So, a lot of people find that too bothersome, which's why individuals that are actually making the most amount of money today 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 5 minutes if you desire to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, establishing a crypto account is so hard." What I inform them is I say, "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 actually truly making money a massive amount of cash to go through possibly, you understand, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, but 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 envision what will occur to this entire market when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you discussed the procedure that people go through, and something I want to expose too that you didn't discuss, however I understand a great deal of folks who battle with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can just purchase $500 a week.
As difficult as possible, ideal, like Coinbase. It 'd take me forever before I could begin buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I indicate, 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 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 technology, however similar to throughout that period of time, for the folks that had the vision to see where the future was going, and then purchased in on some of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, due to the fact that I'm constantly curious to talk with individuals who are, specifically somebody like yourself, who's devoted the last, you know, the bulk of the last few years to truly go both feet in on this. How do you explain cryptocurrency to like an average person? That's a fantastic question.
They're 2 absolutely various things, but 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. And so what offers it value is that it is, there's only going to be a minimal quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the transactions on the Bitcoin network. Therefore if you look at that Bitcoin network, people constantly attempt to hack it. However since of the nature of the network, today it's been unhackable. And actually, 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 people put, you have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not trust paper currency, you can print an endless amount of it. It's actually not secure, and the federal government can take it far from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or people that remained in Cypress, or just individuals who have actually suffered through either devaluation, or there's a high need for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those countries that could potentially be a driver for more adoption, because they already don't believe in their own currency? Yeah, and I believe 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 steady currency, right? You do not need Bitcoin. However there are billions of individuals on the planet that do not have steady currencies.
Yeah. Therefore there's this whole growing worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are essentially utilized, let's say Ethereum, which a lot of people learn about Ethereum. Ethereum is basically a global computer system that you can write computer programs for and run computer programs on a globally decentralized computer system program.
So we think about something like Ether an utility token, since you're essentially buying programming power. So I would not actually consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals an idea, like a really easy 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 type of this very same type of network impact that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on numerous different areas and. I do not understand the ins and outs of it, however as an example for somebody who may just be very standard in their understanding of this, there are many various kinds of utilities that are available.
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 probably utility based, fix? Mm-hmm (affirmative). Most of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, but I believe the genuine opportunity depends on the utility coin space.
There's all of these ICOs that were taking place, those decreased a bit with some changes to a couple of things that was going on, but people are going to come out of the woodwork and begin to develop energy coins- Correct, yeah. And people require to comprehend that not all utility coins are created equivalent.
So you have the advantage of devoting your occupation to this, so you can head out there and do the recon, you can satisfy the creators, you can examine the code, and so on. However for an average individual, there's now what, over 1,000 different kinds of coins available, almost 1,200 I believe.
How do they do that? That's a terrific concern. I will state that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a terrible concept, that somebody gives $40 million to. Right? Yeah, totally. So yeah, so I don't really take part in lots of ICOs, and I suggest you probably side action that market, unless you've got a special relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause generally it'll crash 80% or two. Which's when we truly start looking at the idea in more detail. So here are some quick and unclean things that you should look at, right? So, one is, are they solving a problem that requires to be resolved? Among the big downsides with extremely clever, technical individuals, is that they like to resolve problems that no one cares about fixing.
Does the group have experience of performing in a successful way in another location of their life? And it does not even have to be directly related to cryptocurrency, it doesn't have to be even directly associated to software, right? So, however I want to see a performance history of success in something, right? If it's four men in a room that are just out of college, unless they've got some actually great consultants behind them, I'm most likely not going to provide them any money.
Yeah. I believe that in marketing in general, my world of organization, we continuously look for problems and how we can fix them. Now, are the problems things that individuals are trying to solve a part of the Blockchain normally? Or would you say it's better if they're fixing 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 looking for solutions that, so I'll give you an example.
And the factor that we purchased it is since they found a method to make files 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 person that started it has a performance history of creating computer programs that whole states run their whole operations on, right? So you've got all right, the smart guy has actually constructed big computer programs, fantastic group, solving a huge problem that is going to cut substantial expenses.
I mean, it doesn't get any easier than that in regards to deciding who to put money behind. And a great deal of this is typical sense, and a lot of folks will attempt to make things more complicated than it is. And I have a truly simple rule, Ryan. If I don't understand something, I set up my hand, and I say, "I didn't understand what you just stated." Mm-hmm (affirmative).
And then if the person that you're talking to can't dumb it down enough where you understand it, then it's probably not a good concept. Right, right. It's going to be easy to understand. And do you feel that you have years of experience examining companies and looking at much, much larger companies.
Ryan: So you have actually looked at companies that are huge business, you've evaluated 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 nearly just sound judgment. You simply have to sort of take a look at it and believe logically about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no standard metrics that you can take a look at.
Okay. What I can utilize that I found out from dealing with Wall Street throughout 3 decades, is how to check out individuals. I've met 10s of thousands of individuals throughout my profession. I have actually met experts; I have actually fulfilled fund supervisors, I've fulfilled stock promoters, I have actually met all these different types of characters along the method.
So I think that's most likely among my super powers, if you will. And if you have actually got an excellent BS detector, you ought to listen to it. Okay. You ought to absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually 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 deals out there to look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you know, you type of discussed at the beginning, Bitcoin and Ethereum, the majority of people have become aware of these 2, especially Bitcoin, since it looks like it's in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's turned up from say $3,000 not too long earlier, it's rather volatile. Do they type of wait on a pullback, or do they just state, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's an excellent concern.
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