So, a lot of people discover that too inconvenient, which's why the people that are literally making the most amount of cash today in cryptocurrencies are the early adopters: individuals that want to put in perhaps 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 like your concepts, but gosh, establishing a crypto account is so difficult." What I tell them is I say, "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 making money an enormous quantity of money to go through possibly, you understand, 20 minutes of a pain 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 have the ability to buy cryptocurrencies directly through your trading software. And can you imagine what will occur to this entire marketplace when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you discussed the procedure that individuals go through, and something I wish to bring to light too that you didn't point out, but I know a lot of folks who fight with this too, is oh, and by the way, you can just purchase $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 could begin purchasing in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I mean, 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 pack 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 technology, but much like throughout that time period, for the folks that had the vision to see where the future was going, and then purchased in on some of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since I'm always curious to talk to people who are, especially someone like yourself, who's dedicated the last, you understand, the bulk of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a fantastic concern.
They're 2 completely different 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 provides it worth is that it is, there's just going to be a restricted 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 look at that Bitcoin network, people constantly try to hack it. However since of the nature of the network, today it's been unhackable. And truly, with current 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've got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't trust paper cash, you can print an endless quantity of it. It's truly not secure, and the federal government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that remained 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 countries that could potentially be a catalyst for more adoption, since they currently do not believe in their own currency? Yeah, and I think we've already seen that.
So yes, and this is a thing that a great deal of American or Western financiers have a difficult time getting their head around. They're like, "Well I don't require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. However there are billions of individuals on the planet that don't have stable currencies.
Yeah. Therefore there's this entire growing international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are basically utilized, let's say Ethereum, which a lot of people understand about Ethereum. Ethereum is basically an international computer that you can compose computer programs for and run computer programs on an internationally decentralized computer system program.
So we consider something like Ether an utility token, since you're basically buying programming power. So I wouldn't truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give people an idea, like an extremely easy one that I would imagine you 'd called an energy token, is like FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's sort of this exact same type of network effect that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on a lot of various locations and. I don't understand the ins and outs of it, however as an example for somebody who might simply be really fundamental in their understanding of this, there are many various kinds of utilities that are available.
And you kind of mentioned having this boots on the ground experience. Now, given that we're taking a look at the bulk of these are most likely energy based, correct? Mm-hmm (affirmative). The majority of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, but I think the real opportunity depends on the energy coin area.
There's all of these ICOs that were taking place, those decreased a little bit with some changes to a couple of things that was going on, but individuals are going to come out of the woodwork and begin to produce energy coins- Correct, yeah. And individuals require to understand that not all energy coins are created equal.
So you have the benefit of devoting your profession to this, so you can go out there and do the reconnaissance, you can satisfy the creators, you can examine the code, etc. However for an average person, there's now what, over 1,000 different kinds of coins available, nearly 1,200 I believe.
How do they do that? That's a terrific concern. I will state that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with a terrible idea, that somebody provides $40 million to. Right? Yeah, absolutely. So yeah, so I do not really get involved in lots of ICOs, and I recommend you most likely side action that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause generally it'll crash 80% or so. And that's when we actually start 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 fixing a problem that needs to be solved? One of the huge disadvantages with really clever, technical individuals, is that they like to solve issues that no one appreciates resolving.
Does the group have experience of performing in an effective way in another area of their life? And it doesn't even need to be directly associated to cryptocurrency, it does not need to be even straight associated to software, right? So, however I desire to see a performance history of success in something, right? If it's 4 people in a room that are simply out of college, unless they have actually got some actually great 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 continuously look for issues and how we can fix them. Now, are the issues things that individuals are trying to resolve a part of the Blockchain usually? Or would you say it's better if they're resolving type 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 essentially looking for options that, so I'll offer you an example.
And the factor that we purchased it is since they discovered 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 after that on top of that, the man that began it has a track record of producing computer programs that entire states run their whole operations on, right? So you've got okay, the clever man has actually constructed big computer programs, fantastic team, solving an enormous issue that is going to cut big expenses.
I indicate, it doesn't get any simpler 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 really easy rule, Ryan. If I don't comprehend something, I set up my hand, and I say, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And after that if the person that you're speaking to can't dumb it down enough where you comprehend it, then it's probably not an excellent concept. Right, right. It's going to be easy to understand. And do you feel that you have years of experience examining business and taking a look at much, much larger companies.
Ryan: So you've taken a look at companies that are big companies, you have actually examined much bigger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you discussed, it is almost simply good sense. You simply have to kind of take a look at it and think reasonably about what's going on, and pull the emotion out? You need to pull the emotion out, and there are no standard metrics that you can look at.
Okay. What I can utilize that I gained from working on Wall Street throughout 3 years, is how to check out individuals. I have actually met tens of countless people throughout my career. I've satisfied experts; I have actually fulfilled fund managers, I have actually met stock promoters, I have actually met all these different types of characters along the method.
So I believe that's most likely among my extremely powers, if you will. And if you have actually got a great BS detector, you need to listen to it. Okay. You ought to absolutely listen to it. If I'm sitting down and I'm talking with someone, 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 agreeing with me.
There are a lot of other offers out there to look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you know, you sort of pointed out at the start, Bitcoin and Ethereum, the majority of people have actually heard of these two, particularly 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 almost upwards of $6,000 recently; it's turned up from state $3,000 not too long earlier, it's quite volatile. Do they kind of wait for a pullback, or do they just say, "Okay, I'm going to purchase 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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