So, a great deal of individuals discover 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 want to put in perhaps the 20 minutes needed to go through a procedure which simply takes five minutes if you want to establish a brokerage account.
" Oh Teeka, we love your ideas, however gosh, establishing a crypto account is so hard." 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 entire 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 pain in the neck.
So you can't purchase Bitcoin yet through their trading platform, however it is just a question of time, Ryan, prior to you'll be able to buy cryptocurrencies straight through your trading software application. 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 bring to light too that you didn't discuss, however I know a lot of folks who deal with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can just purchase $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 remember the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I mean 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 indicate, we remain in the early days of that innovation, however much like during that amount of time, for the folks that had the vision to see where the future was going, and after that purchased in on some of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, because I'm always curious to talk to people who are, particularly someone like yourself, who's devoted the last, you know, the lion's share of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like an average individual? That's a fantastic question.
They're two totally different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to cash. So Bitcoin would be a cryptocurrency. And so what provides it value is that it is, there's only going to be a minimal amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals 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 huge today, 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 since they're saying, "We do not trust paper currency, you can print a limitless amount of it. It's really not secure, and the government can take it far from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or people that remained in Cypress, or simply people who have actually 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 nations that could possibly be a catalyst for more adoption, since they already do not think 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 financiers have a difficult time getting their head around. They're like, "Well I do not 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 people on the planet that do not have stable currencies.
Yeah. Therefore there's this entire blossoming worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are generally used, let's state Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially a worldwide computer that you can write computer programs for and run computer programs on a worldwide decentralized computer system program.
So we think about something like Ether an energy token, because you're essentially buying programming power. So I would not truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer people an idea, like a very easy one that I would envision 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 exact same kind of network impact that you have with Bitcoin, where it resembles unstoppable example, since it's on numerous different locations and. I do not understand the ins and outs of it, but as an example for someone who may simply be extremely fundamental in their understanding of this, there are a lot of different types of utilities that are offered.
And you sort of discussed having this boots on the ground experience. Now, because we're taking a look at the bulk of these are most likely utility based, remedy? Mm-hmm (affirmative). The majority of the coins that I recommend and take a look at are utility-based. We have a few cryptocurrencies, but I believe the genuine chance depends on the energy coin area.
There's all of these ICOs that were taking place, those decreased a bit with some changes to a few things that was going on, but people are going to come out of the woodwork and begin to develop utility 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 fulfill the creators, you can examine the code, and so on. But for a typical person, there's now what, over 1,000 various types of coins available, practically 1,200 I think.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either deceptive or simply bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with a terrible idea, that somebody offers $40 million to. Right? Yeah, absolutely. So yeah, so I do not actually take part 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 after that blow it out when it trades.
'Cause generally it'll crash 80% or so. And that's when we truly start taking a look at the idea in more information. 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 solved? One of the big disadvantages with really clever, technical individuals, is that they like to solve issues that nobody appreciates fixing.
Does the team have experience of executing in an effective way in another area of their life? And it doesn't even have to be straight associated to cryptocurrency, it doesn't need 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 four guys in a space that are simply out of college, unless they have actually got some really great advisors behind them, I'm probably not going to provide them any money.
Yeah. I think that in marketing in basic, my world of service, we constantly look for problems and how we can resolve them. Now, are the issues things that people are attempting to fix a part of the Blockchain typically? Or would you state it's much 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 basically searching for solutions that, so I'll provide you an example.
And the factor that we purchased 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 guy that started 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 smart guy has actually constructed huge computer programs, great team, resolving an enormous problem that is going to cut big expenses.
I suggest, it does not get any simpler than that in regards to choosing who to put money behind. And a lot 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 easy rule, Ryan. If I do not understand something, I put up my hand, and I say, "I didn't comprehend what you just said." Mm-hmm (affirmative).
And after that if the person that you're talking to can't dumb it down enough where you understand it, then it's probably not a great idea. Right, right. It's going to be basic to understand. And do you feel that you have years of experience assessing companies and taking a look at much, much bigger companies.
Ryan: So you have actually taken a look at business that are huge business, you've assessed much larger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you mentioned, it is almost just good sense. You just have to sort of look at it and think rationally about what's going on, and pull the feeling out? You have to pull the feeling out, and there are no traditional metrics that you can look at.
Okay. What I can use that I found out from working on Wall Street across three years, is how to check out individuals. I've fulfilled 10s of thousands of individuals throughout my profession. I have actually met experts; I've fulfilled fund managers, I have actually fulfilled stock promoters, I have actually fulfilled all these different types of characters along the method.
So I think that's probably one of my very powers, if you will. And if you have actually got a great BS detector, you should listen to it. Okay. You ought to definitely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, however you know, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are so lots of other deals out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you type of mentioned at the start, Bitcoin and Ethereum, the majority of people have heard of these 2, especially Bitcoin, due to the fact that it appears like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's come up from state $3,000 not too long ago, it's rather unpredictable. Do they kind of wait on a pullback, or do they just say, "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.
Copyright© how to invest in blockchain All Rights Reserved Worldwide