So, a great deal of individuals discover that too bothersome, and that's why individuals that are actually making the most amount of money today in cryptocurrencies are the early adopters: people that are willing to put in maybe the 20 minutes required to go through a process which simply takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we love your concepts, but gosh, establishing a crypto account is so difficult." What I inform 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 bigger. So you're in fact truly getting paid a huge quantity of money to go through maybe, you understand, 20 minutes of a pain in the neck.
So you can't buy Bitcoin yet through their trading platform, however 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 occur to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the procedure that people go through, and one thing I wish to expose too that you didn't mention, however I understand a great deal of folks who have problem with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can only purchase $500 a week.
As difficult as possible, right, like Coinbase. It 'd take me permanently prior to I might begin purchasing 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 Web, we were doing it with 56k modems, right? I mean 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 imply, we remain in the early days of that innovation, but just like during that period of time, for the folks that had the vision to see where the future was going, and then purchased in on a few of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm always curious to talk with people who are, especially someone like yourself, who's devoted the last, you understand, the much better part of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like an average person? That's a terrific question.
They're two completely various things, but 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 only going to be a limited quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, verifying the deals on the Bitcoin network. And so if you 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.
Therefore when individuals put, you've 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 do not trust fiat money, you can print a limitless quantity of it. It's actually not protect, and the government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that remained in Cypress, or simply individuals who have actually suffered through either hyperinflation, 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 currently do not believe in their own currency? Yeah, and I think we've currently seen that.
So yes, and this is a thing that a great deal 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 stable currency, right? You do not need Bitcoin. But there are billions of people on the planet that don't have steady currencies.
Yeah. Therefore there's this entire burgeoning worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are essentially used, let's say Ethereum, which a lot of people understand about Ethereum. Ethereum is essentially a global computer that you can compose 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, since you're basically purchasing shows 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 provide individuals an idea, like a really easy one that I would envision you 'd called an utility token, resembles FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's type of this very same type of network effect that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on many different areas and. I do not understand the ins and outs of it, but as an example for somebody who may simply be very basic in their understanding of this, there are numerous various types of energies that are offered.
And you sort of pointed out having this boots on the ground experience. Now, because we're looking at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). The majority of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, but I believe the genuine chance lies in the utility coin area.
There's all of these ICOs that were happening, those slowed down a bit with some modifications to a few things that was going on, however people are going to come out of the woodwork and begin to produce utility coins- Correct, yeah. And people need to understand that not all utility coins are developed equal.
So you have the advantage of committing your occupation to this, so you can head out there and do the reconnaissance, you can satisfy the creators, you can inspect the code, etc. But for an average individual, there's now what, over 1,000 various kinds of coins readily available, almost 1,200 I think.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either deceptive or simply bad concepts. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a dreadful idea, that somebody provides $40 million to. Right? Yeah, totally. So yeah, so I don't really take part in lots of ICOs, and I suggest you probably side step that market, unless you have actually got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause typically it'll crash 80% or two. Which's when we really start looking at the concept in more detail. So here are some fast and filthy things that you should take a look at, right? So, one is, are they fixing a problem that requires to be solved? One of the huge disadvantages with extremely wise, technical people, is that they like to fix issues that nobody appreciates resolving.
Does the group have experience of carrying out in an effective way in another location of their life? And it doesn't even need to be straight associated to cryptocurrency, it does not need to be even straight associated to software application, right? So, however I wish to see a track record of success in something, right? If it's four people in a space that are simply out of college, unless they've got some actually good consultants behind them, I'm most likely not going to give them any money.
Yeah. I think that in marketing in general, my world of business, we continuously try to find problems and how we can resolve them. Now, are the problems things that individuals are attempting to fix a part of the Blockchain usually? Or would you state it's better if they're solving kind of a mass issue? Something like FileCoin, or something else that would be more mass appeal? Or is it a mix of both? Well I'm basically looking for solutions that, so I'll provide you an example.
And the factor that we purchased it is because they discovered a way to make files tamper-proof, and it's 99% more affordable than present innovation, 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 producing computer system programs that entire states run their entire operations on, right? So you've got fine, the smart person has developed substantial computer programs, excellent team, fixing a huge problem that is going to cut substantial expenses.
I mean, it does not get any simpler than that in regards to choosing who to put money behind. And a lot of this is typical sense, and a lot of folks will try to make things more complicated than it is. And I have a truly basic rule, Ryan. If I don't comprehend something, I set up my hand, and I state, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And after that if the person that you're talking to can't dumb it down enough where you comprehend it, then it's probably not an excellent concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience evaluating companies and looking at much, much bigger business.
Ryan: So you have actually taken a look at business that are big companies, you have actually assessed much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you discussed, it is almost simply good sense. You just need to type of take a look at it and think 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 take a look at.
Okay. What I can use that I discovered from dealing with Wall Street throughout three years, is how to read people. I've fulfilled tens of countless individuals throughout my career. I've met insiders; I've met fund supervisors, I have actually met 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 ought to listen to it. Okay. You ought to absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually got all the bonifides, however you know, there's simply; it's not sitting well with me, there's something about them that's not agreeing with me.
There are numerous other deals out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of chance, you understand, you type of pointed out at the start, Bitcoin and Ethereum, the majority of people have actually heard of these 2, particularly Bitcoin, due to the fact that it appears 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 almost upwards of $6,000 just recently; it's shown up from say $3,000 not too long earlier, it's quite unstable. Do they sort of await a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's an excellent question.
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