So, a great deal of people find that too troublesome, and that's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: people that are willing to put in possibly 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 like your concepts, however 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 entire cryptocurrency market will be 10x bigger. So you're in fact truly earning money a massive amount of money to go through possibly, 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 question of time, Ryan, before you'll have the ability to buy cryptocurrencies directly through your trading software application. And can you imagine what will occur to this whole marketplace when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the process that people go through, and something I want to bring to light too that you didn't discuss, but I know a great deal of folks who have a hard time with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can only purchase $500 a week.
As challenging as possible, ideal, like Coinbase. It 'd take me permanently before I could start purchasing in size on Coinbase. They're like, well, we'll let you buy $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 suggest 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 mean, we remain in the early days of that innovation, however much like throughout 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 companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a second, since I'm always curious to talk with individuals who are, specifically someone like yourself, who's devoted the last, you understand, the bulk of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a great question.
They're two absolutely different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to money. So Bitcoin would be a cryptocurrency. Therefore what provides it worth is that it is, there's only going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people constantly attempt to hack it. But because of the nature of the network, today it's been unhackable. And truly, with existing technology, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
And so 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 don't rely on paper currency, you can print an unrestricted quantity of it. It's really not secure, and the government can take it away from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or individuals that remained in Cypress, or just people who have actually suffered through either hyperinflation, or there's a high demand for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those nations that could possibly be a catalyst for more adoption, since they currently don't think 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 hard time getting their head around. They're like, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. However there are billions of people worldwide that don't have stable currencies.
Yeah. Therefore there's this whole burgeoning international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are essentially used, let's say Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is basically a global computer system that you can write computer programs for and run computer programs on an internationally decentralized computer system program.
So we think about something like Ether an energy token, due to the fact that you're essentially buying programming power. So I would not really consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give individuals a concept, like a really easy one that I would picture you 'd called an utility token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's type of this same type of network result that you have with Bitcoin, where it's like unstoppable example, since it's on many different locations and. I do not know the ins and outs of it, but as an example for somebody who might just be extremely basic in their understanding of this, there are numerous various types of utilities that are available.
And you type of discussed having this boots on the ground experience. Now, given that we're looking at the bulk of these are most likely energy based, remedy? Mm-hmm (affirmative). Many of the coins that I suggest and take a look at are utility-based. We have a few cryptocurrencies, but I believe the genuine opportunity lies in the energy coin area.
There's all of these ICOs that were happening, those slowed down a little bit with some changes to a couple of things that was going on, however people are going to come out of the woodwork and start to develop energy coins- Correct, yeah. And people need to understand that not all energy coins are developed equivalent.
So you have the benefit of committing your occupation to this, so you can head out there and do the reconnaissance, you can meet the founders, you can check the code, and so on. But for an average individual, there's now what, over 1,000 different types of coins readily available, practically 1,200 I think.
How do they do that? That's a terrific question. I will state that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a dreadful concept, that somebody offers $40 million to. Right? Yeah, completely. So yeah, so I don't truly get involved in numerous ICOs, and I suggest you probably side step 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 usually it'll crash 80% approximately. And that's when we truly start taking a look at the idea in more detail. So here are some fast and unclean things that you should look at, right? So, one is, are they solving an issue that needs to be solved? One of the big downsides with really wise, technical people, is that they like to fix problems that no one appreciates solving.
Does the group have experience of carrying out in an effective manner in another area of their life? And it doesn't even have to be directly related to cryptocurrency, it does not have to be even straight related to software, right? So, however I wish to see a performance history of success in something, right? If it's four men in a space that are just out of college, unless they have actually got some really excellent consultants behind them, I'm probably not going to give them any money.
Yeah. I think that in marketing in basic, my world of business, we constantly search for problems and how we can solve them. Now, are the problems things that people are trying to fix a part of the Blockchain normally? Or would you say it's much better if they're resolving sort 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 essentially trying to find options that, so I'll offer you an example.
And the reason that we bought it is due to the fact that they discovered a method to make documents tamper-proof, and it's 99% more affordable than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the guy that began it has a performance history of creating computer programs that entire states run their whole operations on, right? So you've got alright, the clever person has constructed huge computer system programs, fantastic group, resolving a massive issue that is going to cut huge expenses.
I imply, it does not get any simpler than that in regards to deciding who to put cash 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 a really easy guideline, Ryan. If I do not comprehend something, I installed my hand, and I say, "I didn't understand what you just stated." Mm-hmm (affirmative).
And after that if the person that you're talking with can't dumb it down enough where you understand it, then it's probably not an excellent idea. Right, right. It's going to be simple to understand. And do you feel that you have years of experience evaluating companies and taking a look at much, much larger companies.
Ryan: So you have actually taken a look at business that are huge companies, you've evaluated much bigger 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 just sound judgment. You just have to sort 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 learned from dealing with Wall Street throughout 3 years, is how to read people. I've fulfilled tens of countless individuals throughout my career. I've satisfied experts; I've met fund managers, I have actually met stock promoters, I've fulfilled all these different kinds of characters along the way.
So I think that's most likely one of my super powers, if you will. And if you've got an excellent BS detector, you need to listen to it. Okay. You need to definitely 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 just; it's not sitting well with me, there's something about them that's not sitting well with me.
There are numerous other deals out there to look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you sort of pointed out at the start, Bitcoin and Ethereum, many people have actually become aware of these 2, particularly Bitcoin, since it looks like it remains in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 just recently; it's turned up from say $3,000 not too long back, it's quite volatile. Do they type of await 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 terrific concern.
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