So, a lot of people find that too bothersome, and that's why individuals that are literally making the most amount of money right now in cryptocurrencies are the early adopters: individuals that want to put in perhaps the 20 minutes required to go through a procedure which just takes five minutes if you want to establish a brokerage account.
" Oh Teeka, we enjoy your ideas, but gosh, setting up a crypto account is so hard." What I inform them is I say, "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 larger. So you're in fact really making money a massive quantity of cash to go through possibly, you know, 20 minutes of a discomfort in the neck.
So you can't purchase Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, prior to you'll be able to buy cryptocurrencies straight through your trading software. And can you picture what will take place to this whole market when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that individuals go through, and one thing I wish to expose too that you didn't point out, however I understand a lot of folks who struggle with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can just purchase $500 a week.
As hard as possible, ideal, like Coinbase. It 'd take me forever before I might begin purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I indicate, 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 imply 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 indicate, we remain in the early days of that technology, however similar to during that amount 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 an action back for a second, because I'm constantly curious to talk with people who are, especially someone like yourself, who's devoted the last, you know, the better part of the last few years to truly go both feet in on this. How do you describe cryptocurrency to like an average person? That's a fantastic 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 option 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 amount. There'll never ever 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, individuals constantly try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And really, with present innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
And so when people put, you have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We don't rely on paper currency, you can print an unlimited quantity of it. It's really not protect, and the government can take it far from you." - Whereas with Bitcoin, right , go ahead.
Yeah. Or individuals that were in Cypress, or simply individuals who have suffered through either devaluation, 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 potentially be a driver for more adoption, since they currently 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 do not need 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 individuals worldwide that do not have stable currencies.
Yeah. Therefore there's this whole burgeoning worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are generally used, let's state Ethereum, which a great deal of people know about Ethereum. Ethereum is essentially a global computer that you can compose computer system programs for and run computer system programs on a worldwide decentralized computer system program.
So we think about something like Ether an utility token, because you're essentially buying programming 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 give individuals a concept, like an extremely simple one that I would imagine 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 very same kind of network effect that you have with Bitcoin, where it's like unstoppable example, due to the fact that it's on many different locations and. I don't understand the ins and outs of it, however as an example for somebody who may just be really basic in their understanding of this, there are numerous different kinds of utilities that are readily available.
And you type of pointed out having this boots on the ground experience. Now, considering 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 take a look at are utility-based. We have a couple of cryptocurrencies, however I think the genuine chance depends on the energy coin space.
There's all of these ICOs that were occurring, those slowed down a little bit with some changes to a few things that was going on, but individuals are going to come out of the woodwork and start to create utility coins- Correct, yeah. And individuals require to comprehend that not all utility coins are created equal.
So you have the advantage of committing your profession to this, so you can head out there and do the reconnaissance, you can satisfy the creators, you can check the code, and so on. However for a typical person, there's now what, over 1,000 different types of coins offered, almost 1,200 I think.
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 somebody that's young, earnest, with an awful concept, that someone offers $40 million to. Right? Yeah, completely. So yeah, so I do not actually take part in numerous ICOs, and I recommend you most likely side step that market, unless you've got an unique 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 begin looking at the idea in more information. So here are some fast and unclean things that you should look at, right? So, one is, are they solving a problem that needs to be fixed? Among the big disadvantages with very wise, technical individuals, is that they like to solve problems that no one appreciates resolving.
Does the team have experience of performing in a successful way in another location of their life? And it doesn't even need to be directly associated to cryptocurrency, it doesn't have to be even straight associated to software, right? So, however I desire to see a track record of success in something, right? If it's four guys in a space that are simply out of college, unless they've got some really excellent consultants behind them, I'm most likely not going to provide them any money.
Yeah. I believe that in marketing in basic, my world of business, we constantly search for issues and how we can solve them. Now, are the issues things that individuals are attempting to fix a part of the Blockchain generally? Or would you say it's better if they're resolving sort 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 basically searching for services that, so I'll provide you an example.
And the reason that we bought it is due to the fact that they found a method to make documents 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 man that started it has a track record of creating computer system programs that whole states run their entire operations on, right? So you've got okay, the clever guy has actually built substantial computer programs, terrific team, fixing a massive issue that is going to cut big expenses.
I indicate, it doesn't get any easier than that in terms of deciding who to put money behind. And a lot of this prevails sense, and a lot of folks will attempt to make things more complicated than it is. And I have an actually simple rule, Ryan. If I do not comprehend something, I put up my hand, and I state, "I didn't understand what you just stated." Mm-hmm (affirmative).
And after that if the individual that you're speaking to 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 easy to understand. And do you feel that you have years of experience evaluating business and taking a look at much, much bigger companies.
Ryan: So you have actually taken a look at business that are huge business, you've assessed much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you pointed out, it is almost simply good sense. You just need to sort of take a look at it and think reasonably about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no conventional metrics that you can look at.
Okay. What I can utilize that I learned from dealing with Wall Street across 3 decades, is how to read people. I've fulfilled 10s of thousands of individuals throughout my profession. I have actually satisfied experts; I have actually fulfilled fund managers, I've met stock promoters, I've satisfied all these different types of characters along the way.
So I think that's most likely among my extremely powers, if you will. And if you've got a good BS detector, you ought to listen to it. Okay. You need to definitely listen to it. If I'm sitting down and I'm talking with someone, 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 agreeing with me.
There are so lots of other offers out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you understand, 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 out on the boat on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's come up from say $3,000 not too long back, it's rather unstable. Do they type of wait for a pullback, or do they simply state, "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 fantastic concern.
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