So, a lot of individuals find that too inconvenient, and that's why the individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: people that are ready to put in maybe the 20 minutes needed to go through a procedure which simply takes 5 minutes if you desire to set up a brokerage account.
" Oh Teeka, we enjoy your ideas, but 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 larger. So you're in fact really earning money a huge amount of money to go through perhaps, you know, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, before you'll be able to purchase cryptocurrencies straight through your trading software. And can you envision what will occur to this whole marketplace when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you discussed the procedure that individuals go through, and something I wish to bring to light too that you didn't point out, but I understand a great deal of folks who deal with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can just buy $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me forever before I might begin purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I mean, 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 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 suggest, we're 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 purchased in on some of these young business, 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 constantly curious to speak with people who are, specifically somebody like yourself, who's committed the last, you know, the much better part of the last few years to really go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a fantastic question.
They're two totally different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to money. So Bitcoin would be a cryptocurrency. Therefore what gives it worth is that it is, there's just going to be a restricted amount. There'll never ever 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 take a look at that Bitcoin network, individuals continuously try to hack it. But because of the nature of the network, today it's been unhackable. And really, with present innovation, 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 individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We do not rely on fiat money, you can print a limitless amount of it. It's really not protect, and the federal government can take it far from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or individuals that remained in Cypress, or simply individuals who have actually 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 countries that could potentially be a catalyst for more adoption, since they already don't think in their own currency? Yeah, and I believe we have actually currently seen that.
So yes, and this is a thing that a lot of American or Western financiers have a bumpy ride getting their head around. They resemble, "Well I do not need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. However there are billions of people in the world that don't have steady currencies.
Yeah. Therefore there's this entire growing worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are generally utilized, let's state Ethereum, which a great deal of people understand about Ethereum. Ethereum is basically a global computer that you can write computer programs for and run computer system programs on a worldwide decentralized computer program.
So we consider something like Ether an energy token, because you're essentially buying programs power. So I would not truly think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer people an idea, like a really basic one that I would envision you 'd called an energy token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's sort of this very same type of network result that you have with Bitcoin, where it's like unstoppable kind of thing, because it's on many various locations and. I do not understand the ins and outs of it, however as an example for someone who might just be extremely basic in their understanding of this, there are a lot of various types of energies that are offered.
And you kind of mentioned having this boots on the ground experience. Now, given that we're looking at the bulk of these are probably utility based, remedy? Mm-hmm (affirmative). Most of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, however I think the genuine chance depends on the energy coin space.
There's all of these ICOs that were taking place, those slowed down a bit with some changes to a couple of things that was going on, however individuals are going to come out of the woodwork and start to create energy coins- Correct, yeah. And people require to understand 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 reconnaissance, you can fulfill the creators, you can examine the code, and so on. However for an average individual, there's now what, over 1,000 various types of coins readily 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 deceitful or simply bad concepts. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with a dreadful idea, that somebody gives $40 million to. Right? Yeah, totally. So yeah, so I don't actually take part in many ICOs, and I advise you most likely side step that market, unless you have actually got an unique relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause typically it'll crash 80% or so. And that's when we actually start taking a look at the concept in more detail. So here are some fast and dirty things that you should take a look at, right? So, one is, are they solving an issue that needs to be solved? One of the big downsides with extremely smart, technical people, is that they like to solve problems that no one appreciates fixing.
Does the team have experience of performing in an effective way in another location of their life? And it does not even have to be directly related to cryptocurrency, it does not have to be even straight associated to software application, right? So, however I wish to see a performance history of success in something, right? If it's four men in a space that are simply out of college, unless they've got some really good consultants behind them, I'm probably not going to provide any cash.
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 issues things that people are attempting to solve a part of the Blockchain usually? Or would you state it's much better if they're resolving kind 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 offer you an example.
And the factor that we bought it is due to the fact that they found a way to make documents tamper-proof, and it's 99% more affordable than current technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that started it has a track record of producing computer system programs that whole states run their whole operations on, right? So you have actually got okay, the smart person has actually built substantial computer system programs, great team, solving an enormous problem that is going to cut big expenses.
I mean, it doesn't get any easier than that in regards to choosing who to put cash behind. And a great deal of this is common sense, and a lot of folks will try to make things more complex than it is. And I have a really easy guideline, Ryan. If I do not comprehend something, I installed my hand, and I say, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And then if the individual that you're speaking to can't dumb it down enough where you understand it, then it's most likely not a great idea. Right, right. It's going to be easy to understand. And do you feel that you have years of experience evaluating companies and taking a look at much, much bigger business.
Ryan: So you have actually looked at business that are big companies, you've assessed much bigger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you pointed out, it is practically just common sense. You just have to kind of look at it and believe rationally 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 look at.
Okay. What I can use that I gained from dealing with Wall Street throughout 3 decades, is how to read people. I have actually satisfied 10s of thousands of people throughout my career. I have actually satisfied experts; I've fulfilled fund managers, I've met stock promoters, I've met all these various kinds of characters along the method.
So I think that's most likely one of my incredibly powers, if you will. And if you have actually got a great BS detector, you should listen to it. Okay. You must absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they've got all the bonifides, however you understand, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are so lots of other deals out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you understand, you sort of pointed out at the start, Bitcoin and Ethereum, many people have heard of these 2, especially Bitcoin, since it appears like it remains in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's turned up from state $3,000 not too long earlier, it's quite volatile. Do they type of wait for a pullback, or do they simply state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a fantastic concern.
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