So, a lot of individuals find that too troublesome, which's why the people that are actually making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that want to put in maybe the 20 minutes needed to go through a process which just takes five minutes if you desire to establish a brokerage account.
" Oh Teeka, we love your ideas, but gosh, establishing a crypto account is so challenging." What I inform 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 actually truly earning money an enormous quantity of money to go through possibly, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, prior to you'll be able to purchase cryptocurrencies directly through your trading software application. And can you picture what will take place to this whole marketplace when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you pointed out the process that people go through, and one thing I want to bring to light too that you didn't mention, but I know a lot of folks who deal with this too, is oh, and by the way, you can only buy $1,000 a week. Or you can just buy $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me permanently prior to I might begin buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I indicate, it's if you keep in mind the early days of the Web, when we were getting on the Internet, we were doing it with 56k modems, right? I mean 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 imply, we're in the early days of that innovation, however just like throughout that time period, for the folks that had the vision to see where the future was going, and then purchased in on a few of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, since I'm constantly curious to talk with people who are, especially someone like yourself, who's dedicated the last, you understand, the bulk of the last few years to really go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a terrific concern.
They're two completely various things, however 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. And so what provides it worth is that it is, there's just going to be a restricted amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals constantly attempt to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And really, with existing technology, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We don't rely on paper currency, you can print an unrestricted amount of it. It's really not protect, and the federal government can take it away from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that were in Cypress, or just people who have actually suffered through either run-away inflation, or there's a high demand for, in Argentina for example, high demand 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 think in their own currency? Yeah, and I think we've currently seen that.
So yes, and this is a thing that a lot of American or Western financiers have a tough 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 steady currency, right? You do not require Bitcoin. But there are billions of individuals in the world that don't have stable currencies.
Yeah. Therefore there's this entire blossoming global demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are basically utilized, let's state Ethereum, which a lot of people understand about Ethereum. Ethereum is basically a global computer system that you can compose computer programs for and run computer programs on a worldwide decentralized computer system program.
So we consider something like Ether an utility token, due to the fact that you're essentially buying programs power. So I wouldn't actually consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer individuals an idea, like an extremely simple one that I would envision 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 resembles unstoppable kind of thing, because it's on many different areas and. I don't understand the ins and outs of it, but as an example for someone who might simply be extremely fundamental in their understanding of this, there are a lot of different types of energies that are readily available.
And you sort of mentioned having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably energy based, remedy? Mm-hmm (affirmative). Most of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, but I believe the genuine opportunity lies in the energy coin space.
There's all of these ICOs that were happening, those decreased a 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 produce utility coins- Correct, yeah. And individuals need to understand that not all utility coins are created equal.
So you have the advantage of committing your occupation to this, so you can go out there and do the reconnaissance, you can fulfill the founders, you can inspect the code, etc. However for an average person, there's now what, over 1,000 various types of coins available, practically 1,200 I think.
How do they do that? That's a great concern. I will state that 95% of ICOs are either deceitful or simply bad ideas. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a terrible idea, that somebody provides $40 million to. Right? Yeah, completely. So yeah, so I do not truly take part in many ICOs, and I advise 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 generally it'll crash 80% or two. Which's when we really start taking a look at the concept in more detail. So here are some fast and filthy things that you should look at, right? So, one is, are they solving an issue that requires to be solved? One of the huge disadvantages with very wise, technical people, is that they like to solve issues that nobody appreciates solving.
Does the team have experience of executing in a successful way in another location of their life? And it does not even have to be straight associated to cryptocurrency, it doesn't need to be even straight related to software, right? So, however I want to see a track record of success in something, right? If it's four men in a room that are simply out of college, unless they've got some truly great consultants behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in general, my world of organization, we continuously look for issues and how we can resolve them. Now, are the problems things that individuals are trying to resolve a part of the Blockchain generally? Or would you state it's better if they're fixing 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 basically searching for services that, so I'll offer you an example.
And the reason that we purchased it is because they discovered a method to make files tamper-proof, and it's 99% cheaper than current technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that started it has a performance history of creating computer programs that whole states run their entire operations on, right? So you have actually got fine, the wise man has actually constructed substantial computer programs, great team, resolving an enormous issue that is going to cut big costs.
I mean, it does not get any easier than that in terms of choosing who to put cash behind. And a lot of this prevails sense, and a lot of folks will attempt to make things more complex than it is. And I have a really simple guideline, Ryan. If I don't understand something, I put up my hand, and I say, "I didn't understand what you simply said." Mm-hmm (affirmative).
And then if the person that you're talking to can't dumb it down enough where you understand it, then it's probably not an excellent idea. Right, right. It's going to be basic to understand. And do you feel that you have years of experience evaluating business and taking a look at much, much larger companies.
Ryan: So you have actually taken a look at companies that are big companies, you've evaluated much bigger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you discussed, it is practically simply sound judgment. You simply need to sort of take a look at it and believe reasonably about what's going on, and pull the feeling out? You have to pull the feeling out, and there are no conventional metrics that you can look at.
Okay. What I can utilize that I found out from dealing with Wall Street throughout three decades, is how to read people. I have actually satisfied 10s of countless individuals throughout my profession. I have actually fulfilled experts; I have actually met fund managers, I have actually fulfilled stock promoters, I've satisfied all these different kinds of characters along the way.
So I believe that's probably one of my extremely powers, if you will. And if you've got an excellent BS detector, you must listen to it. Okay. You ought to absolutely 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 know, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are a lot of other deals out there to look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you know, you type of mentioned at the start, Bitcoin and Ethereum, a lot of people have actually become aware of these two, especially Bitcoin, due to the fact that it looks like it remains in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's come up from state $3,000 not too long ago, it's quite volatile. Do they type of wait for a pullback, or do they simply state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You understand? Yeah that's a fantastic concern.
Copyright© how to invest in blockchain All Rights Reserved Worldwide