So, a great deal of individuals discover that too bothersome, which's why the individuals that are actually making the most amount of cash right now in cryptocurrencies are the early adopters: people that want to put in perhaps the 20 minutes required to go through a procedure which just takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we enjoy your ideas, however gosh, setting up 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 larger. So you're in fact really earning money a huge amount of money to go through maybe, 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 question of time, Ryan, prior to you'll be able to purchase cryptocurrencies directly through your trading software. And can you envision 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.
Right now you mentioned the procedure that individuals go through, and one thing I desire to bring to light too that you didn't point out, but I know a lot of folks who have problem with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can only purchase $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me permanently prior to I might start purchasing in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I imply, 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 mean 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 innovation, but similar to throughout that amount of time, for the folks that had the vision to see where the future was going, and then purchased in on a few of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm constantly curious to speak to people who are, especially someone like yourself, who's devoted the last, you understand, the bulk of the last couple of years to actually go both feet in on this. How do you explain cryptocurrency to like an average person? That's a great concern.
They're two totally different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to cash. So Bitcoin would be a cryptocurrency. And so what provides it worth is that it is, there's just going to be a restricted quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the transactions on the Bitcoin network. And so if you look at that Bitcoin network, individuals constantly attempt to hack it. But since of the nature of the network, today it's been unhackable. And really, with current technology, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
Therefore when people put, you have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We do not trust paper cash, you can print an unlimited quantity of it. It's really not protect, and the government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or individuals that remained in Cypress, or just people who have suffered through either devaluation, 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 possibly be a driver for more adoption, due to the fact that they already 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 lot of American or Western financiers have a difficult time getting their head around. They're like, "Well I do not need Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. However there are billions of individuals on the planet that don't have steady currencies.
Yeah. Therefore there's this whole blossoming international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are essentially utilized, let's state Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is basically a global computer system that you can compose computer programs for and run computer system programs on a globally decentralized computer program.
So we think about something like Ether an energy token, since you're essentially buying shows power. So I wouldn't truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give individuals a concept, like a really simple one that I would picture you 'd called an utility 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 same type of network impact that you have with Bitcoin, where it resembles unstoppable kind of thing, due to the fact that it's on many different areas and. I don't know the ins and outs of it, but as an example for someone who might just be extremely basic in their understanding of this, there are many different types of utilities that are available.
And you sort of discussed having this boots on the ground experience. Now, because we're taking a look at the bulk of these are most likely utility based, fix? 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, but I believe the real opportunity lies in the utility coin space.
There's all of these ICOs that were happening, those decreased a bit with some changes to a couple of things that was going on, but individuals are going to come out of the woodwork and begin to develop energy coins- Correct, yeah. And individuals require to comprehend that not all energy coins are produced equal.
So you have the benefit of dedicating your profession to this, so you can go out there and do the recon, you can fulfill the founders, you can check the code, and so on. But for a typical person, there's now what, over 1,000 various kinds of coins readily available, nearly 1,200 I think.
How do they do that? That's a terrific question. I will state that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a dreadful idea, that somebody provides $40 million to. Right? Yeah, completely. So yeah, so I do not really take part in many ICOs, and I advise you most likely side step that market, unless you've got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause usually it'll crash 80% or two. Which's when we truly start looking at the idea in more detail. So here are some fast and unclean things that you should look at, right? So, one is, are they fixing a problem that requires to be fixed? Among the big downsides with really clever, technical individuals, is that they like to solve problems that nobody appreciates solving.
Does the group have experience of executing in a successful manner in another area of their life? And it does not even have to be directly related to cryptocurrency, it doesn't have to be even straight associated to software, right? So, but I wish to see a track record of success in something, right? If it's four men in a space that are just out of college, unless they have actually got some truly excellent advisors behind them, I'm most likely not going to provide any cash.
Yeah. I think that in marketing in general, my world of service, we constantly look for problems and how we can resolve them. Now, are the issues things that people are trying to fix a part of the Blockchain usually? 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 generally trying to find solutions that, so I'll provide you an example.
And the factor that we purchased it is since they found a method to make files tamper-proof, and it's 99% cheaper than current technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person 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 wise person has built substantial computer programs, terrific group, solving a huge issue that is going to cut huge expenses.
I suggest, it does not get any simpler than that in regards to deciding who to put money 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 a truly easy guideline, Ryan. If I don't comprehend something, I put up my hand, and I state, "I didn't understand what you simply said." Mm-hmm (affirmative).
And then if the individual that you're talking to can't dumb it down enough where you understand it, then it's most likely not a great concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience evaluating business and taking a look at much, much bigger business.
Ryan: So you've looked at business that are big business, you have actually 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 nearly simply good sense. You just have to kind of look at it and think logically about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no traditional metrics that you can look at.
Okay. What I can use that I gained from dealing with Wall Street throughout three years, is how to check out individuals. I've met tens of thousands of people throughout my profession. I've met insiders; I have actually met fund managers, I have actually satisfied stock promoters, I have actually satisfied all these various types of characters along the way.
So I believe that's probably one of my extremely powers, if you will. And if you have actually got a great BS detector, you should listen to it. Okay. You must absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, however you know, there's just; it's not agreeing with me, there's something about them that's not agreeing with me.
There are a lot of other deals out there to look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you understand, you sort of pointed out at the beginning, Bitcoin and Ethereum, many people have actually become aware of these 2, particularly Bitcoin, since it looks 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 recently; it's shown up from state $3,000 not too long ago, it's rather unpredictable. Do they type of await a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a terrific question.
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