So, a great deal of people discover that too inconvenient, and that's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: people that are ready to put in perhaps the 20 minutes needed to go through a procedure which just takes 5 minutes if you desire to set up a brokerage account.
" Oh Teeka, we love your ideas, however gosh, setting up a crypto account is so challenging." What I tell them is I say, "Look, when it's easy as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The entire cryptocurrency market will be 10x larger. So you're in fact really making money a massive quantity of money to go through maybe, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, however it is just a question of time, Ryan, before you'll be able to purchase cryptocurrencies directly through your trading software. And can you picture what will occur to this whole market when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you pointed out the process that people go through, and something I wish to expose too that you didn't discuss, however I know a great deal of folks who struggle with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can just buy $500 a week.
As tough as possible, ideal, like Coinbase. It 'd take me permanently before I might begin buying in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I indicate, it's if you remember the early days of the Internet, when we were getting on the Internet, we were doing it with 56k modems, right? I imply it would take 20 minutes to fill 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 remain in the early days of that innovation, however much like throughout that time period, for the folks that had the vision to see where the future was going, and then bought in on some of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, because I'm always curious to talk with people who are, particularly somebody like yourself, who's committed the last, you know, the bulk of the last few years to truly go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's a fantastic concern.
They're 2 absolutely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to money. So Bitcoin would be a cryptocurrency. Therefore what provides it value is that it is, there's just going to be a limited quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, individuals continuously attempt to hack it. But because of the nature of the network, today it's been unhackable. And really, with current technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when people put, you've got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We do not trust paper currency, you can print an unlimited amount of it. It's actually not secure, and the federal government can take it away from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or people that remained in Cypress, or just people who have suffered through either devaluation, or there's a high need for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those nations that could possibly be a driver for more adoption, since they already don't believe in their own currency? Yeah, and I think we have actually already seen that.
So yes, and this is a thing that a lot of American or Western financiers have a bumpy ride getting their head around. They resemble, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't require Bitcoin. However there are billions of individuals in the world that do not have stable currencies.
Yeah. And so there's this entire blossoming international demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are generally utilized, let's say Ethereum, which a great deal of people learn about Ethereum. Ethereum is basically a global computer that you can compose computer programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an utility token, because you're essentially buying shows power. So I would not really consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide people a concept, like a really easy one that I would imagine you 'd called an energy token, is like FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's type of this exact same kind of network impact that you have with Bitcoin, where it's like unstoppable example, because it's on so many various areas and. I do not know the ins and outs of it, but as an example for somebody who might just be really standard in their understanding of this, there are so numerous different types of utilities that are readily available.
And you type of mentioned having this boots on the ground experience. Now, given that we're looking at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). Many of the coins that I recommend and take a look at are utility-based. We have a couple of cryptocurrencies, however I think the genuine chance lies in the utility coin area.
There's all of these ICOs that were happening, those decreased a bit with some changes to a couple of things that was going on, but people are going to come out of the woodwork and start to create utility coins- Correct, yeah. And individuals require to comprehend that not all utility coins are developed equivalent.
So you have the benefit of devoting your profession to this, so you can head out there and do the recon, you can fulfill the creators, you can inspect the code, etc. However for a typical person, there's now what, over 1,000 different types of coins available, practically 1,200 I believe.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either fraudulent or just bad ideas. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a terrible concept, that somebody gives $40 million to. Right? Yeah, completely. So yeah, so I do not actually take part in numerous ICOs, and I recommend you probably side step that market, unless you've got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause normally it'll crash 80% or two. And that's when we actually start looking at the idea in more detail. So here are some fast and dirty things that you should take a look at, right? So, one is, are they resolving an issue that needs to be solved? Among the big downsides with extremely smart, technical people, is that they like to fix issues that nobody cares about fixing.
Does the group have experience of executing in an effective manner in another area of their life? And it doesn't even have to be directly related to cryptocurrency, it does not have to be even straight associated to software, right? So, but I desire to see a track record of success in something, right? If it's 4 men in a room that are simply out of college, unless they have actually got some actually good advisors behind them, I'm probably not going to provide any cash.
Yeah. I think that in marketing in basic, my world of organization, we constantly try to find problems and how we can solve them. Now, are the problems things that individuals are trying to fix a part of the Blockchain typically? Or would you state it's much better if they're resolving sort 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 options that, so I'll give you an example.
And the reason that we purchased it is since they found a method to make files tamper-proof, and it's 99% less expensive than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the guy that began it has a performance history of creating computer system programs that entire states run their whole operations on, right? So you have actually got all right, the clever guy has actually developed substantial computer system programs, terrific group, solving a huge issue that is going to cut substantial expenses.
I suggest, it doesn't get any easier than that in regards to deciding who to put cash behind. And a great deal of this is common sense, and a great deal of folks will try to make things more complicated than it is. And I have a truly easy guideline, Ryan. If I do not understand something, I put up my hand, and I state, "I didn't understand what you just stated." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you understand it, then it's most likely not a good idea. Right, right. It's going to be basic 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 looked at business that are big business, you have actually examined much bigger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you pointed out, it is practically just typical sense. You just need to kind of take a look at it and believe rationally about what's going on, and pull the feeling out? You have to pull the emotion out, and there are no standard metrics that you can take a look at.
Okay. What I can use that I discovered from dealing with Wall Street throughout three decades, is how to check out individuals. I've satisfied tens of thousands of people throughout my career. I have actually satisfied experts; I've fulfilled fund supervisors, I've fulfilled stock promoters, I've satisfied all these different kinds of characters along the way.
So I think that's most likely among my very powers, if you will. And if you have actually got a good BS detector, you must listen to it. Okay. You must absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they have actually got all the bonifides, but you know, there's simply; it's not agreeing with me, there's something about them that's not agreeing with me.
There are a lot of other deals out there to look at. Yeah, there's too much chance. Yeah. And speaking of chance, you know, you kind of mentioned at the start, Bitcoin and Ethereum, many people have heard of these 2, especially Bitcoin, due to the fact that it appears like it's in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading almost upwards of $6,000 just recently; it's turned up from state $3,000 not too long ago, it's rather unpredictable. Do they type of await a pullback, or do they just state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in ten years." You understand? Yeah that's a terrific question.
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