So, a great deal of people find that too bothersome, which's why individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: individuals that want to put in maybe the 20 minutes needed to go through a procedure which simply takes 5 minutes if you desire to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, setting up a crypto account is so challenging." 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 whole cryptocurrency market will be 10x larger. So you're in fact truly making money a massive quantity of money to go through possibly, you understand, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll be able to buy cryptocurrencies directly through your trading software application. And can you picture what will happen to this entire marketplace when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the process that individuals go through, and one thing I wish to expose too that you didn't point out, however I understand a great deal of folks who struggle with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can just purchase $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me permanently prior to I might begin purchasing in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I indicate, 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 fill a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I suggest, we're in the early days of that technology, however similar to during that time period, for the folks that had the vision to see where the future was going, and after that 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, because I'm always curious to speak with people who are, specifically someone like yourself, who's devoted the last, you know, the lion's share of the last few years to truly go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a fantastic concern.
They're 2 totally different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option 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 ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, people continuously attempt to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And really, with present technology, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore when people put, you've 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 currency, you can print an unrestricted amount of it. It's actually not secure, and the government can take it far from you." - Whereas with Bitcoin, best , go on.
Yeah. Or individuals that remained in Cypress, or simply people who have actually suffered through either hyperinflation, 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 potentially be a catalyst for more adoption, because they currently don't think in their own currency? Yeah, and I believe we have actually currently seen that.
So yes, and this is a thing that a great deal of American or Western financiers have a tough time getting their head around. They resemble, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of people on the planet that don't have stable currencies.
Yeah. Therefore there's this whole burgeoning worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are basically utilized, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially an international computer that you can write computer system programs for and run computer programs on a globally decentralized computer system program.
So we think about something like Ether an energy token, due to the fact that you're essentially purchasing programs power. So I would not really consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give individuals a concept, like an extremely easy one that I would imagine you 'd called an utility token, is like FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's sort of this same type of network result that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on numerous various areas and. I don't understand the ins and outs of it, but as an example for someone who may simply be extremely standard in their understanding of this, there are many different kinds of energies that are offered.
And you sort of pointed out having this boots on the ground experience. Now, given that we're looking at the bulk of these are probably utility based, correct? Mm-hmm (affirmative). Many of the coins that I suggest and look at are utility-based. We have a few cryptocurrencies, however I think the real opportunity lies in the energy coin area.
There's all of these ICOs that were taking place, those decreased a 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 develop energy coins- Correct, yeah. And people need to understand that not all energy coins are produced equivalent.
So you have the advantage of dedicating your occupation to this, so you can go out there and do the recon, you can meet the founders, you can check the code, etc. However for a typical person, there's now what, over 1,000 various types of coins offered, almost 1,200 I think.
How do they do that? That's an excellent concern. 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 concept, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I do not really participate in many ICOs, and I recommend you probably side step that market, unless you've got an unique relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% approximately. Which's when we truly start taking a look at the concept in more information. So here are some quick and dirty things that you should look at, right? So, one is, are they fixing an issue that requires to be fixed? Among the huge drawbacks with really clever, technical people, is that they like to fix problems that nobody appreciates solving.
Does the group have experience of carrying out in an effective manner in another location of their life? And it doesn't even have to be straight associated to cryptocurrency, it doesn't have to be even straight associated to software, right? So, however I wish to see a track record of success in something, right? If it's 4 guys in a space that are simply out of college, unless they've got some truly great advisors behind them, I'm most likely not going to offer them any money.
Yeah. I believe that in marketing in basic, my world of business, we continuously search for issues and how we can solve them. Now, are the problems things that individuals are attempting to fix a part of the Blockchain typically? Or would you state it's much 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 basically trying to find services that, so I'll give you an example.
And the factor that we purchased it is since they discovered a way to make documents tamper-proof, and it's 99% cheaper than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that started it has a performance history of developing computer system programs that entire states run their entire operations on, right? So you've got alright, the smart guy has built huge computer programs, excellent group, solving a huge issue that is going to cut big costs.
I imply, it does not get any simpler than that in terms of choosing who to put money behind. And a lot of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have an actually simple rule, Ryan. If I don't comprehend something, I set up my hand, and I say, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And then if the person that you're speaking with can't dumb it down enough where you comprehend it, then it's probably not an excellent concept. Right, right. It's going to be easy to understand. And do you feel that you have years of experience evaluating companies and looking at much, much larger business.
Ryan: So you've looked at companies that are huge companies, you have actually evaluated much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you discussed, it is nearly just sound judgment. You just need to kind of take a look at it and think rationally 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 look at.
Okay. What I can use that I gained from dealing with Wall Street throughout 3 years, is how to read people. I've fulfilled 10s of thousands of people throughout my profession. I've satisfied insiders; I've fulfilled fund supervisors, I've met stock promoters, I have actually met all these different kinds of characters along the method.
So I believe that's probably one of my super powers, if you will. And if you have actually got an excellent BS detector, you must listen to it. Okay. You ought to absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually 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 agreeing with me.
There are so numerous other offers out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you understand, you kind of discussed at the beginning, Bitcoin and Ethereum, the majority of people have heard of these two, particularly Bitcoin, because it appears like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading nearly upwards of $6,000 just recently; it's come up from state $3,000 not too long ago, it's quite 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 know? Yeah that's a fantastic concern.
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