So, a lot of people discover that too troublesome, and that's why individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: people that are ready to put in perhaps the 20 minutes required to go through a procedure which simply takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your concepts, however gosh, establishing a crypto account is so tough." 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 whole cryptocurrency market will be 10x bigger. So you're in fact really making money an enormous amount of money to go through maybe, you understand, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, before you'll have the ability to purchase cryptocurrencies directly through your trading software. And can you envision what will happen to this entire market when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you pointed out the process that people go through, and one thing I wish to bring to light too that you didn't mention, however I understand a great deal of folks who battle with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only buy $500 a week.
As hard as possible, ideal, like Coinbase. It 'd take me forever before I might start buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I mean, it's if you remember the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I suggest 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're in the early days of that technology, but just like throughout that duration of time, for the folks that had the vision to see where the future was going, and then bought in on some of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm always curious to talk to people who are, specifically someone like yourself, who's committed the last, you know, the much better part of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like a typical person? That's an excellent question.
They're 2 totally various things, but 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 only going to be a limited amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, verifying the transactions on the Bitcoin network. And so if you look at that Bitcoin network, people continuously attempt to hack it. However since of the nature of the network, today it's been unhackable. And truly, with existing innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore when people put, you have actually got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We do not trust paper currency, you can print a limitless quantity of it. It's truly not secure, and the government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or individuals that were in Cypress, or simply individuals who have 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 potentially be a catalyst for more adoption, due to the fact that they currently don't think in their own currency? Yeah, and I believe we've already seen that.
So yes, and this is a thing that a great deal of American or Western investors have a tough time getting their head around. They're like, "Well I don't need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't require Bitcoin. But there are billions of individuals on the planet that do not have stable currencies.
Yeah. And so there's this entire growing international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are basically 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 programs for and run computer programs on a globally decentralized computer system program.
So we think about something like Ether an utility token, due to the fact that you're essentially buying programs 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 provide people a concept, like a really basic one that I would picture you 'd called an energy 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 exact 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 areas and. I do not understand the ins and outs of it, but as an example for somebody who may just be really fundamental in their understanding of this, there are many different types of utilities that are readily available.
And you kind of pointed out having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). Most of the coins that I recommend and take a look at are utility-based. We have a couple of cryptocurrencies, but I think the real chance depends on the utility coin area.
There's all of these ICOs that were happening, those slowed down a little bit with some changes 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 require to comprehend that not all utility coins are produced equivalent.
So you have the benefit of devoting your occupation to this, so you can head out there and do the reconnaissance, you can meet the creators, you can check the code, and so on. However for an average individual, there's now what, over 1,000 different types of coins offered, nearly 1,200 I think.
How do they do that? That's a fantastic concern. I will say that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's nothing worse than somebody that's young, earnest, with a terrible concept, that someone offers $40 million to. Right? Yeah, totally. So yeah, so I don't actually take part in numerous ICOs, and I recommend you most likely side step that market, unless you've got an unique relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause normally it'll crash 80% or so. Which's when we truly start taking a look at the idea 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 needs to be solved? Among the huge drawbacks with very wise, technical individuals, is that they like to resolve problems that nobody appreciates resolving.
Does the team have experience of performing in an effective way in another area of their life? And it doesn't even need to be directly associated to cryptocurrency, it does not need to be even straight associated to software, right? So, however I wish to see a performance history of success in something, right? If it's four guys in a space that are just out of college, unless they've got some really good consultants behind them, I'm most likely not going to provide any cash.
Yeah. I think that in marketing in general, my world of service, we continuously try to find issues and how we can solve them. Now, are the issues things that people are attempting to solve a part of the Blockchain generally? Or would you say it's better if they're resolving 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 searching for solutions that, so I'll provide you an example.
And the factor that we purchased it is due to the fact that they found a method to make files tamper-proof, and it's 99% less expensive than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that began it has a performance history of producing computer programs that whole states run their whole operations on, right? So you've got alright, the smart man has actually developed substantial computer programs, terrific team, fixing an enormous issue that is going to cut substantial expenses.
I mean, it doesn't get any simpler than that in regards to deciding who to put money behind. And a lot of this is typical sense, and a great deal of folks will attempt to make things more complicated than it is. And I have an actually basic guideline, Ryan. If I don't understand something, I put up my hand, and I say, "I didn't understand what you just said." Mm-hmm (affirmative).
And then if the person that you're speaking to can't dumb it down enough where you understand it, then it's probably not a good concept. Right, right. It's going to be simple to understand. And do you feel that you have years of experience examining business and taking a look at much, much bigger business.
Ryan: So you have actually taken a look at companies that are huge companies, you have actually examined much larger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you discussed, it is nearly simply common sense. You just need to sort of take a look at it and think reasonably about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no conventional metrics that you can look at.
Okay. What I can utilize that I gained from dealing with Wall Street throughout 3 years, is how to check out individuals. I have actually fulfilled 10s of countless people throughout my profession. I have actually fulfilled experts; I have actually fulfilled fund supervisors, I've met stock promoters, I have actually met all these various types of characters along the way.
So I think that's most likely among my super 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've got all the bonifides, however 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 sort of pointed out at the beginning, Bitcoin and Ethereum, many people have heard of these two, especially 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 practically upwards of $6,000 recently; it's shown up from state $3,000 not too long earlier, it's rather unstable. Do they sort of wait on a pullback, or do they just say, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in ten years." You know? Yeah that's a fantastic concern.
Copyright© how to invest in blockchain All Rights Reserved Worldwide