So, a lot of individuals discover that too bothersome, which's why individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: individuals that are ready to put in possibly the 20 minutes required to go through a procedure which just takes 5 minutes if you want to set up a brokerage account.
" Oh Teeka, we like your concepts, but gosh, setting up a crypto account is so hard." What I tell 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 getting paid a massive amount of money to go through perhaps, you know, 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, prior to you'll have the ability to purchase cryptocurrencies straight through your trading software. And can you picture what will take place to this whole market when buying Bitcoin or any cryptocurrency is as easy as firing 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, but I know 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 only purchase $500 a week.
As difficult as possible, ideal, like Coinbase. It 'd take me permanently before I might begin buying in size on Coinbase. They're like, 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 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 mean, we remain in the early days of that technology, but similar to throughout that time period, for the folks that had the vision to see where the future was going, and after that purchased in on some of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, since I'm always curious to talk to individuals who are, specifically someone like yourself, who's devoted the last, you understand, the bulk of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a terrific concern.
They're two completely various 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 offers 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 computer systems, verifying the transactions on the Bitcoin network. And so if you take a look at that Bitcoin network, individuals continuously attempt to hack it. But since of the nature of the network, today it's been unhackable. And really, with current innovation, 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 have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We don't trust paper cash, you can print an unlimited amount of it. It's truly not secure, and the federal government can take it far from you." - Whereas with Bitcoin, best , go on.
Yeah. Or individuals that remained in Cypress, or simply people 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 potentially be a driver for more adoption, due to the fact that they currently do not believe 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 require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. But there are billions of individuals in the world that don't have stable currencies.
Yeah. Therefore there's this entire burgeoning worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are essentially used, let's state Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially a worldwide computer that you can write computer system programs for and run computer programs on a globally decentralized computer program.
So we think about something like Ether an energy token, due to the fact that you're basically buying shows 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 give people an idea, like a very easy one that I would envision you 'd called an energy token, resembles FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's sort of this same kind of network effect that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on so numerous various locations and. I do not understand the ins and outs of it, but as an example for someone who might simply be really fundamental in their understanding of this, there are numerous various kinds of utilities that are readily available.
And you kind of pointed out having this boots on the ground experience. Now, given that we're taking a look at the bulk of these are most likely utility based, correct? Mm-hmm (affirmative). The majority of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, but I believe the genuine opportunity depends on the energy coin area.
There's all of these ICOs that were occurring, 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 begin to produce energy coins- Correct, yeah. And individuals require to understand that not all energy coins are produced equivalent.
So you have the advantage of committing your occupation to this, so you can head out there and do the reconnaissance, you can satisfy the creators, you can check the code, etc. However for an average person, there's now what, over 1,000 different kinds of coins available, practically 1,200 I believe.
How do they do that? That's a great question. I will state that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's nothing worse than somebody that's young, earnest, with a dreadful idea, that somebody provides $40 million to. Right? Yeah, absolutely. So yeah, so I do not really take part in lots of ICOs, and I suggest you probably side step that market, unless you've got an unique relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause generally it'll crash 80% approximately. And that's when we truly start taking a look at the idea in more information. So here are some fast and filthy things that you should take a look at, right? So, one is, are they resolving a problem that requires to be fixed? One of the huge disadvantages with very clever, technical people, is that they like to fix problems that nobody cares about fixing.
Does the team have experience of carrying out in a successful manner in another location of their life? And it does not even have to be directly related to cryptocurrency, it doesn't have to be even directly related to software application, right? So, however I desire to see a performance history of success in something, right? If it's 4 people in a room that are simply out of college, unless they've got some actually great advisors behind them, I'm probably not going to provide any cash.
Yeah. I think that in marketing in general, my world of company, we continuously try to find problems and how we can resolve them. Now, are the issues things that individuals are trying to solve a part of the Blockchain normally? Or would you say it's better if they're solving 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 basically trying to find services that, so I'll give you an example.
And the factor that we bought it is due to the fact that they found a method to make documents tamper-proof, and it's 99% more affordable than existing innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that began it has a performance history of developing computer programs that entire states run their entire operations on, right? So you've got all right, the smart person has actually built big computer programs, terrific group, resolving an enormous problem that is going to cut substantial 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 prevails sense, and a great deal of folks will try to make things more complex than it is. And I have a truly easy rule, Ryan. If I don't comprehend something, I installed my hand, and I state, "I didn't comprehend what you just said." Mm-hmm (affirmative).
And then if the person that you're speaking with can't dumb it down enough where you understand it, then it's probably not a good concept. Right, right. It's going to be easy to understand. And do you feel that you have years of experience examining companies and looking at much, much bigger companies.
Ryan: So you've looked at companies that are big business, you've assessed much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you discussed, it is practically just sound judgment. You just have to kind of take a look at it and think logically about what's going on, and pull the emotion out? You need to pull the emotion out, and there are no standard metrics that you can look at.
Okay. What I can use that I discovered from working on Wall Street across three years, is how to check out people. I have actually satisfied 10s of countless people throughout my career. I've satisfied experts; I have actually met fund managers, I've fulfilled stock promoters, I have actually met all these various types of characters along the way.
So I believe that's most likely one of my incredibly powers, if you will. And if you've got an excellent BS detector, you ought to listen to it. Okay. You should absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they've 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 know, you kind of discussed at the beginning, Bitcoin and Ethereum, many people have become aware of these 2, especially Bitcoin, due to the fact that it seems like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 just recently; it's come up from state $3,000 not too long ago, it's rather unpredictable. Do they sort 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 an excellent concern.
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