So, a great deal of individuals discover that too bothersome, which's why individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: individuals that are ready to put in maybe the 20 minutes required to go through a process which simply takes 5 minutes if you want to establish a brokerage account.
" Oh Teeka, we like your ideas, but gosh, setting up a crypto account is so challenging." What I tell them is I state, "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 bigger. So you're actually truly earning money an enormous quantity of cash to go through maybe, you know, 20 minutes of a discomfort in the neck.
So you can't purchase Bitcoin yet through their trading platform, but it is simply a concern of time, Ryan, prior to you'll have the ability to buy cryptocurrencies directly through your trading software application. And can you imagine what will happen to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that people go through, and something I wish to bring to light too that you didn't discuss, however I understand a great deal of folks who fight with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can just purchase $500 a week.
As challenging as possible, ideal, like Coinbase. It 'd take me forever prior to I might start purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I mean, 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 imply, we remain in the early days of that technology, but just like throughout that amount of time, for the folks that had the vision to see where the future was going, and then bought in on a few of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, due to the fact that I'm always curious to speak to individuals who are, specifically somebody like yourself, who's dedicated the last, you understand, the lion's share of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like a typical 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 cash. So Bitcoin would be a cryptocurrency. And so what gives it worth is that it is, there's just going to be a restricted quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the deals on the Bitcoin network. And so if you look at that Bitcoin network, individuals 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 big today, you can't co-opt it, you can't take it over.
And so when individuals put, you have actually got people who have actually 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 fiat money, you can print a limitless amount of it. It's truly not secure, and the federal government can take it away from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or people that were in Cypress, or just individuals who have suffered through either hyperinflation, 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 potentially be a driver for more adoption, since they currently don't think in their own currency? Yeah, and I think we've 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 do not require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. But there are billions of individuals on the planet that do not have stable currencies.
Yeah. Therefore there's this whole burgeoning international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are basically used, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is basically a worldwide computer system that you can write computer system programs for and run computer system programs on an internationally decentralized computer system program.
So we think about something like Ether an energy token, since you're essentially purchasing programs power. So I wouldn't really consider 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 very simple one that I would picture you 'd called an energy token, is like FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's type of this same kind of network result 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, but as an example for somebody who may simply be extremely fundamental in their understanding of this, there are a lot of different types of energies that are offered.
And you type of discussed having this boots on the ground experience. Now, since we're taking a look at the bulk of these are most likely energy based, fix? Mm-hmm (affirmative). The majority of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, however I think the real opportunity depends on the energy coin area.
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 produce energy coins- Correct, yeah. And individuals require to comprehend that not all energy coins are developed equal.
So you have the advantage of committing your profession to this, so you can go out there and do the recon, you can fulfill the founders, you can examine the code, and so on. But for a typical person, there's now what, over 1,000 different kinds of coins available, practically 1,200 I think.
How do they do that? That's a great concern. I will state that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with an awful idea, that someone provides $40 million to. Right? Yeah, absolutely. So yeah, so I do not really get involved in lots of ICOs, and I suggest you most likely side action that market, unless you've got an unique relationship, and you can participate 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 taking a look at the concept in more detail. So here are some fast and unclean things that you should look at, right? So, one is, are they fixing a problem that needs to be resolved? Among the big drawbacks with extremely clever, technical individuals, is that they like to solve problems that nobody appreciates solving.
Does the group have experience of executing in an effective way in another area of their life? And it doesn't even need to be straight related to cryptocurrency, it doesn't need to be even directly associated to software application, right? So, but I wish to see a performance history of success in something, right? If it's 4 men in a space that are simply out of college, unless they've got some truly excellent advisors behind them, I'm most likely not going to give them any cash.
Yeah. I believe that in marketing in general, my world of company, we constantly try to find issues and how we can resolve them. Now, are the issues things that people are attempting to solve a part of the Blockchain usually? Or would you say it's 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 essentially trying to find services that, so I'll provide you an example.
And the reason that we purchased it is since they found a way to make documents tamper-proof, and it's 99% cheaper than present 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 smart man has developed substantial computer programs, terrific group, fixing an enormous issue that is going to cut big expenses.
I indicate, it does not get any simpler than that in terms of choosing who to put cash behind. And a great deal of this prevails sense, and a lot of folks will attempt to make things more complicated than it is. And I have a truly basic rule, Ryan. If I do not understand something, I installed my hand, and I say, "I didn't understand what you just stated." Mm-hmm (affirmative).
And then if the individual that you're talking to can't dumb it down enough where you comprehend it, then it's most likely not a good concept. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience examining companies and looking at much, much larger business.
Ryan: So you have actually looked at companies that are big business, you've evaluated much larger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you discussed, it is nearly simply good sense. You simply need to type of take a look at it and think reasonably about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no standard metrics that you can take a look at.
Okay. What I can utilize that I gained from working on Wall Street across 3 decades, is how to check out people. I've met tens of thousands of individuals throughout my profession. I've satisfied experts; I've met fund supervisors, I have actually satisfied stock promoters, I've met all these various kinds of characters along the way.
So I believe that's most likely one of my extremely powers, if you will. And if you have actually got an excellent BS detector, you should listen to it. Okay. You must definitely listen to it. If I'm sitting down and I'm talking with someone, and they have actually got all the bonifides, but you know, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are so lots of other deals out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you understand, you sort of mentioned at the beginning, Bitcoin and Ethereum, the majority of people have become aware of these 2, particularly Bitcoin, because it looks 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 recently; it's turned up from say $3,000 not too long earlier, it's quite unpredictable. Do they type of wait on 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 understand? Yeah that's an excellent concern.
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