So, a lot of people discover that too troublesome, which's why the individuals that are literally making the most amount of cash today in cryptocurrencies are the early adopters: people that want to put in perhaps the 20 minutes needed to go through a procedure which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your concepts, but gosh, setting up a crypto account is so hard." 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 larger. So you're in fact truly earning money an enormous quantity of money to go through maybe, you know, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, but 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 envision what will occur to this whole market when buying Bitcoin or any cryptocurrency is as simple as firing 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 point out, but I know a lot of folks who deal with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can only buy $500 a week.
As difficult as possible, ideal, like Coinbase. It 'd take me forever before I could begin purchasing in size on Coinbase. They resemble, well, we'll let you purchase $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 suggest 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 imply, we remain in the early days of that technology, however much like during that period 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 second, due to the fact that I'm always curious to talk with individuals who are, particularly someone like yourself, who's committed the last, you understand, the bulk of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like a typical person? That's a terrific concern.
They're 2 completely different things, however 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. And so what gives it value is that it is, there's just going to be a minimal amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals continuously attempt to hack it. However because of the nature of the network, today it's been unhackable. And truly, with present technology, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
And so when people 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 stating, "We don't trust paper currency, you can print an endless quantity of it. It's truly not protect, and the federal government can take it away from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or people that remained in Cypress, or just people who have actually suffered through either devaluation, 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, because they currently don't believe in their own currency? Yeah, and I believe we've already seen that.
So yes, and this is a thing that a lot of American or Western financiers have a bumpy ride getting their head around. They're like, "Well I do not require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. However there are billions of individuals worldwide that do not have steady currencies.
Yeah. Therefore there's this entire burgeoning international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are essentially used, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially an international computer system that you can compose computer programs for and run computer system programs on a globally decentralized computer system program.
So we consider something like Ether an energy token, due to the fact that you're basically buying programming power. So I wouldn't truly consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals an idea, like an extremely simple one that I would picture you 'd called an energy token, is like FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's type of this exact same type of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on so many different areas and. I don't understand the ins and outs of it, however as an example for someone who may just be very fundamental in their understanding of this, there are numerous various types of utilities that are available.
And you sort of discussed having this boots on the ground experience. Now, given that 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 recommend and take a look at are utility-based. We have a few cryptocurrencies, but I believe the real chance lies in the energy coin space.
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, however individuals are going to come out of the woodwork and begin to produce energy coins- Correct, yeah. And people need to understand that not all energy coins are produced equal.
So you have the benefit of committing your occupation to this, so you can go out there and do the recon, you can satisfy the founders, you can examine the code, and so on. But for a typical person, there's now what, over 1,000 different kinds of coins offered, almost 1,200 I think.
How do they do that? That's a fantastic question. I will say that 95% of ICOs are either fraudulent or just bad ideas. Okay. Right? There's nothing even worse than someone that's young, earnest, with a terrible concept, that somebody gives $40 million to. Right? Yeah, completely. So yeah, so I don't truly get involved in lots of 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 then blow it out when it trades.
'Cause generally it'll crash 80% approximately. And that's when we actually start looking at the concept in more information. So here are some quick and unclean things that you should take a look at, right? So, one is, are they solving a problem that needs to be resolved? One of the huge disadvantages with very clever, technical individuals, is that they like to fix issues that no one cares about resolving.
Does the team have experience of carrying out in a successful manner in another location of their life? And it doesn't even have to be directly associated to cryptocurrency, it does not need to be even directly associated to software, right? So, but I desire to see a track record of success in something, right? If it's 4 guys in a room that are just out of college, unless they have actually got some truly good consultants behind them, I'm probably not going to provide any money.
Yeah. I think that in marketing in basic, my world of company, we continuously search for problems and how we can resolve them. Now, are the issues things that individuals are attempting to resolve a part of the Blockchain normally? Or would you state 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 essentially trying to find services that, so I'll offer you an example.
And the reason that we purchased it is because they found a way to make files tamper-proof, and it's 99% less expensive than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the guy that started it has a performance history of developing computer programs that whole states run their whole operations on, right? So you have actually got alright, the clever person has constructed big computer system programs, great team, resolving a massive issue that is going to cut substantial expenses.
I indicate, it does not get any simpler than that in terms of deciding 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 basic guideline, Ryan. If I don't comprehend something, I set up my hand, and I state, "I didn't comprehend 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 understand it, then it's probably not an excellent idea. 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 looked at business that are huge companies, you've evaluated much bigger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you discussed, it is almost simply sound judgment. You simply have to sort of take a look at it and think logically about what's going on, and pull the emotion 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 utilize that I discovered from working on Wall Street throughout 3 decades, is how to check out individuals. I have actually fulfilled tens of countless individuals throughout my career. I've fulfilled experts; I have actually met fund managers, I have actually satisfied stock promoters, I have actually fulfilled all these different kinds of characters along the way.
So I believe that's most likely one of my extremely powers, if you will. And if you have actually got a great BS detector, you need to listen to it. Okay. You should definitely 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 understand, there's simply; it's not sitting well with me, there's something about them that's not agreeing with me.
There are a lot of other offers out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you know, you kind of discussed at the start, Bitcoin and Ethereum, many people have actually become aware of these 2, particularly Bitcoin, because it looks like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 just recently; it's come up from state $3,000 not too long back, it's quite unpredictable. Do they kind of wait on 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 a terrific question.
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