So, a lot of people find that too inconvenient, which's why individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: individuals that want to put in perhaps the 20 minutes needed to go through a process which just takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy your concepts, however gosh, setting up a crypto account is so difficult." What I inform 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 earning money a huge quantity of money to go through maybe, you understand, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, before you'll be able to purchase cryptocurrencies straight through your trading software. And can you envision what will occur to this entire market when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the process that people go through, and something I desire to expose 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 only buy $1,000 a week. Or you can just buy $500 a week.
As hard as possible, ideal, 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 remember the early days of the Internet, 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 remain in the early days of that innovation, however similar to during that time period, for the folks that had the vision to see where the future was going, and after that bought in on some of these young business, 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 explain cryptocurrency to like an average person? That's a fantastic 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 alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what provides it worth 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 deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals constantly attempt to hack it. But since of the nature of the network, today it's been unhackable. And really, with current innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
Therefore when people put, you've got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not trust paper cash, you can print a limitless quantity of it. It's actually not protect, and the federal government can take it far from you." - Whereas with Bitcoin, right , go on.
Yeah. Or people that remained in Cypress, or just individuals who have suffered through either devaluation, or there's a high demand for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those nations that could possibly be a driver for more adoption, due to the fact that they currently do not 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're like, "Well I don't require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't require Bitcoin. However there are billions of people on the planet that do not have stable currencies.
Yeah. Therefore there's this whole blossoming worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are essentially used, let's say Ethereum, which a lot of people understand about Ethereum. Ethereum is essentially a global computer 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 buying programming power. So I would not truly think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide people a concept, like a very basic one that I would envision 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 very same type of network result that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on a lot of various locations and. I don't understand the ins and outs of it, however as an example for somebody who may just be very fundamental in their understanding of this, there are numerous different types of energies that are readily available.
And you type of mentioned having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, however I believe the real opportunity lies in the utility coin space.
There's all of these ICOs that were happening, those decreased 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 create energy coins- Correct, yeah. And individuals need to understand that not all utility coins are developed equal.
So you have the benefit of committing your profession to this, so you can head out there and do the recon, you can satisfy the creators, you can examine the code, etc. But for a typical person, there's now what, over 1,000 different kinds of coins offered, nearly 1,200 I think.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either deceptive or simply bad concepts. Okay. Right? There's nothing worse than somebody that's young, earnest, with an awful concept, that somebody offers $40 million to. Right? Yeah, totally. So yeah, so I don't really get involved in lots of ICOs, and I recommend you most likely side step that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause normally it'll crash 80% or two. And that's when we actually start looking at the idea in more information. So here are some fast and dirty things that you should look at, right? So, one is, are they resolving an issue that needs to be solved? One of the big drawbacks with extremely clever, technical individuals, is that they like to solve problems that nobody appreciates fixing.
Does the team have experience of executing in an effective manner in another area of their life? And it doesn't even need to be straight associated to cryptocurrency, it does not have to be even straight related to software application, right? So, but I desire to see a performance history of success in something, right? If it's four guys in a room that are just out of college, unless they have actually got some actually excellent consultants behind them, I'm most likely not going to provide any cash.
Yeah. I believe that in marketing in general, my world of company, we constantly search for problems and how we can fix them. Now, are the issues things that individuals are trying to fix a part of the Blockchain typically? Or would you say it's much better if they're resolving kind 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 basically trying to find options that, so I'll give you an example.
And the factor that we bought it is because they discovered a method to make files tamper-proof, and it's 99% cheaper than existing technology, 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 producing computer system programs that whole states run their whole operations on, right? So you've got okay, the wise man has built huge computer programs, fantastic group, solving a huge problem that is going to cut substantial costs.
I imply, it doesn't get any simpler than that in regards to choosing who to put money behind. And a lot of this is common sense, and a lot of folks will try to make things more complex than it is. And I have an actually easy guideline, Ryan. If I do not comprehend something, I set up my hand, and I say, "I didn't understand what you simply said." Mm-hmm (affirmative).
And then if the person that you're speaking to can't dumb it down enough where you comprehend it, then it's probably not an excellent idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience evaluating companies and looking at much, much bigger business.
Ryan: So you've looked at companies that are big companies, you've examined much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you discussed, it is nearly simply sound judgment. You just have to kind of appearance at it and think logically about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no conventional metrics that you can take a look at.
Okay. What I can utilize that I discovered from dealing with Wall Street across three years, is how to read people. I have actually fulfilled tens of thousands of individuals throughout my profession. I have actually fulfilled experts; I have actually satisfied fund supervisors, I've satisfied stock promoters, I have actually satisfied all these various kinds of characters along the method.
So I think that's most likely one of my extremely powers, if you will. And if you've got a great BS detector, you ought to listen to it. Okay. You ought to definitely 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 sitting well with me, there's something about them that's not sitting well with me.
There are so numerous other deals out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you know, you kind of mentioned at the start, Bitcoin and Ethereum, most individuals have heard of these two, particularly Bitcoin, since it appears like it remains in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading almost upwards of $6,000 just recently; it's come up from state $3,000 not too long earlier, it's rather unstable. Do they sort of await a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's an excellent question.
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