So, a lot of individuals discover that too troublesome, which's why the people that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are willing to put in maybe the 20 minutes needed to go through a procedure which simply takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your ideas, but gosh, setting up a crypto account is so challenging." 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 bigger. So you're actually really getting paid a huge quantity of money to go through possibly, you know, 20 minutes of a discomfort in the neck.
So you can't purchase Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, before you'll be able to purchase cryptocurrencies directly through your trading software. And can you imagine what will take place to this whole marketplace when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that people go through, and something I want to expose too that you didn't point out, however I understand a great deal of folks who fight with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can just buy $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me forever prior to I could 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 Internet, we were doing it with 56k modems, right? I indicate 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 indicate, we remain in the early days of that technology, however just like during that time period, 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 business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, because I'm constantly curious to speak with people who are, particularly somebody like yourself, who's committed the last, you know, the lion's share of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like an average person? That's a terrific concern.
They're 2 totally various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to money. So Bitcoin would be a cryptocurrency. And so what provides it value is that it is, there's just going to be a minimal quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, people continuously try to hack it. However since of the nature of the network, today it's been unhackable. And actually, with current innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've got individuals 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 do not trust paper currency, you can print an endless quantity of it. It's really not protect, and the federal government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that were in Cypress, or simply individuals who have suffered through either run-away inflation, or there's a high demand for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those countries that could potentially be a catalyst 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 lot of American or Western financiers have a difficult time getting their head around. They resemble, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of people in the world that do not have steady currencies.
Yeah. Therefore there's this whole growing international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are essentially used, let's say Ethereum, which a lot of individuals learn about Ethereum. Ethereum is essentially a worldwide computer system that you can compose computer system programs for and run computer programs on an internationally decentralized computer system program.
So we think about something like Ether an energy token, due to the fact that you're essentially buying programs power. So I wouldn't actually think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give individuals an idea, like a really basic one that I would imagine 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 kind of network impact that you have with Bitcoin, where it's like unstoppable example, since it's on a lot of various areas and. I do not understand the ins and outs of it, but as an example for somebody who may just be very basic in their understanding of this, there are many different types of utilities that are available.
And you type of mentioned having this boots on the ground experience. Now, since we're taking a look at the bulk of these are most likely utility based, remedy? Mm-hmm (affirmative). Many of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, but I think the genuine opportunity lies in the utility coin space.
There's all of these ICOs that were occurring, those decreased a little bit with some modifications to a few things that was going on, however individuals are going to come out of the woodwork and start to produce energy coins- Correct, yeah. And individuals need to understand that not all utility coins are developed equal.
So you have the benefit of devoting your occupation to this, so you can go out there and do the reconnaissance, you can meet the creators, you can examine the code, etc. However for an average individual, there's now what, over 1,000 various types of coins available, practically 1,200 I think.
How do they do that? That's a fantastic concern. I will state that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's nothing even worse than someone that's young, earnest, with a terrible idea, that somebody gives $40 million to. Right? Yeah, completely. So yeah, so I do not really participate in many ICOs, and I advise you probably side step that market, unless you have actually got a special 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 so. Which's when we truly start taking a look at the idea in more detail. So here are some quick and filthy things that you should take a look at, right? So, one is, are they solving an issue that requires to be fixed? Among the huge disadvantages with very clever, technical people, is that they like to resolve problems that nobody appreciates solving.
Does the group have experience of carrying out in a successful way in another area of their life? And it does not even have to be directly associated to cryptocurrency, it does not have to be even directly associated to software, right? So, but I want to see a track record of success in something, right? If it's 4 people in a room that are simply out of college, unless they've got some actually good consultants behind them, I'm probably not going to give them any cash.
Yeah. I believe that in marketing in basic, my world of company, we continuously look for problems and how we can fix them. Now, are the problems things that people are trying to fix a part of the Blockchain normally? Or would you state it's much better if they're solving 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 services that, so I'll offer you an example.
And the reason that we bought it is due to the fact that they discovered a way to make files tamper-proof, and it's 99% less expensive than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that started it has a performance history of producing computer system programs that whole states run their entire operations on, right? So you've got all right, the clever person has constructed huge computer programs, great group, solving a huge issue that is going to cut huge expenses.
I suggest, it doesn't get any simpler than that in regards to choosing who to put money behind. And a lot of this is common sense, and a lot of folks will try to make things more complicated than it is. And I have an actually basic guideline, Ryan. If I do not understand something, I set up my hand, and I say, "I didn't comprehend what you just said." Mm-hmm (affirmative).
And after that if the person that you're talking to can't dumb it down enough where you comprehend it, then it's most likely not a great concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience examining business and taking a look at much, much larger companies.
Ryan: So you've taken a look at business that are huge business, you've assessed 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 nearly just good sense. You simply need to type of take a look at it and believe rationally 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 use that I discovered from working on Wall Street across 3 decades, is how to read people. I've met tens of countless people throughout my profession. I've fulfilled insiders; I have actually satisfied fund supervisors, I have actually satisfied stock promoters, I've met all these different kinds of characters along the way.
So I believe that's most likely one of my super powers, if you will. And if you have actually got a great BS detector, you need to listen to it. Okay. You must definitely listen to it. If I'm taking a seat and I'm talking with someone, and they have actually got all the bonifides, but you know, there's just; it's not agreeing with me, there's something about them that's not agreeing with me.
There are numerous other offers out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you understand, you type of mentioned at the beginning, Bitcoin and Ethereum, the majority of people have actually heard of these 2, particularly Bitcoin, because it looks like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's shown up from state $3,000 not too long ago, it's quite unstable. Do they type of await a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in ten years." You understand? Yeah that's a great question.
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