Profile

Bitcoin and Denison Yacht Sales Interview

Bitcoin and Denison Yacht Sales Interview

So what's with the boat outside of this year's North American Bitcoin Conference? Who owns it, and what do they have to do with Bitcoin? Bitpay's new and ...

Transcription

So, I am outside the actual NABC event and there's a nice boat parked out front and I asked around to see who is in charge and it's you. You are Mike. I am Mike Kiely. I am with Denison Yacht sales. Wonderful. So, we have seen a lot of the PR stuff recently.

You have just started taking Bitcoin. Yes. That's great. Tell me about that process. Who came to you and how did you find out about it and all that? Actually, it was from Bob Denison who is the principal of our company. We were looking for a way to take transactions for yachts.

Both large and small all over the world. We do have other accounts to do that, but this seems to be the future and what differentiates us between us and all the rest of the yacht brokers out there. We use it for yacht sales and, of course, for yacht charter. So, it will just be another way of making the transaction happen. You just announced that you're accepting BTC this week. Is that right? Yes.

Have you had any customers yet? Not as of yet. Ok. That's fine. It takes a while. That is why we are here. You guys probably have like a low sales volume in terms of transaction count.

I am guessing you don't sell a million yachts a year. We don't do a million, but it is a steady stream. Tell me a little bit about the business. Do you typically deal with a dozen people per month? One hundred people per month? We sell yachts from, let's just say, from $20,000-$30,000 and it could be a smaller version of what we are on now, of course, up to the mega yachts. Ok. We do both power.

We do sail. We even do the first production hybrid yacht. So, it works on diesel and/or electric. It is called the Greenline. Ok. Cool.

Real cool. So, very broad. Yeah, interesting. So, tell me about your customers. Are they mostly Americans? Are they international customers? We shipped more yachts to Japan this year than, I think, any brokerage. One of our good salesman, Juno, he is shipping a boat to Korea.

We do a lot in the Med. I do a lot in the Caribbean myself. So, we deal with clients and boats all over the world. Right. I go to South America for some of my stuff and I talk to people around the world. And I am trying to learn about how money works, how assets work and all this.

And I think a lot of these countries where there is an inflationary currency, they want to put their stuff, their money, into hard assets. And so, I am wondering, is that part of your business do you think? There's a lot of people who see this as a nice investment as a hedge against inflation. Is that a common customer for you or not at all? It's always a consideration for our clients. Yeah. I mean obviously there's many times where people if you wanted to buy a boat in the Euro. How do you secure that Euro price so that when the time that the contract was signed to buy the boat and the closing date.

Yeah. There could be a month or two in between and you have to keep that. We have some systems in place to make that happen. But it's not always easy to do with all the other different currencies and this would be a good solution. Gotcha. And so, tell me a little more too.

When you sell a high priced item or a high priced boat is that an international money order that somebody does? Is that a cashier's check? Typically, it is a wire. A wire transfer. It's got to be that way obviously there's The Patriot Act. We have to follow the same rules as the banks and everyone else to make sure that these large transactions are, in fact, legal. So, I guess to make that point, when you send a wire and you get that set, we can at least transfer and disperse the funds out to both buyer and seller of the yacht. Right.

And how long does that process take? You know, Bitcoin is an instantaneous thing and I am wondering what are you dealing with now? Is this a week? A day? Some wires, it is just like dealing with a bank. Some wires will come that afternoon. International wires take 24 hours. And then, sometimes, it is a Friday afternoon, we have a closing going on and we are waiting for a wire and it is sitting on someone's desk at the bank. So, it is down to human error and, of course, waiting for someone to actually initiate that wire. So, this would also be a much better solution to that problem.

So then, do you see Bitcoin as taking the place of these more traditional payment mechanisms over time? It could be. It very well could be. Yeah. Do people actually use credit cards for any of these things? Is that ever a thing? Like a black card comes out and that is a cash transaction? No, that would be kind of rare. I think that it would be very cool for someone just to do it just for the sake of doing it now. And, of course, we would love to help them with that transaction.

Right. But, this, like everything else, it's going to take time for it to catch on. Yeah. It's there. It's working. It's just educating the consumer about it.

Of course. And what kind of fees do you think that people pay right now to actually clear transactions with you? Well, I mean, American Express charges four percent for a credit card. Then, of course, any wire charges are around the $50 range. Oh, ok. So, that is actually not so bad. So, if I am spending about a million dollars it takes about $50 in terms of actual transaction cost.

Yeah. Right. Obviously, the Bitcoin is much cheaper than that. But, as a fraction of the total $50 isn't too bad. Correct. Probably not for these clients as well.

Very cool. Are there any boats right now that you are really excited about showcasing either around the event or just in general? We've got 13 different manufacturers that we represent now and, of course, we have over 800 pre-owned boats for sale. They are called brokerage boats and we are the largest listing agent here in the United States for yachts. Any one in particular, I have represented the line called Greenline, which is that hybrid yacht I was talking about. Yeah. That was really cool.

Basically, it's all covered with solar panels. It's got a lithium battery just like a car. And you can actually hit one switch and the solar charges the battery. We stored that energy, so we are ready to use it and then we can hit a switch and go directly to electric power. Very cool. Then you can use the boat for most of the afternoon for free.

Right, right. And obviously there is lots of sunlight out there on the water. Absolutely. So, it makes sense in that sense. Absolutely. It is a really cool boat.

So, I also talk on my channel a lot about Bitcoin in South Florida. So, tell me about the South Florida economy as it relates to boating. I know that I have lived here all my life and it is a big part of our local economy. Why don't you tell the audience what boating is here in South Florida and what your impression is of our place in the global economy. This is the great part about Miami, and Miami Beach especially, is that it is a very international destination. There is so many different people from different walks of life in different areas around the world that come here to enjoy their lives.

So, we are lucky enough to have the weather. We have international money coming in that funds all the large condos, the businesses. And it is a unique place in that there are not many places like Miami Beach that can bring so many different people into such a small area to live a great lifestyle. Yeah. Yeah, absolutely. I mean, we do a lot of promotion here with the Bitcoin movement, so we would love to see you come out to a meeting if you ever want to come.

If you have somebody who works for you who wants to know about Bitcoin, send them on out. And speaking of, how do people find out about you guys? What website do they go to? It is real simple. You go to denisonyachtsales.com. D-E-N-I-S-O-N-yachtsales.com or Denison Super Yachts.

Great. Mike. Pleasure. Thank you for being on our show. You're welcome. Thanks.