So, a great deal of individuals discover that too bothersome, which's why the people that are literally making the most amount of money today in cryptocurrencies are the early adopters: individuals that are willing to put in possibly the 20 minutes required to go through a process which just takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we like your ideas, but gosh, establishing a crypto account is so tough." What I inform 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 larger. So you're in fact truly earning money a massive amount of cash to go through possibly, you understand, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, prior to you'll have the ability to buy cryptocurrencies straight through your trading software application. And can you imagine what will happen to this entire market when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that people go through, and something I desire to bring to light too that you didn't point out, however I understand a lot of folks who battle with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can just purchase $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're like, well, we'll let you buy $500 a week, Teeka. I suggest, 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 fill a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I imply, we're 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 purchased in on a few of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm constantly curious to talk to individuals who are, specifically somebody like yourself, who's devoted the last, you understand, the lion's share of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like an average individual? 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 option to money. So Bitcoin would be a cryptocurrency. And so what provides it value is that it is, there's only going to be a limited quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, people constantly attempt to hack it. But because of the nature of the network, today it's been unhackable. And really, with existing technology, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
And so when individuals put, you have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't trust paper money, you can print an unlimited amount of it. It's actually not secure, and the government can take it away from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or people that remained in Cypress, or just people 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 countries that could potentially be a driver for more adoption, because 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 great deal of American or Western financiers have a hard time getting their head around. They resemble, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't require Bitcoin. However there are billions of individuals worldwide that do not 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 a whole 'nother coin called utility coins. And energy coins are basically utilized, let's say Ethereum, which a lot of individuals learn about Ethereum. Ethereum is essentially a worldwide computer that you can write computer programs for and run computer programs on an internationally decentralized computer system program.
So we consider something like Ether an energy token, due to the fact that you're basically buying programming power. So I would not really 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 a really basic one that I would picture you 'd called an energy token, is like FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's type of this same type of network effect that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on numerous different areas and. I don't know the ins and outs of it, however as an example for somebody who might just be extremely fundamental in their understanding of this, there are a lot of various types of utilities that are readily available.
And you sort of discussed having this boots on the ground experience. Now, given that we're looking at the bulk of these are most likely utility based, correct? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, however I think the genuine opportunity lies in the utility coin area.
There's all of these ICOs that were taking place, those decreased a bit with some changes to a couple of things that was going on, however people are going to come out of the woodwork and start to develop utility coins- Correct, yeah. And people require to comprehend that not all utility coins are developed equal.
So you have the benefit of committing your profession to this, so you can head out there and do the recon, you can meet the founders, you can examine the code, and so on. But for a typical individual, there's now what, over 1,000 different types of coins offered, practically 1,200 I believe.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either fraudulent or just bad concepts. Okay. Right? There's nothing worse than someone that's young, earnest, with a terrible concept, that someone gives $40 million to. Right? Yeah, completely. So yeah, so I don't truly get involved in many 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 then blow it out when it trades.
'Cause normally it'll crash 80% approximately. And that's when we really begin looking at the concept in more detail. So here are some quick and unclean things that you should look at, right? So, one is, are they resolving an issue that requires to be solved? Among the big disadvantages with very wise, technical people, is that they like to resolve problems that no one cares about solving.
Does the team have experience of carrying out in a successful way in another location of their life? And it does not even need to be straight associated to cryptocurrency, it doesn't have to be even straight associated to software application, right? So, however I want to see a performance history of success in something, right? If it's four men in a room that are just out of college, unless they have actually got some really great consultants behind them, I'm probably not going to provide them any cash.
Yeah. I think that in marketing in general, my world of organization, we constantly look for issues and how we can resolve them. Now, are the problems things that people are trying to fix a part of the Blockchain normally? Or would you say it's much better if they're solving 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 trying to find solutions that, so I'll provide you an example.
And the reason that we purchased it is since they found a way to make files tamper-proof, and it's 99% more affordable than existing innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that started it has a track record of producing computer system programs that whole states run their whole operations on, right? So you've got okay, the smart person has actually built substantial computer programs, terrific group, fixing a massive issue that is going to cut big costs.
I mean, it does not get any simpler than that in regards to choosing who to put money behind. And a great deal of this prevails sense, and a great deal of folks will attempt to make things more complicated than it is. And I have an actually simple guideline, Ryan. If I do not comprehend something, I put 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 to can't dumb it down enough where you understand it, then it's most likely not a good idea. Right, right. It's going to be basic to understand. And do you feel that you have years of experience evaluating business and looking at much, much bigger business.
Ryan: So you've taken a look at companies that are huge companies, you have actually examined much larger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you pointed out, it is almost just good sense. You simply need to kind of 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 conventional metrics that you can take a look at.
Okay. What I can use that I gained from working on Wall Street across three years, is how to check out people. I have actually satisfied 10s of countless individuals throughout my career. I've fulfilled experts; I have actually satisfied fund supervisors, I have actually met stock promoters, I have actually fulfilled all these various kinds of characters along the method.
So I think that's probably one of my very powers, if you will. And if you have actually got an excellent BS detector, you should listen to it. Okay. You should absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they've got all the bonifides, but you know, there's simply; it's not sitting well with me, there's something about them that's not agreeing with me.
There are many other deals out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of chance, you know, you sort of mentioned at the start, Bitcoin and Ethereum, many people have actually become aware of these 2, particularly Bitcoin, since it appears 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 just recently; it's come up from say $3,000 not too long ago, it's quite unpredictable. Do they sort of wait on a pullback, or do they simply state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in ten years." You understand? Yeah that's a fantastic concern.
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