So, a great deal of individuals discover that too inconvenient, which's why the individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: people that want to put in possibly the 20 minutes required to go through a procedure which simply takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy your concepts, however gosh, establishing a crypto account is so hard." What I inform them is I state, "Look, when it's easy 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 really making money an enormous quantity of cash to go through perhaps, you understand, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll be able to buy cryptocurrencies directly through your trading software application. And can you imagine what will take place to this entire market when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you discussed the process that people go through, and one thing I wish to bring to light too that you didn't mention, but I understand a lot of folks who struggle with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can just purchase $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me forever prior to I could begin purchasing in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I imply, 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 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 suggest, we're in the early days of that innovation, but much like 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 an action back for a 2nd, since I'm always curious to talk with individuals who are, specifically someone like yourself, who's committed the last, you understand, the lion's share of the last few years to really go both feet in on this. How do you explain cryptocurrency to like an average individual? That's a great concern.
They're 2 completely different things, however 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 provides it worth is that it is, there's just going to be a limited quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. And so if you 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 current 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 literally own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We don't rely on paper money, you can print a limitless quantity of it. It's really not protect, and the government can take it away from you." - Whereas with Bitcoin, right , go on.
Yeah. Or people that were in Cypress, or simply individuals who have suffered through either devaluation, or there's a high need for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those nations that could potentially be a driver for more adoption, because they currently don't think in their own currency? Yeah, and I believe we've already seen that.
So yes, and this is a thing that a great deal of American or Western financiers have a bumpy ride getting their head around. They resemble, "Well I don't need Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of individuals on the planet that do not have steady currencies.
Yeah. And so there's this entire growing global demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are essentially used, let's state Ethereum, which a lot of people understand about Ethereum. Ethereum is basically a worldwide computer that you can compose computer programs for and run computer system programs on a worldwide decentralized computer system program.
So we think about something like Ether an energy token, due to the fact that you're basically purchasing shows 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 an idea, like a really basic one that I would imagine 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 sort of this very same kind of network result that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on a lot of different areas and. I do not know the ins and outs of it, however as an example for someone who might simply be really standard in their understanding of this, there are many different kinds of utilities that are offered.
And you kind 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, fix? Mm-hmm (affirmative). Most of the coins that I suggest and take a look at are utility-based. We have a few cryptocurrencies, but I believe the genuine chance lies in the energy coin area.
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, however individuals are going to come out of the woodwork and begin to produce utility coins- Correct, yeah. And individuals require to comprehend that not all energy coins are developed equal.
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 check the code, etc. But for an average person, there's now what, over 1,000 different kinds of coins offered, 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 concepts. Okay. Right? There's nothing worse than someone that's young, earnest, with a horrible concept, that someone provides $40 million to. Right? Yeah, absolutely. So yeah, so I do not really take part in many ICOs, and I recommend you most likely side step that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause typically it'll crash 80% or two. And that's when we actually start taking a look at the concept in more detail. So here are some quick and unclean things that you should look at, right? So, one is, are they resolving an issue that needs to be solved? One of the huge downsides with very clever, technical individuals, is that they like to solve problems that no one cares about solving.
Does the team have experience of carrying out in a successful way in another area of their life? And it doesn't even need to be straight associated to cryptocurrency, it doesn't need to be even straight related to software, right? So, but I desire to see a performance history of success in something, right? If it's 4 guys in a room that are just out of college, unless they've got some truly great consultants behind them, I'm probably not going to provide any cash.
Yeah. I think that in marketing in general, my world of service, we constantly search for problems and how we can solve them. Now, are the problems things that individuals are attempting to fix a part of the Blockchain generally? Or would you state it's much 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 trying to find options that, so I'll give you an example.
And the reason that we purchased it is since they found a way to make files tamper-proof, and it's 99% less expensive than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that started it has a performance history of creating computer system programs that entire states run their entire operations on, right? So you've got fine, the wise guy has developed big computer programs, fantastic group, resolving an enormous issue that is going to cut big expenses.
I indicate, it doesn't get any easier than that in regards to choosing who to put money 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 an actually basic rule, Ryan. If I don't comprehend something, I put up my hand, and I state, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And after that if the person that you're speaking to can't dumb it down enough where you comprehend it, then it's probably not a great 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 looked at companies that are big business, you have actually assessed much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you mentioned, it is practically simply sound judgment. You simply need to type of take a look at it and believe reasonably about what's going on, and pull the emotion 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 discovered from working on Wall Street across three decades, is how to read people. I've fulfilled 10s of thousands of individuals throughout my profession. I have actually met experts; I have actually fulfilled fund supervisors, I've satisfied stock promoters, I have actually met all these different kinds of characters along the way.
So I think that's probably one of my very powers, if you will. And if you have actually got an excellent BS detector, you ought to listen to it. Okay. You must absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they have actually got all the bonifides, however you understand, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are a lot of other deals out there to look at. Yeah, there's too much chance. Yeah. And speaking of chance, you know, you kind of mentioned at the beginning, Bitcoin and Ethereum, the majority of people have heard of these two, especially Bitcoin, due to the fact that it appears like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's shown up from say $3,000 not too long ago, it's rather unpredictable. Do they sort of wait for a pullback, or do they just state, "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 concern.
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