So, a great deal of people discover that too troublesome, and that's why individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: people that want to put in possibly the 20 minutes required to go through a process which just takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy 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 whole cryptocurrency market will be 10x bigger. So you're actually really earning money an enormous quantity of money to go through perhaps, you understand, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, but it is simply a concern of time, Ryan, before you'll be able to purchase cryptocurrencies directly through your trading software. And can you imagine what will occur to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the process that individuals go through, and one thing I desire to bring to light too that you didn't discuss, however I understand a great deal of folks who have a hard time with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can just purchase $500 a week.
As hard as possible, right, like Coinbase. It 'd take me forever before I might begin buying in size on Coinbase. They're like, 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 Internet, we were doing it with 56k modems, right? I indicate 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, but much like during that amount of time, for the folks that had the vision to see where the future was going, and after that purchased 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 second, because I'm constantly curious to speak with people who are, especially somebody like yourself, who's dedicated the last, you know, the lion's share of the last few years to really go both feet in on this. How do you explain cryptocurrency to like a typical person? That's a fantastic question.
They're two absolutely different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to money. So Bitcoin would be a cryptocurrency. Therefore what provides it worth is that it is, there's just going to be a restricted quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people constantly try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And really, with present technology, 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 individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We don't trust paper money, you can print a limitless amount of it. It's truly not secure, and the government can take it away from you." - Whereas with Bitcoin, right , go ahead.
Yeah. Or individuals that remained in Cypress, or simply individuals 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 countries 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've already seen that.
So yes, and this is a thing that a lot of American or Western financiers have a hard time getting their head around. They resemble, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't require Bitcoin. But there are billions of people worldwide that don't have stable currencies.
Yeah. Therefore there's this entire blossoming global 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 people learn about Ethereum. Ethereum is essentially an international computer that you can write computer programs for and run computer programs on a worldwide decentralized computer system program.
So we consider something like Ether an utility token, since you're basically purchasing shows power. So I would not actually consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer people a concept, like a very easy one that I would imagine you 'd called an energy token, resembles FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's kind of this exact same kind of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on numerous various areas and. I don't understand the ins and outs of it, but as an example for someone who may just be really fundamental in their understanding of this, there are numerous various types of utilities that are readily available.
And you type of discussed having this boots on the ground experience. Now, because we're looking at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). The majority of the coins that I advise and take a look at are utility-based. We have a couple of cryptocurrencies, but I believe the real opportunity depends on the energy coin area.
There's all of these ICOs that were happening, those slowed down 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 start to produce energy coins- Correct, yeah. And individuals require to comprehend that not all energy coins are produced equal.
So you have the benefit of devoting your occupation to this, so you can head out there and do the reconnaissance, you can fulfill the founders, you can inspect the code, etc. But for an average person, there's now what, over 1,000 different types of coins available, nearly 1,200 I think.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either deceitful or simply bad ideas. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a dreadful concept, that someone provides $40 million to. Right? Yeah, completely. So yeah, so I do not actually take part in lots of ICOs, and I advise you probably side action that market, unless you have actually 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% or two. Which's when we truly start looking at the idea in more information. So here are some quick and unclean things that you should take a look at, right? So, one is, are they resolving an issue that needs to be fixed? Among the big downsides with very wise, technical individuals, is that they like to resolve issues that nobody appreciates solving.
Does the team have experience of performing in a successful manner in another location of their life? And it doesn't even need to be straight related to cryptocurrency, it doesn't need to be even straight related to software application, right? So, but I wish to see a performance history of success in something, right? If it's four people in a room that are just out of college, unless they've got some really excellent advisors behind them, I'm most likely not going to provide them any money.
Yeah. I think that in marketing in general, my world of organization, we constantly search for problems and how we can solve them. Now, are the problems things that people are attempting to resolve a part of the Blockchain typically? Or would you state it's better if they're fixing 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 looking for options that, so I'll provide you an example.
And the reason that we purchased it is because they discovered a method to make files tamper-proof, and it's 99% cheaper than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that started it has a track record of creating computer system programs that entire states run their entire operations on, right? So you have actually got alright, the wise guy has constructed huge computer programs, excellent team, fixing an enormous issue that is going to cut big costs.
I suggest, it does not get any simpler than that in terms of choosing who to put money behind. And a lot of this prevails sense, and a lot of folks will attempt to make things more complex than it is. And I have an actually easy rule, Ryan. If I do not comprehend something, I put up my hand, and I say, "I didn't understand what you just said." Mm-hmm (affirmative).
And after that if the person that you're speaking to can't dumb it down enough where you understand it, then it's probably not a great concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience assessing business and looking at much, much larger business.
Ryan: So you've taken a look at business that are big business, you have actually evaluated much larger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you pointed out, it is nearly simply good sense. You just need to type of look at it and think logically about what's going on, and pull the feeling 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 utilize that I found out from working on Wall Street throughout three years, is how to read individuals. I've fulfilled 10s of countless individuals throughout my career. I have actually satisfied insiders; I've satisfied fund managers, I've fulfilled stock promoters, I have actually satisfied all these various kinds of characters along the method.
So I believe that's probably among my very powers, if you will. And if you've got an excellent BS detector, you must listen to it. Okay. You should absolutely listen to it. If I'm sitting down and I'm talking with someone, and they've got all the bonifides, but you know, there's just; it's not sitting well with me, there's something about them that's not agreeing with me.
There are numerous other deals out there to look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you know, you kind of discussed at the beginning, Bitcoin and Ethereum, the majority of people have become aware of these 2, especially Bitcoin, because it appears like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's shown up from state $3,000 not too long earlier, it's quite volatile. Do they kind 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 ten years." You know? Yeah that's an excellent question.
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