So, a lot of people find that too troublesome, and that's why individuals that are actually making the most amount of money today in cryptocurrencies are the early adopters: individuals that want to put in maybe the 20 minutes required to go through a process which simply takes 5 minutes if you want to set up a brokerage account.
" Oh Teeka, we love your ideas, however gosh, establishing a crypto account is so challenging." 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 entire cryptocurrency market will be 10x bigger. So you're actually truly making money an enormous amount of money to go through maybe, you know, 20 minutes of a discomfort in the neck.
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 straight through your trading software. And can you imagine what will take place to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that individuals go through, and something I wish to expose too that you didn't discuss, but I know a great deal of folks who fight with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only purchase $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me forever before I might start buying in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I indicate, it's if you keep in mind the early days of the Internet, when we were getting on the Internet, 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're in the early days of that innovation, however just like throughout that time period, for the folks that had the vision to see where the future was going, and after that bought in on some of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm always curious to speak to individuals who are, specifically somebody like yourself, who's committed the last, you know, the bulk of the last few years to really go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's an excellent concern.
They're 2 absolutely 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. And so what offers it worth is that it is, there's just going to be a limited amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people continuously attempt to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And really, with present technology, 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 literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't rely on paper currency, 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, best , proceed.
Yeah. Or people that remained in Cypress, or simply people who have suffered through either devaluation, or there's a high need 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 think 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 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. But there are billions of individuals in the world that don't have steady currencies.
Yeah. Therefore there's this whole burgeoning worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are basically utilized, let's state Ethereum, which a great deal of people learn about Ethereum. Ethereum is basically a global computer that you can write computer system programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an energy token, because you're basically purchasing programming power. So I wouldn't actually think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals an idea, like a really easy one that I would picture you 'd called an utility token, is like FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's kind of this exact same kind of network effect that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on so numerous various areas and. I do not understand the ins and outs of it, however as an example for someone who might simply be really standard in their understanding of this, there are so lots of different types of energies that are available.
And you type of mentioned having this boots on the ground experience. Now, because we're looking at the bulk of these are probably utility based, correct? Mm-hmm (affirmative). The majority 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 lies in the energy coin area.
There's all of these ICOs that were taking place, those slowed down a bit with some modifications to a couple of things that was going on, but people are going to come out of the woodwork and begin to produce energy coins- Correct, yeah. And individuals require to understand that not all energy coins are produced equal.
So you have the benefit of committing your profession to this, so you can head out there and do the reconnaissance, you can fulfill the creators, you can check the code, and so on. But for a typical individual, there's now what, over 1,000 various kinds of coins available, nearly 1,200 I believe.
How do they do that? That's a great question. I will say that 95% of ICOs are either deceitful or simply bad ideas. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a horrible concept, that somebody gives $40 million to. Right? Yeah, completely. So yeah, so I don't actually take part in many ICOs, and I suggest you most likely side action that market, unless you've got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% or so. And that's when we truly start taking a look at the concept in more detail. So here are some fast and dirty things that you should look at, right? So, one is, are they fixing an issue that requires to be resolved? One of the big disadvantages with really smart, technical people, is that they like to solve problems that nobody cares about fixing.
Does the group have experience of executing in a successful manner in another area of their life? And it does not even have to be directly associated to cryptocurrency, it doesn't have to be even straight associated to software, right? So, but I wish 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 excellent advisors behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in general, my world of company, we continuously look for issues and how we can solve them. Now, are the issues things that individuals are attempting to fix a part of the Blockchain typically? 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 essentially trying to find solutions that, so I'll give you an example.
And the reason that we purchased it is since they discovered a way to make documents tamper-proof, and it's 99% more affordable than present technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that began it has a track record of producing computer programs that entire states run their whole operations on, right? So you've got okay, the smart person has built substantial computer programs, excellent team, resolving a massive issue that is going to cut big expenses.
I suggest, it doesn't get any simpler than that in terms of deciding who to put money behind. And a lot of this prevails sense, and a lot of folks will try to make things more complicated than it is. And I have an actually easy rule, Ryan. If I do not comprehend something, I set up my hand, and I state, "I didn't understand what you just 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 most likely not a great idea. Right, right. It's going to be easy to understand. And do you feel that you have years of experience evaluating companies and looking at much, much larger business.
Ryan: So you've looked at business that are big companies, you've examined much larger marketcap type situations. 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 have to type of appearance at it and believe reasonably about what's going on, and pull the emotion out? You have to pull the feeling out, and there are no standard metrics that you can look at.
Okay. What I can utilize that I found out from dealing with Wall Street throughout three decades, is how to read people. I've met tens of thousands of individuals throughout my career. I've satisfied experts; I have actually satisfied fund supervisors, I have actually fulfilled stock promoters, I've fulfilled all these various kinds of characters along the method.
So I believe that's most likely among my very powers, if you will. And if you have actually got an excellent BS detector, you need to listen to it. Okay. You need to absolutely listen to it. If I'm sitting down and I'm talking with someone, and they have actually got all the bonifides, however 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 many other offers out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you kind of discussed at the start, Bitcoin and Ethereum, the majority of people have heard of these 2, especially 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 come up from say $3,000 not too long ago, it's rather unstable. Do they sort of wait for a pullback, or do they just say, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in ten years." You understand? Yeah that's a fantastic concern.
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