So, a great deal of individuals discover that too bothersome, and that's why the individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: individuals that want to put in perhaps the 20 minutes required to go through a procedure which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your concepts, but gosh, establishing a crypto account is so tough." What I tell them is I state, "Look, when it's simple as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The whole cryptocurrency market will be 10x larger. So you're in fact really earning money a massive amount of money to go through perhaps, you understand, 20 minutes of a discomfort in the neck.
So you can't purchase Bitcoin yet through their trading platform, however it is just a question of time, Ryan, prior to you'll be able to purchase cryptocurrencies straight through your trading software application. And can you envision what will happen to this whole marketplace when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that individuals go through, and one thing I desire to bring to light too that you didn't point out, however I know a great deal of folks who have a hard time with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can just purchase $500 a week.
As hard as possible, right, like Coinbase. It 'd take me permanently before I might begin buying in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I suggest, it's if you keep in mind the early days of the Internet, when we were getting on the Internet, we were doing it with 56k modems, right? I suggest it would take 20 minutes to load a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I indicate, we're in the early days of that technology, however much like during that amount of time, for the folks that had the vision to see where the future was going, and then purchased in on some of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm always curious to speak with people who are, especially someone like yourself, who's devoted the last, you know, the lion's share of the last few years to truly go both feet in on this. How do you explain cryptocurrency to like a typical person? That's a terrific question.
They're 2 completely various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to cash. So Bitcoin would be a cryptocurrency. Therefore what provides it worth is that it is, there's just going to be a minimal quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the transactions on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals constantly try to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And truly, with current innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
Therefore when people put, you have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're saying, "We don't trust paper currency, you can print an unlimited quantity of it. It's truly not secure, and the federal government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or people that remained in Cypress, or simply individuals who have actually suffered through either run-away inflation, or there's a high need for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a catalyst for more adoption, due to the fact that they currently don't believe in their own currency? Yeah, and I think we have actually currently seen that.
So yes, and this is a thing that a lot of American or Western financiers have a difficult time getting their head around. They're like, "Well I don't need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not need Bitcoin. However there are billions of individuals on the planet that don't have stable currencies.
Yeah. And so there's this whole blossoming global demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are essentially used, let's say Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is basically an international computer that you can write computer system programs for and run computer system programs on an internationally decentralized computer system program.
So we think about something like Ether an utility token, due to the fact that you're essentially purchasing programming power. So I would not actually think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give individuals a concept, like a really easy one that I would imagine you 'd called an energy token, is like FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's kind of this same kind of network impact that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on a lot of different locations and. I don't understand the ins and outs of it, however as an example for someone who may simply be extremely fundamental in their understanding of this, there are numerous different kinds of energies that are available.
And you kind of discussed having this boots on the ground experience. Now, since we're looking at the bulk of these are most likely energy based, fix? Mm-hmm (affirmative). Most of the coins that I suggest and look at are utility-based. We have a few cryptocurrencies, but I believe the real chance depends on the energy coin space.
There's all of these ICOs that were taking place, those slowed down a little bit with some modifications to a couple of things that was going on, but people are going to come out of the woodwork and begin to develop utility coins- Correct, yeah. And people need to understand that not all utility coins are produced equal.
So you have the advantage of devoting your occupation to this, so you can go out there and do the recon, you can satisfy the creators, you can inspect the code, etc. But for an average person, there's now what, over 1,000 various kinds of coins available, nearly 1,200 I think.
How do they do that? That's a terrific concern. I will state that 95% of ICOs are either deceitful or just bad concepts. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with a terrible idea, that someone gives $40 million to. Right? Yeah, totally. So yeah, so I don't really take part in lots of ICOs, and I advise you probably side step that market, unless you have actually got an unique relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause generally it'll crash 80% approximately. And that's when we truly start taking a look at the concept in more information. So here are some fast and unclean things that you should take a look at, right? So, one is, are they solving a problem that needs to be fixed? One of the big drawbacks with extremely clever, technical individuals, is that they like to solve problems that no one cares about solving.
Does the team have experience of executing in an effective way in another area of their life? And it does not even have to be directly related to cryptocurrency, it does not have to be even directly related to software, right? So, but I want to see a track record of success in something, right? If it's four men in a space that are simply out of college, unless they've got some really great advisors behind them, I'm probably not going to give them any money.
Yeah. I believe that in marketing in general, my world of company, we continuously try to find issues and how we can solve them. Now, are the problems things that individuals are trying to solve a part of the Blockchain typically? Or would you state it's much better if they're resolving kind of a mass problem? Something like FileCoin, or something else that would be more mass appeal? Or is it a mix of both? Well I'm generally looking for services that, so I'll provide you an example.
And the reason that we purchased it is due to the fact that they found a method to make documents tamper-proof, and it's 99% more affordable than current technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that began it has a track record of developing computer programs that entire states run their whole operations on, right? So you have actually got alright, the smart person has actually developed big computer programs, fantastic group, resolving an enormous problem that is going to cut substantial expenses.
I imply, it does not get any simpler than that in regards to choosing who to put cash behind. And a great deal of this is typical sense, and a lot of folks will attempt to make things more complicated than it is. And I have a truly basic guideline, Ryan. If I don't understand something, I installed my hand, and I state, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And after that if the person that you're talking with can't dumb it down enough where you comprehend it, then it's most likely not a great concept. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience evaluating companies and taking a look at much, much bigger business.
Ryan: So you've taken a look at business that are huge business, you have actually assessed much bigger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you pointed out, it is nearly simply common sense. You simply have to type of appearance at it and believe logically about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no conventional metrics that you can take a look at.
Okay. What I can utilize that I learned from dealing with Wall Street throughout three years, is how to check out people. I have actually met tens of countless people throughout my career. I've met experts; I have actually fulfilled fund supervisors, I have actually satisfied stock promoters, I've fulfilled all these different types of characters along the way.
So I believe that's most likely among my super powers, if you will. And if you have actually got a great BS detector, you should listen to it. Okay. You ought to definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually got all the bonifides, however you understand, there's just; it's not sitting well with me, there's something about them that's not sitting well with me.
There are many other deals out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you kind of pointed out at the beginning, Bitcoin and Ethereum, many people have actually become aware of these 2, particularly Bitcoin, since it appears like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's turned up from say $3,000 not too long earlier, it's rather unpredictable. Do they kind of wait for a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's a terrific concern.
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