What Web 3 Will Mean For Your Business and Portfolio with Brad Hart: An EOFire Classic from 2022

0:01Light that spark fire nation JLD here and welcome to entrepreneurs on fire brought to you by high level, the all-in-one sales and marketing platform. On today's classic episode, we'll be breaking down what Web3 will mean for your business and portfolio. To draw these value bombs, I brought to Brad Hart and EO Fire Studios. Brad is an Uber nerd when it comes to Web3, play-to-earn gaming, DeFi, crypto, and NFTs. He's a bestselling author of multiple books, including The 8-Minute Mastermind and The 8-Minute Money Manager. In today's foundation, we will be talking about how things don't come by if you don't have a plan.

0:36You've got to be there for all the hits, tie things to a goal that's bigger than yourself, and to owe so much more. And a big thank you for sponsoring today's episode goes to Brad and our sponsors. Fire Nation, this is your year to get unstuck and to grow a successful business. Attend the world's highest rated business growth workshop taught personally by Clay Clark and now featuring football star Tim Tebow and President Trump's son, Eric Trump at thrivetimeshow.com slash EO fire. Again, request life-changing tickets today at thrivetimeshow.com slash EO Fire. Are you ready for the ultimate all-in-one platform for entrepreneurs, marketers, coaches, and agencies?

1:14Build funnels, automate follow-ups, manage clients, and even white-label your own software. Say hello to our featured partner, High Level, and visit highlevelfire.com to start your free trial today. day. Brad, say what's up to Fire Nation and share something that you believe about becoming successful that most people disagree with. What's up, JLD? Hey, everybody at Fire Nation. I just want to say how grateful I am to be here. And I want to say that the thing that's made me successful is I never give up. And what I mean by that is like every day I get up, no matter how I feel, and I put in the damn work.

1:54And if you're willing to do that, you can be successful too. It's really not that big of a deal. If you build a habit, you can keep doing it and get there on your time. And your story doesn't look like anybody else's story. So keep at it. That's the most important thing. Put in the reps, Fire Nation. Get up every day and put in those flipping reps. And as you heard in the intro, we're talking about what Web3 is going to mean for your business and portfolio. So by the way, a little side note, if you think you missed the podcast train and then the Instagram train and then the TikTok train, whatever train you think you might have missed in the past, I've always said, look to what's coming next and go all in.

2:32This is something that anybody can go all in on. This is so big. You can't even call this a niche. This is going to be everything in the future. So buckle up, Fire Nation. Give us some details, Brad, about your background and then what led you into this amazing Web3 crypto space. Yeah, so I'm really excited to be here again. I've been on my third podcast with you, JLD. And the last time we talked about, if you guys haven't checked out already, Mastermind. So how to add 100K to your business in 5, 10 hours a month. You can go over and check that out at marbles.link slash JLD. That's uppercase, marbles.link slash JLD and get up to speed on that.

3:10I'm going to give you some great tips on that. But today we're here to talk about Web3. So I'll kind of back in with my background and then dive right into that. So my background, I've been an entrepreneur for about 10, 11 years now. I've had a business. And before that, even I was trading since I was 16. So I'm going on 37 years old now. It's a little over 20 years. And I've run hedge funds. I've worked on Wall Street. I've been a trader professionally for many years. And about 2011, 2012, I started to get really fascinated with a new thing called Bitcoin. And at the time I was making apps on the app store and the coder came to me with an idea.

3:44He said, I want to create this Bitcoin trading app. And I said, what the hell is Bitcoin? I looked into it, didn't get it, didn't understand it, said, sure, man, here you go. How much you need? He's like five grand to make a Bitcoin trading app. I'm like, sure. So I give him the$5 ,000 and it went precisely nowhere because he's trying to build Coinbase on a shestering budget. Had I taken that$5 ,000 and put them into like, you know, five cent Bitcoins or whatever it was at the time, I'd be a multi-billionaire now, but who knows? I probably would have lost some too. And I definitely made some mistakes along the way, but I understood that it was a new paradigm because here's the big idea, right?

4:15Anytime you can increase trust and decrease friction in an ecosystem, that way of doing things is going to win. So when you think about web three, we're moving from an old world, which is web two, which is, well, let's start with web one, I guess. Web one would be like companies make money by making content, right? Or making products or making services. So it's all a business game, right? If we're in business, we're playing the business game. Then companies started to get smart. They realize, especially in the content world, it's important to have people contributing, but we still want to own that content.

4:48So then you saw Facebook, you saw YouTube, you saw all these different platforms come along. And web two is essentially people make content, companies make money. With web three, there's this new paradigm of ownership on the blockchain where anybody can participate and anybody can own the assets that are created. Therefore, people make content, people make products, people make services, and people make money. And that's the most important thing. So whether it be you're an artist, you want to have your royalties come to you in perpetuity, easy with blockchain and NFTs. You want to be a musician, same thing.

5:17You want to set up your contracts to do that. You want to build a new community and make it unique and more like a membership or a mastermind, which we've talked about in the past. You can certainly do that. I mean, I'll put it to you this way. Picture you had an opportunity to join Tony Robbins Platinum Partnership. We both know Tony really well, JLD. And you could pay one price and you could be in it for as long as you want and get the benefits of being in it and never have to pay Tony again. And on top of that, at some point in the future, you could resell your membership or whatever the market will bear at that time, potentially for a profit.

5:49That's the potential of NFTs that most people don't get. Now, on top of that, what if you could actually earn money while you hold that NFT? That's also happening in these new communities. So we're creating a new ecosystem where it's not just based on scarcity and based on cults of personality, but you're bringing the smartest people in the world together to create new communities that are completely tokenized where anybody can own a piece. And that piece of ownership is trackable and also fungible, non-fungible rather, and it can't be duplicated and can be sold at any time at any market rate to anybody.

6:19It's pretty incredible. Now that is incredible. And you have been very successful in the NFT space, which is non-fungible tokens. And Fire Nation, we've had a couple episodes where we've talked a little bit about NFTs. But Brad, can you define in your own words what an NFT is and then break down your core strategy around the NFT space? Yeah. So a fungible token, just to be clear, is like a Bitcoin, right? There's 21 million Bitcoin, maybe 18 million that you can actually access. A lot of them have been lost. But any one Bitcoin is equal to any one Bitcoin. So if I trade a Bitcoin into the market, I trade back out.

6:54I can get my old Bitcoin. I just have to pay whatever the price is and I can get another Bitcoin. Right. So there's that many of them. And that's that's what a fungible token is. Same thing with Ethereum and a lot of other coins. A non fungible token means there's only one of those. Right. I have number X. Let's say there's 10 ,000 of a specific set. I have number eight, eight, eight, five. And there will only ever be one number eight, eight, eight, five. And whichever wallet owns it has the rights to it and can use it and disperse of it and, you know, get whatever benefits it confers forever in perpetuity.

7:23That's essentially how that works. So if you don't want to get too complex and down the rabbit hole, it's not about the art. It's not about the JPEG or the piece of music or anything that's attached to it. It's about the fact that you can prove that you own this specific thing that lives forever on a blockchain like the Ethereum blockchain, provided that you have the keys to the wallet that holds it. And that's basically what an NFT is. So you can use that to establish ownership of anything on the blockchain, whereas it used to be a more legal process, right? You'd have to have deeds and contracts and real estate agreements and royalty agreements and all this backwards accounting that happens in that.

7:56Now it's all in a smart contract. And it's really easy to see, like, okay, this is what they say it is, provided you can read some basic code. So it's a really interesting new frontier. And what is your core strategy in this space? Great question. So I saw early on that this is going to all be about access, right? Just like any things that humans have done in the past, right? You want to be in the right room with the right people that are as smart as possible. So like you, you and I jailed the, we were both top affiliates for Tony not too long ago. And Tony put on this mastermind was like the top 10 affiliates.

8:25So you want to be in that room, right? Cause it's like the top internet minds going out there and, um, you know, promoting this huge launch that a lot of people are competing in. And if you're able to win a spot in the top 10, then you're obviously pretty savvy. So doing that mastermind was a really good idea. Now with NFTs, you can certainly do the same thing. You can create communities of very smart people that come together, whether it be completely transparently or anonymously or, you know, in one area of the world or all over the world. You can do it on Discord. You can do it on Twitter or any number of different platforms.

8:54But everybody's path to enter this particular arena is a NFT. And my goal was to be in the smartest NFT communities. And by doing so and just knowing the supply and demand factors like, hey, there's only a thousand of these, only five thousand, there's only ten thousand of these. You've seen some insane uptick in in both interest and also demand in the market. because there's only so many, right? So just to give a few real examples, you had CryptoPunks, which is really early, which the average punk now is going to run you like$300 ,000,$400 ,000 just to get in on what they call the floor, which is the lowest price that anybody's selling one for.

9:29But they've sold for$7 ,000,$8 million. Bored Apes, Kongs, Neo Tokyo was one that I was in very early, thankfully, that's gone just bonkers. I think I'm about$100 ,000 into it. And I'm sitting on a position that's worth about$450 ,000 right now. Wow. And it's just been seeking out the communities of people that get it, that they're ahead of the curve and getting there as early as possible. Even if it feels like I'm paying a lot, I want to be in the right rooms because I might lose on the entry price if I'm a little late. But I'm going to win because now I'm surrounded by smart people that see all the other opportunities coming.

10:04So that's been my strategy so far. So I want to pay to be in the right room, maybe even overpay a little bit to make sure I see the future coming, to make sure I'm on the ground floor when everybody's sharing all the new stuff that's coming out. that's going to be the next big thing. Hey, Fire Nation. I mean, let's be honest. There's a reason why the play Hamilton was so big and successful is because that one song, I want to be in the room where it happens, the room where it happens. And just like Brad mentioned, we've been able to be in a lot of rooms where it's been happening, the Tony Robbins and some other amazing masterminds and events we've been able to be at.

10:37And it's incredible what access, the right access can give for you, that head start, that edge, whatever that might be. Now, we have a lot to talk about, including Brad's worst NFT story. When we get back from thanking our sponsors. When I first launched Entrepreneurs on Fire in September of 2012, I had a feeling it was going to be big, but I didn't know how big. Fast forward to May 2014, not even two years later, and Kate and I were traveling Europe on our first ever completely unplugged vacation. No emails, no interviews. Everything for the business was handled ahead of time. From the beginning, location independence has been a high priority of ours.

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14:08Become the next success story. Schedule a free consultation and request tickets to join football star Tim Tebow and President Trump's son, Eric Trump, at Clay Clark's next business conference today at thrivetimeshow.com slash EO fire. Brad, we're back. And you told us one of your successes, the Neo Tokyo, that was pretty exciting. You're up, it sounds like four and a half X right now, which is fantastic. What is your worst NFT story? Tell us that. So John, I actually only really got heavy in NFTs in August. So this is now we're talking in January of 2022. I've only been at this for about six months.

14:43I've been in crypto a lot longer, but only really started to get excited about this stuff in August. And I had been looking at it since about May. I've been following a guy called Alex Becker and Alex is really on top of this stuff. He was talking about this Doge Pound thing and I'm laying in bed. It was in San Diego at a hotel. I was at a mastermind and I'm trying to buy this stupid dog NFT that I couldn't figure out how to do it. I'm so annoyed at myself because I used to be so on top of this stuff, but I kind of let it lapse for a couple of years. I was focusing on building my business. So I spent the next two, three months just really going down the rabbit hole, learning as much as I could.

15:11And I was hesitant to invest because I I didn't really understand how to use NFTs, how to move NFTs. It's not very user friendly. It can be, you know, three to 15 steps to get into one of these projects. Sometimes it's very difficult. Sometimes there's whitelists. Sometimes there's like a lot of, you know, scammers and hackers and people trying to get your money because they're trying to give you something that you want, which is access to this very small pool of supply, right? And the first NFT I jumped into was this one called Anonymize, which I still love this community, by the way. I think it's a great community.

15:41but the mistake that I made, which I didn't realize was, uh, it was going up and I was coming in around the top and I had no way to really know that cause I wasn't following it. Like I normally would when I was looking at a, an NFT or rather another investment. Like I, if it was a stock, I could go back and look at all the data. I suppose I could have dug up some charts and things and kind of seen how it was trading. But in the, it's pretty early days right now. There's only so much data you can really pull this. Yeah. Right. And you know, I just, I didn't follow my rules. I knew better. I had to relearn this lesson.

16:11It had only been around for three weeks. It had gone up from zero to 12 ETH. I thought I was catching the, you know, the fire to the next level, right? I thought I was on the way up and it turned out I was buying around the top. So I ended up losing quite a bit on that. And that's not the end of the world. There's something called a wash rule in NFTs and crypto, which will be in the future, probably not a thing. But for now, a wash rule, they used to have this in stocks too, is when you sell something for a loss. And if you rebuy it within 30 days, you can restart your position. So let's say you buy something at a hundred, it goes down to 20, you sell and rebuy at 20, and then it goes back to a hundred.

16:45Well, you have a gain, but you also have a loss to write off against that gain. That's called a wash sale, which is different than if you just bought it at 20 and wrote it to a hundred. So it's a very different thing that can happen, um, in the crypto markets. Then, you know, again, talk to your tax people, verify this, uh, then in the stock market or some other thing, it's called a wash sale rule. So I essentially wash sold my mice. I still believe in the community, but I took the loss and wrote it off against some of my other gains for the year and it worked out pretty okay. But in retrospect, I would have loved to have just not lost in the first place.

17:13And that just came from me being impatient because I was finally ready to invest. I finally understood the security and I put like 80 or a hundred thousand to work that day. And I probably could have waited a little bit. I was coming off tail end of COVID. You're like, I just want to be a part of a community. Just give me in. Yeah, exactly. I just want in. I want in. Come on, man. Yeah, and that's the thing too, is when you live in Puerto Rico, you really don't have the opportunity for a wash rule because you don't pay capital gains either way on your wins and you don't then have to offset your losses.

17:41So it's just straight pain when you have a loss like that. There's really no way to make yourself even feel better. But you told your worst story. What's your best? I mean, if it's Neo Tokyo, tell us the second best. Yeah, so I've had a few smaller ones. Like I'm really excited about land in these metaverse games and gaming specifically. I think gaming for crypto is probably the best, most defensible use case for crypto that's ever been so far. Right. Because you had like the whole crypto coins movement, you know, the Bitcoin, Ethereum, etc. Then people started to get excited about ICOs in like 2017.

18:15A lot of those went nowhere. I lost a lot of money on those. Just messing around, you know, not a tremendous amount. Like I'd still made more than I lost, thankfully. But, you know, I was messing around with little stuff and just never went anywhere. And then in the last year or so, you've seen NFTs really get popular. You've seen DeFi platforms, yield farming, and gaming get very, very popular. And there's been games. I mean, we even raised money for a crypto game called Block Brawlers that, unfortunately, when the market dipped out, the investor pulled out. That was back in 2018. We would have been way early.

18:43But now there's a lot of games. There's like huge, massive ecosystems. And for example, Axie Infinity, which is essentially a crypto NFT game, is the fifth largest gaming company in the world. So you're talking like Blizzard and EA and all these Ubisoft type of companies, which are 20 plus years old, it's right on their heels and it got there in about two years. So you're seeing these huge economies through gaming pick up overnight. So when you take crypto, which allows people to own the assets that they would normally not be able to own in the game and then do with them as they please, move them to other games, sell them on any marketplace, what have you, they can earn in the game, which is tokenomics.

19:19We can get into that a little bit if you like. And then finally, they can really have ownership over the DAO or the distributed autonomous organization that manages this game. It's not just a top-down type of leadership, but it's more of a bottom-up type of leadership. So they can have some say of where this community goes and what type of features they roll out and so on and so forth. They can get involved at a grassroots level and be owners. It changes the entire dynamic of how games are going to be played in the future. It's a really fascinating thing. I think gaming crypto is actually the smallest subset of all crypto, and it has a lot of room to grow.

19:53I think it could be easily a$10 or$15 trillion thing. and just to give you context on that, the whole crypto market right now is about$2 trillion. So I think over time, we're going to see that grow massively as people play more games and they want to own more in the games. Right now, I have six people in the Philippines playing Axie for me and they're doing that as a full-time gig. They can work their other jobs to play a video game. What happens when people in the United States can afford to do that? That's going to be really interesting. It's crazy. So did you tell your best NFT story? Did I miss it?

20:21Yeah, yeah. So the best NFT story, I think for me, was just getting involved in these various games where I'd buy land. So like Sandbox, for example, is like 166 ,000 pieces of land, give or take. Avogache is like 400 ,000, 420 ,000, something like that. I forget the exact numbers. But there's only so much land in these games. And then you can use this land similar to you would with real real estate. You can build on it. You can rent it out. You can lease it. You can farm it. You can mine it if it has resources, what have you. So there's been a huge uptick in land sales. We've seen some of these plots go for millions of dollars.

20:52And I've been buying a ton of land on these various ones. So I've seen five, 15, 20 extra turns on some of these land pieces that I've owned early. And I'm just holding them for the time being. I don't really have any plans because a lot of these games haven't even been launched to the general public yet. So I'm not going to sell until the hype is really high. Have you heard of Victoria VR? I have not. Please tell me. Oh man, that's what I just want to tell you right now. Look into it. Victoria VR. You can just Google it. Go to victoriavr.com. I just made a major major land purchase in that and uh pretty interested and curious to see where that's going to go but it's kind of like what you just mentioned where this is like pre-game this is like pre like right now they have the whole world you know created on paper on white paper but I mean there's still a ways to go but this is you know when you get an early on a project like this that does hit this one may not but if it does hit then forget about it you're sitting on you know, a pile of, of really valuable assets.

21:49And that can be really crazy. And you kind of actually inspired me to tell my, uh, best NFT story. Uh, I've never told this on, on this podcast, but, um, back like two and a half, three months ago, um, off of a tip from a buddy, I was just getting into Solana NFTs. I minted my first Solana project, soul chicks. And when I minted, I minted 12 of them and I was actually really fired up on the reveal because one of mine ended up being a legendary, which is 0.1 % of the 10 ,000 are legendaries. And then as soon as I was got over my, like getting really excited and fired up thinking I scored really big, um, I found out the project didn't even sell out.