So, a great deal of individuals discover that too inconvenient, and that's why individuals that are actually making the most amount of cash right now in cryptocurrencies are the early adopters: people that want to put in maybe the 20 minutes needed to go through a process which simply takes 5 minutes if you want to set up a brokerage account.
" Oh Teeka, we love your ideas, but gosh, establishing a crypto account is so challenging." What I tell them is I say, "Look, when it's simple 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 actually really getting paid a massive amount of cash to go through perhaps, you know, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, prior to you'll have the ability to buy cryptocurrencies directly through your trading software. And can you envision what will happen to this entire marketplace when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that people go through, and one thing I wish to bring to light too that you didn't discuss, however I know a lot of folks who struggle with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can just purchase $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me forever prior to I might begin buying in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I imply, 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 suggest 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 suggest, we're in the early days of that technology, however much like during 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 business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, due to the fact that I'm constantly curious to talk to people who are, especially someone like yourself, who's devoted the last, you know, the better part of the last couple of years to really go both feet in on this. How do you explain cryptocurrency to like a typical person? That's a great concern.
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 cash. So Bitcoin would be a cryptocurrency. Therefore what provides it value is that it is, there's just going to be a limited quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people continuously try to hack it. However since of the nature of the network, today it's been unhackable. And truly, with existing technology, 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 people who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We do not trust paper money, you can print an unlimited quantity of it. It's really not secure, and the federal government can take it far from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or people that were in Cypress, or just individuals who have suffered through either hyperinflation, or there's a high need 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 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 financiers have a difficult time getting their head around. They resemble, "Well I don't require 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 do not have steady currencies.
Yeah. Therefore there's this entire growing worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are basically utilized, let's say Ethereum, which a lot of people know about Ethereum. Ethereum is essentially a worldwide computer that you can write 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, due to the fact that you're basically buying programming power. So I would not truly consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals a concept, like a very easy one that I would envision you 'd called an utility token, is like FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's type of this exact same type of network effect that you have with Bitcoin, where it's like unstoppable example, due to the fact that it's on so numerous different locations and. I don't know the ins and outs of it, but as an example for someone who might just be extremely basic in their understanding of this, there are so many different kinds of utilities that are offered.
And you kind of mentioned having this boots on the ground experience. Now, since we're taking a look at the bulk of these are most likely utility based, remedy? Mm-hmm (affirmative). Many of the coins that I recommend and look at are utility-based. We have a few cryptocurrencies, but I think the real opportunity depends on the utility coin space.
There's all of these ICOs that were occurring, those decreased a little bit with some changes to a couple of things that was going on, however people are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And people need to comprehend that not all utility coins are created equivalent.
So you have the advantage of committing your profession to this, so you can go out there and do the reconnaissance, you can meet the creators, you can check the code, etc. However for an average 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 a terrific question. I will say that 95% of ICOs are either fraudulent or just bad concepts. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with a dreadful idea, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I do not truly get involved in numerous ICOs, and I recommend you probably side action that market, unless you have actually got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause normally it'll crash 80% or so. Which's when we really start taking a look at the concept in more information. So here are some quick and unclean things that you should take a look at, right? So, one is, are they resolving an issue that requires to be fixed? Among the huge disadvantages with very smart, technical individuals, is that they like to resolve issues that nobody cares about resolving.
Does the group have experience of executing in an effective manner in another location of their life? And it doesn't even have to be straight related to cryptocurrency, it does not need to be even directly related to software, right? So, but I desire to see a track record of success in something, right? If it's 4 people in a space that are just out of college, unless they have actually got some really great advisors behind them, I'm most likely not going to provide any money.
Yeah. I think that in marketing in basic, my world of company, we constantly try to find issues and how we can fix them. Now, are the problems things that people are trying to resolve a part of the Blockchain usually? Or would you state 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 options that, so I'll provide you an example.
And the reason that we bought it is due to the fact that they discovered a method to make files tamper-proof, and it's 99% more affordable than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that started it has a track record of producing computer programs that entire states run their whole operations on, right? So you have actually got okay, the clever person has constructed big computer programs, excellent group, fixing a huge issue that is going to cut substantial costs.
I suggest, 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 great deal of folks will attempt to make things more complicated than it is. And I have a truly simple rule, Ryan. If I do not understand something, I put up my hand, and I state, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And after that if the individual that you're talking with can't dumb it down enough where you comprehend it, then it's most likely not a good idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience evaluating companies and looking at much, much larger companies.
Ryan: So you have actually taken a look at companies that are big business, you have actually examined much larger 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 practically just sound judgment. You just need to type of take a look at it and believe logically about what's going on, and pull the feeling out? You need to pull the feeling out, and there are no standard metrics that you can take a look at.
Okay. What I can use that I learned from dealing with Wall Street across three years, is how to check out people. I've fulfilled tens of countless people throughout my profession. I have actually met insiders; I've fulfilled fund managers, I've fulfilled stock promoters, I have actually met all these various types of characters along the method.
So I think that's probably among my incredibly powers, if you will. And if you've got a good BS detector, you must listen to it. Okay. You must 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 understand, 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 deals out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you understand, you type of pointed out at the start, Bitcoin and Ethereum, a lot of individuals have actually heard of these two, especially Bitcoin, since it appears like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading nearly upwards of $6,000 recently; it's come up from state $3,000 not too long earlier, it's quite volatile. Do they type of wait on a pullback, or do they simply say, "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 question.
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