Small Business Goes On A Bitcoin Standard w/ Kevin McGarvey (MI151)

Small Business Goes On A Bitcoin Standard w/ Kevin McGarvey (MI151)

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Clay Finck (11:32): Hey, everyone, welcome to the   Millennial Investing podcast. I am your host Clay  Finck, and on today's show I am joined by Kevin   McGarvey. Kevin, welcome to the show Kevin McGarvey (11:43):   Clay, thanks so much for having me. This  is really exciting and happy to be here.   Clay Finck (11:47): Let's dive right into today's topic. You are  

a small business owner that put Bitcoin on your  company's balance sheet, and I wanted to bring you   onto the show to maybe give the audience a little  bit of a different perspective. A lot of people   coming onto the show might be studying finance all  day, every day, and use this jargon that maybe a   lot of our listeners might not be really familiar  with. Whereas for you, you're a business owner,   you're living a life that's similar to maybe  many of our listeners. You want to provide for   your family. You want to provide for your  company, your employees, your community.   So let's start off our conversation to just  maybe talk about how Bitcoin even came onto   your radar in the first place. Kevin McGarvey (12:29):   Yeah, sure. Like a lot of people, I had a  different perspective prior to March of 2020,  

and then the pandemic hit and everything kind  of went crazy from there. The economy shut   down. We were kind of worried about, hey,  what's going to happen with our business?   Kevin McGarvey (12:45): I'm a paving contractor and   myself and my best friend started the business  10 years ago. So we had continued growth and the   business was going really well. And then, like  I said, in March, everything kind of changed. So   my business partner, Marco and I were discussing,  "Hey, how are we going to adapt to what's going   on with the pandemic? And what are  we going to do moving forward here?"   Kevin McGarvey (13:08): And so it was a few months after that where   the government came out with the CARES Act,  and in that was the Payroll Protection Program.   And so what that was, was where they were giving  money to small businesses to help with their   payroll and some other expenses that they had.  And so you didn't need to be a genius economist  

to know that it's not just good to give out free  money. There's going to be some side effects to   that. So it didn't really sit well with me the  first time, but if they're going to hand out free   money, we're going to take it. And so we battled  through that year, we took a little bit of a loss,  

like most main street companies did. We went  backwards a tiny bit, and there was that K shape   recovery that happened where it was like the stock  market plummeted, but then it just went right back   up. But us main street companies, we were  working twice as hard just to stand still.   Kevin McGarvey (14:03): And so we made it through the year,   and in January of 2021 was when they came out  with the second round of the PPP, and at that   point I was like, "Okay, this is just crazy.  They can't just keep printing money like this."  

And I see that our dollar is getting  devalued and we have a huge problem here.   And so I was speaking with my accountant and he  was telling me that his brother was into Bitcoin.   And at that point, I had never done any research  on Bitcoin. I had maybe seen it in headlines here  

and there, but knew absolutely nothing about it,  but he was saying, "Yeah, Bitcoin's going up in   price because of all this money printing. People  are putting some of that into Bitcoin, and so it's   probably something that you should look into. My  brother is really into it and he'd be happy to   sit down and talk about it with you." So I said,  "Okay, listen, like I said, I don't know anything   about this, but I need to find some way to pivot  here, so I'll be happy to talk to him about it."   Kevin McGarvey (15:03): So we sat down and he was   explaining it to me about how was this block, and  then there was a next block coming out, this guy,   he's this pseudonymous character, Satoshi Nakamoto  created this, and it's this ledger. My head was   spinning basically as he was talking about it. And  the one thing that he said that resonated with me  

was he mentioned the name Michael Saylor,  and that he had put $400 million into this.   And I see everything through the lens  of entrepreneurship. That's my passion.   So when I heard of another entrepreneur putting  money into this, that's what really intrigued me.  

Kevin McGarvey (15:41): Now, I'm pretty up on the popular   CEOs and entrepreneurs, right? I listen  to all the podcasts, read the books,   watch the TV shows, whatever it is, but I had  never heard of the name Michael Saylor before.   So I went home and I google him, and he's  22 year CEO of a publicly traded company,   went to MIT. So he's a technologist and very  successful guy, super brilliant. And so I just   started devouring every podcast that he was on,  every YouTube video, and was just listening to   everything he said. And that's when it really  resonated with me that, hey, Bitcoin is a viable  

option and it's a great option for us and the  situation that we're in right now. And so I   just kept going down that rabbit hole. I started  listening to your podcast, started listening to   some Pomp and some other shows and  just really educated myself on it,   and that's really how it came about. Clay Finck (16:38):   I just love how this can be a tool  of empowerment for small businesses.   If a business' cost is going up 10, 20%,  and their profit margins are 10% or lower,   they're really getting squeezed and they have  some tough decisions to make. Are they going to  

raise prices and have customers upset with  them? Are they going to keep wages stagnant   and try and come up with ways to maintain those  profit margins? So this high inflation can put   small businesses in really difficult situations. Clay Finck (17:07):   Could you talk more about some of  the education tools that you went on   outside of just podcasting? Are there any  other tool that you were able to utilize?   Kevin McGarvey (17:17): Sure. So I read Why Buy Bitcoin, Bitcoin Standard.   I was reading all of the books as well,  and then just trying to speak to people   about it too. So there's a Bitcoin meetup near me,  and I was just trying to connect with anybody and   read any book, anything associated with Bitcoin  I was just very intrigued about. I'd be on the   computer reading different articles. My wife  would be looking over at me on the couch like,   "Are you Bitcoining again?" So I was pretty  obsessed with it at that point in time.  

Clay Finck (17:50): You saw all this   monetary easing, the money  printing, the PPP loans. What   did you see were your potential options outside of  purchasing Bitcoin? Is it possible for a business   to do anything else with their treasury? Or how  was Bitcoin helping you as a business owner?   Kevin McGarvey (18:08): Yeah, sure, we had other options,   right? I mean, we could take that money.  So right now we rent our shop. It's a   10,000 square foot warehouse, an acre and a half  of land. And so we could look for someplace and   we could purchase some commercial real estate to  be able to buy. That's one option that we have.   But with that, you have a lot of time that you  have to put into that. You have to go search, you   have to deal with a real estate broker. You have  to deal with a lawyer. You'll have to deal with  

zoning whatever municipality you are in. There's a  lot to that and there's a lot of expense to that.   You need to be able to pay all of those people  and pay for permits, whatever else needed.   Kevin McGarvey (18:45): And so that's one option. We could put some of our   treasury, which was our rainy day fund. We had  a rainy day fund just in case anything were to  

happen. We didn't think it was a pandemic, but  that's what ended up coming along. But it could   be anything for a small business. You could lose  a big customer, you could lose a key employee,   different things could happen. So you  always want to have that rainy day fund,   and that's what we had. Kevin McGarvey (19:05):  

So we could have had the option of putting it into  commercial real estate. I mentioned the issues   with that. We also could have just left it in  cash. We could have just let it sit there in the   bank, but that would continue to lose value with  them printing... What was it? I think 30 to 40%  

of all dollars in circulation were printed in  the last couple of years. So if you just left   that money sitting in cash, you'd be losing  value on that. So those were the options.   Kevin McGarvey (19:27): And then we had our third option in Bitcoin. So   with Bitcoin, we really just had to just go ahead,  purchase it. It's not super difficult to do. We   went through that process. So as I was saying,  I was getting my education on it. I talked to   Marco about it and I waited until I think  it was March. So for like a couple months,  

I was just getting my education so that I was  able to articulate it intelligently to Marco,   so that I knew what I was talking about.  And so we sat down, we had the conversation   and he put some thought into it, he said,  "Yeah, I think this is the right move for us."   Kevin McGarvey (20:03): And we looked into a couple different services.   We chose a Bitcoin only exchange, and we went  with them. It took a little bit to get onboarded   because they were kind of just ramping up  their, I guess, corporate side of things.   And so in that timeframe, it took until late May,  and at that point, the price had dropped 50%,   from like 60 down to 30, and so it ended  up working out for us. We were able to buy  

a good bit in June there when the price was  in the 30s. And so it ended up working out,   but it's not difficult. Just seeing paperwork you  put in for really anything else and no hassles,   like I was explaining with the commercial real  estate. So it's super easy for a small business to   do it because you don't have a board of directors  and all these shareholders and everything.   A lot of people own the business themselves, or  maybe they have a partner or two and you just need   to discuss it between yourselves, but it's not  difficult, and that's why I think it's a great   move for small businesses. Clay Finck (21:03):  

So is it just a matter of converting that rainy  day fund to Bitcoin 100%? Or how did you think   about that? Did you just put a portion of it  into Bitcoin? And are any short-term reserves   that are probably needed for the next six to 12  months, is that all sitting in cash? Or how did   you approach that subject? Kevin McGarvey (21:23):   That is the tricky part because I want to keep  putting more and more into Bitcoin, but you can't   decapitalize the company, you still need cash  to run everything. So there is a balance there.   You have to put in what you feel comfortable with  and then leave some to be able to operate the   business. Those are our two strategies. We have  our operating company, our P&L strategy where   we're paving parking lots, we're line striping,  seal coating, we're pouring concrete every day and   generating cash from that. But then we're taking  portion of those cash flows and plugging them into   Bitcoin to be able to continue to grow wealthier. Clay Finck (22:02):   Yeah, I've listened to many of Michael Saylor's  episodes. He is such a profound thought leader  

in the Bitcoin space that is making some very  bold moves with his company's balance sheet. One   of his points that resonated with me  is that prior to the financial crisis,   businesses could earn 5% in a savings account,  while inflation was roughly two or 3%. Businesses   were at least able to break even on their treasury  when considering the effects of inflation and   the interest rate they were actually able to  earn in a bank account. Now compare that to   today, businesses get practically nothing in their  savings account, while CPI inflation is over 7%,   and assets like commodities, which may be a part  of their input cost for businesses are rapidly   rising, such as oil for example. Clay Finck (22:49):   With that, how having something like Bitcoin  to use as a hedge against that inflation,   I believe can be really powerful for small  businesses. And it doesn't have to be an   all or nothing deal where you either put 100%  or 0% of your treasury into Bitcoin. Companies  

can put something like 5% if they just wanted a  little bit of exposure without taking too much   risk. I'd have to imagine in that with you making  this move, that a lot of people probably thought   you were pretty crazy. I know you stay connected  and networked with other small business owners.   What was your response to these types of  people that thought you were pretty crazy?   Kevin McGarvey (23:24): Absolutely. They did think I was crazy and   many still do, but you're talking about that  problem that we're having. And like I said,   Michael Saylor, he gets a great analogy where  as a business, you're in your rowboat and   you're rowing at 10, 15, maybe 20 miles an hour.  Because once you get to certain point in business,  

there's only so many times where you could  double your business. It's hard to grow 10, 15,   20%. And if you do, you should be rewarded  for that. That should be a great thing.   But that's not happening today  because you're in your rowboat   and you're rowing as hard as you can to go 10,  15, 20 miles an hour, but you have a 25, 30 mile   per hour monetary wind blowing in your face. So  you're going backwards, and that's the issue.   Kevin McGarvey (24:09): I think he has another great   saying that the road to serfdom consists of  working exponentially harder to earn a currency   that is growing exponentially weaker. So how  can a small business combat that? And that's to   purchase a high quality asset that's appreciating  at 150% on average year over year since inception,   so that you're buying something that's  going to beat the rate of inflation.   Kevin McGarvey (24:35): Your alternatives are, you put   a lot of money into a marketing campaign, you try  to get another location. I mean, let's just take a  

dentist for example, right? You have a dentist and  that dental practice is doing real well. It's got   a great reputation in town and it's making  a few hundred thousand dollars a year.   And the owner of that business, they have a couple  options. They could keep doing what they're doing,   but they're going to generate a couple hundred  thousand dollars that's going to keep going down   in value, or they have the opportunity to maybe,  I don't know, go the next county over and try to   start up another location, which is going to cost  them more marketing dollars to get the word out,   it's going to cost them a lot to staff it.  I mean, it's going to be a big expense.   Kevin McGarvey (25:20): And instead of doing that, you can go ahead and   you could just purchase Bitcoin and not have to  take on all of the risk of all these different   employees that are going to be able to make the  business work. And there's a lot to that, and I  

think Bitcoin is the solution there where you have  a nice business, it's a cash cow, you've built it   up, you've grown your reputation for 20 years, and  right now with the current economic policy, your   business is getting less valuable. And so if you  go ahead and put Bitcoin on your balance sheet,   you'll make your business more valuable. Clay Finck (25:52):   I think a big concern for a lot of people,  at least I associate with is the custody   piece. People ask of me, how do you store your  Bitcoin? Do you keep it on an exchange? Do you   use a hardware wallet? So I'm curious for you  as a business owner, do you have some sort of   institution custodying your Bitcoin,  or how do you go about that subject?   Kevin McGarvey (26:10): Sure. So great question,   because not only is buying Bitcoin very important,  but securing it is very important, right? So   there are services out there that will  cater towards the bigger institutions,   like low custody for MicroStrategy or this hedge  fund or that. And when I was doing my research,  

there wasn't a lot out there for small  businesses, and I wanted to make sure that   our Bitcoin was safe. Kevin McGarvey (26:37):   And so what we did was we did a bunch of research  and we took self-custody of our own keys. And   we have it in a multisig setup. We use a service  called, which is basically a guide to   using Bitcoin Core. And so with that, we have  three of seven multisig setups. So you would need   three keys to be able to access the Bitcoin,  but those keys are all offline and they're   geographically distributed. So it's pretty  much as safe as you can get. I mean, I know  

a lot of people use hardware wallets and  things like that. There are some risks there   with manufacturer's risk and other things. But the  safest thing that you can do is use Bitcoin Core   and hold your own keys. Clay Finck (27:17):   Are there any concerns for you at all from a  regulatory standpoint? I couldn't tell you the   number of people that tell me the government's  just going to regulate it away or it's going to   stifle Bitcoin's growth because of the regulation  or they're just going to outright ban it.   How do you think about that? Kevin McGarvey (27:33):   I'm not as much worried. I mean, there's always  been positive regulation from what I've seen so  

far. The IRS has designated it as property.  Again, we're not a public entity, so there's   nothing there. We're not purchasing any alt coins,  so there's no securities or anything like that.   My main concern is really just the money  printing that's going on with the government.   Kevin McGarvey (27:56): I think it was a great podcast Preston had on   Mauricio Ledn, and he was talking about everything  that had happened in Venezuela. And man, it was   just really connecting with me because basically  what happened there years ago is happening here   right now. He was explaining how they were  printing a lot of money, the middle class was   shrinking. There were people bragging about how  they could drive their car around for four years  

and then sell it for even more they originally  bought it for. I mean, it was kind of like check,   check, check of everything that's going on here  today in America. So they had a quote saying this   idea that you can make money through honest work  dissipates. That really resonated with me, right?   We're doing honest work, but the central banks  are making it harder for a small business to go   ahead and reap the rewards of that honest  work. Like I said, money's flowing into  

these Wall Street companies that have these  investible assets and you have the bottom 50%   of Americans who don't have that. Kevin McGarvey (28:57):   And so really worries me. And that's more so  my concern, but I'm not really concerned with   any regulation in regards to Bitcoin. In fact, I  think it's going to be good for Bitcoin because   then other people are going to get in once these  regulations come around, the price is going to go   Yeah. There's a tweet I saw yesterday that  showed that the annual inflation rate in Turkey   was 54% and the producer price inflation in  Turkey was a 105%. So just like that alone,   those countries experiencing that extreme  levels of inflation, businesses in those   countries are absolutely getting crushed  if they don't hold either US dollars   or even some Bitcoin. Anyone with a smartphone  that has access to an exchange is able to  

purchase Bitcoin, which is one of the brilliant  things about it is it's a global phenomena   and anyone has access to it as long as they have  a smartphone and access to some sort of exchange   to be able to exchange with it. Clay Finck (29:53):   I'm curious, to talk more about your company  specifically, what was the reaction from your   employees when made this move of buying  Bitcoin for the company's balance sheet?   Kevin McGarvey (30:04): Sure. What we did was I was   thinking of how we can integrate Bitcoin into our  business, and I feel so strongly about it that I   wanted everybody to have some. So what we did was  implemented a $5 Bitcoin bonus for every employee   in the company. So weekly, they'll get a $5 bonus  that when the Strike app came out with the Pay Me   in Bitcoin feature, made it very easy for small  businesses. They give you a routing number,  

an account number and we put that into  our payroll service and it goes ahead and   transfers that. It shoots it in as you US dollars  and then transfers it into Bitcoin. And so yeah,   every Friday morning they wake up and they  get a notification from the Strike app that   they were paid $5 in Bitcoin. Kevin McGarvey (30:51):   And so I'm trying to educate  everybody on it because,   again, it's going to be impossible for me  to pay them 20 to 30% more year over year,   right? It's just not going to be feasible. So the  best thing that I could do for my employees is to  

try to educate them on Bitcoin. And I hope  that they're not only putting that $5 in,   that they're putting maybe a little bit more of  their paycheck in there as time goes by and they   start to see the value in it. And so I'm working  on that. It's a process, right? Everybody doesn't   get it right away or understand it right away.  And so we're working on putting together education   sessions for everybody so that we  can continue to educate them on this.  

But yeah, as of right now, they've been getting  $5 a week and we're really excited about that.   Clay Finck (31:36): I love that weekly Bitcoin bonus you do.   I think you'll hear from a lot of investors that  the best way to start learning about an investment   is to get skin in the game yourself, and with  your employees, you're just handing them Bitcoin,   depositing it into their account. So they're  going to be interested in it. They're going   to start watching the price. They're going to  start listening to Michael Saylor or Preston Pysh   interviews and start learning more about it. Kevin McGarvey (31:58):  

Yeah, absolutely. Like I said, there's no  drawback to it, right? It's not anything   taken out of their paycheck. It's just  a benefit that the company is offering.   And so we're looking forward to looking into some  other stuff as well, like maybe a Bitcoin IRA,   something along those lines, but yeah, trying to  get everybody involved in it. And I'm confident  

that they'll be looking back soon here, once  the price really rises, and saying like, "Wow,   you know what? My employer was looking out for me.  They were trying to do the right thing by me. I   thought this might have been crazy when they first  rolled it out, but now I'm going to go ahead and   keep putting more money into it because it's going  to continue to grow my wealth." So yeah, we're   really excited about it moving forward here. Clay Finck (32:36):  

I'm curious. Has implementing the Bitcoin  bonus helped with recruiting at all?   Kevin McGarvey (32:42): You know, that's another good feature about   it. So we recently put up a post for an inside  operations coordinator, and we had a woman reach   out to me specifically saying like, "Wow this is  amazing, this Bitcoin bonus. It really shows that   you're a forward thinking company and that's  the kind of company that I want to be with."   And then we also want to attract those types of  people. Bitcoiners are great to work with. So   it works for us in the recruiting realm as well. Kevin McGarvey (33:09):  

I mean, if you're trying  to differentiate right now,   there's a big war for talent as a small business  where everybody's trying to hire and everybody's   trying to get an edge. And so having that on there  separates us from anybody else that's hiring out   there. I don't know of any other company doing a  weekly Bitcoin bonus like we do. So it separates   us, it's a differentiator, and we were able  to pick up some good talent because of that.   Clay Finck (33:32): I'm super curious about this one.   We see companies like MicroStrategy and Tesla  and Square. There's a few names in the public  

company sphere that have embraced Bitcoin  and adopted it, but it's much harder for a   public company to adopt Bitcoin, because like you  mentioned earlier, there's a board of directors,   there's thousands of shareholders. But with a  private company, many times, it's held by just   one or two people, the ownership. So that's 100%  up to them if they want to adopt Bitcoin or not.   So are you familiar with any other private  businesses making a move like this? Has businesses   been approaching you to ask you questions  about the subject? Talk to us about that.   Kevin McGarvey (34:10): I don't know of any other private company yet   that has done so, except for... I'm actually going  to be doing a podcast with Ali from Tahini's,  

the Canadian restaurant chain. So I'm really  looking forward to that. He actually bought   some before Michael Saylor. So that's really  impressive. I'm really interested to talk to him.   Kevin McGarvey (34:30): And then as far as...   I know a lot of people that have bought it  before me in regards to personally, but not   in regards to their company. So I've been talking  to people about it. I'm in a group called Vistage.  

It's a CEO group with really bright CEOs of seven,  eight, nine figure companies and been telling them   about it. And so there's two guys in the group who  have bought it personally and hoping that they do   so for their company as well. But yeah, that's all  I know as of right now. I'm hoping to get the word   out. That's my goal, right? My passion is  entrepreneurship and small business. And  

I just think that this is the best thing that  a small business can do right now. And so   that's why I'm on this platform and just trying  to get the word out here to other businesses.   Kevin McGarvey (35:15): I did have one person reach out to me   when I was on a previous podcast. They reached  out to me on LinkedIn, and he was a guy who   sells insurance for companies' receivables. And  he really liked what I had to say on the podcast,   and he reached out to me and said he  was thinking about starting a business,   trying to get small business owners  to put Bitcoin on the balance sheet.   So he's going to try to help them out. So  hopefully that takes off and other businesses  

start doing it here. Clay Finck (35:44):   You mentioned the networking group you're a  part of. Have those guys approached you to   learn more about taking on this strategy? And what  are some of the big hurdles that they're running   into that's either stop them from not doing it  themselves? Could you talk a little bit about   some of the hurdles they're running into? Kevin McGarvey (36:02):   So I think it's frame of reference. When  the pandemic hit, I was real worried and  

we'd be talking strategy, and they were more calm  about it. They were like, "Oh, we've been through   2008. We've seen downturns before. We've  been through 2001 with the dot-com bubble   and 9/11 when things took a downturn," all those  types of things. And so, to them, they're looking   at it through that frame of reference. I guess for  me, I've never had any other economic downturn,   right? We started our company in 2012, but I see  this as very different. I see this as different   than '08 and the ones before. And so I don't  think they see the problem like I do. And then,  

like I said, it's just different. Kevin McGarvey (36:47):   I'm the youngest entrepreneur in that group. So  the other guys are a little bit older than me.   Not saying that they can't get it, but it's just  different for them. And so I've presented to them   and tried to educate them on it, but pretty much  always have the same questions, right? Like can't   the government shut it down? Isn't it just used  for nefarious reasons like drug dealing and   laundering money and things of that  nature? You just see the headlines,   that's pretty much it, and haven't done the  actual work to educate themselves on it. And   so that's kind of the hold up is getting them to  take that deep dive to realize, hey, this is a big   problem right now and Bitcoin is the solution. Clay Finck (37:26):  

Yeah. I've realized that I really can't make  someone get it. I can give them the resources,   but me talking to someone for, say, 30 or  60 minutes isn't going to make them get it.   I was skeptical just like everyone else was when  we first started learning about it. And then   as you see the price continue to go up and  adoption to continue and these mainstream   institutions to continue to get into it, maybe you  dig a little bit deeper into some of the skeptical   concerns that people had, whether it be the  regulatory piece or whatever. And then even if you  

still might not be fully bought in, you can still  put call it one or 5% of your portfolio or your   balance sheet into it to account for that risk.  If you put 1% into your portfolio and it ends up   going to zero or getting cut in half or whatever,  it doesn't destroy your financial position,   but you're still participating in that upside. Kevin McGarvey (38:17):   Absolutely. I'm all in on it. But that's  where I try to let them know, hey, listen,  

it doesn't hurt to just put a portion in. I  mean, there's guys that have gosh, a lot of cash,   a lot of cash in reserve just sitting on the  balance sheet. And I keep telling them, "Hey, this   is our responsibility, as a CEO, as the president  of the company to make sure that cash is managed   properly." And I try to educate them on it. Kevin McGarvey (38:39):   I mean, my process of trying to educate everybody  is to break it down to digital gold. I think   that's the easiest to understand, right? I know  they talk about digital real estate and digital   energy, but I think starting with digital gold  is probably the best way, and trying to take   everybody through like, hey, what is money,  right? What is money? What do we use it for?   And what are the properties of money, which is  durability, portability, divisibility, uniformity,   and acceptance, and limited supply. So try  to walk through those things, try to walk   through the functions of money, a medium of  exchange, unit of account and stored value.  

And so I'm trying to break down how we used gold,  we used to use gold because of those, but now   Bitcoin is that, but better. It's more scarce and  there's a finite supply. They're not making any   more. There's only 21 million, and that's what we  need to use as a stored value here moving forward.   And so I try how to break it down in that way. Kevin McGarvey (39:37):   And also, I guess the other hold up is right  now I'm a 33 year old paving contractor.  

So what I tell them is, "Hey, I understand you  might be skeptical to take that advice from me,   but look who else is doing this." You have  publicly traded companies, you have MicroStrategy,   Square, which is now Block, Tesla, all the Bitcoin  mining companies. You have hedge funds doing this.   You have banks offering custody services. You  have politicians who have bought Bitcoin that   are fighting for Bitcoin. So I try to tell them  that, "Hey, it's not just me doing this. There's  

a lot of people that are doing this right now,  and if you look into what they're saying as well   I think you'll see the reasons." Clay Finck (40:19):   What is next for you and your business?  Are you just going to continue to   sweep most of your cash flows into Bitcoin? Or  maybe talk a little bit about the Bitcoin Roth   IRA that you mentioned earlier. Kevin McGarvey (40:31):   We'll keep sweeping our cash flows into  Bitcoin for sure. I mean, like I said,  

it's going to be an uphill battle for small  businesses. So for my business, for instance,   gosh, everything is going up. We get emails  from our concrete suppliers every other month   saying the price of concrete is going up. The  price of asphalt is going up. The price of   asphalt sealer has gone up, the price  of paint. Everything. The price of fuel.   As far as wages go, it's a war for talent out  there. So if you're trying to bring somebody   on board to your company, you're going to  have to pay more than the next guy is. So  

those prices are going up. And to be  honest, I think Bitcoin is a necessity.   Kevin McGarvey (41:08): If you're a residential painting contractor,   for example, it's just going to get too  expensive for people to want to paint   their house. Like the painting the house is  a luxury. You figure, "Oh, okay, I'm really   getting tired of this brown color. Let's switch  it to blue. So I'll call a painting contractor."   When paint gets so expensive and the labor  is so expensive people just... They're not   going to want to do it anymore. They're going  to say, "Okay, I can live with this because   it's too much to paint the house. Or I'm just  going to go ahead and I'm going to do it myself."  

Kevin McGarvey (41:38): So like I was saying earlier with the comment that   Mauricio from Ledn had made, it's going to be hard  to make a living doing that honest work. And so   I think this is the strategy that you need to  implement for your small business. Otherwise,   I really think that companies are going to be  in trouble here moving forward, just because   the dollar's getting devalued, inflation's at a  all-time high, and it's going to be really tough   to combat that unless you have assets that are  going to appreciate faster than that. And Bitcoin  

is the strongest asset and has appreciated the  most over the past decade. So that's why I feel   that strategy to be a necessity. Clay Finck (42:15):   How about the Bitcoin IRA? What does that look  like for your employees and your business?   Kevin McGarvey (42:20): To be honest, I'm just starting to look into that,   so I don't have all the answers on that one right  there, but we're looking into it and looked into a   couple different services, like Choice  where you can still hold your own keys.   So I'm looking into that right now, but that's  obviously very important to me that you're able   to still custody your Bitcoin as well. Clay Finck (42:41):   Before we close out the episode, I wanted to  ask you, what makes you most excited about   the future of Bitcoin? Kevin McGarvey (42:48):   Gosh, I think there's just exciting  things happening every day, right? I mean,   look at what's happening right now in Canada.  GoFundMe shut everything down and they just  

took people's money and put it elsewhere. But  they were able to get the truckers some money by   getting them Bitcoin. In Ukraine right  now, I mean, people aren't sending gold,   they're sending Bitcoin. There's more politicians  that are getting involved, there's more companies   that are getting involved in Bitcoin. And that's  what I try to tell everybody is please don't focus   on the price, you've got to look and see what's  happening and how undervalued it is right now.  

So every day there's good things happening  in the Bitcoin space, and so exciting to me.   I'm just really bullish on the future here. Clay Finck (43:29):   Yeah. I think if you tell people about Bitcoin and  the sovereignty piece, how you're actually able to   hold your own keys, they'll be like, "What do you  mean? I have the US dollar and I have my banks.   They take care of my money for me." But you see  these things happening in other countries where   their accounts are getting frozen or they aren't  able to send money to their friends and family   because there's a bank run or something. Clay Finck (43:49):  

So with Bitcoin, no individual government, company  can stop any transaction at all. That's kind of   the beauty of it is every single individual  that's a part of the Bitcoin network has that   self sovereignty on their money. And really their  energy because money is a form of storing your   life, energy, and your work. Kevin McGarvey (44:08):   Absolutely. It's the only thing you can  truly own. Even though you own your house,   they're still going to tax you on that. Right? You  don't own that land. And anything else you have.  

Versus Bitcoin, you can hold your own keys, you  could set up a multisig setup to where somebody   comes in and somebody comes into my house and  tries to steal my Bitcoin, they might be able   to take one key, but you need three, which are  geographically distributed all over the place.   So you own it. They can't seize it from you  or confiscate it or anything like that. And   so that is really why it's so valuable. Clay Finck (44:41):   Kevin, thank you so much for coming on to  the Millennial Investing podcast. I really   enjoyed learning from your insights and think it's  really valuable that we bring on just an everyday,   small business entrepreneur that's just trying to  provide for others and do good for his business   and his family. So before we close things out,  where can the audience go to connect with you?  

Kevin McGarvey (45:02): So you can reach out to me on LinkedIn, Kevin   McGarvey. My company is All Out Parking Lots, and  you can message me there. I'd be happy to message   anybody back. Again, my mission is to help other  small business owners. So please don't hesitate   to reach out. I'm here as a resource and here  to help, and that is the best place to get me.   Clay Finck (45:20): Awesome. Thank you so much for coming on, Kevin.   Kevin McGarvey (45:23): Clay, thank you so much for having me.

2022-03-18 04:32

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