So, a great deal of individuals discover that too troublesome, which's why 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 needed to go through a procedure which simply takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy your ideas, however gosh, setting up a crypto account is so hard." 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 getting paid a huge amount of money to go through perhaps, you know, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, but it is just a question of time, Ryan, prior to you'll be able to buy cryptocurrencies straight through your trading software. And can you picture what will occur to this whole market when purchasing Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that people go through, and one thing I wish to bring to light too that you didn't point out, however I understand a great deal of folks who have problem with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can only buy $500 a week.
As hard as possible, ideal, like Coinbase. It 'd take me forever prior to I could start purchasing in size on Coinbase. They resemble, 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 imply 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 indicate, we remain in the early days of that innovation, however much like during that period 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 outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm always curious to talk with people who are, specifically someone like yourself, who's devoted the last, you understand, the better part of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like an average person? That's an excellent question.
They're two absolutely various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to money. So Bitcoin would be a cryptocurrency. Therefore what provides it value is that it is, there's just going to be a minimal quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people constantly try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And truly, with existing technology, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore when people put, you have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We do not trust paper currency, you can print an endless amount of it. It's actually not protect, and the government can take it far from you." - Whereas with Bitcoin, right , go on.
Yeah. Or people that were in Cypress, or just 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 countries that could possibly be a driver for more adoption, due to the fact that they currently don't think in their own currency? Yeah, and I believe we have actually 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 resemble, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of individuals worldwide that do not have steady currencies.
Yeah. Therefore there's this whole growing international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And utility coins are basically used, let's say Ethereum, which a lot of people understand about Ethereum. Ethereum is essentially a global computer system that you can compose computer programs for and run computer system programs on a globally decentralized computer system program.
So we think about something like Ether an energy token, due to the fact that you're essentially purchasing shows 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 provide individuals an idea, like a very simple one that I would imagine 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 sort of this same kind of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on so numerous different areas and. I do not know the ins and outs of it, however as an example for somebody who might just be extremely basic in their understanding of this, there are so numerous different kinds of utilities that are offered.
And you type of pointed out 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 couple of cryptocurrencies, but I believe the genuine opportunity depends on the energy coin space.
There's all of these ICOs that were happening, those slowed down 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 develop energy coins- Correct, yeah. And individuals require to comprehend that not all energy coins are produced equal.
So you have the benefit of dedicating your profession to this, so you can head out there and do the reconnaissance, you can fulfill the founders, you can examine the code, and so on. However for a typical individual, there's now what, over 1,000 different types of coins readily available, practically 1,200 I believe.
How do they do that? That's a great concern. I will state that 95% of ICOs are either fraudulent or just bad ideas. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a dreadful idea, that somebody provides $40 million to. Right? Yeah, completely. So yeah, so I do not really participate in lots of ICOs, and I recommend 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 generally it'll crash 80% or two. Which's when we actually start looking at the idea in more detail. So here are some fast and unclean things that you should take a look at, right? So, one is, are they fixing an issue that needs to be fixed? Among the big downsides with extremely wise, technical people, is that they like to fix problems that no one appreciates fixing.
Does the group have experience of performing in a successful manner in another area of their life? And it doesn't even need to be straight related to cryptocurrency, it doesn't have to be even straight associated to software application, right? So, however I wish to see a track record of success in something, right? If it's four people in a space that are just out of college, unless they've got some actually great advisors behind them, I'm probably not going to provide any cash.
Yeah. I believe that in marketing in general, my world of organization, we continuously try to find issues and how we can solve them. Now, are the problems things that people are attempting to resolve a part of the Blockchain usually? Or would you state it's 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 essentially looking for options that, so I'll give you an example.
And the factor that we purchased it is because they discovered a method to make documents tamper-proof, and it's 99% more affordable than current 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 system programs that entire states run their entire operations on, right? So you have actually got all right, the smart person has constructed substantial computer system programs, fantastic group, resolving a huge problem that is going to cut substantial expenses.
I indicate, it doesn't get any easier than that in regards to deciding who to put money behind. And a great deal of this is common sense, and a lot of folks will try to make things more complicated than it is. And I have a truly easy rule, Ryan. If I don't comprehend something, I put up my hand, and I say, "I didn't comprehend what you simply 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 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 assessing companies and taking a look at much, much bigger companies.
Ryan: So you've taken a look at business that are big companies, you've examined much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you mentioned, it is nearly simply typical sense. You just have to sort of take a look at it and believe logically about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no traditional metrics that you can look at.
Okay. What I can utilize that I learned from working on Wall Street across three decades, is how to check out people. I've satisfied 10s of thousands of people throughout my career. I've fulfilled experts; I have actually fulfilled fund supervisors, I have actually met stock promoters, I've fulfilled all these various kinds of characters along the way.
So I believe that's probably among my very powers, if you will. And if you have actually got a good 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 somebody, and they have actually got all the bonifides, however you know, there's just; it's not sitting well with me, there's something about them that's not sitting well with me.
There are a lot of other deals out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of chance, you understand, you kind of mentioned at the beginning, Bitcoin and Ethereum, many people have heard of these two, especially Bitcoin, since it looks like it remains in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's shown up from say $3,000 not too long back, it's rather unstable. Do they kind 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 fantastic concern.
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