So, a lot of people discover that too troublesome, which's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are prepared to put in maybe the 20 minutes needed to go through a process which just takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we like your concepts, 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 actually really getting paid an enormous quantity of cash to go through possibly, you understand, 20 minutes of a discomfort in the neck.
So you can't buy Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, prior to you'll be able to buy cryptocurrencies directly through your trading software application. And can you envision what will occur to this entire market when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that people go through, and something I desire to expose too that you didn't mention, but I understand a great deal of folks who battle with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can just buy $500 a week.
As tough as possible, best, like Coinbase. It 'd take me forever before I could begin purchasing 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 Web, when we were getting on the Web, we were doing it with 56k modems, right? I mean 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 technology, however similar to throughout that period of time, for the folks that had the vision to see where the future was going, and after that bought in on a few of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm constantly curious to talk to people who are, specifically somebody like yourself, who's devoted the last, you know, the lion's share of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like a typical person? That's a great question.
They're two absolutely various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to money. So Bitcoin would be a cryptocurrency. And so what offers it worth is that it is, there's only going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the transactions on the Bitcoin network. And so if you look at that Bitcoin network, individuals continuously try to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And actually, with current technology, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
And so when individuals put, you've got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're saying, "We don't trust paper currency, you can print an endless amount of it. It's actually not secure, and the federal government can take it away from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or individuals that were in Cypress, or just people who have suffered through either run-away inflation, or there's a high demand for, in Argentina for instance, high demand 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 currently do not believe in their own currency? Yeah, and I think we have actually currently 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 don't need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not require Bitcoin. But there are billions of people in the world that do not have steady currencies.
Yeah. And so there's this entire blossoming global 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 used, let's say Ethereum, which a great deal of people understand about Ethereum. Ethereum is basically a global computer that you can write computer system programs for and run computer system programs on a worldwide decentralized computer program.
So we consider something like Ether an utility token, since you're basically buying programs power. So I wouldn't really think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give individuals an idea, like a very basic one that I would picture 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 type of this exact same kind of network effect that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on numerous different areas and. I do not understand the ins and outs of it, but as an example for someone who may simply be extremely fundamental in their understanding of this, there are many various types of energies that are readily available.
And you sort of mentioned having this boots on the ground experience. Now, given that we're looking at the bulk of these are probably energy based, remedy? Mm-hmm (affirmative). The majority of the coins that I advise and take a look at are utility-based. We have a couple of cryptocurrencies, but I think the real chance depends on the utility coin space.
There's all of these ICOs that were occurring, 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 start to develop energy coins- Correct, yeah. And people need to understand that not all energy coins are created equal.
So you have the advantage of committing your profession to this, so you can head out there and do the reconnaissance, you can meet the founders, you can check the code, and so on. But for a typical person, there's now what, over 1,000 various types of coins readily available, nearly 1,200 I think.
How do they do that? That's a terrific question. I will say that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with an awful idea, that somebody offers $40 million to. Right? Yeah, absolutely. So yeah, so I do not really take part in many ICOs, and I advise you probably side step 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 normally it'll crash 80% approximately. Which's when we actually start taking a look 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 an issue that needs to be fixed? Among the big downsides with very wise, technical people, is that they like to resolve issues that no one appreciates solving.
Does the group have experience of performing in a successful manner in another area of their life? And it doesn't even have to be straight associated to cryptocurrency, it does not have to be even straight related to software, right? So, however I wish to see a performance history of success in something, right? If it's four men in a room that are just out of college, unless they've got some truly good advisors behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in basic, my world of service, we constantly look for problems and how we can fix them. Now, are the issues things that people are trying to fix a part of the Blockchain generally? Or would you say it's better if they're resolving 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 generally trying to find services that, so I'll offer you an example.
And the reason that we bought it is since they discovered a method to make files tamper-proof, and it's 99% less expensive 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 started it has a performance history of developing computer system programs that whole states run their whole operations on, right? So you've got alright, the wise man has built big computer programs, terrific group, solving a massive problem that is going to cut big costs.
I suggest, it doesn't get any easier than that in terms of choosing who to put money behind. And a lot of this prevails sense, and a great deal of folks will attempt to make things more complicated than it is. And I have a truly simple guideline, Ryan. If I do not comprehend something, I set up my hand, and I say, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And after that if the individual that you're talking to can't dumb it down enough where you understand it, then it's probably not a great idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience assessing companies and looking at much, much bigger business.
Ryan: So you have actually taken a look at companies that are huge companies, you have actually assessed much bigger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you mentioned, it is nearly just sound judgment. You just have to sort of take a look at it and believe logically 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 utilize that I discovered from dealing with Wall Street throughout 3 years, is how to check out people. I have actually fulfilled tens of countless people throughout my career. I have actually met insiders; I have actually satisfied fund managers, I've met stock promoters, I've fulfilled all these different types of characters along the way.
So I believe that's most likely one of my super powers, if you will. And if you have actually got a good 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've got all the bonifides, but 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 so many other offers out there to look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you know, you sort of mentioned at the start, Bitcoin and Ethereum, many people have become aware of these 2, particularly Bitcoin, since it seems like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading nearly upwards of $6,000 recently; it's come up from say $3,000 not too long ago, it's rather volatile. Do they kind of wait on 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 question.
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