So, a great deal of people find 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: individuals that are willing to put in maybe the 20 minutes required to go through a process which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your concepts, but gosh, setting up a crypto account is so tough." What I inform them is I say, "Look, when it's easy 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 making money a huge amount of money 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 concern 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 whole marketplace when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that people go through, and something I wish to expose too that you didn't discuss, but I know a great deal of folks who fight with this too, is oh, and by the way, you can only buy $1,000 a week. Or you can just buy $500 a week.
As tough as possible, ideal, like Coinbase. It 'd take me permanently prior to I could start buying in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I indicate, it's if you keep in mind the early days of the Web, when we were getting on the Web, 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 suggest, we're in the early days of that technology, but similar to during that period of time, for the folks that had the vision to see where the future was going, and after that bought in on some of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a second, since I'm always curious to talk with individuals who are, specifically somebody like yourself, who's devoted the last, you understand, the bulk of the last couple of years to really go both feet in on this. How do you explain cryptocurrency to like an average person? That's a great concern.
They're two absolutely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to money. So Bitcoin would be a cryptocurrency. And so what provides it value is that it is, there's just going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. And so if you take a look at that Bitcoin network, individuals continuously attempt to hack it. However because of the nature of the network, today it's been unhackable. And really, with present technology, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
And so when people put, you've got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We do not trust paper cash, you can print an unrestricted amount of it. It's actually not secure, and the federal government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that were in Cypress, or simply people who have suffered through either devaluation, or there's a high demand for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those countries that could possibly 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're like, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You do not need Bitcoin. But there are billions of people worldwide that don't have steady currencies.
Yeah. Therefore there's this entire blossoming international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are generally utilized, let's state Ethereum, which a great deal of people understand about Ethereum. Ethereum is essentially a worldwide computer that you can write computer system programs for and run computer programs on a globally decentralized computer program.
So we consider something like Ether an utility token, since you're essentially purchasing programs power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide people an idea, like a really simple one that I would picture you 'd called an utility token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's kind of this exact same kind of network result that you have with Bitcoin, where it's like unstoppable example, because it's on so many different areas and. I do not understand the ins and outs of it, however as an example for somebody who may just be really fundamental in their understanding of this, there are numerous different types of energies that are readily available.
And you type of pointed out having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably 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, but I believe the genuine chance lies in the energy coin space.
There's all of these ICOs that were occurring, those slowed down a little bit with some modifications to a few things that was going on, but people are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And people need to understand that not all utility coins are produced equal.
So you have the benefit of devoting your occupation to this, so you can go out there and do the reconnaissance, you can satisfy the founders, you can inspect the code, and so on. But for a typical person, there's now what, over 1,000 different kinds of coins readily available, practically 1,200 I believe.
How do they do that? That's a terrific question. I will state that 95% of ICOs are either deceptive or simply bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a dreadful concept, that somebody gives $40 million to. Right? Yeah, completely. So yeah, so I do not actually take part in many ICOs, and I advise you most likely side step 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% approximately. And that's when we really start taking a look at the idea in more detail. 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 needs to be resolved? Among the big drawbacks with really clever, technical individuals, is that they like to fix problems that nobody cares about resolving.
Does the team have experience of carrying out in an effective manner in another area of their life? And it does not even need to be straight associated to cryptocurrency, it does not need to be even straight associated to software, right? So, but I want 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 really great advisors behind them, I'm probably not going to offer them any money.
Yeah. I believe that in marketing in basic, my world of business, we constantly try to find issues and how we can solve them. Now, are the problems things that individuals are attempting to resolve a part of the Blockchain normally? Or would you state it's better if they're solving type of a mass problem? 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 options that, so I'll give you an example.
And the factor that we bought it is since they found a method to make files tamper-proof, and it's 99% cheaper than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that started it has a performance history of creating computer system programs that entire states run their whole operations on, right? So you've got okay, the wise man has actually developed huge computer system programs, excellent group, solving a massive problem that is going to cut big expenses.
I indicate, it does not get any easier than that in terms of choosing 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 an actually basic guideline, Ryan. If I don't understand something, I set up my hand, and I state, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And then 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 basic to comprehend. And do you feel that you have years of experience evaluating business and taking a look at much, much larger business.
Ryan: So you have actually taken a look at companies that are big companies, you've evaluated much bigger marketcap type situations. 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 nearly simply good sense. You just have to type of look at it and think reasonably 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 utilize that I gained from working on Wall Street across three years, is how to check out individuals. I have actually met 10s of countless people throughout my profession. I have actually met insiders; I have actually satisfied fund supervisors, I have actually fulfilled stock promoters, I have actually met all these various types of characters along the way.
So I believe that's most likely one of my super powers, if you will. And if you have actually got an excellent BS detector, you must listen to it. Okay. You ought to definitely listen to it. If I'm sitting down and I'm talking with someone, and they have actually got all the bonifides, however you know, there's just; it's not agreeing 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 too much opportunity. Yeah. And speaking of chance, you understand, you sort of mentioned at the beginning, Bitcoin and Ethereum, most people have actually become aware of these 2, especially Bitcoin, since it appears like it remains in the news all the time, something or the other.
Have they missed 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 quite unpredictable. Do they kind of wait on 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 ten years." You know? Yeah that's a terrific concern.
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