So, a lot of people find that too inconvenient, and that's why the individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are ready to put in maybe the 20 minutes required to go through a procedure which just takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, setting up a crypto account is so difficult." What I tell them is I state, "Look, when it's easy 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 really getting paid a huge amount of money to go through maybe, you understand, 20 minutes of a nuisance.
So you can't buy 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 imagine what will occur to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you discussed the process that individuals go through, and one thing I want to expose too that you didn't discuss, however I know a lot of folks who deal 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 challenging as possible, right, like Coinbase. It 'd take me forever prior to I could begin purchasing in size on Coinbase. They resemble, well, we'll let you buy $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 suggest, we remain in the early days of that innovation, but similar to during that time period, for the folks that had the vision to see where the future was going, and after that purchased in on a few of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm always curious to speak with people who are, specifically someone like yourself, who's devoted the last, you know, the bulk of the last couple of years to truly go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a terrific concern.
They're 2 completely different things, however 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 only going to be a minimal quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the transactions on the Bitcoin network. Therefore 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 actually, with present 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 have actually got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We don't rely on paper currency, you can print an endless amount of it. It's actually not protect, and the federal government can take it far from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or individuals that remained in Cypress, or just individuals who have actually suffered through either hyperinflation, or there's a high need for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those nations that could potentially be a catalyst for more adoption, due to the fact that they already do not believe in their own currency? Yeah, and I think we've already seen that.
So yes, and this is a thing that a great deal of American or Western investors have a hard time getting their head around. They resemble, "Well I don't require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. However there are billions of individuals worldwide that don't have stable currencies.
Yeah. Therefore there's this entire growing worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are basically utilized, let's say Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is essentially a worldwide computer system that you can compose computer system programs for and run computer system programs on an internationally decentralized computer program.
So we consider something like Ether an utility token, due to the fact that you're essentially buying programming power. So I wouldn't 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 very easy one that I would imagine you 'd called an energy token, resembles FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's kind of this same type of network impact that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on many various areas and. I don't understand the ins and outs of it, but as an example for someone who may simply be really fundamental in their understanding of this, there are so numerous different kinds of energies that are available.
And you type of mentioned having this boots on the ground experience. Now, considering that 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 take a look at are utility-based. We have a couple of cryptocurrencies, but I believe the real opportunity depends on the utility coin area.
There's all of these ICOs that were taking place, those slowed down a bit with some changes to a few things that was going on, but people are going to come out of the woodwork and begin to develop utility coins- Correct, yeah. And individuals need to understand that not all energy coins are developed equivalent.
So you have the benefit of dedicating your profession to this, so you can head out there and do the reconnaissance, you can satisfy the creators, you can examine the code, etc. However for a typical person, there's now what, over 1,000 different types of coins offered, almost 1,200 I think.
How do they do that? That's a terrific question. I will say that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with an awful concept, that somebody offers $40 million to. Right? Yeah, totally. So yeah, so I do not actually get involved in many 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 typically it'll crash 80% or two. And that's when we really begin looking at the concept in more detail. So here are some quick and unclean things that you should take a look at, right? So, one is, are they solving a problem that requires to be fixed? Among the big drawbacks with extremely smart, technical people, is that they like to fix problems that no one cares about resolving.
Does the team have experience of executing in a successful manner in another location of their life? And it does not even have to be straight related to cryptocurrency, it doesn't have to be even straight related to software application, right? So, however I want to see a performance history of success in something, right? If it's four guys in a space that are just out of college, unless they have actually got some actually great consultants behind them, I'm most likely not going to provide them any money.
Yeah. I believe that in marketing in general, my world of service, we continuously try to find issues and how we can resolve them. Now, are the problems things that people are attempting to fix a part of the Blockchain generally? Or would you state it's better if they're fixing 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 give you an example.
And the factor that we bought it is due to the fact that they discovered a way to make documents tamper-proof, and it's 99% more affordable than current innovation, 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 creating computer programs that whole states run their entire operations on, right? So you've got okay, the smart man has built substantial computer programs, fantastic group, solving a massive problem that is going to cut huge expenses.
I imply, it does not get any simpler 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 attempt to make things more complex than it is. And I have an actually basic guideline, Ryan. If I do not understand something, I put up my hand, and I say, "I didn't understand what you just stated." Mm-hmm (affirmative).
And after that if the individual that you're speaking to can't dumb it down enough where you understand it, then it's most likely not a great concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience evaluating business and looking at much, much larger companies.
Ryan: So you have actually looked at business that are huge companies, you have actually assessed much larger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you pointed out, it is practically just sound judgment. You just need to type of take a look at it and think logically about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no conventional metrics that you can look at.
Okay. What I can use that I gained from dealing with Wall Street across 3 years, is how to check out people. I've fulfilled tens of countless individuals throughout my career. I've satisfied insiders; I have actually met fund managers, I've met stock promoters, I have actually met all these various types of characters along the way.
So I think that's most likely one of my super powers, if you will. And if you've got a good BS detector, you need to listen to it. Okay. You must absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually got all the bonifides, but 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 a lot of other offers 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 beginning, Bitcoin and Ethereum, many people have heard of these 2, particularly Bitcoin, since it looks 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 just recently; it's turned up from say $3,000 not too long ago, it's quite unpredictable. Do they kind 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 ten years." You understand? Yeah that's a terrific concern.
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