making,

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so let's just hop right in. My first question for

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you is, what are your thoughts on the role

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that digital assets and cryptocurrencies and nfts and

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all these different things that we hear about plays in an investment

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portfolio? Yeah. You know, when I

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came into

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understanding wealth building and investing, right, I

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noticed that the general kind of

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education or advice out there was, you know, get

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a. Then just invest in the

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S and P 500, right. And obviously, that is

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a broad basket of the top 500

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companies in the US at any given time. And historically,

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this has been the main benchmark for

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investment returns. Right. It's been averaging about 10%

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year over year for the past 80 to 100 years. So

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most individuals view investing as, this is how you diversify, get the S

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and P 500. Right. What I noticed, though, was

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that there were some individual companies

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within the S and P 500 that had phenomenal

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returns. And like Apple,

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right. For the past 15 years,

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Apple has been compounding at about

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31%. Right? So that is three times the

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returns of the S and P 500.

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And with digital assets, bitcoin, it's been averaging

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150% for the past 13 years.

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Even last year, bitcoin was up 150%. Now, I'm not

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saying it's 150% every single year.

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That's the average. You could have some years where you

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will have a drawdown or a pullback. So

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when I saw this, I was like, okay, S and P 500 averages about

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10% in some individual stocks, if they are

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good companies and they have incredible growth, can average

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anywhere between 20% to 30%. And you have digital

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assets and crypto where you can get, like, upwards of 100%. So

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for me, diversification is just making sure that I have

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exposure to all of these different types of

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vehicles, whereas most investment kind

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of educators and advisors will say, oh, just buy an index fund. And the truth

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is, that is the safe

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and ideal way to go

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if you just want to steadily build wealth. But

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for people in our community, often we're catching up, right? We're

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behind as it relates to the wealth gap. So I

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view it as we cannot just go with the status quo. We need to give

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ourselves an edge. Right? So then when an individual is able to

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combine, you know, the S and P 500 with

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individual stocks, and then you kind of sprinkle some cherry

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on top. Right. That's your digital assets and crypto

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that can exponentially make a huge

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difference. And I'll just share this one example. Let's say

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$500 invested over 20

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years. If that $500 is compounding at

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10%, you'd end up with about

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$300,000 over a 20 year period.

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If that $500

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compounding at, let's say,

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25%. Now, if you remember the examples I

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gave you, I said s and p was 10%,

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stocks, somewhere around 30%, 20 to

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30, and bitcoin has been averaging 150. So when I

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say when I use an average of 25%, even though it might seem

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high to the average investor, when you combine these

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three, it doesn't seem kind of impossible, like looking at

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historic returns. So at a 25%

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compounded return over 20 years, you're looking at $2

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million. Right. So that's the edge that

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I look at. And I say, you know, I cannot just settle for just a

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10% average return. Yeah. And, you know, when you

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put it like that, it makes complete sense. I do want to throw out there

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really quick, a little disclaimer. This is not investment

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advice. We are just providing information for educational and

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entertaining purposes. So treat it as.

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But you make a really valid argument

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for why you would want some diversification as it comes

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when it comes to individual stocks,

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cryptocurrencies, things that are not just the

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index funds. Yeah. Have that as your base, but then kind of

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diversify, you know, outside of that. Now, what if people are

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listening? They're like, okay, I hear you, Doctor Hans, but what about the risk?

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Yeah, there is risk for anything that

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has the potential for an upside return. It has

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equally a similar potential for a downside

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return. Right. So, in essence, if you have an

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asset that can be up 150%,

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if the economy is not great, if

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liquidity in the financial system isn't there, meaning that

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banks aren't really lending a ton of money,

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the Federal Reserve isn't really pumping money

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into their system, or let's say the Federal Reserve

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is increasing interest rates, so it's tightening the economy.

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In such an environment,

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you could have these kind of risk assets that do really, really well,

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like bitcoin. And certain stocks, like growth stocks,

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fall, you know, 50, 70, 80%.

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So an individual just has to understand that,

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yes, the same assets that can build you exponential wealth

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in economic environments that are not favorable, you could see

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significant pullback. So just mentally

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understanding that and educating yourself. Right, to

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know what you're getting into and positioning yourself

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for the long term, instead of trying to kind of day trade

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or look for some kind of short term

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money, right? And that's why I give the example of 20 years.

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And that's why I was, when I spoke about bitcoin, I said for the

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past 13 years, it's been averaging

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150%. But each and every year,

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it kind of depends on the economy, how it's doing,

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liquidity and things of that nature. Gotcha. Gotcha.

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Okay, so now I want to dive into Nfts a little bit,

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because personally, I'm so confused on how all of this

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works. So first of all, what are

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they, how do they work? And how would one buy, what could

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they possibly look like too? And then how does one go about

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buying them? Yeah. You know,

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when most people think about nfts or they hear

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nfts, right? They just think about pictures of

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apes, right? Because bored apes was the most popular

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NFT, and at a certain point it was worth

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over $400,000, even though originally they

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were purchased for about $250.

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So most individuals think about nfts as

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images of some kind of animal, right? Apes,

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monkeys, zebras, penguins.

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And I saw that happening kind of in their space.

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And I said to myself, people in my community

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are not going to take their hard earned money to buy

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pictures of animals, right? It didn't make sense to me.

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So I wanted to create something

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that would, um, speak

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to individuals in our community. But before kind of

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diving into how I personally used nfts, let

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me take a step back and kind of share with you the definition of an

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NFT. So the simplest way to think

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about an NFT is, is that, well, NFT

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stands for non fungible token, which means a unique token,

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a special token, right? It's, it's pretty much one of

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a kind, right? Non fungible means you can't

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interchange it. So the

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simplest way to think about an NFT is that it is

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a token, right? We've already said it's special and unique. So it's a

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token that shows

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ownership of something or another way to say that is,

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it's a token that authenticates

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ownership. And the reason why this is so important is

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because it takes away all of the hype

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and it allows you to understand exactly what it does.

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So, for example, in the future, let's say an individual

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buys a ticket to a Beyonce concert, right?

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Well, those tickets can be issued as nfts.

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Why? Because individuals can be given or sent

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special tokens to their phone, and because that token is unique

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to them, right. If they show up to the concert

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with that NFT, we know that, okay. Yes,

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you're able to attend, right. It's a unique token, and

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it authenticates that you are the owner of that ticket.

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So in the real world right now, the way we

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authenticate ownership is via paperwork.

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If you go buy a car, you have to fill out documents

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at a dealership. If you buy a house, you have to fill out

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documents, a deed, all of these things. So,

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pretty much paperwork kept at, you know, some kind of

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company in a database authenticates ownership.

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Nfts allow you to authenticate ownership

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using the blockchain, because all of that data is

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stored on the blockchain, which

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is globally accessible to everyone. So another way

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of saying that is that you can authenticate who owns

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something, and that information is available for

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everyone to see. And it's a powerful

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concept, because all of a sudden, when

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you own something, let's say you own a token that

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represents a picture, right?

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Now, that token can also represent a house, it can represent

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a car that you just purchased. It's just that that is so far in the

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future, it's not happening right now. But it's a much better way

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to authenticate ownership. When you own that thing, it

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means that you have the power to be able to sell

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it because you own the token, right? So then

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I want individuals to think about NFTs as a way

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to authenticate ownership. In terms of how to buy

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nfTs, an individual will need to educate themselves pretty

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much about how things work in their crypto ecosystem. They'll need to know

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about metamask, which is a wallet. They'll need to know about Opensea.

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I kind of teach about all of these things.

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But going back to that example

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of images of monkeys selling for hundreds of

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thousands of dollars, you might ask, why is

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it that it was worth hundreds of thousands? And the simple answer is,

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because other people were willing to buy it from

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you for that price. It became kind of like the cool thing.

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It's almost like it was a status symbol. And if you ask me

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why, I have no idea. It was one of

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the first NFts that were created. So it's like if you have it,

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it proves that you are an OG. Like you were in

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this ecosystem very early and

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for some reason people were willing to pay hundreds of thousands of dollars for

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it. So I was looking at all of this going on and I said

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to myself, no, no, no. There has to be a better use of this

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technology. And that's where the idea of the royals came to me.

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And it was, I want to

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create an NFT that

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represented african culture. As you can

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imagine, there wasn't any representation of

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us in this kind of a crypto

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ecosystem. A lot of the things out there didn't represent kind

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of minorities or

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Africans or different cultures. So I just

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wanted to make sure that similar to how the

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Internet took off back in the day, and you didn't really

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have a lot of individuals in our communities

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participating in building the Internet. When Google and Facebook

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and all of these companies, Amazon's, were being created, PayPal's, you

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didn't see us represented. So I just wanted to make sure that

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we were represented or we are

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represented. And that's what led me to create the royals. So the royals is

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the first NFT to showcase

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Africa's royal culture. And every single

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token holder, right, had an

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invitation. When we launched that year,

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2022, they had an invitation to

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actually visit Ghana and their

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token allowed them to have a one week experience in

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Ghana leading up to what we call the royal

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gala. So, yeah, we had almost 300

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to 400 royals join us for our royal

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gala in 2022. We had an absolute

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blast this year. We're going to be going back in

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March. And the individuals who had

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the NFTs, depending on the type of NFTs that they

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had, you either get a discount on this year's

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trip or you can actually attend the royal gala for

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free this year. So we're looking forward to continue

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to use this NFT as a way for individuals

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to experience the african continent

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and hopefully in the future, even beyond Africa.

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Yes, yes. And y'all, he is not telling a lie.

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I saw all the stories and the videos and

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the pictures. I had some serious FOMo because I knew a few people

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that went as well and they said they had a blast. So I'm looking forward

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to the next one so I can participate. But I

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love how you took the NFT concept and

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moved it to more of experiences versus just a

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picture of a monkey or, you know, I see the penguins all the time, or

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pictures of penguins. It's more of something that

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people will have a lifetime memory of doing this

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thing. And it was well worth it. You know what I'm saying? Yes,

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yes. I like to say we, we

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created a royal family on the blockchain, right?

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One that it brings us together and we have experiences.

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And I wanted to also create something that when some, like before

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a person purchases it, they can kind of almost determine the

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value. Right. Because we had two

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nfts, the Ankara NFT,

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which there were about 2800 of them, was about

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$200. So imagine you pay dollar 200 and you

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get to experience like a full week

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in Africa. Mind blowing,

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right? Absolutely. And we had the kinte

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NFT, which, you know, kinte fabric is

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like the official royal fabric in Ghana. Like,

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you only wear kinte when you're going to, like a wedding or like a

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very prominent event. Right? So the kinte NFT,

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that was a $2,000 price point. But

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the kind of benefits or perks that come with that kinti

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NFT is an individual who has the kinty. And we

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only created 200 kinte nfTs.

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With the kinti NFT, you can visit any

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of our future royal galas completely for free.

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So it's just before an

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individual purchased that NFT like this, we wanted to create

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something that allows individuals to be able to kind of

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know the value and also have

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a digital asset that represents them, especially

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for us. Right. We

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need, we wanted to focus on retelling our story,

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right. As, you know, an immigrant, and I know

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there are other cultures, but for blacks, Africans,

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African Americans, it's like other people are telling our story, but

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we know our story. We are from

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a royal background. We are royalty. And I just wanted to put

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that as the forward facing message

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in this ecosystem. So I continue to believe that

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in the future, right, over the next two to

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three years, I'm confident Apple or

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Google will make access to NFTs

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in their smartphone devices and it will make it even simpler to

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buy and sell. And once that

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happens, I believe individuals will look back at,

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oh, what was the OG

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project, right, that represented

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african culture? And I honestly believe royals would be one that they look

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back at and say, wow, it's this. I

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could absolutely see that myself as well.

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And one thing I just wanted to, you hear me stumbling over my words because

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I'm over here, I want to get to this question, which is, you mean

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to tell me $2,000.01 time, or is this like

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a recurring or one. Time the kinty

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nfts one time, $2,000 purchase? Yeah.

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Wow. And then you have access to all of the royals trips

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going forward. So what it sounds like to me and how I'm kind

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of formulating

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this in my mind to kind of make it to something that I do know.

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Right. Yeah. It's like a membership. Kind of. Exactly.

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So, like you can get in at this price. It may go up later

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on, but you're still grandfathered in and it's

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only a one time charge. And then, you know, later on

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maybe the price increases, whatever, but you are still

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in because you bought that membership at that time.

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100%. But it even gets better. To

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remain a member, you need to have and own the token.

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Right. So let's say you had plans to sell one. Let's say you had

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plans to remain as a member, but

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you purchased two or three nfts. And it could

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either be Ankara or Kinte. It doesn't really matter. Right.

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Because you are saying to yourself, I feel like others might want

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to be members in the future. Right. So then let's say you bought three

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nfts in the future.

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You are the only individual that can determine what

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price you are willing to take for those tokens or those

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membership spots. Does that make sense? Yes. Yes.

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So kind of like,

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for instance, like in the stock market, there's only a certain amount of

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stocks out there. The reason you can buy them is because people are selling them.

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And so with this, you're like, okay, our limit is

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200. Whoever gets it, gets it. And then later

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on they'll just have to purchase from the people that already bought it.

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Exactly. Exactly. Got it. Oh,

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interesting. Okay. Well, I hope there's some of the some

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left because, you know,

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also what I'm equating it to and not saying that this is what's gonna happen,

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but you know how people buy up tickets and then they start scalping them, you

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know, outside because they can sell it for more.

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Exactly. And I would honestly compare NFTs to

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tickets, honestly versus

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stocks. And the reason is because

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when you are buying, let's say, a ticket, you know that you're going for an

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experience. But imagine you buy a ticket that gives

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you lifetime access to that type of

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event. So the question is, if you had the opportunity to buy, would

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you buy just one or would you buy several because

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you know that others might want it from you. Does that make

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sense? So, yeah, it

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provides that opportunity.

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But you also want to own an

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NFT where you believe that the individuals that

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issued it are going to stay true to their word. Right.

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Because if they, you know, if it just,

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they don't host any other events, it just disappears. Which

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unfortunately happened to about 95%

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of NFT projects. Then you are left

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holding something that's worthless because no one else would be interested

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in it. That is a good point. And that was something I

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had thought about too with these pictures and stuff.

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And even in this case, what

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is stopping someone from saying, well, you know what, I'm going to just take them

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all down or people, it won't be

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worth anything anymore. I'm glad you bought that point

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up. But I hear in this particular

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situation that as long as you make it to one,

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you at least get your money's worth. Exactly

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right. 100%. As long

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as you make it to one, you get your money's worth. Absolutely,

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absolutely. I envision royals

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honestly as cause it's a total of

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3000 NFTs. 2800 Ankara 200

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Akinti I just envision it as just kind of this group of

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individuals who are,

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they appreciate, you know, african culture.

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They want the world to know that Africa or

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african culture represents royalty and they also love to travel, have

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experiences, right. And the

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goal honestly is to continue to offer these

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experiences and with the Ankara NFTs

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provide incredible discounts. Like so for example, this year an

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Ankara NFT would get you anywhere between five

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hundred dollars to one thousand dollars off of our

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packages. And the packages include like you

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wanted hotel stays and things of that nature.

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So if you can imagine, you bought the NFT for $200 you're getting

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$500 to $1,000 off of a travel

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package. That's amazing. The kinty NFT, once you have it, you

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can attend the royal gala and any royal gala that we have in the future

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without having to pay anything for the gala. But once again, if you

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wanted like hotel stays and things of that nature,

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kinte members get even a higher discounted

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rate off of those reservations.

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Gotcha, gotcha. Well, this was enlightening for me and I'm glad

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that you put it in terms where I could understand and

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therefore my audience can as well. And so I have a better understanding. I can

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leave this conversation and say, I know what nfts are now

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and. You'D be one of the very few,

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right? Less than 1% of

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individuals truly understand it. They view it as some kind of fad or

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like you know it. But at the end of the day, an NFT is

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just a token that authenticates or confirms that you own

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something. That's it. Gotcha, gotcha.

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So thank you so much for sharing all this information.

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And you know, we say a low percentage now,

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until they listen to this episode, I

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understand it. So make sure you all are sharing this. But thank you

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so much, Doctor Hans, for coming on the show today and teaching us

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about nfts and the importance of diversification. Now, if

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people were interested in learning more about you or the royals

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experience NFT, how could they find you?

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Yes, thank you so much for having me. I feel like more

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of this conversation will be so, so helpful because often with our community,

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we miss out on, you know, developing

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or up and coming tech

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opportunities investments. And when I say investments, I'm not

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even specifically referring to the royals. I could be referring to, like, bitcoin and

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other digital assets. So I think this dialogue is so, so, so

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important for those listening that want to connect with me.

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You can find me on Instagram,

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heinvesting tutor, and also on

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Twitter or x if

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you're on threads. I'm at the investing tutor there as well, and my

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website is theinvestingtutor.com

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dot. I'm sure the links and the information will be placed

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in the show notes, but yeah, it was just such an incredible

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conversation. Thank you. Yes, yes. Thank you for that. And I

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will definitely have this in the show notes. And y'all, I'm over here scrolling

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through the different Kente nfts available and they

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all are like different colors. And I'm like, oh, she looked cute. I want

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her, you know, that type of thing. So we, we

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put a lot of thought in that, right? We're like, what, what do our

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people care about? We're like, we want to look good, you

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know? So we had different outfits and different

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expressions. It is something that I just

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believe is going to represent us so, so, so well

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in, in this digital ecosystem. And

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yeah, thank you so much for having us discuss it.

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Yes, I love it. I love it. Well, I hope you have a wonderful rest

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of your day. You as well. Bye. Thank

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you for listening, joining and being a part of the money talk with TIFF podcast

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this week. You can check Tiff out every Thursday for a new Money

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talk podcast. But if you just can't wait until next week, you can

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listen to previous podcast

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episodes@moneytalkwitht.com or

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follow TIFf on all social media platforms at Moneytalk

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with T. Until next time, spend wise by

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spending less than you make a word to the money wise is always

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sufficient.

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