So, a lot of people find that too inconvenient, and that's why the individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: people that want to put in maybe the 20 minutes needed to go through a procedure which simply takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we love your ideas, however gosh, setting up a crypto account is so tough." What I inform them is I say, "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 getting paid an enormous amount of money to go through possibly, you understand, 20 minutes of a discomfort in the neck.
So you can't purchase Bitcoin yet through their trading platform, but it is simply a concern of time, Ryan, prior to you'll be able to buy cryptocurrencies straight through your trading software. And can you envision what will occur to this entire market when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the process that individuals go through, and one thing I wish to bring to light too that you didn't mention, but I understand a lot of folks who battle with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can just buy $500 a week.
As tough as possible, best, like Coinbase. It 'd take me permanently prior to I could begin purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I suggest, 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 imply 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 imply, we remain in the early days of that innovation, but similar to during that duration 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 absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a second, due to the fact that I'm always curious to talk with individuals who are, particularly somebody like yourself, who's dedicated the last, you understand, the bulk of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's a great concern.
They're 2 completely different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option 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 minimal quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, people constantly try to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And truly, with present technology, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not trust paper money, you can print an endless amount of it. It's truly not secure, and the federal government can take it far from you." - Whereas with Bitcoin, right , go on.
Yeah. Or individuals that were in Cypress, or simply individuals who have actually suffered through either devaluation, or there's a high demand for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those nations that could possibly be a driver for more adoption, since they already do not believe in their own currency? Yeah, and I believe we have actually currently seen that.
So yes, and this is a thing that a lot of American or Western investors have a bumpy ride 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 don't require Bitcoin. But there are billions of individuals worldwide that do not have stable currencies.
Yeah. Therefore there's this entire growing international demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are essentially utilized, let's state Ethereum, which a great deal of people learn about Ethereum. Ethereum is essentially a worldwide computer that you can compose computer 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 programs power. So I would not actually consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer people a concept, like a very basic one that I would picture you 'd called an energy token, is like FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's sort of this same type of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, because it's on a lot of different locations and. I don't know the ins and outs of it, but as an example for someone who might just be very fundamental in their understanding of this, there are a lot of different types of utilities that are readily available.
And you type of discussed having this boots on the ground experience. Now, considering that we're looking at the bulk of these are probably energy based, remedy? Mm-hmm (affirmative). Most of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, however I think the real chance lies in the energy coin area.
There's all of these ICOs that were occurring, those decreased a bit with some changes to a few things that was going on, but individuals are going to come out of the woodwork and start to create utility coins- Correct, yeah. And individuals require to comprehend that not all energy coins are produced equal.
So you have the advantage of dedicating your occupation to this, so you can go out there and do the reconnaissance, you can fulfill the creators, you can check the code, etc. However for an average individual, there's now what, over 1,000 different types of coins available, practically 1,200 I believe.
How do they do that? That's a terrific concern. I will say that 95% of ICOs are either fraudulent or just bad ideas. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a dreadful idea, that somebody provides $40 million to. Right? Yeah, totally. So yeah, so I do not really participate in lots of ICOs, and I advise you probably side action that market, unless you've got an unique 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 actually begin looking at the concept in more detail. So here are some quick and dirty things that you should look at, right? So, one is, are they solving an issue that needs to be fixed? One of the big disadvantages with very wise, technical people, is that they like to resolve problems that nobody cares about solving.
Does the group have experience of carrying out in an effective manner in another area of their life? And it does not even have to be directly associated to cryptocurrency, it does not have to be even straight associated to software, right? So, but I want to see a track record of success in something, right? If it's 4 guys in a space that are just out of college, unless they've got some actually excellent consultants behind them, I'm most likely not going to offer them any cash.
Yeah. I believe that in marketing in general, my world of company, we constantly look for issues and how we can solve them. Now, are the problems things that people are trying to solve a part of the Blockchain usually? Or would you state it's much 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 essentially looking for solutions that, so I'll offer you an example.
And the factor that we bought it is due to the fact that they discovered a method to make documents tamper-proof, and it's 99% cheaper than present innovation, 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 track record of producing computer programs that entire states run their whole operations on, right? So you've got all right, the clever guy has actually built big computer system programs, fantastic team, resolving an enormous problem that is going to cut substantial expenses.
I mean, it does not get any easier than that in regards to deciding who to put cash behind. And a lot of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have an actually simple guideline, Ryan. If I do not understand something, I put 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 comprehend it, then it's probably not an excellent idea. 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 larger companies.
Ryan: So you have actually looked at business that are big companies, you have actually evaluated much larger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you mentioned, it is almost just typical sense. You simply have to kind of take a look at it and think rationally about what's going on, and pull the feeling out? You have to pull the emotion out, and there are no traditional metrics that you can take a look at.
Okay. What I can use that I gained from dealing with Wall Street across three years, is how to read people. I've met 10s of thousands of individuals throughout my profession. I have actually satisfied insiders; I've satisfied fund managers, I've satisfied stock promoters, I've fulfilled all these different kinds of characters along the way.
So I think that's most likely among my very powers, if you will. And if you have actually got a great BS detector, you need to listen to it. Okay. You should absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, but you know, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are a lot of other offers out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you understand, you sort of pointed out at the beginning, Bitcoin and Ethereum, the majority of people have actually become aware of these 2, especially Bitcoin, because it appears like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's come up from state $3,000 not too long back, it's quite unstable. Do they sort of wait on a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's a great question.
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