So, a lot of individuals find that too inconvenient, which's why the individuals that are literally making the most amount of money right now in cryptocurrencies are the early adopters: individuals that are ready to put in possibly the 20 minutes required to go through a process which just takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we love your concepts, however gosh, setting up 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 whole cryptocurrency market will be 10x larger. So you're actually really making money a massive quantity of money to go through maybe, you know, 20 minutes of a pain in the neck.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies straight through your trading software. And can you picture 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.
Today you mentioned the process that people go through, and something I wish to bring to light too that you didn't discuss, however I understand a great deal 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 purchase $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me permanently before I could begin buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I suggest, 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 suggest 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 remain in the early days of that technology, but similar to throughout that amount of time, for the folks that had the vision to see where the future was going, and after that 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, because I'm constantly curious to talk with individuals who are, specifically somebody 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 explain cryptocurrency to like a typical individual? That's an excellent question.
They're 2 absolutely different things, however 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 worth 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 computers, confirming the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people constantly try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And truly, with existing 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 have actually got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't trust paper currency, you can print a limitless quantity of it. It's actually not secure, and the federal government can take it away from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that remained in Cypress, or just individuals who have actually suffered through either run-away inflation, or there's a high demand for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those countries 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 investors have a bumpy ride getting their head around. They resemble, "Well I don't require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. However there are billions of individuals on the planet that do not have steady currencies.
Yeah. Therefore there's this whole burgeoning international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are generally utilized, let's say Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is basically a worldwide computer that you can write computer system programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an energy token, due to the fact that you're basically buying shows 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 offer people an idea, like a very basic one that I would picture you 'd called an utility token, is like FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's sort of this exact same type of network result that you have with Bitcoin, where it's like unstoppable example, due to the fact that it's on numerous various locations and. I don't understand the ins and outs of it, but as an example for somebody who may just be very standard in their understanding of this, there are a lot of different types of energies that are readily available.
And you sort of discussed having this boots on the ground experience. Now, given that we're taking a look at the bulk of these are probably utility based, remedy? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a few cryptocurrencies, however I believe the genuine chance lies in the utility coin space.
There's all of these ICOs that were happening, those slowed down a little bit with some changes to a few things that was going on, however individuals are going to come out of the woodwork and begin to develop utility coins- Correct, yeah. And individuals need to understand that not all utility coins are created equivalent.
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, etc. However for an average person, there's now what, over 1,000 various kinds of coins readily available, almost 1,200 I believe.
How do they do that? That's a great concern. I will say that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with a terrible idea, that somebody gives $40 million to. Right? Yeah, totally. So yeah, so I don't really get involved in lots of ICOs, and I advise you probably side step 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 normally it'll crash 80% approximately. Which's when we really start taking a look at the idea in more detail. So here are some quick and dirty things that you should look at, right? So, one is, are they resolving an issue that requires to be resolved? One of the big downsides with really clever, technical individuals, is that they like to solve problems that no one appreciates solving.
Does the team have experience of executing in a successful manner in another location of their life? And it doesn't even have to be straight associated to cryptocurrency, it doesn't have to be even straight related to software, right? So, but I wish to see a track record of success in something, right? If it's four people in a space that are simply out of college, unless they've got some truly good consultants behind them, I'm probably not going to provide any cash.
Yeah. I believe that in marketing in general, my world of service, we continuously look for issues and how we can solve them. Now, are the problems things that individuals are trying to fix a part of the Blockchain generally? Or would you say it's better if they're resolving 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 essentially trying to find services that, so I'll give you an example.
And the reason that we bought it is because they found a way to make files tamper-proof, and it's 99% cheaper than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that started it has a track record of producing computer system programs that entire states run their entire operations on, right? So you have actually got fine, the clever man has actually constructed big computer programs, fantastic group, solving an enormous issue that is going to cut huge costs.
I suggest, it doesn't get any easier than that in terms of 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 basic rule, Ryan. If I don't understand something, I installed 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 comprehend it, then it's probably not an excellent idea. Right, right. It's going to be simple to understand. And do you feel that you have years of experience examining companies and looking at much, much larger companies.
Ryan: So you've taken a look at business that are huge business, you've evaluated much bigger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you mentioned, it is practically simply good sense. You simply need to type of appearance at it and think rationally about what's going on, and pull the emotion 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 dealing with Wall Street across 3 decades, is how to check out individuals. I've satisfied 10s of countless individuals throughout my career. I've satisfied experts; I've satisfied fund managers, I have actually fulfilled stock promoters, I have actually satisfied all these various types of characters along the way.
So I believe that's probably one of my extremely powers, if you will. And if you have actually got an excellent BS detector, you should listen to it. Okay. You must absolutely listen to it. If I'm sitting down and I'm talking with someone, and they have actually got all the bonifides, but 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 numerous other offers out there to look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you understand, you sort of pointed out at the beginning, Bitcoin and Ethereum, many people have actually heard of these 2, especially Bitcoin, since it seems 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 just recently; it's turned up from state $3,000 not too long earlier, it's quite unpredictable. Do they type of wait on a pullback, or do they just say, "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 a terrific question.
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