So, a lot of individuals find that too troublesome, and that's why the individuals that are literally making the most amount of money right now in cryptocurrencies are the early adopters: people that want to put in perhaps the 20 minutes required to go through a process which just takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we love your ideas, however 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 whole cryptocurrency market will be 10x bigger. So you're in fact truly earning money a huge amount of money to go through possibly, you know, 20 minutes of a pain in the neck.
So you can't buy 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 straight through your trading software. And can you imagine what will take place to this entire market when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that individuals go through, and one thing I want to bring to light too that you didn't point out, however I understand a lot of folks who deal with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can only purchase $500 a week.
As tough as possible, right, like Coinbase. It 'd take me forever prior to 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 Web, 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 suggest, we're in the early days of that innovation, however just like throughout that amount of time, 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 absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm always curious to talk to people who are, especially somebody like yourself, who's dedicated the last, you know, the bulk of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like an average individual? That's a terrific concern.
They're two absolutely different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to cash. So Bitcoin would be a cryptocurrency. Therefore what gives it worth is that it is, there's only going to be a limited quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, people continuously attempt to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And truly, with present innovation, the Bitcoin network is so huge today, 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 due to the fact that they're saying, "We don't trust paper currency, you can print an unlimited quantity of it. It's actually not protect, and the government can take it far from you." - Whereas with Bitcoin, right , go on.
Yeah. Or individuals that remained in Cypress, or simply people who have actually suffered through either hyperinflation, or there's a high demand for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those nations that could potentially be a catalyst 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 investors have a difficult time getting their head around. They resemble, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You do not require Bitcoin. But there are billions of people on the planet that do not have stable currencies.
Yeah. And so there's this whole burgeoning worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And utility coins are basically used, let's state Ethereum, which a lot of people understand about Ethereum. Ethereum is essentially an international computer that you can compose computer system programs for and run computer programs on an internationally decentralized computer system program.
So we think about something like Ether an energy token, due to the fact that you're basically buying shows power. So I would not really 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 a really simple one that I would imagine you 'd called an utility token, is like FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's type of this same type of network impact that you have with Bitcoin, where it's like unstoppable example, since it's on numerous various areas and. I do not know the ins and outs of it, but as an example for someone who may just be very basic in their understanding of this, there are numerous various kinds of energies that are readily available.
And you kind of mentioned having this boots on the ground experience. Now, because we're looking at the bulk of these are probably utility based, correct? Mm-hmm (affirmative). The majority of the coins that I advise and look at are utility-based. We have a couple of cryptocurrencies, however I believe the real opportunity lies in the utility coin area.
There's all of these ICOs that were taking place, those slowed down a little bit with some modifications to a few things that was going on, however individuals are going to come out of the woodwork and start to develop energy coins- Correct, yeah. And people need to comprehend that not all energy coins are developed equivalent.
So you have the benefit of devoting your profession to this, so you can head out there and do the reconnaissance, you can fulfill the founders, you can inspect the code, etc. But for an average person, there's now what, over 1,000 various types of coins offered, practically 1,200 I believe.
How do they do that? That's a great concern. I will state that 95% of ICOs are either deceitful or simply bad concepts. Okay. Right? There's nothing worse than someone that's young, earnest, with a terrible idea, that someone provides $40 million to. Right? Yeah, totally. So yeah, so I do not truly take part in numerous ICOs, and I advise you probably side step that market, unless you have actually got a special 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 start looking at the idea in more detail. So here are some fast and unclean things that you should look at, right? So, one is, are they resolving a problem that needs to be fixed? One of the huge drawbacks with very clever, technical individuals, is that they like to resolve issues that nobody appreciates solving.
Does the team have experience of carrying out in an effective way in another area of their life? And it doesn't even have to be straight related to cryptocurrency, it does not have to be even directly related to software, right? So, however I want to see a track record of success in something, right? If it's 4 guys in a space that are simply out of college, unless they've got some actually good advisors behind them, I'm most likely not going to offer them any cash.
Yeah. I think that in marketing in general, my world of service, we continuously look for issues and how we can resolve them. Now, are the problems things that individuals are trying to solve a part of the Blockchain typically? Or would you state it's much better if they're fixing sort 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 generally looking for solutions that, so I'll offer you an example.
And the reason that we bought it is due to the fact that they discovered a way to make documents tamper-proof, and it's 99% cheaper than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that began it has a performance history of developing computer programs that whole states run their entire operations on, right? So you have actually got alright, the clever man has built big computer system programs, fantastic team, solving a massive problem that is going to cut substantial expenses.
I mean, it doesn't get any easier than that in regards to choosing who to put money behind. And a great deal of this is typical 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 understand something, I installed my hand, and I say, "I didn't understand what you just said." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you comprehend it, then it's probably not a good idea. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience examining companies and looking at much, much bigger companies.
Ryan: So you have actually taken a look at companies that are big business, you have actually examined much bigger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you discussed, it is almost simply common sense. You simply need to sort of look at it and think logically about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no conventional metrics that you can look at.
Okay. What I can use that I gained from working on Wall Street throughout three years, is how to read individuals. I've met tens of countless people throughout my career. I have actually satisfied experts; I have actually fulfilled fund managers, I have actually fulfilled stock promoters, I have actually fulfilled all these different kinds of characters along the method.
So I believe that's most likely 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 someone, and they've got all the bonifides, but 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 many other deals out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you understand, you type of pointed out at the beginning, Bitcoin and Ethereum, the majority of people have actually become aware of these two, especially Bitcoin, since it looks 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 nearly upwards of $6,000 recently; it's shown up from state $3,000 not too long earlier, it's rather volatile. Do they type of await a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a great question.
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