So, a lot of people discover that too inconvenient, and that's why the individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: people that are ready to put in possibly the 20 minutes required to go through a process which just takes five minutes if you desire to establish a brokerage account.
" Oh Teeka, we enjoy your ideas, however gosh, setting up a crypto account is so tough." What I inform 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 making money an enormous quantity of cash to go through perhaps, you know, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, prior to you'll be able to purchase cryptocurrencies straight through your trading software. And can you picture what will occur to this whole market 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 individuals go through, and one thing I want to bring to light too that you didn't discuss, but I know a lot of folks who fight with this too, is oh, and by the way, you can only buy $1,000 a week. Or you can only buy $500 a week.
As difficult as possible, right, like Coinbase. It 'd take me forever before I could begin purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I mean, it's if you keep in mind the early days of the Internet, when we were getting on the Web, 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 remain in the early days of that technology, however similar to during that amount 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 a step back for a second, since I'm constantly curious to speak with individuals who are, specifically someone like yourself, who's dedicated the last, you know, the better part of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's an excellent concern.
They're 2 totally 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 offers it value is that it is, there's just going to be a minimal quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. And so if you take a look at that Bitcoin network, people constantly try to hack it. However because of the nature of the network, today it's been unhackable. And really, with current innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
And so when individuals put, you have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We do not trust fiat money, you can print an endless quantity of it. It's actually not protect, and the federal government can take it far from you." - Whereas with Bitcoin, right , go on.
Yeah. Or people that remained in Cypress, or simply individuals who have suffered through either run-away inflation, or there's a high need for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those countries that could potentially be a driver for more adoption, due to the fact that they already do not think 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 financiers have a difficult time getting their head around. They're like, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. But there are billions of people on the planet that don't have steady currencies.
Yeah. Therefore there's this whole burgeoning worldwide demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are essentially used, let's state Ethereum, which a lot of people understand about Ethereum. Ethereum is basically an international computer that you can write computer system programs for and run computer system programs on a globally decentralized computer program.
So we think about something like Ether an utility token, since you're basically buying programs power. So I wouldn't actually 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 very easy one that I would imagine you 'd called an utility token, is like FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's kind of this same type of network impact that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on many different areas and. I don't know the ins and outs of it, however as an example for somebody who might just be really fundamental in their understanding of this, there are so lots of different types of energies that are available.
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, remedy? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, however I believe the real opportunity depends on the utility coin space.
There's all of these ICOs that were occurring, those decreased a little bit with some modifications to a couple of things that was going on, but individuals are going to come out of the woodwork and start to produce energy coins- Correct, yeah. And individuals need to comprehend that not all utility coins are developed equal.
So you have the benefit of dedicating your profession to this, so you can go out there and do the reconnaissance, you can satisfy the creators, you can inspect the code, and so on. But for a typical individual, there's now what, over 1,000 various types of coins offered, nearly 1,200 I believe.
How do they do that? That's an excellent question. I will say that 95% of ICOs are either deceptive or simply bad ideas. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a dreadful concept, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I don't actually take part in lots of ICOs, and I suggest you probably side action that market, unless you've got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause usually it'll crash 80% or two. And that's when we truly begin taking a look at the idea in more information. So here are some fast and filthy things that you should take a look at, right? So, one is, are they fixing an issue that requires to be resolved? One of the huge disadvantages with really smart, technical people, is that they like to fix issues that no one cares about solving.
Does the group have experience of performing in an effective way in another location of their life? And it does not even need to be directly related to cryptocurrency, it does not have to be even straight related to software, right? So, but I desire to see a track record of success in something, right? If it's 4 men in a space that are simply out of college, unless they have actually got some really excellent consultants behind them, I'm probably not going to provide any money.
Yeah. I believe that in marketing in general, my world of company, we constantly try to find problems and how we can resolve them. Now, are the issues things that people are attempting to resolve a part of the Blockchain typically? Or would you state it's much better if they're fixing type 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 provide you an example.
And the factor that we bought it is since they discovered a method to make documents tamper-proof, and it's 99% less expensive than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the man that began it has a performance history of creating computer system programs that entire states run their entire operations on, right? So you've got all right, the wise guy has constructed big computer programs, fantastic team, solving a huge issue that is going to cut substantial costs.
I suggest, it doesn't get any simpler than that in regards to deciding who to put cash behind. And a great deal of this is typical sense, and a lot of folks will attempt to make things more complicated than it is. And I have a really easy rule, 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 then if the individual that you're talking to can't dumb it down enough where you comprehend it, then it's probably not a great idea. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience evaluating business and looking at much, much larger companies.
Ryan: So you have actually looked at companies that are big companies, you've evaluated much larger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you pointed out, it is nearly simply good sense. You simply need to sort of take a 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 look at.
Okay. What I can use that I gained from dealing with Wall Street across 3 decades, is how to check out individuals. I have actually fulfilled 10s of thousands of individuals throughout my career. I've satisfied insiders; I've fulfilled fund supervisors, I've satisfied stock promoters, I have actually fulfilled all these various kinds of characters along the way.
So I believe that's probably one of my incredibly powers, if you will. And if you have actually got a great BS detector, you should listen to it. Okay. You ought to absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they've got all the bonifides, however you understand, there's simply; it's not agreeing with me, there's something about them that's not agreeing with me.
There are a lot of other offers out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you kind of mentioned at the beginning, Bitcoin and Ethereum, many individuals have actually 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 missed out on the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's shown up from say $3,000 not too long back, it's quite unstable. Do they kind of await a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's a fantastic concern.
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