So, a great deal of people find that too troublesome, which's why the individuals that are actually making the most amount of money today in cryptocurrencies are the early adopters: people that want to put in perhaps the 20 minutes required to go through a procedure which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy your concepts, however gosh, establishing a crypto account is so challenging." What I inform them is I state, "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 actually truly getting paid an enormous amount of cash to go through perhaps, you know, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, but 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 envision what will occur to this entire marketplace when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that people go through, and one thing I desire to expose too that you didn't discuss, but I know a lot of folks who have a hard time with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can just buy $500 a week.
As challenging 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 suggest, we're in the early days of that innovation, however much like throughout that duration of time, for the folks that had the vision to see where the future was going, and after that bought in on a few of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a second, because I'm always curious to speak with individuals who are, especially somebody like yourself, who's dedicated the last, you understand, 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 a typical person? That's an excellent question.
They're 2 absolutely different things, but 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. Therefore what gives it value is that it is, there's only going to be a minimal amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people constantly attempt to hack it. However because of the nature of the network, today it's been unhackable. And actually, with current innovation, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
Therefore when individuals put, you have actually 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 trust fiat money, you can print a limitless amount of it. It's truly not protect, and the government can take it far from you." - Whereas with Bitcoin, right , go on.
Yeah. Or individuals that remained in Cypress, or simply people who have actually suffered through either devaluation, or there's a high need for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those countries that could possibly be a driver for more adoption, because they already do not believe in their own currency? Yeah, and I think 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're like, "Well I don't require Bitcoin, I have cash." 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 steady currencies.
Yeah. And so there's this entire blossoming global need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are generally used, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is basically a worldwide computer that you can write computer programs for and run computer system programs on a globally decentralized computer program.
So we think about something like Ether an energy token, due to the fact that you're basically buying programming power. So I would not truly 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 really simple one that I would imagine you 'd called an energy token, resembles FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's type of this very same type of network result that you have with Bitcoin, where it resembles unstoppable example, because it's on a lot of different locations and. I don't know the ins and outs of it, but as an example for somebody who might simply be extremely basic in their understanding of this, there are so many different kinds of utilities that are offered.
And you sort of pointed out having this boots on the ground experience. Now, since we're taking a look at the bulk of these are probably utility based, fix? Mm-hmm (affirmative). Many of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, however I think the real opportunity lies in the utility coin space.
There's all of these ICOs that were occurring, those slowed down a bit with some modifications to a couple of things that was going on, however individuals are going to come out of the woodwork and start to produce utility coins- Correct, yeah. And individuals need to comprehend that not all energy coins are produced equal.
So you have the advantage of devoting your profession to this, so you can head out there and do the recon, you can fulfill the creators, you can inspect the code, and so on. However for a typical person, there's now what, over 1,000 different kinds of coins offered, nearly 1,200 I believe.
How do they do that? That's a fantastic concern. 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 concept, that somebody gives $40 million to. Right? Yeah, totally. So yeah, so I do not truly take part in many ICOs, and I suggest you probably side step that market, unless you have actually got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause typically it'll crash 80% or two. And that's when we really begin taking a look at the concept in more information. So here are some quick and filthy things that you should take a look at, right? So, one is, are they fixing an issue that requires to be solved? Among the big drawbacks with extremely wise, technical individuals, is that they like to resolve problems that nobody appreciates resolving.
Does the group have experience of carrying out in a successful way in another location of their life? And it does not even need to be straight related to cryptocurrency, it does not have to be even straight associated to software application, right? So, but I desire to see a performance history of success in something, right? If it's 4 people in a room that are simply out of college, unless they have actually got some actually great consultants behind them, I'm probably not going to provide any cash.
Yeah. I believe that in marketing in basic, my world of service, we constantly search for issues and how we can resolve them. Now, are the issues things that individuals are attempting to resolve a part of the Blockchain usually? Or would you state it's much better if they're resolving 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 basically looking for options that, so I'll give you an example.
And the reason that we bought it is due to the fact that they discovered a method to make files tamper-proof, and it's 99% less expensive than current technology, 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 performance history of developing computer system programs that entire states run their entire operations on, right? So you have actually got okay, the smart guy has built huge computer system programs, fantastic group, resolving an enormous issue that is going to cut big costs.
I mean, it does not get any easier than that in regards to choosing who to put money behind. And a great deal of this is typical sense, and a lot of folks will attempt to make things more complex than it is. And I have a truly easy rule, Ryan. If I do not comprehend something, I set up my hand, and I say, "I didn't understand what you simply said." Mm-hmm (affirmative).
And after that if the individual that you're speaking to can't dumb it down enough where you comprehend it, then it's most likely not a good idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience examining companies and taking a look at much, much larger companies.
Ryan: So you have actually taken a look at companies that are big companies, you've examined much bigger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you pointed out, it is nearly simply common sense. You just need to sort of look at it and believe reasonably 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 utilize that I gained from working on Wall Street throughout 3 decades, is how to check out individuals. I've met tens of thousands of people throughout my profession. I have actually fulfilled experts; I have actually met fund supervisors, I've fulfilled stock promoters, I have actually met all these various types of characters along the method.
So I believe that's probably one of my extremely powers, if you will. And if you've got an excellent BS detector, you must listen to it. Okay. You ought to definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually got all the bonifides, however you understand, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are numerous other deals out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you understand, you sort of mentioned at the start, Bitcoin and Ethereum, the majority of people have actually become aware of these two, especially Bitcoin, due to the fact that it appears like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's come up from state $3,000 not too long ago, it's quite unstable. Do they sort of wait for 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 understand? Yeah that's a fantastic question.
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