So, a lot of people find that too troublesome, and that's why the people that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: people that are prepared to put in perhaps the 20 minutes needed to go through a process which just takes 5 minutes if you want to set up a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, setting up a crypto account is so tough." 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 entire cryptocurrency market will be 10x larger. So you're in fact really making money an enormous quantity of money to go through possibly, you understand, 20 minutes of a headache.
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 imagine what will take place to this whole market when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that people go through, and one thing I wish to bring to light too that you didn't mention, however I know 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 challenging as possible, right, like Coinbase. It 'd take me permanently prior to I could begin buying in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I mean, 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 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're 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 then purchased in on some of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since I'm always curious to talk to individuals who are, specifically someone like yourself, who's devoted the last, you know, 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 an average person? That's an excellent question.
They're 2 completely various things, however 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. And so what gives it value is that it is, there's only going to be a restricted quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals constantly try to hack it. However since of the nature of the network, today it's been unhackable. And truly, with existing innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've 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 saying, "We don't trust paper currency, you can print a limitless quantity of it. It's really not secure, and the government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that remained in Cypress, or just people who have suffered through either devaluation, 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 possibly be a driver for more adoption, since they currently do not believe in their own currency? Yeah, and I believe we've already seen that.
So yes, and this is a thing that a great deal of American or Western investors have a hard 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 don't need Bitcoin. However there are billions of individuals in the world that don't have steady currencies.
Yeah. And so there's this entire growing worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are essentially utilized, let's state Ethereum, which a lot of people learn about Ethereum. Ethereum is basically an international computer that you can compose computer programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an energy token, since you're basically buying programming 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 offer individuals a concept, like an extremely easy one that I would picture you 'd called an utility token, resembles FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's kind of this exact same type of network effect that you have with Bitcoin, where it's like unstoppable kind of thing, because it's on many different locations and. I do not understand the ins and outs of it, however as an example for someone who might simply be extremely fundamental in their understanding of this, there are so lots of different kinds of energies that are available.
And you sort of discussed having this boots on the ground experience. Now, because we're looking at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). Most of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, but I believe the real opportunity depends on the energy coin area.
There's all of these ICOs that were happening, those slowed down a bit with some changes to a couple of things that was going on, however individuals are going to come out of the woodwork and begin to develop utility coins- Correct, yeah. And people require to comprehend that not all energy coins are produced equal.
So you have the benefit of devoting your occupation to this, so you can go out there and do the recon, you can satisfy the creators, you can check the code, and so on. However for a typical person, there's now what, over 1,000 different types of coins offered, practically 1,200 I think.
How do they do that? That's a terrific 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 a horrible concept, that someone gives $40 million to. Right? Yeah, completely. So yeah, so I do not truly participate in many ICOs, and I advise you most likely side action 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 normally it'll crash 80% or so. Which's when we truly start taking a look at the idea in more information. 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 solved? Among the big disadvantages with very smart, technical individuals, is that they like to resolve issues that no one appreciates fixing.
Does the group have experience of carrying out in an effective manner in another area of their life? And it doesn't even need to be directly related to cryptocurrency, it doesn't have to be even directly related to software, right? So, but I desire to see a track record of success in something, right? If it's 4 people in a space that are simply out of college, unless they've got some truly excellent consultants behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in general, my world of business, we constantly look for problems and how we can solve them. Now, are the issues things that individuals are trying to resolve a part of the Blockchain normally? Or would you state it's much 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 generally trying to find solutions that, so I'll give you an example.
And the reason that we bought it is since they discovered a method to make documents tamper-proof, and it's 99% more affordable than present technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that began it has a track record of developing computer programs that entire states run their entire operations on, right? So you've got okay, the wise person has actually built huge computer system programs, terrific team, solving a huge issue that is going to cut substantial costs.
I imply, it does not get any easier than that in terms of deciding who to put cash behind. And a great deal of this is common sense, and a great deal of folks will try to make things more complicated than it is. And I have a really simple guideline, Ryan. If I do not comprehend something, I set up my hand, and I state, "I didn't understand what you simply said." Mm-hmm (affirmative).
And then if the individual that you're speaking to can't dumb it down enough where you comprehend it, then it's probably not a good 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 bigger companies.
Ryan: So you've looked at companies that are huge companies, you have actually examined much bigger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you mentioned, it is almost just common sense. You just have to type of look at it and think reasonably about what's going on, and pull the emotion out? You have to pull the feeling out, and there are no traditional metrics that you can look at.
Okay. What I can use that I gained from working on Wall Street across three years, is how to check out individuals. I've fulfilled 10s of thousands of people throughout my career. I've met experts; I've satisfied fund managers, I've met stock promoters, I've fulfilled all these different types of characters along the method.
So I believe that's probably one of my extremely powers, if you will. And if you have actually got a great BS detector, you should listen to it. Okay. You should absolutely listen to it. If I'm sitting down and I'm talking with someone, and they've 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 many other offers out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you kind of pointed out at the beginning, Bitcoin and Ethereum, the majority of people have actually heard of these 2, particularly Bitcoin, since it appears like it remains 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 shown up from state $3,000 not too long back, it's quite unpredictable. Do they kind of wait for a pullback, or do they simply state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You understand? Yeah that's a terrific question.
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