So, a great deal of individuals find that too troublesome, which's why individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: individuals that are prepared to put in possibly the 20 minutes needed to go through a process which just takes 5 minutes if you want to set up a brokerage account.
" Oh Teeka, we like your ideas, but gosh, establishing a crypto account is so challenging." What I tell them is I state, "Look, when it's simple as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The entire cryptocurrency market will be 10x bigger. So you're actually truly earning money a huge amount of money to go through possibly, you understand, 20 minutes of a pain in the neck.
So you can't buy Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll be able to buy cryptocurrencies straight through your trading software. And can you picture what will occur to this whole market when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the process that people go through, and one thing I want to bring to light too that you didn't discuss, but I know a lot of folks who struggle 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 challenging as possible, ideal, like Coinbase. It 'd take me forever before I might begin purchasing in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I imply, it's if you remember the early days of the Internet, when we were getting on the Internet, 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 indicate, we're in the early days of that technology, but 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 some of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, due to the fact that I'm constantly curious to speak to individuals who are, especially someone like yourself, who's committed the last, you know, the much better part of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like a typical person? That's a great concern.
They're 2 totally various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what gives it value is that it is, there's only going to be a restricted amount. 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 take a look at that Bitcoin network, people constantly attempt to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And actually, with present innovation, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
Therefore when people put, you have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not rely on paper currency, you can print an unlimited amount of it. It's really not secure, and the federal government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or individuals that were in Cypress, or just people who have actually suffered through either hyperinflation, or there's a high need for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those countries that could potentially be a driver for more adoption, because they already do not believe in their own currency? Yeah, and I think 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 need Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. But there are billions of individuals worldwide that don't have steady currencies.
Yeah. Therefore there's this entire growing international demand 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 great deal of individuals understand about Ethereum. Ethereum is essentially an international computer system that you can write computer system programs for and run computer programs on a worldwide decentralized computer program.
So we consider something like Ether an energy token, due to the fact that you're essentially purchasing programming power. So I would not truly think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give individuals a concept, like an extremely easy one that I would picture you 'd called an utility token, is like FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's type of this exact same type of network result that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on numerous various areas and. I don't understand the ins and outs of it, but as an example for someone who may just be very standard in their understanding of this, there are many various types of utilities that are available.
And you sort of pointed out having this boots on the ground experience. Now, since we're taking a look at the bulk of these are probably utility based, remedy? Mm-hmm (affirmative). Many of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, but I believe the genuine chance lies in the utility 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, but people are going to come out of the woodwork and start to produce utility coins- Correct, yeah. And people need to comprehend that not all utility coins are created equivalent.
So you have the benefit of dedicating your profession to this, so you can head 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 types of coins available, nearly 1,200 I think.
How do they do that? That's a great concern. I will state that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's nothing worse than somebody that's young, earnest, with a horrible concept, that someone offers $40 million to. Right? Yeah, absolutely. So yeah, so I do not really take part in lots of ICOs, and I advise you probably 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 usually it'll crash 80% or so. Which's when we truly begin looking at the concept 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 an issue that needs to be solved? Among the huge drawbacks with extremely wise, technical people, is that they like to solve problems that no one cares about fixing.
Does the team have experience of carrying out in an effective manner in another area of their life? And it doesn't even have to be straight related to cryptocurrency, it doesn't have to be even straight related to software, right? So, but I wish to see a performance history of success in something, right? If it's four people in a room that are just out of college, unless they've got some really excellent advisors behind them, I'm probably not going to provide any money.
Yeah. I believe that in marketing in basic, my world of organization, we continuously try to find problems and how we can solve them. Now, are the issues things that people are trying to fix a part of the Blockchain typically? Or would you say it's better if they're solving 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 looking for solutions that, so I'll give you an example.
And the reason that we purchased it is due to the fact that they found a way to make files tamper-proof, and it's 99% less expensive than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the guy that started it has a performance history of creating computer programs that entire states run their entire operations on, right? So you have actually got alright, the wise man has constructed big computer programs, fantastic team, resolving an enormous issue that is going to cut substantial expenses.
I indicate, it doesn't get any easier than that in regards to deciding who to put cash behind. And a lot of this prevails sense, and a lot of folks will try to make things more complicated than it is. And I have a truly simple rule, Ryan. If I don't comprehend something, I set up my hand, and I state, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you comprehend it, then it's probably not a good idea. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience examining companies and looking at much, much bigger companies.
Ryan: So you have actually taken a look at companies that are huge business, you've assessed much larger marketcap type situations. 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 simply good sense. You simply need to kind of take a look at it and think reasonably 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 look at.
Okay. What I can utilize that I discovered from working on Wall Street across three years, is how to read individuals. I've satisfied 10s of thousands of individuals throughout my profession. I've satisfied experts; I've satisfied fund managers, I have actually met stock promoters, I have actually satisfied all these various kinds of characters along the method.
So I believe that's most likely one of my extremely powers, if you will. And if you have actually got a good BS detector, you should listen to it. Okay. You ought to absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, however you know, there's just; it's not sitting well with me, there's something about them that's not sitting well with me.
There are so numerous other offers out there to look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you understand, you kind of pointed out at the start, Bitcoin and Ethereum, many people have heard of these two, especially Bitcoin, since it appears 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 recently; it's come up from state $3,000 not too long back, it's quite 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 understand? Yeah that's an excellent question.
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