CryptoNews Podcast

#71: Dirk Hartig on Being A Professional Crypto Trader

November 04, 2021 cryptonews.com Episode 71
CryptoNews Podcast
#71: Dirk Hartig on Being A Professional Crypto Trader
Show Notes Transcript

Dirk Hartig is a professional crypto trader and partner of PRIME XBT, where he offers state-of-the-art educational content for their clients.

In this conversation, we discuss:
- 2021 Q4 crypto outlook
- Crypto market predictions
- BTC & ETH
- How to choose altcoins
- Common rookie mistakes in trading
- Daily routines and rituals of a full-time day trader
- Dos and don'ts of technical analysis
- The importance of on-chain metrics

PrimeXBT Academy
Website: primexbt.com
Twitter: @PX_Academy
Youtube: PrimeXBT Academy

Dirk Hartig
LinkedIn: Dirk Hartig

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Matt Zahab:

Ladies and gentlemen, it's your host Matt Ahab. And today's guest is Dirk partic, who's been a trader for 20 years, many of those for institutional investors such as banks and family offices. For the last two and a half years, he has traded his own account full time and concentrates on trading cryptocurrencies, and forex options. Present day climb X BT, our sponsor, the show has partnered with dirt to offer state of the art educational content for their clients to ensure not everyone has to fall into the same traps that linger around on the way to becoming a successful trader. Rarely do you get a professional trader on the show. And today, we have one. Without further ado, I'm very pleased to welcome to the crypto news podcast Dirk Hartley, Dirk, welcome to show my

Dirk Hartig:

thanks a lot. And thanks for the invitation. Very happy to be here. Matt,

Matt Zahab:

very excited to have you on to like I said the intro not. It's it's very rare to actually talk to a real professional trader, especially in forex. Now for those at home Forex is currently foreign exchange. And when you're growing up, you know, probably the high school years. And then once you get into uni, you always know a couple clowns who are always like, Oh, I'm a professional forex trader. And all they do is crank up the leverage to 100x allotment and they make a couple good trades think they're rich. And then one bad trade happens, boom, they get the call, margin call. And the rest is history. You my friend, our professional one and our listeners are in for a treat. I want to start by asking you about your morning routine, your nighttime rituals, what does the day to day activities look like for professional trading?

Dirk Hartig:

Well, maybe let me start with that. Of course, everybody out there has kind of like their own routine. So you know, like my routine. Of course, you cannot like one to one translate to somebody else. But the way I do it is a little bit like, like maybe, let's say a professional athlete. Although I'm pleased not an athlete, I like to eat too much to be an athlete. But you know, you and what you see, for example, and professional athletes, let's, for example, take golf players out there. So let's look at Tiger Woods, for example. You know, when he goes to the T hesper club and his hands, he goes through almost the same motions, almost the same routine. And that's what I'm trying to do too. I strongly believe this is what everybody should do. If you are good at something because you want to make your success, repeatable, whether it's like hitting the golf ball every time in the same spot, or preparing your mindset for day of trading activities. So I get up, I prepare breakfast for my family, I have my routine of eating a nice breakfast in the morning with my daughter and my wife, then I go to the office. So I have my office completely separated from my home. Because I want to get in the state of mind that if I'm in the office, I'm going to work you know, I'm not going to do anything else. I'm not going to be distracted. When I'm at home, you know it's home time I try not to look too much on my mobile phone anymore. I try not to you know, have one eye on cryptocurrency or Forex prices anymore, but be there for my family and enjoy my private life. And when I arrive in the office, usually I need to drink two or three coffees absolute coffee junkie here. So my coffee machine is my best friend. I go through the news every morning. So I focus on my main resource for news, especially when it comes to currency trading is Bloomberg just because there's really you know, it's a melting pot of all the news in the world being being somehow ending up there. So for me, that's a very good resource

Matt Zahab:

and crypto news.com Of course

Dirk Hartig:

Of course that one also when it comes to cryptocurrency Absolutely. And so I try to make up my mind then okay, what what kind of sentiment Are we having here because, especially for the day to day trading activities, I'd like to call myself a sentiment trader by sentiment. I mean, like in what state is the market? Are the market participants in the majority at the moment expecting prices to rise for cryptocurrencies, for example, are they expecting prices to fall? And when I've made up my mind based on the sentiment based on the news I've read, where probably the you know, the demand is going to come from them. I'm only going to trade in that direction for the day.

Matt Zahab:

Dirt. I love that you brought up that point sentiment is huge. A lot of people are bearish bullish hawkish a lot of time to you'll hear that term thrown around. What kind of data or news do you look for to determine if the market is bullish or bearish? For that given day

Dirk Hartig:

for cryptocurrencies? I like to look at the fear and greed index, something you know that brings it down to the point in my opinion, you can access this on Twitter. Just look for the Bitcoin fear and greed index oscillates between zero and 100. And whenever we are, for example, in areas of extremes, so at the moment that would be extreme greed, which is above 75, I tend to become a little bit cautious. I'm then expecting downside for example, opposite of that if we are in an extremely fearful sentiment, I'm expecting upside again, in between, like, for example today, with a sentiment of 70 news I at least read today are also a little bit promising not not too bearish. So I try to look for entries for long positions in Bitcoin and Aetherium when it comes to trading cryptocurrencies, I mainly focus on Aetherium and Bitcoin, just because liquidity is for great as well.

Matt Zahab:

How important are those two, the two big boys or big gals Bitcoin in theory and BTC, and eth eath? How important are those two to the rest of the market the market as a whole,

Dirk Hartig:

the crypto market as a whole, they are the big boys out there, like you just said, so whenever Aetherium or bitcoin is going up and down, the rest of a of a pack will follow. So to say, it's very rare that you find at least amongst the top 20 cryptocurrencies, something that deviates very, very much from the direction that if you're a Bitcoin, appointing in Advent momentum might be you know, if you look further down the coin market cap ranking, or whatever you're using, of course, you will find coins that have a life of their own, but I tend not to focus so much on those for at least for trading, because as a trader, you want liquidity and the most liquidity you are getting is in Bitcoin, especially and Aetherium.

Matt Zahab:

So there, I get questions all the time from friends, peers, family, whatever the case may be, and they're asking my advice in regards to crypto trading strategy. Now, I'm not a trader, like you, I always tell them to stick with the basics, allocate most of your money into Bitcoin or Aetherium have some funds locked and loaded in tether, which is usdt or USDC. For when you want to make a quick trade when the markets ready, but I'm not a pro you are, if I had, let's call it 10 Grand i 10, grand $10,000 I want to start trading, what would your allotment look like right now? How would you divvy up across different currencies? And what sort of strategies would use to get the ball rolling?

Dirk Hartig:

Well, 75% of those 10 grams, I would always put in Bitcoin, and to some extent, also Aetherium. And just really hold on to that for a long time. So the classic huddling, so to say, and the other 25% You have to make up your mind about this, you can, you know, almost 25% Maybe, maybe put 5% into, for example, promising altcoin projects, you see value in the hopes to, to find that 1000 or 10,000 Plus coin out there, but gets more difficult to do that, because I believe we are in the end cycle already of this cycle at the moment. And like 20 to 25% I would do, I would use for trading. And if you're new to this whole one, I highly recommend you start with looking at daily charts don't start like with five minute charts or one minute charts, I know it's very attractive, because there's a lot of action, you get to do a lot of clickety clickety click on your mouth and you know that pumps of adrenaline through your through your veins, but it's a bit like, you know, when you are playing tennis and and you and translates like if you try to succeed on five minutes or one minute chart as if you are playing maybe against watch Federer on or what is his name and all that Joker which joke of it. Yeah, or as a German, I have to say no Alexandre spareth. And, and, and so you won't stand a chance, probably, but on the daily charts you are and you just need, you know, like a half hour, maybe a day in the morning, where you look at the chart where you make up your mind, okay, this is where I want to enter the market. This is where I want to exit the market. This is where I'm going to place my stop loss. And then you can close your laptop, shut down your app and, you know, go to work or whatever you have to do the whole day.

Matt Zahab:

So Dirk, now that you've laid out some basic strategies and do's and don'ts I want to get into more than nitty gritty. Now. You just brought up the term stop loss. Everyone's asking about leverage going long 3x 5x 1020 If you're an absolute savage 100x What are some of the actual applicable things, the do's and don'ts that beginner traders or just traders in general should do me personally, I never use leverage. I always have a stop loss and I usually have a target. When I hit that target. I'll take out half of my holdings or whatever percentage of my holdings that usually gets me back my original investment, my original allotment and the rest is just fun money. I don't even check it. price goes up and fine price goes down and down and fine because it's fun money. But that being said, I'd love if you could tell our guests What are the do's and don'ts of beginners for trading,

Dirk Hartig:

I'm happy that you already set a lot of truffer. So you're already further down the road and probably 90% of beginner traders out there. So it's really I like to say on my mentor back then, or one of my mentor said, you have to treat trading like a business. So if you enter a position, you have to make up your mind, why am I entering for position there. And this can be some indicators, maybe you're looking at can be fundamental reasons, whatever doesn't really matter, you need a target that you want to reach, and you need to stop loss. So you don't want to risk everything. In one trade, I see like very often that beginners risk something like 20% 50%, or always go all in with each trade, in order, even if you are like, correct 99% of the time, and I've never met anybody my whole life who is correct 99% of the time, it's just a matter of time until the market goes against you, and then you'll crash your account and you'll be set. So, really, with if I want to boil it down to the two, beginner mistakes, I always see is, like you just said, using too much leverage. So just because your trading platform offers the leverage of one to 100 and prime equity offers that, for example, for bitcoin trading, it doesn't mean you need to use it always. Because remember, if you are utilizing one to 100 leverage positions, the positions just need to move 1% against you, and then you have crushed your account. And nobody really nobody out there can time the market that perfectly that, you know, by by 1% of margin, especially when we're talking about cryptocurrencies, I mean, one person move is like one of the boring days and Bitcoins, normally we have something like up and down three, four or 5% a day, very easy. So, so don't do that stick to even no leverage. Or if you want, I mean, I get that you want to utilize a little bit of leverage when trading I do that too. But stick maybe to something like one to five, or one to 10 It's enough, and you will make sure that you that you don't crash your account that fast. It stop loss is always mandatory for every position. And yeah, I hear very often deck, every time I use a stop loss, I have a feeling my stop is finished. And then the market moves into my origin, the direction of my trading. And, and this is because, you know, the human mind is biased. And we only like to see like what happened in the past 345 trades, we are not looking at something like 1000 trades. And so my advice here really is to have something like a trading journal where you put down every trade. And then over time, you accumulate a lot of data. And then you'll see for yourself, hey, this feeling that my stop has always hit and the market returns of the original directions actually not true. It's just a feeling. You know, of course, you're sometimes unlucky, sometimes you're lucky, but it's part of the game. So that's, that's the first thing Ideally, your your profit targets should at least also be twice as far away as your stop loss, just so you can put the math a bit more into your direction. If you on average, earn twice as much with a trade, then you're risking your for what we like to call risk reward ratio of two to one. And that translates into that you just need to be correct with your trades 33% of the time to not lose money. And not losing money is always you know, the start, what do you want to achieve as a first stage. And so you've put yourself in a statistically speaking scenario where you where you should perform better than any coin flip situation offers any 5050 situation offer. Yeah, that means that you have to sometimes skip some trades because you cannot place maybe the take profit far enough in comparison to your stop loss. But you know, you just want to stick to those setups where you're pretty sure hey, if everything plays out, this should work out for me great. So this is for whole let me let's say technical stuff. And there's another component which in my opinion, especially for beginners is even more something that they need to learn and that is the trading psychology so the emotional side of things and I think everybody who has entered a trade before and knows this was feeling you know of euphoria. If a trade goes into your direction you feel like the king of the world. Maybe it goes maybe five or six trades in a row go into your direction you feel like oh my god, I have figured out the market now you know, I'm the king of the hill. And and on. Contrary to this, if you lose like five or six trades in a row, you feel depressed. You go home, you're sad you think like oh, this is not for me. I whatever I do I fail at trading and so and this is because we emotionally attach ourselves and our psychological or emotional well being to a trading position and you shouldn't do that you know and what we what you very often also see beginners as like when they are when they have trades that they are losing on they tend to buy more into the trade you know up their position on the trade to for example, bring down the average buy price or sell price whatever direction they are in at the moment don't do that you are throwing good money after bad money if you have a business you know, you're selling cars or whatever you also want to get the idea of ordering more of more of the car for cheaper prices, but nobody of your clients want to buy so this is what I mean when I say trading is a business and you have to make business related decisions. And you can at least for a little bit detach yourself emotionally from your trading positions if you have this game plan so before you enter the trade if you know already I'm entering because of those reasons, I took profits this map and my state my stop loss is at this point and you know when you just execute it and when in you you forget about it, you know you focus on whatever for example market you are also watching them and not on this existing trade already so much it's difficult. And even after 20 years, I cannot make make myself always free from that. But if I catch myself like you know that that I feel like Oh my I'm emotionally too attached right now to this trade, I tend to close the trade and call it a day.

Matt Zahab:

Like that's a lot easier said than done. I've had some great trades, and I've been I've gotten destroyed many times as well. And when I get destroyed, it's 10 times out of 10 it's emotion. How do you take that emotion out of trading though? Like we're humans at the end of the day? Should people just put a sign in their office by their computer that says be a robot and like not human? What are your tricks there?

Dirk Hartig:

You can it's you know, it's experience. It's something you cannot learn but having this routine of how you want to enter trades. Having this daily routine helps you to get into the right mindset. But like I just said you will never be able to completely take it take it out of yourself. There's always going to be emotion evolved but you want to learn by trading with experience you know, to keep the emotion at a level that is that at least doesn't interfere so much with your decision making

Matt Zahab:

Turk I want to talk about the 8020 rule it is true in almost every area of life especially in trading 20% of your trades will yield 80 plus percent of your returns. How do you go about hammering down doubling tripling quadrupling down on those trades that you know are winners a lot of people take profits way too early. A lot of the time those biggest trades are when you just buy and hold similar to buying Bitcoin back in 2013 or East 2015 The people who held and didn't sell after three four or 5x games are the ones who have the biggest bags right now, how do you do that?

Dirk Hartig:

Well you have to stick to her to your training to the strategy like I think you gave a great example just now actually earlier in this interview when you said you know when my take profit is said I take out half of my position for example or what originally invested in the rest you know I just tried to to let it in there and do its magic so this is one thing you can do and what I for example do is when I enter a position I always have to take profits so actually three take profit so the first take profit I take out 1/3 to half of a position second take profit I either close a position or leave a little bit of a position open when I feel there's enough momentum in the market still in my direction and you know when I just see what happens to them and you're absolutely right you spent like days and weeks sometimes where your house like he'll he a couple of dollars by a couple of dollars and winnings and when suddenly you have like two or three trades but when you like two not three not $400 Whatever your account sizes obviously. So yeah, it's like this and this also texts again into being emotional because it also means you have to stay disciplined. You have to stick to your trading strategy because eventually it will pay off you will catch some of those big gainer trades. And I mean you can be sure if you invest in Bitcoin and you know you have at least like 50 to 70% in a hotlink strategy where you just don't sell it you will always participate in the market moving up there

Matt Zahab:

hey well said they're completely agree. tactical analysis everyone loves technical analysis. You're you're seeing almost every company come out with their own version of like ta Tuesdays technical analysis Tuesdays where someone like you well not as good as you but I want to be Dirk gets on the computer, puts himself on video shares the screen and shows a bunch of TA What are your favorite indicators? In regards to TA? Which ones do you hammer down every single time? And which ones are you like, this is nonsense?

Dirk Hartig:

Well, 99% of it is nonsense, in my opinion, when it comes to technical indicators, because you have to remember technical indicators just, you know, display the information that is well already within the price. So you can be very successful actually looking just at naked charts and working, for example, with support and resistance lines. Because, you know, the price is at those support and resistance areas, you will always find trades that are statistically speaking, like from a risk reward ratio, metric in your favor. That's, that's easy. So what I use really is for cryptocurrencies, I, of course, have a moving average, everybody who should have that on Bitcoin, especially with tuna days moving average for longer term positions, because this is so important. There's just so many people out there looking at this, but it's a self fulfilling prophecy, in my opinion that it kind of works out

Matt Zahab:

Dirk. Can you explain the importance of the 200 day moving average over say that 90 or full year,

Dirk Hartig:

I cannot actually it's just something that that most traders, especially from the institutions seen out there, or people that are running pension plans, or hedge funds, but are starting to get into Bitcoin that they are looking at, that's why it's important for me, I don't mean by that I base like my trading decisions on it. But you can, for example, go with a rule of thumb that if you see, hey, Bitcoin is trading above those 200 day moving average, maybe I should just look for long entries when I should not, you know, put myself against the trend. On the other hand, if we are below it, well, then look for short entries, don't cheat yourself. This is really, I think, the most important tip I can in terms of positioning that I can give everybody out firm, you know, don't try to be smarter than the market follow the trend, it makes your life so much easier. And so you can do is use moving average, I like to actually look at Bollinger Bands too, but not because I use them for any signaling. But sometimes you see like that verb, upper and lower Bollinger band gets like very close to each other. And this is what I like to call a squeeze situation. And usually, when you see something like this upper and lower bound very close together, you will see a lot of price action with a lot of momentum in one direction. And you don't need to decide for yourself in what direction is the market going to move in because you can, for example, work with something like stop, buy or stop sell or as well. So keep it simple, really, for the beginning. Don't load like 20 indicators onto your charts. And you will just confuse yourself if you stick to something like moving average bollinger bands and you look for areas of support and resistance being maybe by by sharp analysis, you drove us on the charts, or maybe you get those, for example from onshape metrics, and glasnow report or something like this. It's actually quite hard if you bring in a little bit of discipline to not be successful and to not beat on a yearly average. What your bank for examples offering us an interest rate for your saving account.

Matt Zahab:

You see everyone talking about on chain metrics on especially on Twitter, well Clemont a couple of guys they're absolutely blowing up and deservedly so they have a very positive outlook. They also call a spade a spade. When the market is showing a bearish trend. They will be honest even though they're all pretty much Bitcoin Maxis, they'll tell everyone Hey, folks, the next couple of weeks could be a little bit of a bloodbath. You know, brace yourselves, they also do the exact same when the market is poised for a moon, they'll tell everyone Hey, it's probably time to go long. On chain analysis blew up on chain metrics blew up. Can you tell me the importance of on chain metrics in class node and why everyone should be looking to this almost every day?

Dirk Hartig:

Well, you have something there but you don't have on any other asset class, you can see really from the blockchain, where are for example areas where people bought and have not yet sold. And you can for example, translate those when into your shot. And this is what I always do to see like okay, here's a zone where we have a lot of people that bought so must be probably pretty good. Support them. Now this is at the moment, this whole area between 30,040 1000 For example, and you saw last time we slumped down where the market always stopped almost precisely at 40,000 talking about Bitcoin, of course now and you can also see trends like what what we see at the moment is that the percentage of people that are so called long term holders of Bitcoin is at record high. We've never seen so many people that buy bitcoin and seem to put them somewhere in deep cold storage and hold on to them for at least a year if not longer. No. And this, this has a lot about the expectation of people. And this is something if you if you trade stocks, if you trade Forex bonds or whatever, or precious metals versus an information you do not have there, you just cannot say, hey, at the moment, the majority are long term holders, you just don't know, because it's an OTC market over the counter market, at least forex and precious metals, the way you don't have information like this, so it really on chain metrics. And yes, it's a pretty young science, so to say still, really acts in my opinion, is another dimension to the market.

Matt Zahab:

Dirk, you're the man, I need some price predictions here. People ask me, no chance I'm going to be right, you you have the resume, you can back it up. Give me some bitcoin and eath price predictions for January 1 2022. And January 1 2023. Where are we going?

Dirk Hartig:

You know, probably most people would say now something like, oh, I don't know, we could do this or could do that. My opinion? If you allow me to answer this question a little bit longer and elaborate on it, we are living right now in quite amazing times. That's like, one of the most exciting months ahead, in my opinion that we've probably ever seen or last seen in 2017. Because we have a lot of those models out there that are based on even on chain metrics, or on quantitative methods, thinking, for example, about the stock to flow model here from Plan B that predict we should see something like 100,000. Some models even say something like three or 500,000 by the end of the year, or in the first quarter of 2022. And everything I see right now from the shots everything I see from the on chain metrics, and the way the market especially has reacted to or actually not reacted to to China completely banning cryptocurrencies tells me Yeah, I think it's realistic. I think we're going to see 100,000 Bitcoin minimum this year. I kind of Yeah, it's my whole positioning is into that direction, too. Of course, I could be wrong, and everybody else out there could be wrong. That's, that's part of the game. So when, you know, at one point, you have to take the losses, but it doesn't look for me like this. Except maybe there's another black swan event coming around the corner that I don't know, moves froze us completely of trails, whatever that could be. I'm just making things up right now. I know some cuenta con term computer corrects the blockchain and mines, all the remaining bitcoins at once. It's not going to happen, guys and worry. Something like this. I mean, it's the nature of a black swan event, but you cannot foretell like what it's going to be. But yeah, I'm super positive. And you know, a price of Bitcoin of 100,000 150,000, of course, also means that we're going to see, if you're in probably somewhere around seven to 12,000 US dollars. I think it's going to happen now.

Matt Zahab:

i That's incredible. I want to just take a quick break. And I'm joking. Normally, this is when I give a shout out to prime x BT, but you work for prime with prime expertise. So there will be no ad read today. He brought the price of Aetherium. I'm also very bullish on Aetherium. I would love for it to get to that point. I don't know if you're an NFT guy at all. But I'm always curious. And I've been following the trends between the price of eath and NFT. I know you just shook your head like you're not what would happen to NFT. It's all these NF t's on open sea you saw Coinbase just released the news. Here's the price of eath hits 10 grand while these NFT prices continue to rise, we're gonna see some consolidation, how's that going to work? Also gas fees? What are the gas fees going to be like if eath hits 10? Iran?

Dirk Hartig:

That's that's the thing about a theorem, right. And we've seen this, I think they've come down a little bit now again, but you know, you've probably read all the stories out there about people that had to pay $800 to transact transact $100 And even worse. I mean, it's always like this with technology, you know, were always paints and scaling technology. It was the same with internet. I still remember you know, I'm old, I remember 1995 The internet still when nobody could imagine we are going to do HD streaming on something like Netflix over the internet technology will scale there will be solutions for problems like this. When it comes to NF NF T's I must honestly speaking say I don't have an opinion. Because, first of all, I'm not much of an art person. So I don't have like a personal relationship to these kinds of things. And for me, they are a little bit the craziest like what we saw in terms of ICOs back in 2017. And I always have one rule of thumb, if I don't understand something, I'm not going to invest in it. And I don't know understand really NF T's because I for me, I think like okay, you know you have like barites on a JPEG now, but I can also right click on the JPEG and download it to my computer. So what's the difference? You know, I might be naive now I know that I need to, you know, learn more about this. But yeah, I'm, I hope I hope they are going up more. I know we had prime equity we're planning something with NF T's as well. And I get that it's exciting for a lot of people for me personally I don't invest it because I you know, I don't understand it maybe really the the economic reasoning behind it at least. And but then again, that was also true like seven years ago with Bitcoin. I also didn't understand it. I remember when I was working in Singapore, for family office, and I was a forex trader there. On my way to work. I always came by Bitcoin ATM and this was in 2014. And I thought back then, like, what the heck, you know, who's stupid and buy something like this? Yeah, I mean, joke's on me.

Matt Zahab:

Dirk, all I gotta say is just try the whole NFT thing by a coil, you'll see, you'll see how much fun it is. It's very addicted to gambling, right? It's sort of like buying Bitcoin. Yes, bitcoins store value. And it's a hell of a lot. It is the most safe way to gamble in crypto, right? The best thoughts and the best chance of not losing. Whereas with NF T's you have a good chance of losing but you also have a great chance of you know, 10 axing in a week. So all I'm saying is, you know, give it a shot before you knock it but knock Yeah, well, of course, the teach their own No, I want to go back to Bitcoin for a sec. Bitcoin is the bread and butter of crypto, when it rises, everything else rises, if it does, what you and I think it's going to do over the next couple of months and years, it's going to be great for the whole ecosystem. There are a lot of challenges with Bitcoin mass adoption, I can't wait for our world when I can go downstairs the supermarket and and buy whatever I want to buy nice chicken or steak with some SATs that's going to be an absolute dream. Now, what type of challenges that we see in the next couple years in regards to Bitcoin mass adoption?

Dirk Hartig:

I think the main challenge we are going to see is that at one point in the future, we will have the big institutions of this world whether it be large corporations looking at the banking scene, the especially investment banks, like Goldman Sachs like JP Morgan and so on and so forth. So the money machine of Western society so to say and governments once they get threatened in them monetary monopoly, I want to call it they are going to seriously fight it and I know Bitcoin Maxis but I always like to say yeah, Bitcoin cannot be stopped. And I think this is true, but those institutions or governments can make it extremely difficult for, for for us to either own Bitcoin, or use Bitcoin for transactions as simply by I'm not even thinking about something like forbidding it, like China did. I think this is probably the worst thing you can do because you cannot do anything else anymore in your, with your instruments you have at stake there, but they could do something like you know, tax at very high to something like you know, every time you transact Bitcoin, you have to pay like 40% tax to make it unattractive. It's probably going to stop the word and the triumph of Bitcoin and cryptocurrencies, but it's for sure going to slow it down. In the long run, I expect that Bitcoin is going to become something like maybe not a word, dominant currency but one of the only options that governments that that large corporations and individuals have SN hedge against inflation. And you know, at the moment you can either buy bonds like 10 year Treasury US Treasuries or something like this if you want to hedge yourself against inflation or real estate, and but prices have gone so high that there's you know, not everybody can afford a house anymore for example, so what you're going to do you want to just sit there and see your money deep appreciate in value every every year No, you're not going to do that you are maybe going to buy Bitcoin because it's a great inflation hedge because it's deflationary by design. And and I see something like this also on corporate side coming for example, we've seen this with MicroStrategy you know, with Michael sailor who's like the insane big Bitcoin maximalist of course where, but wait until companies like for example, Apple, Google, Facebook, Amazon, were sitting on piles and piles of cash and need to invest those and if they run out of investments, how are they going to protect themselves against The the inflation and we are seeing quite high inflation, we are going to do so probably at one point by putting Bitcoin on the balance sheet. So I see Bitcoin not really as a means of transaction. I see it as an inflation has a store of value. This is for great, great utility in my opinion. Yeah, but it's going to be rough road for sure. And you see already a little bit like what happened now with El Salvador, suddenly you have the IMF there and saying like, Oh, actually, you cannot do something like this, we're going to put down your credit rating or whatever. And it's, it's great what I'm seeing then I'm very, very happy to see countries also adopting adopting Bitcoin.

Matt Zahab:

That will be a massive, massive tourism boom in the future, too. I live in Toronto, I'm from Canada. I can tell you for free that my government is not going to make it fun for people like me. And I've already you know, weighed my options. And I'm not saying I'm ready to leave, but I've you know, I have my ducks in a row. And there are spots like Florida in Miami, Portugal, you know, the Caymans? Well, you can't get a spot in the Caymans, but Malta, Singapore, there's a bunch of spots around the world where you can not get destroyed by the government.

Dirk Hartig:

But that's the great thing about it, you know, there will always be a spot in the world where you can go and they won't be able to keep you from going where you just meant and Singapore for example, was very, was government is very progressive when it comes to new technologies like this. So who's going to keep somebody you know, that has a lot of Bitcoins, maybe in the water from saying, okay, Canada or wherever you might be living? You know, you don't want me anymore, I'm going to move to a country that appreciates me more as a corporation or an individual. So that's why probably is impossible that you know, the word joins together and then something like Bitcoin. I would be really, really surprised if if I can see a joint effort.

Matt Zahab:

I wholeheartedly agree. Dirk has been incredible. I want to ask you a couple rapid fire questions before we wrap up. Share coins, I love myself some ship coins. I wouldn't love ship coins. You're never going to get a 10x bagger with Bitcoin well, you will but it's going to be a couple of years down the road before it gets to 500 grand however, if you pick the right ship when you can make 10x In less than 24 hours talk to me about some of your best picks moving forward for me call it the next three six months

Dirk Hartig:

next three to six months in terms of shit coins Cardano but I don't like to call it a chit coin by the way because it has it does a lot of things but if he room doesn't do right at the moment right great technology but small still. And I also like very much defy projects like for examples so she swap or something like polka dot because I think d phi is for future but defy can also, by the way be built on Bitcoin and will be in the future. And if we go down the coin market cap now I honestly speaking don't know so many projects like that outside of the top 30. I've done myself, my fair share of investing in bitcoins, for example, was an IC o hold of electroneum in 2017. And, you know, looking back I wished I would just have taken that money and put it all into Bitcoin.

Matt Zahab:

Last, what about what about some non shit coins? I don't like to refer to the polka dots, the avalanches and the Kardan O's, the Solanas, I like to call those you know, a lot of people call an owl TOS but I just call them coins, right? It's not Bitcoin or ether tether, but it's also not a shit coin. I'm extremely bullish on those where do you see those middle tier coins going over the next couple of months,

Dirk Hartig:

when when my my bitcoin target of 100,000 really becomes reality, they are going to go up as well, probably by a bigger margin than Bitcoin going up. So you're probably going to see something like 3456 times x on those coins. In the long run, however, I'm going to see that probably at least 75% of us coins are going to disappear overnight over the course of the next four years

Matt Zahab:

evenly, even the avalanches and the slowness

Dirk Hartig:

might be I mean, look back four years and see what what coins did we have there in the top 30. You saw something like yours, for example, dash and so on and so forth. And look where those are now, I mean, they are not that most of them, but they've not really progressed in terms of technology, and they have not progressed in terms of price. So because of this, they are not doing anything better than Bitcoin and Aetherium are not doing already very good. And Bitcoin if you really had the advantage with that they have this giant network effect where you're lightyears ahead in terms of networking power than any other point out there. So be prepared and if you want to invest in consequence, really try it. First of all, don't put all your money into a coin like this. Yeah. And second of all, I would look I am looking actually at the what is another? What do they offer something technology wise that the top two or three coins cannot offer at the moment. And for example for canonical I think they are doing something different they have very soon they'll have a transaction capacity per second of I think something around a million or 2 million a read verse so this is pretty impressive. And this is a technology advanced advantage they have over Aetherium and they have over Bitcoin also. So yeah, I hope they are going to be still around in four years. Let's see.

Matt Zahab:

Might have to snag some card and I'll do some research after the show. Incredible got asked you give me give me one give me one massive hot take before we go something where everyone's gonna be like dark. What are you smoking? I got I want to an absolute hot teach straight from the factory.

Dirk Hartig:

Alright. Dot Dogecoin coin? Yeah. Dogecoin. No, I don't like it. But I think it's big because Elon is always tweeting about Dogecoin. It's the one coin that can easily go up like by by 10x or 20x. All it takes is just a tweet of Elon. All it takes us Elon, you know, smoking something in the evening and thinking he's funny tweeting about Dogecoin.

Matt Zahab:

So you think you think those who hit $1?

Dirk Hartig:

I don't know. Maybe it is maybe it isn't? I really don't know. It's sorry to say so. But if you want like this, you know, this chance to have something that goes up by five or 10 or 20? Probably there's a fair chance that Dogecoin will do that. Good to know from the fundamental reason I'll never understand it of course, but you know, it's this is how the crypto sphere works sometimes

Matt Zahab:

love that Derek absolutely incredible show learned so much had a blast speaking with you. And I can already tell that you'll be a regular so I'm already looking forward to round two. But before we let you go, can you please let our guests know where they can find you. Prime XBT Academy and prime XBT online on socials.

Dirk Hartig:

Exactly. So you can find the prime expertise Trading Academy and the moment on Twitter and YouTube. Maybe you can leave a link also for the audience that may find that and so we have almost daily shows at the moment Mondays to Fridays. So I'm trying to put up a new video every day to talk about market talk about why I see mainly Bitcoin Aetherium. And let's say the top 10 coins heading at the moment. And we had some pretty good calls man in the in the past few weeks, we were pretty much we nailed really where the market is going, I must say. And so come there. I think there's a lot you can learn. I'm always happy to also answer of course questions by viewers and really, I'm super super, super happy if you come there and give us a subscribe and give us a like amazing because that means we're doing something right.

Matt Zahab:

Always does. Dirk ou're the man appreciate you oming on and had a blast. hanks.

Dirk Hartig:

Likewise, thanks for having me,

Matt Zahab:

folks. This was the crypto news podcast with Turk Hartig from prime x BT What a show learned a ton. For you are a rookie or a vet. Dirk is always pumping out some incredible content. In regards to trading highly recommend checking out his Twitter and YouTube which will both be in the show notes Dirk thanks again. Appreciate it folks. Hope you enjoyed listening to this episode. I want to give a quick shout out to my team at Kryptos Eustace my amazing sound editor and everyone else who helps out appreciate you and love you could not do it without you listeners. You guys are the best too. If you liked this episode, and I hope you did, please do subscribe in the world. Until we speak next time. Stay safe. Keep growing your bags and we'll talk soon bye for now.