So, a great deal of individuals find that too troublesome, and that's why the people that are actually making the most amount of money today in cryptocurrencies are the early adopters: people that are prepared to put in perhaps the 20 minutes required to go through a procedure which simply takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your concepts, but gosh, establishing a crypto account is so hard." 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 bigger. So you're actually really earning money a massive quantity of cash to go through possibly, you understand, 20 minutes of a pain in the neck.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, before you'll be able to buy cryptocurrencies straight through your trading software application. And can you envision what will occur to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the procedure that people go through, and something I wish to bring to light too that you didn't point out, but I understand 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 buy $500 a week.
As hard as possible, right, like Coinbase. It 'd take me forever prior to I could start purchasing in size on Coinbase. They're like, well, we'll let you purchase $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 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 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 some of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, since I'm always curious to speak with individuals who are, particularly someone like yourself, who's devoted the last, you understand, the better part of the last couple of years to really go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a fantastic concern.
They're 2 completely various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what provides it worth is that it is, there's only going to be a minimal quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people constantly attempt to hack it. However since of the nature of the network, today it's been unhackable. And truly, with present technology, the Bitcoin network is so huge right now, 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 saying, "We do not trust fiat money, you can print an unlimited amount of it. It's truly not secure, and the government can take it far from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or people 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 countries that could possibly be a driver for more adoption, because 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 need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. But there are billions of individuals in the world that don't have stable currencies.
Yeah. And so there's this entire burgeoning worldwide demand for cryptocurrencies. So anyhow, 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 lot of individuals know about Ethereum. Ethereum is essentially an international computer system that you can write computer system programs for and run computer system programs on a worldwide decentralized computer system program.
So we think about something like Ether an energy token, since you're essentially purchasing programming 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 provide individuals a concept, like a really easy one that I would envision you 'd called an energy token, is like FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's sort of this same kind of network effect that you have with Bitcoin, where it resembles unstoppable example, since it's on so lots of different areas and. I do not understand the ins and outs of it, but as an example for someone who may just be very standard in their understanding of this, there are many different kinds of utilities that are offered.
And you type of pointed out having this boots on the ground experience. Now, because we're looking at the bulk of these are most likely utility based, correct? 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 think the genuine opportunity lies in the energy coin space.
There's all of these ICOs that were happening, those decreased a little 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 produce utility coins- Correct, yeah. And individuals require to understand that not all energy coins are created equivalent.
So you have the advantage of dedicating your profession to this, so you can go out there and do the recon, you can meet the founders, you can inspect the code, and so on. But for a typical individual, there's now what, over 1,000 various types of coins offered, almost 1,200 I think.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either deceptive or simply bad concepts. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a terrible idea, that somebody gives $40 million to. Right? Yeah, completely. So yeah, so I don't really get involved in many ICOs, and I advise you probably side action that market, unless you've got a special relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause typically it'll crash 80% or so. And that's when we truly start looking at the idea in more detail. So here are some quick and dirty things that you should take a look at, right? So, one is, are they fixing a problem that needs to be solved? One of the big drawbacks with very smart, technical people, is that they like to solve problems that no one appreciates solving.
Does the team have experience of carrying out in an effective way in another area of their life? And it does not even have to be directly related to cryptocurrency, it doesn't have to be even straight associated to software, right? So, but 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 excellent consultants behind them, I'm most likely not going to provide them any cash.
Yeah. I believe that in marketing in general, my world of business, we constantly try to find issues and how we can solve them. Now, are the problems things that individuals are attempting to solve a part of the Blockchain usually? Or would you state it's much better if they're resolving type 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 solutions that, so I'll give you an example.
And the factor that we purchased it is since they discovered a method to make documents 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 man that began it has a performance history of creating computer programs that whole states run their whole operations on, right? So you've got alright, the clever man has constructed big computer programs, excellent team, fixing a massive problem that is going to cut huge costs.
I indicate, it does not get any easier than that in regards to choosing who to put money behind. And a great deal 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 simple rule, Ryan. If I don't comprehend something, I put up my hand, and I state, "I didn't understand what you simply said." Mm-hmm (affirmative).
And then if the individual that you're speaking with can't dumb it down enough where you understand it, then it's most likely not a good idea. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience assessing business and looking at much, much larger companies.
Ryan: So you have actually looked at business that are big companies, you have actually evaluated much larger marketcap type situations. 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 simply sound judgment. You simply have to type of take a look at it and believe reasonably about what's going on, and pull the feeling out? You have to pull the emotion out, and there are no standard metrics that you can take a look at.
Okay. What I can utilize that I found out from working on Wall Street throughout 3 years, is how to check out individuals. I've met tens of countless individuals throughout my profession. I've met experts; I have actually satisfied fund managers, I have actually fulfilled stock promoters, I've fulfilled all these different kinds of characters along the method.
So I believe that's most likely one of my extremely powers, if you will. And if you have actually got a good BS detector, you need to listen to it. Okay. You should definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they've 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 many other deals out there to look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you know, you kind of discussed at the start, Bitcoin and Ethereum, most people have actually heard of these 2, especially Bitcoin, since it appears like it's 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 turned up from say $3,000 not too long earlier, it's rather unpredictable. 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 ten years." You know? Yeah that's a terrific question.
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