So, a lot of individuals discover that too inconvenient, which's why the individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are ready to put in possibly the 20 minutes needed to go through a procedure which simply takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we enjoy your ideas, however gosh, setting up a crypto account is so challenging." What I tell them is I say, "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 earning money a huge quantity of cash to go through maybe, you understand, 20 minutes of a pain in the neck.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, prior to you'll have the ability to buy cryptocurrencies straight through your trading software. And can you imagine what will happen to this whole marketplace when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the procedure that people go through, and one thing I wish to bring to light too that you didn't mention, however I understand a great deal of folks who fight with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can just purchase $500 a week.
As tough as possible, right, like Coinbase. It 'd take me forever prior to I might start purchasing in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I mean, it's if you keep in mind the early days of the Web, 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 suggest, we're in the early days of that technology, however much like during that time period, for the folks that had the vision to see where the future was going, and then bought in on a few of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm always curious to talk with people who are, specifically somebody like yourself, who's devoted the last, you know, the bulk of the last couple of years to really go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a fantastic concern.
They're 2 completely different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what provides 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, verifying the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people continuously try to hack it. However because of the nature of the network, today it's been unhackable. And really, with existing technology, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
And so when individuals put, you've got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We don't rely on fiat money, you can print an unrestricted amount of it. It's truly not secure, and the government can take it away from you." - Whereas with Bitcoin, best , go on.
Yeah. Or people that remained in Cypress, or just individuals who have suffered through either hyperinflation, or there's a high need for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those countries that could potentially be a driver for more adoption, since they currently do not believe in their own currency? Yeah, and I believe we have actually already seen that.
So yes, and this is a thing that a great deal of American or Western investors 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. But there are billions of individuals on the planet that do not have stable currencies.
Yeah. And so there's this entire blossoming global need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are generally used, let's state Ethereum, which a lot of people learn about Ethereum. Ethereum is essentially a global computer that you can compose computer programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an energy token, since you're basically 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 easy one that I would envision you 'd called an energy token, resembles FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's kind of this same type of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on a lot of various locations and. I don't know the ins and outs of it, however as an example for somebody who may simply be really standard in their understanding of this, there are so numerous different kinds of energies that are readily available.
And you kind 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 utility based, correct? Mm-hmm (affirmative). The majority of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, however I think the real opportunity depends on the utility coin area.
There's all of these ICOs that were taking place, those slowed down a little bit with some changes to a few things that was going on, however people are going to come out of the woodwork and begin to develop utility coins- Correct, yeah. And individuals need to understand that not all energy coins are produced equal.
So you have the benefit of dedicating your profession to this, so you can head out there and do the recon, you can satisfy the creators, you can check the code, etc. However for an average individual, there's now what, over 1,000 various kinds of coins available, practically 1,200 I believe.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either deceitful or just bad concepts. Okay. Right? There's nothing even worse than someone that's young, earnest, with a terrible idea, that somebody provides $40 million to. Right? Yeah, completely. So yeah, so I do not really participate in lots of ICOs, and I advise you probably side action that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause generally it'll crash 80% or so. Which's when we really start taking a look at the idea in more detail. So here are some quick and unclean things that you should look at, right? So, one is, are they solving a problem that needs to be fixed? One of the big drawbacks with very smart, technical individuals, is that they like to resolve issues that no one appreciates resolving.
Does the team have experience of performing in an effective manner in another location of their life? And it does not 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 performance history of success in something, right? If it's 4 men in a space that are simply out of college, unless they've got some really excellent consultants behind them, I'm most likely not going to provide any money.
Yeah. I think that in marketing in basic, my world of company, we continuously search for issues and how we can fix them. Now, are the problems things that people are attempting to solve a part of the Blockchain generally? Or would you state it's better if they're fixing type 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 options that, so I'll give you an example.
And the reason that we bought it is since they discovered a method to make files tamper-proof, and it's 99% less expensive than current innovation, 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 producing computer system programs that whole states run their entire operations on, right? So you've got okay, the smart man has developed substantial computer system programs, fantastic group, solving a huge problem that is going to cut big expenses.
I suggest, it does not get any simpler than that in regards to choosing 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 an actually basic 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 person that you're speaking with can't dumb it down enough where you comprehend it, then it's most likely not a great idea. 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 larger companies.
Ryan: So you've looked at companies that are big companies, you've evaluated much bigger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you pointed out, it is nearly simply common sense. You just have to kind of take a look at it and think reasonably about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no traditional metrics that you can take a look at.
Okay. What I can use that I discovered from dealing with Wall Street throughout three years, is how to read individuals. I have actually fulfilled 10s of countless individuals throughout my career. I have actually satisfied insiders; I have actually met fund managers, I have actually met stock promoters, I have actually fulfilled all these various kinds of characters along the way.
So I think that's probably among my extremely powers, if you will. And if you have actually got a great BS detector, you must listen to it. Okay. You must definitely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually got all the bonifides, however you know, there's simply; it's not agreeing with me, there's something about them that's not agreeing with me.
There are so many other deals out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you understand, you sort of mentioned at the beginning, Bitcoin and Ethereum, the majority of people have actually become aware of these 2, 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 nearly upwards of $6,000 just recently; it's turned up from say $3,000 not too long earlier, it's quite unstable. Do they type of wait for a pullback, or do they just 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 question.
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