So, a great deal of people find that too inconvenient, and that's why individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: individuals that want to put in possibly the 20 minutes needed to go through a process which simply takes five minutes if you want to set up a brokerage account.
" Oh Teeka, we like your ideas, but gosh, establishing a crypto account is so difficult." What I inform 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 quantity of cash to go through possibly, you know, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, but it is just a question of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies directly through your trading software application. And can you picture what will take place 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 mentioned the procedure that people go through, and one thing I desire to bring to light too that you didn't point out, but I know a great deal of folks who struggle with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can just buy $500 a week.
As hard as possible, ideal, like Coinbase. It 'd take me forever prior to I might start buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I indicate, it's if you remember the early days of the Internet, when we were getting on the Internet, we were doing it with 56k modems, right? I imply 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 imply, 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 then bought in on a few of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm constantly curious to speak to individuals who are, especially somebody like yourself, who's committed the last, you understand, the better part of the last couple of years to actually go both feet in on this. How do you explain cryptocurrency to like an average individual? That's an excellent question.
They're two absolutely different 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. And so what gives it value is that it is, there's just going to be a restricted quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the transactions on the Bitcoin network. Therefore if you look at that Bitcoin network, people 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 existing innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
And so when individuals put, you have actually got people 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 rely on fiat money, you can print an unrestricted amount of it. It's truly not secure, and the government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or people that remained in Cypress, or simply people 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 catalyst for more adoption, due to the fact that they already do not believe in their own currency? Yeah, and I believe we've currently seen that.
So yes, and this is a thing that a lot of American or Western investors have a difficult time getting their head around. They're like, "Well I don't require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. But there are billions of individuals on the planet that don't have steady currencies.
Yeah. And so there's this entire burgeoning international demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are essentially utilized, let's state Ethereum, which a lot of people know about Ethereum. Ethereum is basically an international computer system that you can write computer system programs for and run computer system programs on a worldwide decentralized computer program.
So we think about something like Ether an energy token, due to the fact that you're essentially buying shows 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 provide people a concept, like a really basic one that I would picture you 'd called an energy token, resembles FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's kind of this same kind of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on many different locations and. I don't understand the ins and outs of it, but as an example for someone who might just be extremely basic in their understanding of this, there are numerous 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 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 few cryptocurrencies, however I believe the real chance lies in the energy coin area.
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, but people are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And individuals need to comprehend that not all energy coins are developed equivalent.
So you have the advantage of dedicating your occupation to this, so you can go out there and do the recon, you can satisfy the creators, you can inspect the code, and so on. However for a typical person, there's now what, over 1,000 different types of coins readily available, almost 1,200 I believe.
How do they do that? That's a terrific concern. I will say that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with a dreadful concept, that somebody gives $40 million to. Right? Yeah, totally. So yeah, so I do not actually participate in lots of 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 usually it'll crash 80% approximately. And that's when we actually start looking 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 fixing an issue that requires to be fixed? Among the big drawbacks with very wise, technical individuals, is that they like to fix issues that no one appreciates resolving.
Does the team have experience of performing in a successful manner in another area of their life? And it doesn't even need to be straight related to cryptocurrency, it does not have to be even directly related to software, right? So, however I want to see a performance history of success in something, right? If it's 4 guys in a space that are just out of college, unless they have actually got some actually excellent consultants behind them, I'm probably not going to give them any money.
Yeah. I believe that in marketing in general, my world of business, we continuously search for issues and how we can resolve them. Now, are the issues things that individuals are attempting to resolve a part of the Blockchain typically? Or would you state it's much better if they're fixing 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 basically looking for services that, so I'll offer you an example.
And the factor that we purchased it is due to the fact that they found a method to make documents tamper-proof, and it's 99% less expensive than present technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the man that began it has a performance history of developing computer system programs that entire states run their entire operations on, right? So you have actually got okay, the clever man has actually built substantial computer system programs, excellent group, resolving a huge issue that is going to cut substantial costs.
I indicate, it does not get any simpler than that in terms of choosing who to put money behind. And a great deal of this is common sense, and a lot of folks will try to make things more complicated than it is. And I have a really simple rule, Ryan. If I don't understand something, I set up my hand, and I state, "I didn't comprehend what you just said." Mm-hmm (affirmative).
And then 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 idea. Right, right. It's going to be easy to understand. And do you feel that you have years of experience examining companies and looking at much, much larger companies.
Ryan: So you've taken a look at business that are huge companies, you have actually evaluated much larger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you pointed out, it is nearly just typical sense. You simply need to sort of look at it and think logically about what's going on, and pull the feeling out? You need 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 gained from dealing with Wall Street across three years, is how to check out people. I've met 10s of thousands of individuals throughout my career. I've satisfied experts; I've met fund managers, I have actually met stock promoters, I've met all these various kinds of characters along the method.
So I think that's most likely among my extremely powers, if you will. And if you've got a great BS detector, you must listen to it. Okay. You should definitely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, but you understand, there's simply; it's not sitting well with me, there's something about them that's not sitting well with me.
There are many other offers out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you sort of discussed at the beginning, Bitcoin and Ethereum, the majority of people have become aware of these two, 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 nearly upwards of $6,000 recently; it's turned up from say $3,000 not too long earlier, it's rather unpredictable. Do they type of wait on a pullback, or do they simply say, "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 great concern.
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