So, a great deal of individuals find that too bothersome, and that's why the people that are literally making the most amount of cash today in cryptocurrencies are the early adopters: individuals that want to put in maybe the 20 minutes needed to go through a process which simply takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we like your concepts, but gosh, establishing a crypto account is so tough." What I inform them is I state, "Look, when it's simple 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 getting paid an enormous 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, however it is just a question of time, Ryan, prior to you'll have the ability to buy cryptocurrencies straight through your trading software. And can you picture what will happen to this entire market when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the process that people go through, and something I want to bring to light too that you didn't point out, however I know a lot of folks who have a hard time with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can just purchase $500 a week.
As hard as possible, best, like Coinbase. It 'd take me forever before I might begin purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I imply, 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 indicate 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 mean, we're in the early days of that innovation, but much like during that time period, for the folks that had the vision to see where the future was going, and then purchased in on a few of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm always curious to speak to individuals who are, specifically someone like yourself, who's dedicated the last, you know, 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 an excellent question.
They're two absolutely 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. Therefore what provides it value is that it is, there's just going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. And so if you look at that Bitcoin network, people continuously 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 huge right now, you can't co-opt it, you can't take it over.
Therefore when people put, you have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We don't rely on fiat 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, ideal , go ahead.
Yeah. Or people that were in Cypress, or simply individuals who have suffered through either run-away inflation, 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 believe in their own currency? Yeah, and I think we have actually already seen that.
So yes, and this is a thing that a lot of American or Western investors have a bumpy ride getting their head around. They're like, "Well I do not require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not need Bitcoin. However there are billions of individuals in the world that do not have steady currencies.
Yeah. And so there's this entire blossoming international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And utility coins are generally utilized, let's say Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is basically a global computer system that you can write computer system programs for and run computer programs on an internationally decentralized computer system program.
So we think about something like Ether an utility token, because you're basically purchasing programming power. So I would not actually consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer people a concept, like an extremely simple one that I would envision you 'd called an utility token, is like FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's kind of this exact same type of network impact that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on numerous various areas and. I don't understand the ins and outs of it, but as an example for somebody who may simply be very basic in their understanding of this, there are so lots of various kinds of energies that are available.
And you sort of pointed out having this boots on the ground experience. Now, given that we're looking at the bulk of these are most likely utility based, correct? Mm-hmm (affirmative). Most of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, however I believe the genuine opportunity depends on the energy coin space.
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, but 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 utility coins are developed equal.
So you have the advantage of devoting your profession to this, so you can go out there and do the recon, you can fulfill the creators, you can check the code, etc. However for a typical person, there's now what, over 1,000 different kinds of coins available, nearly 1,200 I believe.
How do they do that? That's a great question. I will say that 95% of ICOs are either deceitful or just bad concepts. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with an awful concept, that somebody offers $40 million to. Right? Yeah, absolutely. So yeah, so I don't really take part in many ICOs, and I advise you most likely side action that market, unless you've got an unique 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. Which's when we really begin taking a look at the idea in more information. So here are some fast and unclean things that you should look at, right? So, one is, are they solving a problem that requires to be solved? One of the big downsides with extremely clever, technical individuals, is that they like to resolve issues that nobody cares about resolving.
Does the group have experience of carrying out in a successful way in another location of their life? And it does not even have to be straight associated to cryptocurrency, it does not have to be even directly related to software, right? So, however I desire to see a performance history of success in something, right? If it's 4 guys in a space that are just out of college, unless they have actually got some actually good advisors behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in basic, my world of service, we continuously search for issues and how we can resolve them. Now, are the issues things that people are attempting to resolve a part of the Blockchain normally? 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 basically trying to find services that, so I'll give you an example.
And the factor that we purchased it is due to the fact that they found a method to make files tamper-proof, and it's 99% less expensive than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the guy that started it has a performance history of creating computer programs that whole states run their whole operations on, right? So you have actually got all right, the wise man has actually constructed huge computer programs, fantastic group, solving an enormous issue that is going to cut substantial expenses.
I suggest, it doesn't get any simpler than that in regards to deciding who to put money behind. And a great deal of this prevails sense, and a lot of folks will attempt to make things more complicated than it is. And I have a truly simple guideline, Ryan. If I don't understand something, I put up my hand, and I say, "I didn't understand what you just said." Mm-hmm (affirmative).
And after that if the person that you're talking 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 larger business.
Ryan: So you've looked at business that are huge companies, you've assessed much bigger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you pointed out, it is almost just sound judgment. You simply need to type of look at it and believe rationally about what's going on, and pull the feeling out? You have 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 discovered from working on Wall Street throughout 3 years, is how to read individuals. I've satisfied tens of thousands of individuals throughout my career. I have actually met insiders; I've satisfied fund managers, I have actually satisfied stock promoters, I have actually met all these different kinds of characters along the way.
So I think that's probably among my extremely powers, if you will. And if you have actually got a great BS detector, you must listen to it. Okay. You should 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 know, there's just; it's not sitting well with me, there's something about them that's not agreeing with me.
There are many other offers out there to look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you know, you kind of mentioned at the beginning, Bitcoin and Ethereum, many people have actually become aware of these 2, particularly Bitcoin, due to the fact that it looks like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading nearly upwards of $6,000 recently; it's turned up from say $3,000 not too long ago, it's quite unpredictable. Do they type of await a pullback, or do they just state, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You understand? Yeah that's an excellent question.
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