So, a lot of individuals find that too bothersome, which'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 maybe the 20 minutes required to go through a process which just takes 5 minutes if you want to establish a brokerage account.
" Oh Teeka, we like your concepts, however gosh, establishing a crypto account is so tough." 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 whole cryptocurrency market will be 10x bigger. So you're actually truly getting paid a massive quantity of money to go through maybe, 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 have the ability to buy cryptocurrencies straight through your trading software application. And can you picture what will occur to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as shooting 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, but I know a lot of folks who fight with this too, is oh, and by the way, you can only buy $1,000 a week. Or you can just buy $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me forever prior to I could begin purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I suggest, 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 load 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 innovation, however much like during that period of time, for the folks that had the vision to see where the future was going, and then bought in on some of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm constantly curious to talk with individuals who are, specifically somebody like yourself, who's devoted the last, you understand, 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 person? That's a great 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. Therefore what gives 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 computer systems, confirming the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people continuously try to hack it. But because of the nature of the network, today it's been unhackable. And actually, with existing technology, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
And so when individuals put, you've got individuals 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 rely on fiat money, you can print an endless quantity of it. It's truly not protect, and the government can take it far from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or individuals that were in Cypress, or simply individuals who have suffered through either devaluation, 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 catalyst for more adoption, because they already 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 lot of American or Western financiers have a difficult time 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 need Bitcoin. However there are billions of people worldwide that do not have stable currencies.
Yeah. And so there's this entire growing worldwide demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are basically utilized, let's state Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is basically a global computer that you can write computer programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an energy token, because you're essentially buying programming power. So I wouldn't really think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer individuals an idea, like a very easy one that I would envision you 'd called an energy token, is like FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's type of this same type 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 do not know the ins and outs of it, but as an example for somebody who might simply be really fundamental in their understanding of this, there are a lot of various kinds of utilities that are available.
And you sort of discussed having this boots on the ground experience. Now, since we're taking a look at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). Many of the coins that I recommend and look at are utility-based. We have a few cryptocurrencies, however I believe the real chance lies in the utility coin area.
There's all of these ICOs that were taking place, those slowed down a little bit with some modifications to a couple of things that was going on, but people are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And people require to understand that not all utility coins are created equal.
So you have the benefit of dedicating your profession to this, so you can head out there and do the recon, you can fulfill the creators, you can check the code, etc. But for an average individual, there's now what, over 1,000 different types of coins offered, nearly 1,200 I think.
How do they do that? That's a terrific question. I will state that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's nothing even worse than someone that's young, earnest, with a terrible idea, that someone provides $40 million to. Right? Yeah, totally. So yeah, so I do not truly take part in numerous ICOs, and I suggest you most likely side step that market, unless you have actually got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause typically it'll crash 80% or two. And that's when we really begin looking 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 solving a problem that needs to be resolved? One of the huge disadvantages with very wise, technical individuals, is that they like to resolve issues that no one appreciates resolving.
Does the team have experience of carrying out in an effective way in another location of their life? And it does not even need to be directly associated to cryptocurrency, it does not need to be even directly associated to software, right? So, but I desire to see a performance history of success in something, right? If it's 4 men in a space that are simply out of college, unless they've got some actually great consultants behind them, I'm probably not going to give them any money.
Yeah. I believe 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 solve a part of the Blockchain typically? Or would you say 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 basically looking for solutions that, so I'll offer you an example.
And the reason that we bought it is due to the fact that they found a method 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 person that began it has a performance history of creating computer programs that whole states run their entire operations on, right? So you've got all right, the clever guy has developed big computer programs, great team, solving an enormous problem that is going to cut substantial costs.
I indicate, it doesn't get any simpler than that in regards to deciding who to put money behind. And a lot of this is common sense, and a great deal of folks will attempt to make things more complicated than it is. And I have a truly simple rule, Ryan. If I don't comprehend something, I installed my hand, and I say, "I didn't understand what you simply said." Mm-hmm (affirmative).
And then if the person that you're speaking to can't dumb it down enough where you understand it, then it's most likely not an excellent idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience assessing business and taking a look at much, much bigger business.
Ryan: So you have actually looked at business that are huge companies, you've assessed much larger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you discussed, it is almost just sound judgment. You just have to sort of take a look at it and think logically about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no traditional metrics that you can take a look at.
Okay. What I can use that I discovered from working on Wall Street across three years, is how to read people. I've fulfilled tens of thousands of individuals throughout my career. I've satisfied insiders; I've met fund supervisors, I've met stock promoters, I have actually met all these various kinds of characters along the way.
So I believe that's most likely among my extremely powers, if you will. And if you have actually got a great BS detector, you must listen to it. Okay. You need 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 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 take a look at. Yeah, there's too much chance. Yeah. And speaking of chance, you know, you sort of pointed out at the start, Bitcoin and Ethereum, the majority of people have actually heard of these two, particularly 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 nearly upwards of $6,000 recently; it's turned up from state $3,000 not too long back, it's rather unstable. 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 buy some Bitcoin, see you in 10 years." You know? Yeah that's a great concern.
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