So, a great deal of individuals 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 are prepared to put in possibly the 20 minutes required to go through a process which simply takes 5 minutes if you want 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 easy 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 really getting paid a massive quantity of cash to go through perhaps, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, before you'll be able to buy cryptocurrencies directly through your trading software application. And can you imagine what will occur to this whole marketplace 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 discuss, but I know a great deal of folks who have problem with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can only buy $500 a week.
As tough as possible, best, like Coinbase. It 'd take me permanently prior to I could start 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 mean it would take 20 minutes to load a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I indicate, we're in the early days of that innovation, however simply like during that time period, for the folks that had the vision to see where the future was going, and then bought in on some of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since I'm constantly curious to talk with individuals who are, especially somebody like yourself, who's committed the last, you know, the much better part of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a great concern.
They're two completely different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to money. So Bitcoin would be a cryptocurrency. Therefore what gives it worth is that it is, there's only going to be a minimal amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, individuals constantly attempt to hack it. But because of the nature of the network, today it's been unhackable. And really, with existing innovation, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
And so when people put, you've got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not trust fiat money, you can print a limitless amount of it. It's actually not secure, and the federal government can take it far 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 demand for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those countries that could possibly be a catalyst for more adoption, since they already do not believe 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 financiers have a difficult time getting their head around. They resemble, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not require Bitcoin. However there are billions of people on the planet that do not have steady currencies.
Yeah. And so there's this entire blossoming international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are essentially used, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is basically a global computer that you can compose computer programs for and run computer programs on a globally decentralized computer system program.
So we consider something like Ether an energy token, because you're essentially buying shows power. So I wouldn't really think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide individuals a concept, like a very basic one that I would envision you 'd called an utility token, is like FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's sort of this very same type of network effect that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on many different locations and. I don't understand the ins and outs of it, however as an example for someone who might simply be extremely basic in their understanding of this, there are many various kinds of utilities that are available.
And you kind 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, correct? Mm-hmm (affirmative). Many of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, however I believe the genuine opportunity depends on the energy coin area.
There's all of these ICOs that were occurring, those slowed down a bit with some modifications to a few things that was going on, but people are going to come out of the woodwork and start to produce energy coins- Correct, yeah. And individuals need to comprehend that not all energy coins are developed equal.
So you have the advantage of devoting your occupation to this, so you can head out there and do the reconnaissance, you can meet the creators, you can check the code, etc. However for a typical person, there's now what, over 1,000 various types 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 fraudulent or simply bad ideas. Okay. Right? There's nothing even worse than someone that's young, earnest, with a horrible idea, that someone offers $40 million to. Right? Yeah, absolutely. So yeah, so I don't actually participate in numerous ICOs, and I suggest you most likely 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 generally it'll crash 80% approximately. And that'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 take a look at, right? So, one is, are they resolving an issue that needs to be resolved? One of the big disadvantages with very clever, technical people, is that they like to fix issues that nobody cares about resolving.
Does the group have experience of executing in a successful way in another area of their life? And it does not even have to be straight associated to cryptocurrency, it doesn't need to be even straight related to software, right? So, however I wish to see a track record of success in something, right? If it's 4 people in a room that are just out of college, unless they've got some truly good advisors behind them, I'm probably not going to provide any money.
Yeah. I believe that in marketing in basic, my world of service, we continuously look for issues and how we can fix them. Now, are the problems things that individuals are trying to solve a part of the Blockchain typically? Or would you state it's much better if they're resolving 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 looking for solutions that, so I'll offer you an example.
And the reason that we purchased it is since they found a method to make documents tamper-proof, and it's 99% more affordable than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the man that started it has a track record of developing computer system programs that entire states run their whole operations on, right? So you have actually got all right, the wise man has built substantial computer system programs, great group, solving a massive problem that is going to cut huge expenses.
I suggest, it does not get any simpler than that in terms of deciding who to put money behind. And a great deal of this prevails sense, and a great deal of folks will attempt to make things more complex than it is. And I have a really basic guideline, Ryan. If I don't understand something, I set up my hand, and I say, "I didn't understand what you just 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 comprehend. And do you feel that you have years of experience assessing business and taking a look at much, much bigger companies.
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 assisted you? Or are we in such, sort of the infancy, that as you mentioned, it is almost simply sound judgment. You simply need to kind of appearance at it and believe logically about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no conventional metrics that you can take a look at.
Okay. What I can use that I gained from working on Wall Street throughout 3 years, is how to check out people. I've satisfied 10s of thousands of individuals throughout my profession. I've satisfied experts; I've met fund supervisors, I've fulfilled stock promoters, I've satisfied all these different types of characters along the way.
So I believe that's most likely among my incredibly powers, if you will. And if you have actually got a good BS detector, you should listen to it. Okay. You need to absolutely 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 just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are a lot of other offers out there to look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you know, you type of discussed at the start, Bitcoin and Ethereum, the majority of people have become aware of these two, especially Bitcoin, because it seems 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 practically upwards of $6,000 just recently; it's shown up from state $3,000 not too long earlier, it's quite volatile. Do they type of wait on a pullback, or do they simply state, "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 great concern.
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