So, a great deal of individuals discover that too troublesome, which's why the people that are actually making the most amount of money right now in cryptocurrencies are the early adopters: individuals that are willing to put in maybe the 20 minutes required to go through a procedure which simply takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we like your ideas, however gosh, setting up a crypto account is so hard." What I tell them is I say, "Look, when it's easy as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The whole cryptocurrency market will be 10x larger. So you're in fact truly getting paid a huge quantity of cash to go through perhaps, you understand, 20 minutes of a headache.
So you can't purchase 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 happen to this whole marketplace when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that individuals go through, and something I desire to expose too that you didn't point out, however I understand a great deal of folks who have problem with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can just buy $500 a week.
As hard as possible, right, like Coinbase. It 'd take me forever before I might start buying in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I suggest, it's if you keep in mind the early days of the Web, 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 imply, we remain in the early days of that technology, but simply 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 business, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, because I'm constantly curious to speak to individuals who are, especially someone like yourself, who's dedicated the last, you know, 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 various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to money. So Bitcoin would be a cryptocurrency. Therefore what provides it value is that it is, there's just 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, validating the deals on the Bitcoin network. Therefore if you take a 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 really, with existing technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when people put, you've got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We don't trust fiat money, you can print an endless amount of it. It's actually not secure, and the government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or individuals that remained in Cypress, or just individuals who have actually suffered through either hyperinflation, or there's a high demand for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those countries that could possibly be a catalyst for more adoption, since they already do not believe in their own currency? Yeah, and I think we've currently seen that.
So yes, and this is a thing that a great deal of American or Western investors have a bumpy ride 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 steady currency, right? You do not require Bitcoin. However there are billions of people in the world that don't have stable currencies.
Yeah. Therefore there's this entire blossoming 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 generally utilized, let's state Ethereum, which a lot of people understand about Ethereum. Ethereum is essentially a global computer system that you can compose computer programs for and run computer system programs on a globally decentralized computer program.
So we think about something like Ether an energy token, because you're essentially buying programs 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 a concept, like an extremely basic one that I would picture you 'd called an energy 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 very same type of network effect that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on many various areas and. I don't understand the ins and outs of it, but as an example for somebody who might simply be very standard in their understanding of this, there are many various kinds of energies that are available.
And you kind of pointed out having this boots on the ground experience. Now, considering that 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 advise and take a look at are utility-based. We have a couple of cryptocurrencies, but I believe the real chance depends on the utility coin area.
There's all of these ICOs that were occurring, those decreased a bit with some modifications 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 people require to understand that not all utility coins are produced equal.
So you have the advantage of committing your profession to this, so you can go out there and do the recon, you can meet the founders, you can check the code, and so on. However for an average person, there's now what, over 1,000 various types of coins readily available, practically 1,200 I believe.
How do they do that? That's an excellent concern. I will say that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with a terrible idea, that somebody offers $40 million to. Right? Yeah, completely. So yeah, so I do not truly take part in lots of ICOs, and I recommend you most likely side action that market, unless you have actually got an unique relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause normally it'll crash 80% approximately. And that's when we really start looking 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 requires to be fixed? Among the huge disadvantages with very smart, technical individuals, is that they like to fix problems that nobody cares about fixing.
Does the group have experience of carrying out in a successful way in another area of their life? And it does not even have to be straight associated to cryptocurrency, it doesn't need to be even directly related to software application, right? So, but I wish to see a performance history of success in something, right? If it's four people in a space that are simply out of college, unless they've got some actually good advisors behind them, I'm most likely not going to provide any money.
Yeah. I think that in marketing in general, my world of company, we continuously look for problems and how we can resolve them. Now, are the issues things that individuals are trying to resolve a part of the Blockchain typically? Or would you say it's better if they're solving 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 trying to find options that, so I'll provide 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 existing technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the man that started it has a performance history of producing computer programs that entire states run their entire operations on, right? So you've got alright, the wise person has actually constructed substantial computer programs, fantastic team, solving an enormous problem that is going to cut big costs.
I mean, it does not get any easier than that in terms of choosing who to put money behind. And a lot of this prevails sense, and a lot of folks will attempt to make things more complex than it is. And I have an actually simple guideline, Ryan. If I do not comprehend something, I set up my hand, and I say, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And after that if the individual that you're talking with can't dumb it down enough where you understand it, then it's most likely not a good idea. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience assessing business and taking a look at much, much bigger companies.
Ryan: So you've taken a look at business that are huge business, you've assessed much larger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you mentioned, it is nearly simply typical sense. You just have to kind of appearance at it and believe rationally about what's going on, and pull the feeling out? You need to pull the feeling out, and there are no traditional metrics that you can take a look at.
Okay. What I can utilize that I gained from working on Wall Street throughout three decades, is how to check out people. I have actually met tens of thousands of people throughout my career. I have actually satisfied experts; I've satisfied fund supervisors, I've met stock promoters, I've satisfied all these different kinds of characters along the way.
So I think that's probably among my very powers, if you will. And if you have actually got a great BS detector, you must listen to it. Okay. You need 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 numerous other deals out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you understand, you sort of discussed at the beginning, Bitcoin and Ethereum, a lot of individuals have heard of these two, especially Bitcoin, because it appears 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 recently; it's come up from say $3,000 not too long back, it's quite unstable. Do they kind of wait on a pullback, or do they simply state, "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 great concern.
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