So, a great deal of people discover that too inconvenient, and that's why individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: individuals that are prepared to put in perhaps the 20 minutes needed to go through a procedure which just takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we love your ideas, however gosh, establishing a crypto account is so difficult." 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 actually really getting paid a huge amount of cash to go through maybe, you know, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies directly through your trading software. And can you envision 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 procedure that individuals go through, and something I want to bring to light too that you didn't discuss, but I understand a lot of folks who fight with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can just buy $500 a week.
As difficult as possible, right, like Coinbase. It 'd take me forever prior to I could begin buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I mean, it's if you remember the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I indicate 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 remain in the early days of that innovation, however just like throughout that amount of time, for the folks that had the vision to see where the future was going, and after that purchased 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 second, because I'm constantly curious to speak with individuals who are, specifically someone like yourself, who's dedicated the last, you know, the better part of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like an average individual? That's an excellent concern.
They're 2 totally various things, but 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. Therefore what gives 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 computer systems, confirming the transactions on the Bitcoin network. And so if you look at that Bitcoin network, people constantly attempt to hack it. However because of the nature of the network, today it's been unhackable. And actually, with present technology, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not trust paper currency, you can print an endless amount of it. It's actually not secure, and the federal government can take it away from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or people that were in Cypress, or just individuals who have actually suffered through either run-away inflation, or there's a high need for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a catalyst for more adoption, because they already don't believe in their own currency? Yeah, and I believe we've currently seen that.
So yes, and this is a thing that a great deal of American or Western investors have a tough time getting their head around. They resemble, "Well I do not require 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 people on the planet that don't have steady currencies.
Yeah. And so there's this entire blossoming worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are essentially used, let's state Ethereum, which a lot of individuals understand about Ethereum. Ethereum is basically a global computer that you can write computer system programs for and run computer system programs on a globally 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 offer individuals a concept, like a really simple one that I would imagine you 'd called an utility token, resembles FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's sort of this very same type of network effect that you have with Bitcoin, where it resembles unstoppable kind of thing, due to the fact that it's on many various areas and. I do not know the ins and outs of it, but as an example for somebody who might simply be extremely fundamental in their understanding of this, there are many different kinds of energies that are available.
And you type of discussed having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are most likely utility based, correct? Mm-hmm (affirmative). Many of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, however I think the real chance lies in the energy coin area.
There's all of these ICOs that were taking place, those slowed down a little bit with some modifications to a couple of things that was going on, however individuals are going to come out of the woodwork and begin to produce utility coins- Correct, yeah. And people need to comprehend that not all energy coins are produced equivalent.
So you have the advantage of devoting your occupation to this, so you can go out there and do the recon, you can satisfy the creators, you can inspect the code, and so on. But for a typical individual, there's now what, over 1,000 different kinds of coins available, almost 1,200 I believe.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either deceitful or just bad concepts. Okay. Right? There's nothing even worse than someone that's young, earnest, with a terrible idea, that somebody offers $40 million to. Right? Yeah, completely. So yeah, so I don't actually take part in numerous ICOs, and I advise you probably side step that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause generally it'll crash 80% approximately. Which's when we truly begin looking at the idea in more detail. So here are some fast and filthy things that you should take a look at, right? So, one is, are they resolving an issue that needs to be solved? Among the huge drawbacks with very wise, technical individuals, is that they like to resolve issues that no one cares about solving.
Does the team have experience of performing in an effective way in another area of their life? And it does not even have to be straight related to cryptocurrency, it does not need 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 four men in a room that are simply out of college, unless they've got some actually good advisors behind them, I'm most likely not going to provide them any money.
Yeah. I think that in marketing in general, my world of company, we constantly look for problems and how we can solve them. Now, are the problems things that individuals are trying to resolve a part of the Blockchain typically? Or would you state it's much better if they're fixing sort 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 offer you an example.
And the reason that we bought it is because they discovered a method to make files tamper-proof, and it's 99% less expensive than present 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 performance history of producing computer programs that entire states run their entire operations on, right? So you've got fine, the clever person has actually constructed big computer system programs, terrific group, fixing a huge issue that is going to cut substantial costs.
I suggest, it doesn't get any simpler than that in terms of choosing who to put cash behind. And a great deal of this prevails sense, and a lot of folks will try to make things more complicated than it is. And I have a truly easy guideline, Ryan. If I don't understand something, I installed my hand, and I state, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And then if the person that you're talking with can't dumb it down enough where you understand it, then it's most likely not a good concept. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience evaluating business and looking at much, much bigger companies.
Ryan: So you have actually taken a look at companies that are big companies, you've evaluated much bigger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you mentioned, it is practically just good sense. You simply have to kind of take a look at it and think rationally about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no standard metrics that you can look at.
Okay. What I can use that I learned from working on Wall Street throughout 3 decades, is how to read individuals. I have actually fulfilled 10s of countless people throughout my profession. I have actually met experts; I've satisfied fund supervisors, I've satisfied stock promoters, I have actually met all these different types of characters along the way.
So I think that's most likely among my very powers, if you will. And if you have actually got an excellent BS detector, you need to listen to it. Okay. You ought to definitely listen to it. If I'm sitting down and I'm talking with someone, and they've got all the bonifides, but you understand, there's just; it's not sitting well with me, there's something about them that's not sitting well with me.
There are a lot of other deals out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you know, you sort of pointed out at the start, Bitcoin and Ethereum, many people have actually heard of these two, particularly Bitcoin, because it seems like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's shown up from state $3,000 not too long ago, it's rather volatile. Do they sort of wait for a pullback, or do they just state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's a fantastic concern.
Copyright© how to invest in blockchain All Rights Reserved Worldwide