So, a great deal of individuals discover that too bothersome, which's why the individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: people that are prepared 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 love your ideas, however gosh, establishing a crypto account is so challenging." What I tell 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 a massive quantity of cash 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 straight through your trading software. And can you envision what will take place to this whole market when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that people go through, and something I want to bring to light too that you didn't mention, however I understand a great deal of folks who deal with this too, is oh, and by the way, 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 before I might begin buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I indicate, it's if you remember the early days of the Web, when we were getting on the Internet, we were doing it with 56k modems, right? I imply it would take 20 minutes to pack a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I mean, we're in the early days of that innovation, however similar to 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 outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm constantly curious to talk with people who are, especially somebody like yourself, who's committed the last, you know, the bulk of the last few years to really go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's a great concern.
They're 2 completely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to cash. So Bitcoin would be a cryptocurrency. Therefore what offers it value is that it is, there's just going to be a restricted amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the transactions on the Bitcoin network. And so if you take a look at that Bitcoin network, people constantly try to hack it. However due to the fact that 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.
Therefore when people put, you've got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't trust paper cash, you can print a limitless quantity of it. It's actually not secure, and the government can take it away from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that were in Cypress, or just people who have actually suffered through either hyperinflation, or there's a high need for, in Argentina for instance, high demand 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 don't think in their own currency? Yeah, and I believe we have actually currently seen that.
So yes, and this is a thing that a great deal of American or Western investors have a hard time getting their head around. They're like, "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 individuals on the planet that don't have steady currencies.
Yeah. And so there's this entire blossoming global need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And utility coins are generally utilized, let's say Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is basically a global computer system that you can compose computer system programs for and run computer system programs on a globally decentralized computer system program.
So we consider something like Ether an energy token, because you're basically buying programming power. So I would not actually think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals a concept, like a really easy one that I would imagine 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 result that you have with Bitcoin, where it's like unstoppable example, due to the fact that it's on a lot of different locations and. I don't know the ins and outs of it, but as an example for someone who might simply be extremely basic in their understanding of this, there are a lot of various types of energies that are offered.
And you kind of pointed out 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). Most of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, but I think the genuine opportunity depends on the energy coin area.
There's all of these ICOs that were happening, those decreased a little bit with some modifications to a couple of things that was going on, however 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 committing your occupation to this, so you can go out there and do the reconnaissance, you can fulfill the founders, you can check the code, etc. However for an average individual, there's now what, over 1,000 different kinds of coins available, almost 1,200 I believe.
How do they do that? That's a terrific concern. I will say that 95% of ICOs are either deceitful or simply bad concepts. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a terrible concept, that somebody gives $40 million to. Right? Yeah, totally. So yeah, so I do not really take part in many ICOs, and I suggest you most likely side step that market, unless you've got an unique relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause normally it'll crash 80% approximately. And that's when we truly start looking at the concept in more detail. So here are some fast and filthy 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 really smart, technical people, is that they like to resolve problems that no one cares about fixing.
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 straight related to cryptocurrency, it does not need to be even directly associated to software application, right? So, but I desire to see a track record of success in something, right? If it's 4 guys in a space that are just out of college, unless they've got some actually great advisors behind them, I'm probably not going to provide any money.
Yeah. I think that in marketing in general, my world of business, we constantly search for problems and how we can resolve them. Now, are the problems things that people are trying to fix a part of the Blockchain generally? Or would you say it's much better if they're fixing kind 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 basically searching for services that, so I'll offer you an example.
And the factor that we purchased it is because they discovered a method 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 track record of developing computer system programs that whole states run their entire operations on, right? So you've got alright, the clever person has developed big computer system programs, excellent group, solving a massive issue that is going to cut huge costs.
I mean, it does not get any simpler than that in regards to choosing who to put cash behind. And a great deal of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have a really simple rule, Ryan. If I do not understand something, I set up my hand, and I say, "I didn't understand what you just stated." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you understand it, then it's most likely not a good concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience evaluating business and taking a look at much, much bigger companies.
Ryan: So you have actually taken a look at business that are huge business, you've evaluated much bigger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you mentioned, it is practically just common sense. You just need to sort of look at it and believe logically about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no standard metrics that you can take a look at.
Okay. What I can use that I gained from working on Wall Street throughout three years, is how to read individuals. I've satisfied tens of thousands of people throughout my career. I have actually fulfilled experts; I've satisfied fund managers, I have actually met stock promoters, I've fulfilled all these different types of characters along the way.
So I believe that's probably among my very powers, if you will. And if you have actually got a good BS detector, you ought to listen to it. Okay. You need to definitely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, but you know, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are many other offers out there to look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you know, you type of pointed out at the start, Bitcoin and Ethereum, the majority of people have become aware of these two, particularly Bitcoin, because it appears 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 say $3,000 not too long earlier, it's quite unstable. Do they type of await a pullback, or do they just say, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's an excellent question.
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