So, a lot of people find that too inconvenient, which's why individuals that are actually making the most amount of money today in cryptocurrencies are the early adopters: individuals that want to put in possibly the 20 minutes needed to go through a procedure which simply takes five minutes if you want to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, establishing a crypto account is so difficult." 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 entire cryptocurrency market will be 10x larger. So you're in fact really getting paid a massive quantity of money to go through maybe, you know, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, before you'll have the ability to purchase cryptocurrencies directly through your trading software application. And can you imagine what will take place to this whole market when purchasing Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you discussed the process that individuals go through, and something I wish to expose too that you didn't mention, but I understand a great deal of folks who deal with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can just buy $500 a week.
As challenging as possible, best, like Coinbase. It 'd take me permanently before I might begin buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I imply, it's if you keep in mind the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I indicate it would take 20 minutes to pack 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, but much like during that period of time, 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 absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, because I'm always curious to speak to people who are, specifically somebody like yourself, who's committed the last, you understand, the lion's share of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like a typical person? That's an excellent concern.
They're 2 totally various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to cash. So Bitcoin would be a cryptocurrency. And so what offers it worth is that it is, there's just going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, verifying the transactions on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals constantly attempt to hack it. But since of the nature of the network, today it's been unhackable. And truly, with current innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when people put, you've got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We do not rely on paper cash, you can print an endless amount of it. It's truly not protect, and the federal government can take it away from you." - Whereas with Bitcoin, best , go on.
Yeah. Or individuals that were in Cypress, or just individuals who have actually suffered through either devaluation, or there's a high demand for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those countries that could potentially 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 great deal of American or Western financiers have a difficult time getting their head around. They're like, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't require Bitcoin. But there are billions of people on the planet that don't have stable currencies.
Yeah. Therefore there's this entire growing global demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are basically used, let's state Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is essentially a worldwide 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, because you're essentially purchasing shows power. So I would not actually 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 basic one that I would envision you 'd called an utility token, is like FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's kind of this very same kind of network effect that you have with Bitcoin, where it resembles unstoppable example, because it's on numerous different locations and. I don't understand the ins and outs of it, however as an example for someone who may simply be very standard in their understanding of this, there are a lot of various types of energies that are available.
And you type of mentioned having this boots on the ground experience. Now, since we're taking a look at the bulk of these are probably energy based, fix? 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 believe the genuine opportunity depends on the energy coin area.
There's all of these ICOs that were happening, those slowed down a little bit with some modifications to a couple of things that was going on, however people are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And individuals need to understand that not all utility coins are created equivalent.
So you have the advantage of dedicating your profession to this, so you can head out there and do the recon, you can meet the founders, you can check the code, etc. But for an average person, there's now what, over 1,000 different types of coins available, almost 1,200 I think.
How do they do that? That's a great question. I will say that 95% of ICOs are either deceitful or simply bad ideas. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a dreadful idea, that somebody offers $40 million to. Right? Yeah, totally. So yeah, so I don't actually take part in many ICOs, and I recommend you most likely side action that market, unless you've got an unique relationship, and you can participate the pre-ICO, and after that 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 information. So here are some quick and filthy things that you should look at, right? So, one is, are they solving a problem that requires to be fixed? One of the huge disadvantages with extremely smart, technical people, is that they like to solve issues that no one appreciates resolving.
Does the group have experience of carrying out in an effective manner in another area of their life? And it does not even need to be straight related to cryptocurrency, it does not need to be even directly associated to software application, right? So, however I wish to see a track record of success in something, right? If it's 4 people in a space that are just out of college, unless they've got some truly excellent advisors behind them, I'm probably not going to provide any money.
Yeah. I think that in marketing in general, my world of service, we constantly search for issues and how we can solve them. Now, are the problems things that people are trying to fix a part of the Blockchain normally? Or would you state it's much better if they're solving type 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 essentially searching for options that, so I'll provide you an example.
And the factor that we bought it is since they discovered a method to make documents tamper-proof, and it's 99% less expensive than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that started it has a track record of creating computer system programs that entire states run their whole operations on, right? So you've got okay, the clever person has constructed huge computer programs, great team, resolving an enormous issue that is going to cut huge costs.
I indicate, it does not get any easier than that in terms of choosing who to put cash behind. And a lot of this is typical sense, and a lot of folks will attempt to make things more complex than it is. And I have a truly basic rule, Ryan. If I don't understand something, I installed my hand, and I state, "I didn't comprehend what you just said." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you comprehend it, then it's most likely not a good idea. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience examining companies and taking a look at much, much bigger business.
Ryan: So you have actually taken a look at companies that are big business, you have actually assessed much larger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you discussed, it is almost just sound judgment. You just need to type of look at it and think rationally about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no conventional metrics that you can look at.
Okay. What I can use that I learned from dealing with Wall Street throughout three decades, is how to check out individuals. I have actually satisfied tens of countless individuals throughout my career. I've satisfied insiders; I have actually met fund supervisors, I have actually satisfied stock promoters, I have actually met all these various types of characters along the way.
So I think that's most likely among my super powers, if you will. And if you've got a great BS detector, you should listen to it. Okay. You ought to definitely listen to it. If I'm sitting down 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 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 discussed at the beginning, Bitcoin and Ethereum, many people have heard of these 2, particularly Bitcoin, because it appears like it remains in the news all the time, something or the other.
Have they failed 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 rather volatile. 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 10 years." You understand? Yeah that's a terrific question.
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