So, a great deal of people find that too inconvenient, and that's why individuals that are literally making the most amount of cash today in cryptocurrencies are the early adopters: people that are prepared to put in possibly the 20 minutes required to go through a procedure which just takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your ideas, however gosh, establishing a crypto account is so hard." What I tell 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 bigger. So you're actually really making money a massive amount of cash to go through possibly, you know, 20 minutes of a pain in the neck.
So you can't purchase Bitcoin yet through their trading platform, however it is just a question of time, Ryan, prior to you'll be able to purchase cryptocurrencies straight through your trading software application. And can you picture what will happen to this whole marketplace when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that people go through, and something I want to bring to light too that you didn't point out, but I know a great deal of folks who fight with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can only buy $500 a week.
As difficult as possible, ideal, like Coinbase. It 'd take me forever prior to I could start purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I imply, 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 suggest 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 mean, we're in the early days of that technology, but simply like during that time period, for the folks that had the vision to see where the future was going, and then bought in on some of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a second, because I'm constantly curious to talk to individuals who are, especially somebody like yourself, who's committed the last, you know, 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 individual? That's an excellent question.
They're 2 absolutely different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to money. So Bitcoin would be a cryptocurrency. Therefore what offers 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 computer systems, verifying the deals 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 actually, with existing technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when people put, you have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We don't trust paper money, you can print a limitless quantity of it. It's actually not secure, and the federal government can take it away from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or people that remained in Cypress, or simply individuals who have actually suffered through either hyperinflation, or there's a high demand for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those nations that could potentially be a driver for more adoption, since they already do not believe in their own currency? Yeah, and I think we have actually already seen that.
So yes, and this is a thing that a lot of American or Western investors have a tough time getting their head around. They resemble, "Well I don't need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. But there are billions of individuals worldwide that don't have steady currencies.
Yeah. And so there's this whole blossoming global need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are generally utilized, let's state Ethereum, which a lot of individuals learn about Ethereum. Ethereum is basically an international computer system that you can compose computer system programs for and run computer system programs on a globally decentralized computer program.
So we think about something like Ether an utility token, because you're essentially purchasing programs power. So I would not truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer individuals an idea, like a very basic one that I would envision you 'd called an energy 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 impact that you have with Bitcoin, where it's like unstoppable example, since it's on so many various locations and. I do not know the ins and outs of it, but as an example for someone who may simply be very standard in their understanding of this, there are a lot of different types of energies that are available.
And you kind of mentioned having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are probably utility based, correct? Mm-hmm (affirmative). Most of the coins that I recommend and take a look at are utility-based. We have a couple of cryptocurrencies, but I think the real opportunity lies in the energy coin area.
There's all of these ICOs that were happening, 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 start to create energy coins- Correct, yeah. And people require to understand that not all energy coins are developed equivalent.
So you have the benefit of dedicating your profession to this, so you can head out there and do the recon, you can satisfy the founders, you can inspect the code, etc. However for a typical individual, there's now what, over 1,000 various kinds of coins available, nearly 1,200 I believe.
How do they do that? That's an excellent concern. I will say that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with an awful idea, that somebody provides $40 million to. Right? Yeah, absolutely. So yeah, so I don't truly take part in lots of ICOs, and I advise you probably side step that market, unless you have actually got an unique relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause usually it'll crash 80% or so. And that's when we truly 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 an issue that requires to be resolved? One of the big downsides with really wise, technical individuals, is that they like to resolve issues that no one cares about solving.
Does the team have experience of executing in an effective way in another area of their life? And it doesn't even need to be straight associated to cryptocurrency, it does not need to be even directly associated to software, right? So, however I want to see a performance history of success in something, right? If it's four guys in a space that are just out of college, unless they have actually got some really good advisors behind them, I'm most likely not going to give them any money.
Yeah. I think that in marketing in basic, my world of service, we continuously search for problems and how we can solve them. Now, are the issues things that people are attempting to solve a part of the Blockchain generally? Or would you say it's much better if they're fixing kind 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 offer you an example.
And the factor that we purchased it is since they found a method to make documents tamper-proof, and it's 99% more affordable than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that started it has a track record of developing computer system programs that whole states run their whole operations on, right? So you've got alright, the clever man has constructed big computer system programs, terrific team, resolving a huge problem that is going to cut big costs.
I imply, it doesn't get any simpler than that in terms of deciding 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 complex than it is. And I have a really basic guideline, Ryan. If I don't comprehend something, I set up my hand, and I say, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And then if the individual that you're speaking with can't dumb it down enough where you understand it, then it's most likely not a great idea. Right, right. It's going to be easy to understand. And do you feel that you have years of experience evaluating companies and taking a look at much, much larger business.
Ryan: So you have actually taken a look at companies that are huge business, you've assessed much bigger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you pointed out, it is almost just typical sense. You just have to type of take a 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 traditional metrics that you can look at.
Okay. What I can utilize that I gained from working on Wall Street across three decades, is how to check out people. I have actually met tens of countless individuals throughout my profession. I have actually met insiders; I have actually met fund supervisors, I have actually satisfied stock promoters, I have actually met all these various types of characters along the method.
So I think that's probably one of my extremely powers, if you will. And if you have actually got a great BS detector, you ought to listen to it. Okay. You need to absolutely listen to it. If I'm sitting down and I'm talking with someone, and they have actually got all the bonifides, but you understand, there's simply; 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 excessive chance. Yeah. And speaking of opportunity, you know, you type of pointed out at the beginning, Bitcoin and Ethereum, many people have actually become aware of these two, especially Bitcoin, because it appears like it's 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 just recently; it's turned up from state $3,000 not too long ago, it's quite unstable. Do they sort of wait for a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's a fantastic question.
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