Episode #5: Market Cycles & Emotions in Crypto w/Juicy
On this episode of the ACCEL Podcast, Scott, Eric and Alex interview Bhaves (aka Juicy Jerms in the community) and discuss his professional background, involvement with ACCEL, cryptocurrencies and the market cycles in this space.
For educational resources related to ACCEL and Crypto in general, please visit ACCEL University on YouTube using the following link:
[Scott] On today's episode of the ACCEL podcast, we interview Bhaves, also known as Juicy, as we discuss his background, involvement with ACCEL cryptocurrencies and the market cycles in the space. As always, my name is Scott and I'm Eric. And I'm Alex. You're listening to to the ACCEL podcast Defining a Decentralized Future. One listen at a time.
[Alex] Welcome, everyone, to the ACCEL podcast. Today we have a very special guest for you, businessman, entrepreneur Juicy aka Bhaves. Welcome to the show.
[Juicy] Hey, thanks for having me. Thank you for coming on. Can you introduce yourself to the listeners? Tell us a little bit about yourself. Yeah, certainly. So my name is Bhaves, aka Juicy Germs in the chat. So I've got kind of like a wide array of background, started with SaaS software companies, have my own recruiting agency, work in various other real estate aspects. And then I was also a day trader for trading stocks. So I think it was just a good conversion to bring the crypto side into that portfolio.
[Scott] Okay. Everyone kind of finds their own way into crypto. It's always exciting to hear about the different people and how they kind of found their way in. Here what really drew you in from that background into the crypto sphere.
[Juicy] So when you're looking at investments, it's really about diversifying in different markets. Like I said, real estate stocks, crypto is growing, and at a very large rate, it's almost as like a doubling effect since 2012. And I kind of just wanted to grab a piece of the crypto side for my portfolio.
[Scott] So it was really just kind of diversifying that portfolio, kind of reaching out into some different areas.
[Juicy] Yeah. I have an investment philosophy of kind of building pillars. That way if one goes down, you're able to still rely on other areas for your money to continue to grow. As we know we have higher inflation than historically present. And I think crypto is a really good asset to just bring in to help kind of minimize the risk in overall portfolio decay.
[Scott] So let me ask you something with that. Does it kind of attract you being something that's a little bit newer as it's a new market compared to some of the other things you've gotten involved in? Is that something that kind of peaks a little bit of interest?
[Juicy] Yes, definitely. The hype behind it helps a lot. And then also just with the overall growth of it, I mean, you look at the numbers of decentralized finance itself. In April of 2020, we were sitting around about 3 billion in market cap. And then just a year later, it grew almost 30 times to 103,000,000,000 in market cap. So as soon as you start reaching these billion dollars in total dollars in that market or space, it's something that really is hard to kind of just shut off. And so that's when I kind of piqued more interest into it because it's something that's not really a fad.
[Scott] Yeah, that was definitely something how it kind of went for me. It was like one of those things. It's almost undeniable once it keeps going for a while. Like at first you see it. Okay. Back a couple of years, 2014. Okay. Yeah, maybe 2016, Rosalien. And now we're really getting into the time where it's like it's either time to shut up and get on board or to get completely out. I feel like it's one of those times where a lot of people are taking advantage of the market and trying to find a way in. And I think it's advantageous to think that you can't take a look at where we've come from in crypto to kind of give you an idea of where we're going. Is that kind of how you feel? Juicy?
[Juicy] Yeah. When you look at just like the overall trend from 2012, I mean, it's completely changed and flipped upside down to where instead of just having like a negative connotation behind cryptocurrencies, you're having large financial institutions, Fortune 500 companies getting involved in crypto, small countries are getting involved in crypto as well. So it's not something that really can be taken lightly for anymore or as a joke, it's a real serious player in today's world.
[Eric] So juicy. With all that being said, as you give us a little bit of your background and you said you'd entered into crypto coming from the day trading space, and we've heard a lot about that where guys are coming home, gals are coming home trading on their Schwab account or their ETrade account. Now you've moved into that crypto space. How has that traditional background of day trading transitioned you into crypto?
[Juicy] So the trading side of the stock market, there are similarities. As far as technical analysis goes, when you bring it over to cryptocurrencies, one of the biggest learning curve that I had to kind of deal with was crypto is very, very volatile versus the traditional stock market, having certain levels in which you can see kind of pauses and momentum kind of shift. Whereas crypto especially DeFi when the train runs, it runs, but when it's out of gas, it's a complete stop.
[Eric] So then, alright, so with that being said, is crypto something that becomes more of an emotional trading thing? Because as we always hear, everybody always says, you got to remove your emotions from trading. You have to trade upon the numbers, predicated upon the financials or is crypto one of those things that the traditional trading mentality does or does not apply?
[Juicy] It somewhat applies with technical analysis. You can find your support, resistance zones, breakouts as well. Fibonacci is one of the trading tools that I use for trading the stock market, and it does relate to the crypto side. But overall, it's more psychological on the crypto side, even though it is on the stock market side as well. On the crypto side, it's a lot more about seeing green and red for when people exit and enter. So with that being said, for the new Gal or the new guy coming into the crypto space, is it something that you've really got to go with the old traditional standpoints or not even the old traditional standpoints, but the mentality of buy and hold, you really can't get caught up in the excitement of the up and down cycles, where, as the old school mentality told me by my mom and dad, you're not going to make a quick buck overnight. It cannot mentality still be brought to crypto and still be successful and still invest for the long term, which is what people really kind of as we've always heard, you're not getting into a marketplace for the today, you're getting into it for the future. It's about your retirement and so on and so forth. Yeah. So what I do is I actually take the stock market principles of investing in companies and then tie it to basically my startup background in SAS software or Fintech. And essentially I'm looking for projects that have longevity because it is an ever growing space to where if you get in the right project and they're around three, four, five, 10 years from now, you're going to make quite a bit of money. Just like when startups come out like Airbnb DoorDash. Those guys didn't get a 300, $400 million valuation just from day one. I mean, they literally grinded it out at the very beginning. And then they slowly grew, slowly grew. Then incubator funds came in, invested in them, and now they're publicly traded. So I try to use more of take the products, the services, the IP that these projects are providing in DeFi, and then tie it with the chart itself, using one of the tools out there and try to figure out, hey, is this product something that can be around five years from now, ten years from now, is what they're building, something that is actually going to be viable for the DeFi blockchain space in the future?
[Alex] We discussed a little bit about business and other investments. Can we talk about how you got involved with ACCEL?
[Juicy] Yeah. So my initial investment with ACCEL was actually as a part of one of the presale tokens. The presale token provided a lot of value in the DeFi space. And I could kind of put on paper, like how they were going to generate revenue and how they can get to scale. So when the merger of ACCEL happened, it actually made it a lot better on my projections that I had of what the revenues could be at. And so I kind of just saw it as a steal, as an investment goes.
[Scott] So as we kind of talk about that juicy working into the different kind of streams of rewards that we kind of can see is that kind of what really enticed you once that merger happen and you really got to dive deep into the ACCEL I know you have a little bit of a relationship with Chris that's been going on for a while and we all love Chris. We got a nice little talk with him on one of our first podcasts. And man, he's a smart guy.
[Juicy] Yeah, he's brilliant. And he was actually the person to kind of push me towards ACCEL. And at first I was a little skeptical just coming from the more traditional stock background and real estate side. But then once I started to get the information, or once ACCEL released the information of how the revenues were going to work, where the revenue was coming from, how the rewards are going to be split amongst the community, and then you have the staking pool. I mean, those were things that kind of just showed me that, hey, we can really make some real money in deep eye without having to one risk quite a bit, but also still have that large unicorn type potential that you see from the startup companies in fintech that eventually go IPO.
[Scott] Okay, so I guess kind of tying that in. So I know we kind of talked a little bit earlier, touched on it, at least about market cycles. Is this something that is more appealing to have these multiple revenue streams? Do you think with the different market cycles that you have to worry about with things cycle in and out?
[Juicy] Yes. So it actually helps because we all know that there are going to be cycles in the market, especially at the macro level. But when you have true fundamental numbers that you can base calculations on, such as revenues and you can tie that into growth, I mean, even price coming down, it just allows me to have a good intrinsic value on buying at a cheaper price. One of the things I look for with long term hold, especially in the stock side, is like how much is it trading apart from its book value, its competitors using also PE ratio as well. If I see the revenues of ACCEL hypothetically in a 15 20 million range, but their market cap is only around 50 to 100 million. Well, for a tech company, a tech product based company, to be trading at only a four, five or ten multiple, it's kind of outrageous in valuation for me. So even these cycles that come in on the macro side, it's not really changing the thought process of what I see in an individual company or project because the revenues will speak for itself at the end of the day.
[Eric] So juicy. As we all know, we always hear the terms of bullish and bearish cycles. Pretty safe to say we're in a bearish cycle right now. I mean, there's no two ways to call to say we look at all the large market cap currencies that are 50% to 60% down. So my belief and you can steer me in the right direction, having a greater knowledge of this knowing that we have a revenue generating coin in ACCEL, how are we going to get through this downturn of the market cycle and feel safe about being invested in ACCEL?
[Juicy] So when you look at the stock market, what usually happens during a bear cycle? Money moves to more fundamental stable areas. And if the holders of ACCEL are seeing these rewards come in due to the revenues being shared, then it would naturally gravitate holders of other cryptocurrency where they're seeing 30, 40, 50% drops that don't have the rewards come in shift towards the more stable side of DFI because if I'm able to receive back a 25 30% return ROI on just the reward side itself in a bearish market, just imagine what that would be in a bullish market.
[Eric] So safe to say right now. Again, this podcast is not to give financial advice, but safe to say, to be within ACCEL right now doesn't particularly make you insulated, but knowing that eventually with every down market there is an up market, ACCEL would probably be a good place to be.
[Juicy] Yeah, I do think ACCEL would be a good place to be, especially with the way that the rewards and staking pool set up. It's really there to benefit the holders itself. Ethereum Bitcoin they can do what they do in the chart, but if I'm seeing returns back, why wouldn't I stick around? Is the question I ask myself.
[Juicy] So juicy then tying back into what we came into this discussion about emotions, how are we able to remove our emotions or control our emotions during these bearish and bullish markets where people always say windfalls of money or windfalls of returns are made sometimes in the worst times, right? The most millionaires came out of the Great Depression. How can we then translate and tie that into this down market within ACCEL of crypto in today's space
[Juicy] With the down markets, really what they do is they create buying opportunities and the emotional side, everyone looks at it as more of where is my money right now? Whereas they're not looking like a lot of the larger institutional investors are looking and they're looking where is this going to be valued in twelve months? Where is it going to be valued in a year? Where is it going to be valued in two years? We're always going to have ups and downs because people are taking profits. It happens if nobody took profits, everything would be worth ten times what it's at right now. But overall that's human psychology. You want to take profits, you want to grow your money, but they keep looking at what it is right now versus what can it be when it's actually in full fruition. And the way that you kind of do that is instead of investing for the quick hype, the quick pump it's where can I invest to where? Five years from now, ten years from now, it's changed my life, not where it is right now because right now the money sits there and if you're looking for it to grow 30, 40 X, you can do that, but you're probably going to lose more than you win versus the more fundamental side. Buy and hold wealth is created. It just takes time. And so, like for me with ACCEL, the price really doesn't matter. In my opinion, it's more of where are we going? And at that point, the market itself will catch eyes and dictate what it's truly worth.
[Scott] So I think one of the biggest things people have a hard time with juicy and I'd love to hear how you've kind of taught yourself to do this is how do you take a step back and look at the whole picture? What gives you that ability, that mindset to be able to take a step back, take a deep breath and look at the whole picture.
[Juicy] So it really just comes from experience. Back in College, I had my own little sports advisory where we would essentially just give out games to some not going to name anybody, but we would give out games, they would vet them, but it was all based on money management. At the end of the day, if you don't know how to manage your money, It's probably not going to work out the best. So I use those lessons basically from back then and applied it to the market side as a whole. It's really hard to take emotion out of it, right, because you see your money's green one day and then the next thing you know, you open your portfolio and it's down 10%. Usually that leads to that fear that it's going to zero, but in reality, I mean, nothing really goes to zero unless it truly just files for bankruptcy. And that's really the best way I can put it. I'm kind of blessed I was able to live through 20. 07 20. 08 20. 09 and my family went through very hardship with their businesses and that kind of helped me learn more and more that, hey, even though things have gone bad, There are better days ahead because once you bought them out, there's really nowhere else to go but up.
[Eric] So juicy, everything you've given us today Dynamite information, and as everything ties back into it comes down to education and you've kind of walked us through your journey of how you've gotten to these trading cycles, working through emotion and for all of our listeners out there, you can get all of that insight at the ACCEL University on our YouTube channel, everyone.
[Alex] Everyone, thanks for listening to the ACCEL podcast. Please check our show notes for our link tree and as always sit back and ACCEL.
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