KEVIN VECMANIS – The Future Is Here Where Are You

Proven and Probable sits down with Kevin Vecmanis founder of Vanaurum Financial Technologies to discuss the value proposition of the capital vortex being created by blockchain and how gold may be the ultimate beneficiary.

www.vanaurum.ca
WEBSITE https://provenandprobable.com
YOUTUBE: https://www.youtube.com/c/provenandprobable.com
TWITTER: https://twitter.com/provenprobable

VIDEO

AUDIO

TRANSCRIPT

Maurice Jackson:

Welcome to Proven and Probable, where we focus on metals, mining and more. I’m your host, Maurice Jackson. Today we will discuss the value proposition for the next capital vortex, and how you, the subscriber, may benefit. Joining us for a conversation is Kevin Vecmanis. He is the founder of the VanAurum Financial Technologies. Mr. Vecmanis, welcome to the show sir.

Kevin Vecmanis:

Great to be here Maurice. Thanks for having me.

Maurice Jackson:

Mr. Vecmanis, for first time listeners, please tell us about the VanAurum Financial Technologies.

Kevin Vecmanis:

I have a background … I specialize in programing, specifically in Python, and I took a keen interest in machine learning and artificial intelligence. I’ve always had an interest in the markets, so I decided to combine the two. So I built that with the machine learning technology that initially and right now is for analyzing and forecasting the gold market. We spin off analytics from that and I use them for trading purposes and investing purposes. I also sell access to those machine learning analytics to my subscribers and members.

Maurice Jackson:

And is … The subscription, is it a fee based or is it free?

Kevin Vecmanis:

It’s fee based.

Maurice Jackson:

It’s fee based? Can you give us the fee base please?

Kevin Vecmanis:

Yeah. It’s $29.99 per month, and I also offer a quarterly and semi-annual membership as well that are offered at slight discounts to the initial monthly rate. There’s a free trial for the monthly subscribers. They can log on, try it out for a month, look at the analytics. If they decide that it’s not going to help their trading or investing, then they can cancel at any time.

Maurice Jackson:

All right. Kevin, let’s lay the foundation for today’s discussion. Please share with us the distinction between blockchain and cryptocurrency, because I often hear these terms being used interchangeably.

Kevin Vecmanis:

Yeah. Blockchain … What’s a good analogy here? Blockchain is to cryptocurrency like the banking system is to money. That’s probably a loose … Not an airtight analogy, but blockchain is the system through which validations and transactions can become verified. The actual crypto tokens themselves are a use case of the platform that people can exchange. The actual exchange of those crypto tokens and currencies is what’s being validated by the big machine that we’ve built, which is blockchain.

Maurice Jackson:

Recently you wrote an article entitled, Gold and Blockchain, which we have posted on our website. In that article you’re quoted as saying, “The internet revolutionized information flow. The blockchain will revolutionize information validation.” This, ladies and gentlemen, will be the theme for our discussion today. Give us a brief narrative on this article.

Kevin Vecmanis:

The article is basically about every so often in history we have what I would call a capital vortex. Instead of using the term bubble, where you get this whirlpool surrounding something, whether it captures the imagination of people and it sucks in capital and time and energy from everywhere, you get these explosive bubbles. You get all the attention.

Every time we have one of these capital vortexes there’s always something useful left behind in its wake. If you’re lucky enough and you’re clairvoyant enough to actually capitalize on the capital vortex before it occurs, then you become a very wealthy person. But for most of us who miss it and have that fear of missing out, it’s always what comes afterwards,  the infrastructure left in the wake where there’s the secondary opportunities that are also very, very … Can be sizable and tremendous. That’s basically what I was trying to focus on in my article.

Maurice Jackson:

It sounds like you’re making the distinction between vision and having sight, between the two. You mentioned a capital vortex. Give us an example of the last capital vortex that we experienced.

Kevin Vecmanis:

Well, you know there’s been a bunch. We had somewhat of a bubble in 2008. Again, not much good came from the bubble in 2008, but there was lots of actual physical infrastructure built. There was houses and suburbs and you had this enormous offshoot and upcropping of buildings, both residential and commercial real estate, that were a combination of extremely cheap credit and the perception that buying real estate was a quick way to make money, which at the time that it was.

In the aftermath of that crash, there was a whole bunch of houses left over and a whole bunch of infrastructure left over, and if you actually look what happened there in the bowels of 2008, you had a whole bunch of smart hedge funds and private equity companies coming in and buying up all that infrastructure that was left over. I’m not sure what happened to those investments, but I’m sure they’ve done very well with it.

Before that, you had the dotcom bubble, which is probably the closest precedent you can have right now to the blockchain bubble. Again, you had all of these companies. There was tremendous amounts of fraud. You had people spending investors’ money like crazy, very little oversight or due diligence being done before people were deploying their capital. That created the whole concept of e-commerce. There was tremendous amounts of hardware infrastructure built. There was knowledge that went into this space. You had computer programer’s, a whole generation of people that were educated on the technology.

And then even there’s smaller ones. I mean you can … For example, in Canada you have the oil sands at Fort McMurray. It used to just be a trading post, but you get an oil rush, you get a whole bunch of money flowing in, and now it’s a full fledged city.

In San Francisco in 1848, the gold rush, which was another mini-capital vortex in the United States … The gold rush basically put San Francisco on the map. Between 1848 and 1849, that one year span, the population of San Francisco actually grew from 1,000 people to 25,000 people, so it had a 25-fold increase in its population in just a year. That bubble obviously crashed and a lot of people lost their jobs after that, but now you have a fantastic city in its wake.

Sometimes what’s left behind isn’t obvious, but whenever there’s a whole bunch of money and attention and expertise that flows into a certain sector, there’s always something left behind when the excitement wears off, and more often than not what’s left behind is usually really, really useful to either a keen entrepreneur or an investor or a businessman that maybe wants to take advantage of it.

Maurice Jackson:

Which leads into my next question. Kevin, do you see some unique value propositions as the capital vortex for cryptocurrency is on the horizon?

Kevin Vecmanis:

Of course. There’s people in this industry that know far more about it than I do, and probably far more clairvoyant on it. I try to keep up to speed in technology. My specialty is machine learning and AI, but the developments that are happening in blockchain can’t be ignored really by anybody. You almost have to keep track of what’s happening.

I was at a blockchain conference in Vancouver this week, and just listening to some companies speak. Again, on the whole concept of the capital vortex, Canada is an extremely resource rich country. Throughout the years and the decades and the boom and busts in commodities we’ve had this tremendous electrical and road infrastructure built, which has facilitated in basically a mining and resource economy. With the recent downturn in resources, there’s this infrastructure there that’s being underutilized, extremely valuable infrastructure.

One of the messages that we were hearing at the blockchain conference was that Canada is an extremely attractive place for bitcoin and cryptocurrency blockchain mining, specifically because it was an attractive place for actual mining. So these blockchain miners, they need tremendous amounts of power. They need cool environments. They need infrastructure just like regular miners, and what are they doing? They’re smart people. They’re looking at infrastructure that was left behind from past booms, past capital vortexes, if you want to call them that, and they’re putting them towards an effective use now, which is cryptocurrency mining.

So it’s this repetitive theme and cycle you see. It really can boil down to the essence of investing. It’s like what’s going to  be left behind when people leave the casino and how can it be put toward its most productive economic use after the fact? That’s kind of what entrepreneurs and investors are always asking themselves, and that’s really the golden question. That question is no different for blockchain.

Maurice Jackson:

Speaking of golden question, how does gold factor into this discussion?

Kevin Vecmanis:

It factors in because blockchain is going to facilitate trusted transactions. Everywhere in the world there’s things of value that are always exchanging hands and trust is always a commodity that’s an issue. People listening to your show, everybody’s heard of counterparty risk, like am I going to get paid by the person I’m transacting with? You don’t know that. There’s entire industries built around it.

Gold in particular is one of those things where it can be cumbersome to transact in. The original currency itself in our society was a piece of paper, which was a receipt for gold, specifically because people didn’t want to carry it around everywhere. They could deposit it in a central location where it was safe and secure, someone that specialized in the handling and the storage of gold, the original custodians. They just carried around the deposit receipts in their hands and they could exchange them with people. Those deposit receipts were good for gold.

The things that made gold money originally are still intact. The issues with transacting in gold are still intact. Paper and credit receipts were one solution for those, but the blockchain is something that is … I think has the potential to completely eliminate every single fear and logistical challenge surrounding the transaction and movement of gold. So you’ll be able to track it better, track ownership, transactions, the physical type.

 

I was actually reading the other day about a company who was developing a carbon mesh that could be inserted into gold bars that would make it harder for it to melt down so that you could use it in a transactional network like blockchain and give it a little bit more resistance to tampering, which I thought was an interesting use. I can’t recall the name of the company offhand that was making it, but blockchain is going to-

Maurice Jackson:

Let me interject here.

Kevin Vecmanis:

Sure.

Maurice Jackson:

You and I were having a discussion offline prior to the interview, and you have referenced to your friend, I think he indicated that he felt that gold was dead. Then you made the statement, and correct me if I’m wrong, but, you stated something to the effect that why is it the 1% are trying to accumulate as much as they can and put it somewhere safe and secure?

Kevin Vecmanis:

We read in the news the other day about Russia accumulating … I can’t remember what the tonnages were, but it was a tremendous amount of gold that they added to their reserves, and they continue to add more. It’s a valuable commodity. It’s the most valuable commodity in the world. It has extremely unique properties that have made it valuable. It’s one of those things if it was cheaper we would use it in way more applications.

In the electronics industry alone … My background is in electrical engineering.  Gold is one of the only elements that we know of that’s what’s called thermodynamically stable. In its natural state when we find it, it doesn’t decay. It doesn’t rust. It doesn’t oxidize. A roof on a hotel that used to have a bright, shiny copper roof, and then it turns green? That doesn’t happen to gold.

That alone, that physical property that it has in an element, the fact that it’s thermodynamically stable, makes it extremely valuable. That use case alone would have it used in many, many, many more applications were it not so rare and just unbelievably expensive.

Maurice Jackson:

You alluded to monetary history briefly in our discussion here. How does an understanding of monetary history and technology play into your thesis here?

Kevin Vecmanis:

I think it plays into the thesis because, like we were saying before, we have a new generation of people, millennials. I’m a part of that generation. I think people implicitly understand or have a sense that there are some issues with the financial system and the monetary system. Having so much centralized control over the issuance of currency, money, I think people are naturally curious about it.

I don’t know if you’ve ever done this before, but if you take paper money and you take a coin and you offer it to a one year old child, more often than not the child is going to take the coin. They’re going to take the piece of metal. They’re going to take something that’s … Intrinsically, I think people have a sense of things that are valuable. I think it’s percolating in the interests and the minds of an entire generation of people right now, and you’re seeing that really manifest itself in this whole cryptocurrency boom. A lot of the people buying cryptocurrencies, a lot of the use cases I’m hearing when I talk to people about it, it’s people trying to sidestep the financial system.

People may not be able to put their thumb on it, but I think a lot of people have, whether it’s a distrust or a sense that something is wrong with it. The solution isn’t cryptocurrencies per se. The solution is going back to a system that puts a bit of a leash on the issuance of money. That’s always been the gold standard. There was a reason why gold was selected as universal money to begin with, and those reasons haven’t changed.

I say in my article that gold never changes, only the world changes around gold, and that’s very true. I can see it right now as the progression of cryptocurrency is moving along and people are solving problems. It’s moving towards a commodity-backed cryptocurrency system, which is ultimately going to prevail when everything is said and done here, because if you ask people about cryptocurrencies, there’s so many … People are starting to understand a little bit the contradiction about what makes these things actually valuable. It’s not the fact that they’re restricted in quantity by the algorithm. There’s a larger supply issue where the instantiation of these algorithms isn’t bound by anything. You can create cryptocurrencies for anything that you want. You’ve seen that with the explosion of ICOs, people creating tokens and cryptocurrencies for literally any use case.

But in order for anything to have persisting value through time it’s got to be backed by something real, and the ultimate real thing in the physical world that we live in is gold. I think the ultimate end game … It may not happen this year, it may not happen next year, but five to 10 years down to the road I think you’re going to see a shift. The entire gold trade internationally is likely going to shift to the blockchain. If that catches fire in places like Asia and Russia and India, where people transact predominantly through their cellphones and there’s economies there … You know, you’re talking a couple billion people who have a total infatuation with gold and intrinsically understand the value of it, and they’re technologically oriented.

Imagine what’s going to happen when those two things get married and a lot of the problems in transacting in gold get solved by the blockchain. I think it’s going to completely catch fire in those places first and then probably work its way over to the west after that.

Maurice Jackson:

You said a couple things here I’d like to interject on. You’re very accurate in what you’re stating in my opinion here. Let’s backtrack. You’re talking about a child. My child, Brayden, my oldest twin I should say, he lost his tooth yesterday. So this morning he was looking for a silver eagle. He was not looking for a Federal Reserve note. That’s a true statement. This morning that’s exactly what happened.

The second thing you stated was this that caught my attention as well. I think there’s something naturally within all of us that just resonates with gold. When I look at bitcoin, when I see it advertised, I always notice they use a coin that looks like it’s gold. I’m wondering why they selected that color? Of all colors that there are, they tend to pick that because it plays on the human psyche in my opinion. I noticed that as well with other cryptocurrencies. They either make it look gold or silver, and the same with fiat currencies your in Canada the Canadian government uses, and that we uses as well.

They make it look like it’s gold and silver still, but those metals are not in there. They use base metals that have the illusion of precious metals. The last thing I stated there as well, is I do see that cryptocurrencies or blockchain technology will be used by federal governments, and I do believe down the road it will be backed by precious metals. So I think you’re spot on all of your observations there.

Here’s a final question I have for you here. What actions should someone take to benefit from the value propositions that you’ve just outlined for us?

Kevin Vecmanis:

It’s tough to say. Blockchain is one of those … I would classify it as a lubricating technology. I think it’s going to make the modern economy run more efficiently as a whole. There’s people that are trying to invest in cryptocurrencies and blockchain startups, which is fine.

Maurice Jackson:

Let me pause you here for a second. Are there any publicly traded blockchain companies out there for our listeners they may not be aware of?

Kevin Vecmanis:

Yeah, there’s lots. I don’t know if we have time to go into the use cases for them or not, but there’s …  I personally think if people are looking to get into the blockchain space, I would focus on the companies that are trying to build upon the infrastructure in a forward looking way, and there’s lots out there. Again, I don’t want to recommend any names, but it’s always useful to kind of look forward a bit with how the infrastructure and the technology might get used outside of cryptocurrency to either disrupt industries or make industries way more efficient than they currently are.

We’re going to keep discovering those use cases as the technology unfolds, just like we keep discovering new uses of the internet and technology and wireless communication. I’m not going to pretend like I understand what the end game of blockchain is going to be, but I know that cryptocurrencies are kind of … If you’re just focusing on cryptocurrencies, there’s a much bigger, bigger picture and opportunity out there in the actual use cases of blockchain itself that I think people should shift their paradigms towards.

Maurice Jackson:

Let me rephrase the question then, because we’re not here to give financial advice. But you personally, are you more focused on accumulating gold and/or gold miners or blockchain, or an even distribution? Do they both have your interest at this time as the best value propositions at this moment?

Kevin Vecmanis:

Yeah. As an investor I’m always trying to figure out how technology … What’s being ignored right now and is what’s being ignored going to benefit from both the macroeconomic trends, the technological trends that are unfolding? It’s unorthodox, and I am a big believer in gold. I wouldn’t necessarily call myself a gold bug, although people that have talked to me in the past might say so, but I believe in the future prospects for gold because I think it’s … Like we were saying before, we’re in this microcosm in history where people don’t really appreciate it like they should appreciate it.

I think its role in the international finance system is going to be reasserted. As for a play on blockchain, I look for things that are really, really dramatically going to benefit from the blockchain, and to me one of those things is gold. How does that manifest itself? If gold starts getting used more because of blockchain, if it solves some trust issues, then it’s going to increase transactional volumes, and generally when transactional volumes increase the price increases.

It kind of puts a floor beneath the price, and when trust issues get solved then … Trust issues being solved tend to attract more institutional money, which isn’t currently in the gold mining space. It’s a completely unorthodox play on blockchain, but in my opinion the gold industry as a whole, including the miners, could be one of the biggest beneficiaries of the technology.

Maurice Jackson:

I couldn’t agree with you any more. Mr. Vecmanis, last question for you. What did I forget to ask?

Kevin Vecmanis:

I always hear you ask people this and it’s always a good question.

Maurice Jackson:

Now it’s on you buddy.

Kevin Vecmanis:

I don’t think you forgot to ask me anything. Yeah. No, there were some good questions you asked there Maurice.

Maurice Jackson:

Thank you sir. How about this? If listeners want to get more information about the VanAurum Financial Technologies Report, please share the contact details.

Kevin Vecmanis:

Yeah. They can go to www.VanAurum.ca. That’s V-A-N A-U-R-U-M. Aurum is like the Latin word for gold. If they’re interested in a free trial, they can click on the Become a Member button and go through the process. They can subscribe to my mailing list as well and get some free articles. They can reach me direction through the contact link on the site.

Again, I use technology, machine learning, as well as conventional methods, to try to put together superior trading strategies. I try to take an unbiased, pragmatic view to things and just try to move where things are really oversold and kind of get out of the way of things that are incredibly overbought. I use an unemotional machine to try to help me in that pursuit because I know that as an emotional person that can tend to work against me sometimes. I think the feedback I’ve been getting from my members so far has been tremendous, and I think a lot of other people would find value in the service as well.

Maurice Jackson:

Well, you have the endorsement of Bob Moriarty, the founder of 321Gold, so that says a lot in and of itself sir.

Kevin Vecmanis:

It sure does.

Maurice Jackson:

And we also want to thank Bob for making us aware of your work as well. Without Bob … He’s a big part of Proven and Probable, so you and I have a mutual respect for him as well.

And, we would also to take this opportunity to remind our listeners if you are interested purchasing precious metals please visit our website www.provenandprobable.com.  And on the header you will notice the following tabs, Buying Precious Metals, Safe Deposit Box Video, Offshore Storage, Precious Metals IRA’s or may email me at Maurice@milesfranklin.com

And last but not least. Please visit our website, www.provenandprobable.com, where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.

Kevin Vecmanis of VanAurum Financial Technologies, thank you for joining us today on Proven and Probable.

Kevin Vecmanis:

Thanks Maurice.

Proven & Probable

Maurice Jackson

All Rights Reserved.

The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. YOU SHOULD NOT MAKE ANY DECISION, FINANCIAL, INVESTMENTS, TRADING OR OTHERWISE, BASED ON ANY OF THE INFORMATION PRESENTED ON THIS FORUM WITHOUT UNDERTAKING INDEPENDENT DUE DILIGENCE AND CONSULTATION WITH A PROFESSIONAL BROKER OR COMPETENT FINANCIAL ADVISOR. You understand that you are using any and all Information available on or through this forum AT YOUR OWN RISK.”

Be the first to comment on "KEVIN VECMANIS – The Future Is Here Where Are You"

Leave a comment

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.