So, a great deal of people discover that too troublesome, and that's why the people that are literally making the most amount of money today in cryptocurrencies are the early adopters: individuals that want to put in possibly the 20 minutes needed to go through a process which simply takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your concepts, however gosh, setting up a crypto account is so difficult." 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 whole cryptocurrency market will be 10x larger. So you're in fact truly earning money a massive quantity of money to go through perhaps, you understand, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll have the ability to purchase cryptocurrencies straight through your trading software. And can you imagine what will happen to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that people go through, and one thing I want to expose too that you didn't discuss, however I understand a great deal of folks who deal with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can just buy $500 a week.
As tough as possible, best, like Coinbase. It 'd take me forever prior to I might begin buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I mean, it's if you keep in mind the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I mean it would take 20 minutes to load 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 innovation, but similar to during that duration of time, for the folks that had the vision to see where the future was going, and after that bought in on a few of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since I'm constantly curious to speak to people who are, especially somebody like yourself, who's dedicated the last, you understand, the lion's share 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 great question.
They're 2 absolutely 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 offers it value is that it is, there's only going to be a minimal quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals constantly try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And actually, with current technology, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
And so when people put, you've got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We don't trust paper currency, you can print an endless quantity of it. It's really not secure, and the federal government can take it away from you." - Whereas with Bitcoin, right , go on.
Yeah. Or individuals that were in Cypress, or just people who have actually suffered through either run-away inflation, or there's a high demand for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a driver for more adoption, due to the fact that they already don't believe 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 do not need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. But there are billions of individuals in the world that don't have stable currencies.
Yeah. And so there's this entire burgeoning worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are basically utilized, let's say Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is basically an international computer that you can compose computer programs for and run computer system programs on a globally decentralized computer system program.
So we think about something like Ether an utility token, due to the fact that you're essentially buying programs power. So I would not truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide people an idea, like a really basic one that I would envision you 'd called an utility token, is like FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's kind of this exact same type of network result that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on numerous various locations and. I do not know the ins and outs of it, however as an example for somebody who may simply be extremely standard in their understanding of this, there are a lot of various kinds of energies that are readily available.
And you kind 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, correct? Mm-hmm (affirmative). Most of the coins that I recommend and take a look at are utility-based. We have a couple of cryptocurrencies, but I think the real opportunity depends on the energy coin area.
There's all of these ICOs that were occurring, those decreased a little bit with some modifications to a few things that was going on, however people are going to come out of the woodwork and start to develop energy coins- Correct, yeah. And people need to comprehend that not all energy coins are produced equivalent.
So you have the benefit of committing your profession to this, so you can go out there and do the reconnaissance, you can meet the founders, you can inspect the code, and so on. However for an average individual, there's now what, over 1,000 different types of coins available, practically 1,200 I think.
How do they do that? That's a terrific 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 horrible concept, that someone offers $40 million to. Right? Yeah, completely. So yeah, so I do not really take part in many ICOs, and I suggest you most likely side step 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 so. Which's when we truly begin looking at the concept in more information. So here are some quick and unclean things that you should look at, right? So, one is, are they solving an issue that requires to be fixed? One of the big drawbacks with really smart, technical individuals, is that they like to solve issues that nobody appreciates resolving.
Does the team have experience of performing in an effective way in another location of their life? And it doesn't even have to be straight related to cryptocurrency, it doesn't need to be even straight associated to software, right? So, but I want to see a track record of success in something, right? If it's 4 guys in a space that are just out of college, unless they've got some actually excellent consultants behind them, I'm probably not going to provide any cash.
Yeah. I think that in marketing in basic, my world of company, we continuously search for problems and how we can solve them. Now, are the problems 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 issue? Something like FileCoin, or something else that would be more mass appeal? Or is it a mix of both? Well I'm generally trying to find services that, so I'll provide you an example.
And the reason that we bought it is because they discovered 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 after that on top of that, the man that began it has a track record of producing computer programs that whole states run their entire operations on, right? So you've got okay, the smart guy has actually built huge computer programs, fantastic group, fixing 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 typical sense, and a lot of folks will try to make things more complex than it is. And I have a truly simple guideline, Ryan. If I do not understand something, I put up my hand, and I say, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And after that if the individual that you're talking to can't dumb it down enough where you understand it, then it's probably not a great idea. Right, right. It's going to be basic to understand. And do you feel that you have years of experience assessing companies and taking a look at much, much larger companies.
Ryan: So you've taken a look at companies that are huge business, you have actually assessed much larger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you discussed, it is nearly simply common sense. You simply need to sort of 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 gained from dealing with Wall Street throughout 3 years, is how to read individuals. I've satisfied 10s of countless individuals throughout my career. I have actually satisfied experts; I have actually satisfied fund managers, I've fulfilled stock promoters, I have actually satisfied all these various types of characters along the way.
So I think that's probably among my incredibly powers, if you will. And if you've got a good BS detector, you should listen to it. Okay. You need to absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually got all the bonifides, however you understand, there's simply; it's not sitting well with me, there's something about them that's not sitting well with me.
There are numerous other offers out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you kind of mentioned at the start, Bitcoin and Ethereum, many people have actually become aware of these two, particularly Bitcoin, because it looks like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's come up from say $3,000 not too long earlier, it's quite unpredictable. Do they sort of wait on a pullback, or do they just 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 question.
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