So, a lot of people find that too inconvenient, and that's why the people that are literally making the most amount of money right now in cryptocurrencies are the early adopters: people that want to put in perhaps the 20 minutes needed to go through a procedure which just takes 5 minutes if you desire to set up a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, setting up a crypto account is so hard." What I tell them is I state, "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 larger. So you're actually truly earning money a massive amount of cash to go through maybe, you understand, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies directly through your trading software. And can you envision what will take place to this whole marketplace when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the process that individuals go through, and something I wish to expose too that you didn't mention, however I know a great deal of folks who fight with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can only purchase $500 a week.
As difficult as possible, ideal, like Coinbase. It 'd take me forever before I might begin 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 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 remain in the early days of that innovation, but much like throughout that period 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 companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a second, since I'm constantly curious to talk to people who are, particularly somebody like yourself, who's dedicated the last, you understand, the better part of the last few years to truly go both feet in on this. How do you describe cryptocurrency to like an average person? That's an excellent question.
They're two 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. Therefore what provides it worth is that it is, there's only going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the transactions on the Bitcoin network. And so if you take a look at that Bitcoin network, individuals constantly attempt to hack it. But because 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.
And so when people put, you have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're saying, "We don't rely on paper currency, you can print a limitless quantity of it. It's actually not protect, and the government can take it away from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or people that remained in Cypress, or simply individuals who have actually suffered through either devaluation, 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 potentially be a catalyst for more adoption, since they currently do not believe in their own currency? Yeah, and I think we've currently seen that.
So yes, and this is a thing that a great deal of American or Western investors have a bumpy ride getting their head around. They resemble, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You do not need Bitcoin. But there are billions of people in the world that don't have stable currencies.
Yeah. Therefore there's this whole burgeoning global need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are basically used, let's state Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is essentially a worldwide computer that you can compose computer programs for and run computer system programs on a worldwide decentralized computer program.
So we think about something like Ether an energy token, since you're essentially purchasing shows power. So I would not really consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide people a concept, like an extremely easy one that I would envision you 'd called an energy token, resembles FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's type of this same kind of network effect that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on many various areas and. I don't know the ins and outs of it, however as an example for someone who may simply be extremely standard in their understanding of this, there are a lot of various kinds of utilities that are offered.
And you type of mentioned having this boots on the ground experience. Now, considering that we're looking at the bulk of these are most likely utility based, remedy? Mm-hmm (affirmative). Most of the coins that I recommend and look at are utility-based. We have a few cryptocurrencies, but I think the genuine opportunity depends on the utility coin space.
There's all of these ICOs that were taking place, those decreased a bit with some changes to a couple of things that was going on, but people are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And individuals require to comprehend that not all utility coins are created equivalent.
So you have the advantage of dedicating your occupation to this, so you can head out there and do the recon, you can satisfy the creators, you can inspect the code, etc. But for a typical individual, there's now what, over 1,000 various kinds of coins offered, nearly 1,200 I think.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either deceitful or simply bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with an awful concept, that someone provides $40 million to. Right? Yeah, completely. So yeah, so I don't actually get involved in lots of ICOs, and I advise you most likely side step that market, unless you've got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause typically it'll crash 80% or two. Which's when we truly begin taking a look at the idea in more detail. So here are some fast and dirty things that you should take a look at, right? So, one is, are they solving a problem that needs to be resolved? Among the huge drawbacks with really clever, technical individuals, is that they like to resolve issues that nobody appreciates resolving.
Does the team have experience of carrying out in a successful manner in another location of their life? And it does not even need to be directly associated to cryptocurrency, it doesn't need to be even directly associated to software, right? So, however I wish to see a performance history of success in something, right? If it's four people in a space that are just out of college, unless they have actually got some really good advisors behind them, I'm probably not going to provide any money.
Yeah. I think that in marketing in basic, my world of business, we constantly look for issues and how we can solve them. Now, are the issues things that people are trying to solve a part of the Blockchain generally? Or would you state it's better if they're solving kind 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 essentially trying to find solutions that, so I'll give you an example.
And the reason that we bought it is due to the fact that they found a method to make documents tamper-proof, and it's 99% more affordable than present technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that started it has a track record of creating computer programs that whole states run their whole operations on, right? So you've got fine, the clever man has actually built substantial computer system programs, terrific team, solving an enormous issue that is going to cut big expenses.
I imply, it does not get any easier than that in terms of deciding who to put cash behind. And a lot of this is common sense, and a lot of folks will attempt to make things more complicated than it is. And I have a really basic rule, Ryan. If I don't understand something, I put up my hand, and I state, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And after that if the individual that you're speaking with can't dumb it down enough where you understand it, then it's probably not a great idea. Right, right. It's going to be simple to understand. And do you feel that you have years of experience assessing business and taking a look at much, much larger business.
Ryan: So you've looked at business that are big companies, you've assessed much larger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you pointed out, it is practically just good sense. You just have to kind of appearance at it and think reasonably about what's going on, and pull the emotion out? You have to pull the feeling out, and there are no conventional metrics that you can look at.
Okay. What I can use that I gained from dealing with Wall Street throughout three decades, is how to check out people. I've met 10s of countless individuals throughout my career. I have actually satisfied experts; I have actually met fund supervisors, I've fulfilled stock promoters, I have actually met all these different kinds of characters along the way.
So I think that's probably among my very powers, if you will. And if you've got a good BS detector, you need to listen to it. Okay. You ought to absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they have actually got all the bonifides, however you know, there's simply; it's not sitting well with me, there's something about them that's not agreeing with me.
There are so many other offers out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you know, you sort of mentioned at the start, Bitcoin and Ethereum, a lot of people have actually become aware of these two, especially Bitcoin, because it seems like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's come up from say $3,000 not too long ago, it's quite unstable. Do they sort of wait on a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's a terrific question.
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