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Chris (00:24):
All right. Hi there guys. And welcome to this edition of the Weiss Crypto Sunday Special with me, your host, Chris Coney, I guest analyst today is Alex Benfield from Weiss ratings. Alex, how are you doing today, mate?
Alex (00:37):
I am doing well. How are you?
Chris (00:38):
I'm doing excellent. Excellent. So we're going to discuss today for our macro topic, we're going to talk about the different types or different ways with which businesses can engage with crypto. Whether that be crypto only, crypto enabled, or virtual businesses. So we're going to talk about all this sort of stuff. So this was inspired by one of Anthony Pompliano's newsletters, where he talks about this company Metro mile. He says, this is an insurance-based FinTech powered insurance company that uses data science and machine learning. And they've just announced that they will be allowing their customers to pay their insurance premiums and accept insurance claim payouts in Bitcoin, but not exclusively. So that's the first example of a crypto enabled business, right? They've added crypto on. Right. And you and I was just talking about, well, what's the difference between a crypto enabled business and a crypto only business. So let's pick it up there. Can we think of any crypto only businesses and is that even possible?
Alex (01:43):
Right. So I mean, a crypto only business is business that's solely operating on the basis of a cryptocurrency as opposed to running their bottom line and reserve currency like US dollar. You have bills to pay. Most companies pay their bills in their local currency. And there's not a whole lot of... I don't think the infrastructure is really there for a company to run on only crypto right now. I think there may be some places where it's a little more possible than others, but there's expenses that you don't really think of right off the bat that you need a local Fiat currency in order to operate. Let's say paying taxes. Yes. You can pay taxes with crypto in some areas.
Chris (02:37):
Right.
Alex (02:37):
But that's not really that common. Not to mention you have rent to pay, you have office supplies. That I'm sure you could probably find a crypto enabled business that would allow you to pay.
Chris (02:51):
We could call it the... Like what do we call it, the supply chain. Let's go with that, right.
Alex (02:52):
Right. The supply chain.
Chris (02:54):
In your supply chain, it's going to break at some point. What I mean break? I mean, there's going to be a point where you interact with a supplier, employee or someone that you want to pay that doesn't accept crypto. Right. And it goes, we're in the middle of right now. And people complain about adoption, but I think I said is a really silly objection, because like, you can't have adoption before you have adoption. And the only way you get adoption is by getting adoption, right. And there's going to be when it starts, non, and halfway through there's going to be some, and eventually it's going to be total adoption. So we're sort of in this transitional period where the supply chain [crosstalk 00:03:34].
Alex (03:33):
I think you need infrastructure adoption first. You need the ability to be a crypto only business. And so how does that start? Well, it starts with crypto enabled businesses. You have to start out with the option to pay in Fiat or current or cryptocurrency. And then once you have a supply chain that's heavily crypto enabled, it's going to open up the door for some businesses to try out the crypto only model,
Chris (04:06):
Sure. Very true. That's very true. Same with consumers as well right?
Alex (04:09):
Right? If I wanted to run a crypto only business, first of all, you have to make sure that you can build out your organization with a team full of people that are willing and able to operate off of cryptocurrency based salaries.
Chris (04:23):
Right exactly.
Alex (04:24):
Which I think that's done. I think there's plenty of teams that are partial cryptocurrency payments, but I don't know how many are a hundred percent cryptocurrency only salaries. So first she had to get over that hurdle. But then, like I said, you're running into things like office supplies, rent, taxes. Those are the things that are going to be a little bit harder to get by with just cryptocurrency payments.
Chris (04:54):
Absolutely. The individual is part of the supply chain as well. So say you managed to get all your suppliers on a business to business level to accept crypto, all your employees might take a hundred percent of their salary in crypto, but then they can't pay their rent in crypto. And there's the break, right? So unless you got an closed system.
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