So, a great deal of individuals find that too bothersome, and that's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that want to put in perhaps the 20 minutes needed to go through a procedure which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your concepts, but gosh, setting up a crypto account is so tough." 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 larger. So you're in fact truly making money a huge amount of cash to go through maybe, you understand, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, before you'll have the ability to purchase cryptocurrencies straight through your trading software. And can you envision what will take place to this entire marketplace when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that people go through, and one thing I wish to bring to light 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 buy $1,000 a week. Or you can only buy $500 a week.
As challenging as possible, ideal, like Coinbase. It 'd take me forever prior to I could start purchasing in size on Coinbase. They resemble, well, we'll let you purchase $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 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're in the early days of that innovation, however similar to throughout that duration of time, 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 always curious to speak to people who are, especially someone like yourself, who's devoted the last, you know, the bulk of the last couple of years to actually go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a great 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 money. So Bitcoin would be a cryptocurrency. And so what gives it value is that it is, there's only going to be a limited amount. There'll never 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 look at that Bitcoin network, people constantly attempt 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 today, you can't co-opt it, you can't take it over.
Therefore when people put, you've got individuals 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 don't rely on paper money, you can print an unlimited amount of it. It's actually not secure, and the federal government can take it away from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or people that remained in Cypress, or just individuals who have actually suffered through either hyperinflation, or there's a high need for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those countries that could potentially be a catalyst for more adoption, because they already don't think 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 investors have a difficult time getting their head around. They resemble, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a stable 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 growing worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are essentially utilized, let's state Ethereum, which a great deal of people understand about Ethereum. Ethereum is basically a worldwide computer system that you can compose computer system programs for and run computer programs on a worldwide decentralized computer system program.
So we consider something like Ether an utility token, because you're essentially buying shows power. So I wouldn't really consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give people an idea, like an extremely easy one that I would picture you 'd called an energy token, resembles FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's type of this same type of network effect that you have with Bitcoin, where it resembles unstoppable example, since it's on numerous different areas and. I do not understand the ins and outs of it, however as an example for somebody who may just be very fundamental in their understanding of this, there are a lot of various kinds of energies that are available.
And you kind of discussed having this boots on the ground experience. Now, since we're looking at the bulk of these are most likely energy based, remedy? Mm-hmm (affirmative). Many of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, but I believe the real chance depends on the utility coin space.
There's all of these ICOs that were taking place, those decreased a little 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 produce utility coins- Correct, yeah. And individuals need to comprehend that not all energy coins are created equal.
So you have the advantage of devoting your occupation to this, so you can head out there and do the recon, you can satisfy the creators, you can examine the code, etc. However for an average individual, there's now what, over 1,000 various kinds of coins available, almost 1,200 I think.
How do they do that? That's a terrific concern. I will state that 95% of ICOs are either deceptive or simply bad concepts. Okay. Right? There's nothing even worse than somebody that's young, earnest, with an awful idea, that somebody provides $40 million to. Right? Yeah, absolutely. So yeah, so I don't truly take part in numerous ICOs, and I advise you most likely side action that market, unless you have actually got a special relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause generally it'll crash 80% or so. And that's when we actually start taking a look at the concept in more information. So here are some fast and filthy things that you should look at, right? So, one is, are they resolving an issue that needs to be fixed? One of the huge drawbacks with extremely clever, technical people, is that they like to fix problems that nobody appreciates resolving.
Does the group have experience of carrying out in a successful manner in another location of their life? And it doesn't even need to be straight related to cryptocurrency, it doesn't need to be even straight associated to software application, right? So, however I wish to see a track record of success in something, right? If it's 4 men in a space that are simply out of college, unless they have actually got some actually excellent consultants behind them, I'm probably not going to provide them any cash.
Yeah. I believe that in marketing in general, my world of company, we continuously look for problems and how we can solve them. Now, are the issues things that individuals are attempting to solve a part of the Blockchain typically? Or would you state it's better if they're solving 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 options that, so I'll give you an example.
And the reason that we purchased it is due to the fact that they discovered a method to make documents 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 man that began it has a track record of creating computer programs that whole states run their entire operations on, right? So you have actually got alright, the smart man has developed huge computer programs, great group, fixing a massive problem that is going to cut huge costs.
I suggest, it doesn't get any easier than that in regards to choosing who to put cash behind. And a lot of this prevails sense, and a great deal of folks will try to make things more complicated than it is. And I have a really basic guideline, Ryan. If I don't comprehend something, I put up my hand, and I say, "I didn't comprehend what you just said." Mm-hmm (affirmative).
And then 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 concept. Right, right. It's going to be easy to understand. And do you feel that you have years of experience assessing companies and looking at much, much larger companies.
Ryan: So you have actually looked at companies that are huge companies, you've examined much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you discussed, it is nearly simply good sense. You just have to type of look at it and believe rationally about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no standard metrics that you can look at.
Okay. What I can utilize that I learned from dealing with Wall Street across three years, is how to read people. I have actually satisfied tens of countless people throughout my profession. I've fulfilled experts; I have actually fulfilled fund supervisors, I have actually satisfied stock promoters, I've satisfied all these different kinds of characters along the method.
So I believe that's most likely one of my very powers, if you will. And if you've got an excellent BS detector, you need to listen to it. Okay. You ought to definitely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually got all the bonifides, but you understand, there's just; 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 look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you type of pointed out at the beginning, Bitcoin and Ethereum, a lot of people have become aware of these two, particularly Bitcoin, since it looks 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 shown up from say $3,000 not too long back, it's rather volatile. Do they type of await a pullback, or do they just state, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You understand? Yeah that's a great concern.
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