So, a lot of individuals find that too inconvenient, and that's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that want to put in possibly the 20 minutes required to go through a procedure which just takes 5 minutes if you desire to set up a brokerage account.
" Oh Teeka, we like your concepts, however gosh, establishing a crypto account is so challenging." 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 larger. So you're in fact truly making money an enormous 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, however it is simply a concern of time, Ryan, prior to you'll have the ability to buy cryptocurrencies straight through your trading software application. And can you envision what will occur to this whole marketplace when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that individuals go through, and something I wish to expose too that you didn't mention, however I know a lot of folks who have problem with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only buy $500 a week.
As tough as possible, best, like Coinbase. It 'd take me forever prior to I might begin buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I mean, it's if you remember the early days of the Internet, when we were getting on the Internet, we were doing it with 56k modems, right? I imply 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 imply, we're in the early days of that innovation, but much like during that amount 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 with people who are, particularly someone like yourself, who's dedicated the last, you understand, 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 terrific concern.
They're two absolutely different things, but 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. And so what gives it value is that it is, there's only going to be a limited amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the deals on the Bitcoin network. And so if you look at that Bitcoin network, individuals constantly attempt to hack it. However because 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.
Therefore when people put, you've got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We don't trust fiat money, you can print an unrestricted quantity of it. It's really not secure, and the federal government can take it away from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or people that remained in Cypress, or just people who have 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 catalyst for more adoption, due to the fact that they already do not 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 hard time getting their head around. They resemble, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't require Bitcoin. But there are billions of individuals in the world that don't have stable currencies.
Yeah. Therefore there's this whole growing international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are generally used, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is basically an international computer that you can compose computer system programs for and run computer programs on an internationally decentralized computer program.
So we think about something like Ether an energy token, since you're basically buying programs power. So I would not really think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give people an idea, like a really simple one that I would picture 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 sort of this very same kind of network effect that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on numerous different areas and. I do not understand the ins and outs of it, but as an example for somebody who might just be really basic in their understanding of this, there are numerous various types of energies that are available.
And you type of discussed having this boots on the ground experience. Now, since we're looking at the bulk of these are most likely energy based, correct? Mm-hmm (affirmative). The majority of the coins that I recommend and take a look at are utility-based. We have a couple of cryptocurrencies, but I believe the real opportunity lies in the utility coin space.
There's all of these ICOs that were taking place, those slowed down a little bit with some changes to a couple of things that was going on, however people are going to come out of the woodwork and start to create energy coins- Correct, yeah. And people need to comprehend that not all energy coins are developed equal.
So you have the advantage of devoting your profession to this, so you can go out there and do the reconnaissance, you can fulfill the creators, you can inspect the code, and so on. However for an average person, there's now what, over 1,000 different kinds of coins readily available, almost 1,200 I believe.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a dreadful concept, that somebody gives $40 million to. Right? Yeah, totally. So yeah, so I don't truly take part in lots of ICOs, and I recommend you probably 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 normally it'll crash 80% or so. And that's when we really begin looking at the idea in more information. So here are some quick and unclean things that you should take a look at, right? So, one is, are they resolving an issue that needs to be fixed? Among the big downsides with extremely smart, technical individuals, is that they like to resolve issues that no one cares about fixing.
Does the team have experience of performing in a successful manner in another location of their life? And it doesn't even need to be directly associated to cryptocurrency, it does not have to be even straight related to software, right? So, but I wish to see a performance history of success in something, right? If it's four guys in a space that are simply 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 think that in marketing in basic, my world of business, we continuously try to find issues and how we can solve them. Now, are the problems things that individuals are attempting to resolve a part of the Blockchain normally? Or would you say it's better if they're fixing kind 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 trying to find solutions that, so I'll give you an example.
And the reason that we bought it is because they found a method to make files tamper-proof, and it's 99% cheaper than current 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 whole operations on, right? So you've got all right, the smart person has actually constructed substantial computer system programs, fantastic group, solving a massive issue that is going to cut substantial expenses.
I mean, it doesn't get any easier than that in terms of deciding who to put cash behind. And a great deal of this prevails sense, and a great deal of folks will try to make things more complicated than it is. And I have a truly simple rule, Ryan. If I don't understand something, I put up my hand, and I say, "I didn't understand what you just stated." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you comprehend it, then it's probably not an excellent concept. Right, right. It's going to be easy to understand. And do you feel that you have years of experience examining companies and taking a look at much, much bigger business.
Ryan: So you've looked at companies that are big business, you've evaluated much larger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you mentioned, it is almost simply sound judgment. You simply have to sort of take a look at it and think logically about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no traditional metrics that you can look at.
Okay. What I can use that I gained from dealing with Wall Street across 3 years, is how to check out people. I've satisfied tens of countless individuals throughout my career. I have actually satisfied experts; I have actually satisfied fund supervisors, I have actually fulfilled stock promoters, I have actually satisfied all these different types of characters along the method.
So I think that's probably one of my extremely powers, if you will. And if you have actually got a great BS detector, you need to listen to it. Okay. You must absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually got all the bonifides, but you know, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are so numerous other offers out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you understand, you kind of pointed out at the beginning, Bitcoin and Ethereum, the majority of people have actually heard of these 2, especially Bitcoin, because it appears like it's 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 come up from say $3,000 not too long ago, it's quite unpredictable. Do they sort of wait for 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 understand? Yeah that's a great question.
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