So, a lot of people discover that too troublesome, which's why individuals that are actually making the most amount of cash right now 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 five minutes if you desire to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, setting up 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 whole cryptocurrency market will be 10x bigger. So you're in fact truly getting paid a massive amount of money to go through perhaps, you understand, 20 minutes of a headache.
So you can't buy 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. And can you picture what will happen to this entire market when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the procedure that individuals go through, and one thing I want to bring to light too that you didn't mention, but I know a great deal of folks who battle with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can just buy $500 a week.
As hard as possible, right, like Coinbase. It 'd take me permanently before I might begin buying in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I mean, 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 mean 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 indicate, we remain in the early days of that technology, but just like during that period of time, for the folks that had the vision to see where the future was going, and after that bought 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 2nd, due to the fact that I'm constantly curious to talk to individuals who are, particularly someone like yourself, who's devoted the last, you understand, the lion's share of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like an average person? That's a terrific question.
They're 2 absolutely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to cash. So Bitcoin would be a cryptocurrency. Therefore what offers it worth is that it is, there's just going to be a limited quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people continuously try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And really, with existing technology, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
Therefore when people put, you've got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We do not rely on paper cash, you can print an unlimited amount of it. It's really not protect, and the federal government can take it away from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or people 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 driver for more adoption, because they already don't think in their own currency? Yeah, and I think we've already 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're like, "Well I don't need 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 steady currencies.
Yeah. Therefore there's this whole blossoming global need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are generally used, let's say Ethereum, which a great deal of people understand about Ethereum. Ethereum is essentially a global computer system that you can write computer programs for and run computer programs on a worldwide decentralized computer program.
So we consider something like Ether an utility token, since you're essentially purchasing programs power. So I wouldn't actually consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide individuals a concept, like a really easy one that I would imagine you 'd called an utility token, resembles FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's type of this same kind of network impact that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on numerous various locations and. I don't know the ins and outs of it, however as an example for somebody who may simply be very standard in their understanding of this, there are numerous different kinds of energies that are offered.
And you kind of mentioned having this boots on the ground experience. Now, since we're taking a look at the bulk of these are probably energy based, remedy? Mm-hmm (affirmative). Most of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, but I think the genuine opportunity depends on the utility coin space.
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, however people are going to come out of the woodwork and begin to produce utility coins- Correct, yeah. And individuals require to understand that not all utility coins are created equivalent.
So you have the advantage of devoting your occupation to this, so you can go out there and do the recon, you can satisfy the creators, you can examine the code, and so on. But for a typical person, there's now what, over 1,000 different types of coins readily available, practically 1,200 I believe.
How do they do that? That's a great question. I will state that 95% of ICOs are either deceitful or just bad concepts. Okay. Right? There's nothing even worse than someone that's young, earnest, with an awful idea, that someone offers $40 million to. Right? Yeah, absolutely. So yeah, so I do not actually take part in numerous ICOs, and I recommend you probably side step that market, unless you have actually got an unique relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause normally it'll crash 80% or two. And that's when we truly begin looking at the concept in more information. So here are some quick and dirty things that you should look at, right? So, one is, are they fixing a problem that needs to be resolved? One of the huge drawbacks with really wise, technical individuals, is that they like to solve problems that nobody cares about resolving.
Does the group have experience of executing in a successful manner in another location of their life? And it doesn't even have to be directly related to cryptocurrency, it does not need to be even straight associated to software, right? So, however I desire 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 good consultants behind them, I'm most likely not going to provide them any cash.
Yeah. I believe that in marketing in general, my world of company, we continuously try to find issues and how we can resolve them. Now, are the issues things that individuals are trying to resolve a part of the Blockchain usually? Or would you state it's better if they're fixing type 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 because they found 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 then on top of that, the guy that started it has a track record of producing computer programs that whole states run their whole operations on, right? So you've got okay, the wise person has developed substantial computer system programs, terrific group, solving an enormous issue that is going to cut substantial costs.
I mean, it doesn't get any easier than that in regards to choosing who to put cash 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 truly simple guideline, Ryan. If I do not comprehend something, I installed my hand, and I state, "I didn't understand what you simply said." Mm-hmm (affirmative).
And then if the individual that you're speaking to can't dumb it down enough where you comprehend it, then it's probably not a good concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience examining companies and looking at much, much bigger companies.
Ryan: So you've taken a look at business that are big business, you have actually evaluated much bigger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you mentioned, it is practically just sound judgment. You simply need to kind of look at it and think reasonably 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 take a look at.
Okay. What I can use that I gained from dealing with Wall Street across three years, is how to check out individuals. I've fulfilled 10s of countless people throughout my career. I've met experts; I've fulfilled fund supervisors, I've met stock promoters, I have actually satisfied all these various kinds of characters along the way.
So I believe that's probably among my super powers, if you will. And if you've got a great BS detector, you ought to listen to it. Okay. You must definitely listen to it. If I'm sitting down and I'm talking with someone, and they've got all the bonifides, but you understand, there's simply; it's not sitting well with me, there's something about them that's not agreeing with me.
There are so numerous other offers out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you type of discussed at the beginning, Bitcoin and Ethereum, the majority of people have heard of these 2, especially Bitcoin, due to the fact that it seems like it remains in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading nearly upwards of $6,000 recently; it's come up from say $3,000 not too long earlier, it's quite volatile. Do they sort of await a pullback, or do they just say, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in ten years." You know? Yeah that's a great question.
Copyright© how to invest in blockchain All Rights Reserved Worldwide