If you bought a single bitcoin a year ago you would’ve paid just under $1000 for it. However, if you wanna sell that same bitcoin today it is worth over $17,000. Which really begs the question, what exactly is a bitcoin? The idea is that this is a virtual currency that isn’t backed by anything physical.
It’s important to know that this isn’t a stock. It is a currency. Now mind you, it’s a little bit different than something like a U.S. dollar, or a euro, or the yen, which are all backed by specific countries.
But the same idea still applies here. And the maintenance reason why bitcoin is skyrocketing in value is because everyone wants to get their hands on them. So how does this all actually work? Well, unlike something like cash, which is printed by a government and I can hold it in my hand, bitcoin relies on something called “the blockchain”. A simple way to understand this is to imagine a ledger.
Every time anyone buys or sells anything related to bitcoin is recorded in this ledger called “the blockchain” and then it is copied hundreds of thousands of times every single hour across multiple computers to make sure that everyone is on the exact same page.
What makes this interesting is the idea that because it is copied across all these different computers and because it all is public, before I say, wanna go buy a bitcoin from Ken or before he tries to sell me a pizza for a whole bitcoin because he’s greedy and wants to sell me a $17,000 pizza. I can actually see exactly how many bitcoin are in his specific wallet and vice versa. It is all totally public. So say I wanna buy that incredibly expensive and yet hopefully delicious pizza from Ken for a single bitcoin.
Well, it works out from his end because he can look in my wallet and say, “Hey look, I have one bitcoin there.” I transfer it over to him, he receives it into his wallet, it’s all recorded in the blockchain and everything is totally fine. However, what happens when I decide to cheat the system and pretend that I have 50 bitcoin in my wallet when I really don’t have any at all? Well, the blockchain actually does a really good job of protecting against this. Because that ledger and that list of transactions is copied across so many computers, it’s updated multiple times per hour.
The idea that I can just say, hey I have 50 bitcoin and try to tell Ken that, he can check, and unless I can access all of the thousands of computers every few minutes and change those numbers, which is not remotely practical, Ken is still going to be able to know that instead of my 50 bitcoins I have 0.001 bitcoin. Because that blockchain has to be double and triple and quadruple checked by computers all around the world you can actually set your own computer up to help mine bitcoin. Essentially, every single time that you help process a transaction and make sure that it’s legit you mine what is a very, very tiny amount of bitcoin. If you were lucky enough to mine bitcoin in the early days and held on to what you mined, you’d become a very, very rich person today.
However, in 2017, if you wanna set up a bitcoin mining system it really doesn’t make a lot of sense. Bitcoin mining used to work best on PC graphics cards, which were originally meant for gaming, can actually do this kind of stuff fairly well.
However, nowadays ASICs have completely destroyed that market. And ASIC is essentially a small computer that its sole purpose in life is to mine bitcoin. And when it does it does it a lot faster than your actual computer which makes it totally obsolete.
If you’re interested, I did an entire video on crypto mining a few months back. Now even though it’s not profitable to mine bitcoin anymore there are other types of crypto currencies that you can actually some money on if you have a pretty decent PC and then trade those into bitcoin.
So if you guys want more information on that you can check it out right here. By far, the easiest way of getting your hands on bitcoin is to simply buy them. But this is where I have to be very, very clear, this is not a normal investment.
Not only does it just go up and down, but it goes wildly up and wildly down. So if you do decide to put money into bitcoin, please keep in mind this is a super risky investment. And that, honestly, it could all disappear at any minute. Hopefully it won’t but just be careful. Prices really are wildly variable on bitcoin right now.
So last week a single bitcoin was worth about $10,000 but this week it’s worth about 17,000 and next week it could be worth 25,000 or it could be worth $2,000. There’s really know way of knowing. If all that hasn’t scared you off, then it actually isn’t that difficult to get your hands on some bitcoin. So the first thing you’re going to need is a wallet to actually store them in.
There are a lot of different ways of getting yourself a wallet.
So on the very secure side you can get a hardware wallet that is going to be fully off line. But for most people the easiest way is to create an account in an exchange such as Coinbase. The advantage with Coinbase is, is not only do they give you a wallet to store it in but you can also purchase bitcoin from them as well as some other crypto currencies such as Litecoin and Ethereum, which is the other two major ones right now. Alright, so after this long and arduous journey we finally have our bitcoin. However, what can we actually do with it?
So some stores will actually allow you to buy things with bitcoin. However, the vast majority of people are using it as more of an investment. So you can buy some here, hope that the price goes up and then turn around and sell it later.
However, it’s not all just digital. So there are some bitcoin ATMs that you can go to in the real world, put your wallet information in and withdraw or deposit into them.
I don’t know if I would really use these myself, but it’s a cool idea. Crypto currencies like bitcoin are a really interesting piece of tech to me, and the idea that they could be actual currency is super fascinating. However, how could it all go wrong? The big one is absolutely price. Well yes, bitcoin has skyrocketed in value this year.
There is no guarantee that is going to continue in the future.
And if you’re not okay with a really, really risky thing like that, then bitcoin is probably not for you. Even though the blockchain is secure, there’s nothing stopping someone from being able to steal your own personal bitcoin using your wallet. So just like if someone grabs your real world wallet and pulls the cash out of it, if someone has access to your bitcoin wallet they can absolutely pull your bitcoin out of it. And this actually happened to me a few weeks ago.
So I used to use this service called “nicehash” to be able to mine some crypto currencies and then turn those into bitcoin, and as I was in the middle of mining they were hacked and all of the bitcoin were stolen.
Mine included. So, like anything, if you have your entire life savings under your bed, probably a bad idea. And if you keep all of your bitcoin in one place, an equally bad idea.
I’ve been doing affiliate marketing for years now but when I think back to when I got started, man, I was super frustrated. I wasn’t really getting clicks on my links, I wasn’t making sales and I didn’t really know what I was doing wrong and so I think you’re going to love this video and some of the insights that are going to help you get more views on your content and ultimately make more money with affiliate marketing even if you’re just starting so let’s dive into it.
Like, what are some tips that you would give both to the brand and also to the creator when it comes to making money as an affiliate? – Yes, I mean, for affiliate marketing I liked how you said you need to know how to convert. I think that it’s so important to really think about, essentially, the customer journey. There’s actually a really good article to look at by Think With Google, they go deep and they studied one, like, SUV purchase and they studied how many touchpoints this woman made and it was over 400. And of course, that was a much more expensive purchase, like $35,000 or something but I really like to think about, you know, all the way from what is the psychology of the person that’s searching the internet?
What is it they’re looking for? And so even for the creator and then a brand working for a creator just because you include a product in a video or even review a product, there’s some like very important, just, maybe subtle and small, like a call to actions that are important but they’re critical.
Like if you’re missing that thing and I think that’s that verbal call to action, that verbal education of hey if you wanna check out links to these resources it’s in the description below. Like if the creator misses the call to action, then there’s a disconnect to that affiliate marketing probably even being profitable. Furthermore, this is you know, you’re inside of my mind here if I think about kind of even why should someone click the link.
If you can layer on a reason why to say but hey don’t just take my word for it, if you wanna check out the links to this camera in the description below, read the reviews on the other side. And one of the things I’ve thought about where I actually, whether it’s good or bad, avoid products, I just don’t even make the video in the first place if it doesn’t have good reviews.
That’s the customer journey. If I’m like it’s great but then they click through and they land there and they’re like wait a minute, well then your integrity seems like, it’s just confusing why does it have two and a half stars? – And it might have a good product but horrible service and horrible logistics and then that destroy your credibility still.
So that’s literally thinking past your video and of course that’s also another tip I’d give to creators is that to really have integrity in the whole process, to of course always be transparent, to be authentic, to review products, or to be open with what’s good and what’s bad about them and so it is funny, I actually just avoid the product, I end up not making the video at all.
I only like, because why start the process unless let’s talk about something that’s really going to help people. I know maybe people need the reviews of stuff that isn’t bad but a lot of time I just like to find, and our promise is like, what’s the best camera for YouTube, we really want to narrow down like what are the three best options, really do our due diligence and then make those recommendations and then think through that like, entire kind of customer journey past our video because a great way to kill your brand is to recommend something, the same thing with your product, to sell some products that once people receive them, they’re like this sucks. – Yes this doesn’t work very well. Why did somebody tell me to buy this?
You have no longevity if everyone that is interacting with your stuff doesn’t see that the stuff you recommend is actually good and then I think the other thing is having, being a true practitioner. I think where we broke through in affiliates is a lot of people in the industry especially back when I started were preaching to others, their peers, who were really fancy, had a lot of technical knowledge, and who, of course, people that get into cameras and tech are usually kind of snobby about it, they’re whatever and so I kind of went the route of I’m not, I don’t know the best you know, filmmaking camera with the best, all of these details and color grading and, but what I know is that these beauty gurus, we went straight to YouTubers, people who did not want to be camera specialists but people that just were looking for tools that were easy to use, so it’s like empathy for the creator that’s like the flip screen matters, to be able to touch your screen and have it stay in focus matters, the mic input matters, user-friendliness matters.
And so it was interesting, I had to in the middle there endure some criticism from people like oh well it’s not the best camera and you’re like you don’t understand, you’re not my audience, like if you’re already off in this fancy world, that’s cool, but we really blew up by almost making it kind of like cameras made friendly, cameras made simple.
Cameras made for YouTubers that’s what it is. So I hope you got value out of that video and if you did can you hit the like button. And if you actually want to check out our jump start series with affiliate marketing, these were just a few kinds of overview insights and tips that’ll serve you but if you are looking for a more step-by-step approach of exactly how to use YouTube and affiliate marketing to generate sales, make money and build really a life and a business on your own terms, then I’ll link to that free series on the YouTube card and I’ll put a link to it in the description below as well. Question of the day, what is your YouTube channel about? Like what niche are you in? You know, I’m in the tech niche right, we talk all about cameras and gear and that’s a lot of what we talk about with affiliate marketing but I’d love to hear from you.