So, a great deal of people discover that too inconvenient, which's why individuals that are actually making the most amount of cash right now in cryptocurrencies are the early adopters: people that want to put in maybe the 20 minutes needed to go through a process which just takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we like your concepts, however gosh, establishing a crypto account is so hard." What I inform them is I say, "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 bigger. So you're actually really getting paid a massive quantity of money to go through perhaps, you know, 20 minutes of a discomfort in the neck.
So you can't buy Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, before you'll have the ability to purchase cryptocurrencies directly through your trading software. And can you picture what will occur to this whole marketplace when purchasing Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the process that people go through, and something I wish to bring to light too that you didn't mention, but I know a great deal of folks who battle with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can only buy $500 a week.
As tough as possible, best, like Coinbase. It 'd take me permanently before I might start buying in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I mean, it's if you remember the early days of the Web, when we were getting on the Web, we were doing it with 56k modems, right? I indicate 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 throughout that amount of time, for the folks that had the vision to see where the future was going, and after that purchased in on some of these young companies, 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 with individuals who are, especially someone like yourself, who's dedicated the last, you know, the much better part of the last few years to truly go both feet in on this. How do you describe cryptocurrency to like an average person? That's a fantastic concern.
They're two absolutely different 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 value is that it is, there's just going to be a minimal amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the transactions 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 really, with current innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you have actually got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not rely on paper currency, you can print a limitless quantity of it. It's really not secure, and the government can take it away from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that remained in Cypress, or simply individuals who have suffered through either run-away inflation, or there's a high need for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those nations that could possibly be a catalyst for more adoption, due to the fact that they currently do not think in their own currency? Yeah, and I think we've currently 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 resemble, "Well I don't need Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of people in the world that don't have steady currencies.
Yeah. Therefore there's this entire growing international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are essentially used, let's state Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is essentially a global computer that you can compose computer system programs for and run computer programs on a globally decentralized computer program.
So we consider something like Ether an utility token, because you're essentially purchasing programming power. So I wouldn't actually consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide people a concept, like an extremely basic 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 type of this same kind of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on many various areas and. I don't understand the ins and outs of it, but as an example for someone who may simply be very fundamental in their understanding of this, there are a lot of various kinds of utilities that are available.
And you kind of pointed out having this boots on the ground experience. Now, given that we're looking at the bulk of these are most likely energy based, correct? Mm-hmm (affirmative). Many of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, however I believe the real chance depends on the utility coin area.
There's all of these ICOs that were occurring, those decreased a little bit with some changes to a couple of things that was going on, however individuals are going to come out of the woodwork and start to create energy coins- Correct, yeah. And individuals need to comprehend that not all utility coins are developed equal.
So you have the advantage of devoting your occupation to this, so you can head out there and do the recon, you can satisfy the founders, you can inspect the code, and so on. However for a typical individual, there's now what, over 1,000 different kinds of coins offered, nearly 1,200 I think.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either deceptive or simply bad concepts. Okay. Right? There's nothing even worse than somebody that's young, earnest, with an awful idea, that someone gives $40 million to. Right? Yeah, completely. So yeah, so I don't truly participate in many ICOs, and I suggest you most likely side step that market, unless you have actually got an unique 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 truly begin taking a look at the concept in more detail. So here are some fast and dirty things that you should take a look at, right? So, one is, are they fixing an issue that requires to be resolved? Among the huge disadvantages with very wise, technical individuals, is that they like to solve issues that no one cares about fixing.
Does the team have experience of carrying out in an effective way in another location of their life? And it doesn't even have to be straight related to cryptocurrency, it doesn't need to be even straight associated to software, right? So, however I desire to see a track record of success in something, right? If it's four people in a space that are just out of college, unless they've got some truly excellent consultants behind them, I'm probably not going to provide them any money.
Yeah. I believe that in marketing in basic, my world of company, we continuously look for issues and how we can fix them. Now, are the issues things that people are attempting to fix a part of the Blockchain usually? Or would you say it's 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 basically looking for services that, so I'll provide you an example.
And the factor that we purchased it is because they found a method to make files tamper-proof, and it's 99% less expensive than existing innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that began it has a track record of producing computer system programs that entire states run their entire operations on, right? So you've got alright, the smart guy has actually built big computer programs, terrific group, fixing a huge problem that is going to cut huge costs.
I suggest, it does not get any simpler than that in terms of deciding who to put money behind. And a lot of this is typical sense, and a great deal of folks will try to make things more complicated than it is. And I have an actually simple rule, Ryan. If I don't understand something, I put up my hand, and I state, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And after that if the person that you're talking with can't dumb it down enough where you understand it, then it's probably not a good concept. Right, right. It's going to be easy to understand. And do you feel that you have years of experience examining business and looking at much, much bigger business.
Ryan: So you've taken a look at companies that are huge business, you have actually assessed much larger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you mentioned, it is almost simply typical sense. You just need to type of take a look at it and think rationally about what's going on, and pull the feeling out? You have 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 discovered from dealing with Wall Street throughout three years, is how to read people. I have actually met 10s of thousands of individuals throughout my career. I've fulfilled insiders; I've fulfilled fund managers, I have actually satisfied stock promoters, I have actually satisfied all these different kinds of characters along the method.
So I believe that's probably among my extremely powers, if you will. And if you have actually got a great BS detector, you should listen to it. Okay. You must definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually got all the bonifides, but you understand, there's simply; it's not sitting well with me, there's something about them that's not sitting well with me.
There are numerous other offers out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you understand, you type of pointed out at the beginning, Bitcoin and Ethereum, many people have actually become aware of these two, 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 nearly upwards of $6,000 just recently; it's turned up from state $3,000 not too long earlier, it's quite volatile. Do they type of wait on a pullback, or do they just 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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