So, a great deal of people find that too troublesome, and that's why the individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: individuals that are ready to put in perhaps 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 love your concepts, but gosh, setting up a crypto account is so tough." 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 in fact truly getting paid a huge quantity of money to go through perhaps, you know, 20 minutes of a pain in the neck.
So you can't purchase Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, prior to you'll be able to purchase cryptocurrencies directly through your trading software application. And can you envision what will happen to this entire marketplace when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you discussed the procedure that individuals go through, and one thing I want to bring to light too that you didn't discuss, but I understand a lot of folks who fight with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can just buy $500 a week.
As difficult as possible, right, like Coinbase. It 'd take me permanently before I could start buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I mean, it's if you remember the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I suggest 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 indicate, we remain in the early days of that technology, but much like during that duration of time, for the folks that had the vision to see where the future was going, and after that bought in on a few 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 speak with people who are, especially somebody like yourself, who's devoted the last, you understand, the lion's share of the last few years to truly go both feet in on this. How do you describe cryptocurrency to like an average individual? That's a fantastic concern.
They're 2 totally various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to cash. So Bitcoin would be a cryptocurrency. Therefore what gives it value is that it is, there's only going to be a minimal quantity. There'll never ever 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 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 actually, with existing innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when individuals put, you've got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We don't rely on fiat money, you can print a limitless amount of it. It's really not protect, and the government can take it away from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or people that were in Cypress, or simply individuals who have actually suffered through either devaluation, or there's a high need for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those countries that could possibly be a catalyst for more adoption, due to the fact that they already do not believe in their own currency? Yeah, and I believe we have actually currently 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're like, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You do not need Bitcoin. However there are billions of people worldwide that don't have stable currencies.
Yeah. Therefore there's this whole blossoming global need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are essentially used, let's say Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is essentially a worldwide computer system that you can compose computer system programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an energy token, because you're essentially purchasing programming 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 give individuals a concept, like an extremely easy one that I would envision you 'd called an utility token, resembles FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's sort of this very same kind of network impact that you have with Bitcoin, where it's like unstoppable example, since it's on many different locations and. I don't understand 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 many various kinds of energies that are offered.
And you sort of mentioned having this boots on the ground experience. Now, because we're taking a look at the bulk of these are most likely utility based, fix? Mm-hmm (affirmative). Most of the coins that I advise and look at are utility-based. We have a couple of cryptocurrencies, however I think the genuine opportunity lies in the energy coin area.
There's all of these ICOs that were happening, those decreased a bit with some modifications to a couple of things that was going on, but people are going to come out of the woodwork and start to create energy coins- Correct, yeah. And people require to understand that not all utility coins are created equal.
So you have the advantage of dedicating your occupation to this, so you can head out there and do the recon, you can satisfy the founders, you can inspect the code, etc. But for an average person, there's now what, over 1,000 various types of coins available, nearly 1,200 I think.
How do they do that? That's a terrific question. I will state that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a horrible idea, that someone provides $40 million to. Right? Yeah, absolutely. So yeah, so I don't actually participate in numerous ICOs, and I advise you most likely side action that market, unless you've got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% approximately. And that's when we really start looking at the idea in more detail. So here are some quick and filthy things that you should take a look at, right? So, one is, are they fixing an issue that needs to be fixed? One of the huge disadvantages with really wise, technical individuals, is that they like to resolve problems that no one cares about solving.
Does the team have experience of carrying out in a successful manner in another location of their life? And it does not even have to be straight related to cryptocurrency, it does not have to be even straight related to software application, right? So, but I want to see a performance history of success in something, right? If it's four people in a room that are just out of college, unless they've got some actually good consultants behind them, I'm most likely not going to provide any cash.
Yeah. I think that in marketing in general, my world of service, we continuously try to find issues and how we can resolve them. Now, are the problems things that people are attempting to fix a part of the Blockchain usually? Or would you state it's better if they're fixing 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 generally looking for options that, so I'll give you an example.
And the reason that we bought it is because they discovered 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 after that on top of that, the man that began it has a track record of developing computer programs that whole states run their whole operations on, right? So you've got all right, the clever guy has actually constructed substantial computer system programs, great group, resolving a huge problem that is going to cut huge expenses.
I mean, it doesn't get any easier than that in terms of deciding 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 comprehend something, I set up my hand, and I say, "I didn't understand what you just said." Mm-hmm (affirmative).
And after that if the individual that you're speaking with can't dumb it down enough where you understand it, then it's most likely not an excellent concept. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience evaluating business and looking at much, much larger companies.
Ryan: So you've taken a look at business that are huge companies, you have actually assessed much larger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you mentioned, it is practically simply good sense. You simply need to kind of take a look at it and believe rationally about what's going on, and pull the emotion out? You need to pull the emotion out, and there are no conventional metrics that you can take a look at.
Okay. What I can use that I gained from dealing with Wall Street across 3 decades, is how to read people. I've met tens of thousands of people throughout my career. I've fulfilled experts; I've met fund supervisors, I've met stock promoters, I've fulfilled all these various types of characters along the method.
So I think that's most likely among my incredibly powers, if you will. And if you have actually got a good BS detector, you ought to 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 just; it's not agreeing with me, there's something about them that's not agreeing with me.
There are numerous other offers out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you know, you sort of mentioned at the start, Bitcoin and Ethereum, most individuals have heard of these 2, particularly Bitcoin, due to the fact that it looks like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's turned up from state $3,000 not too long back, it's quite unstable. Do they kind of await a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a great concern.
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