So, a great deal of individuals find that too bothersome, and that's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: people that want to put in perhaps the 20 minutes required to go through a procedure which just takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, but 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 whole cryptocurrency market will be 10x larger. So you're in fact really getting paid a massive amount of money to go through maybe, you know, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, before you'll have the ability to buy cryptocurrencies straight through your trading software application. And can you imagine what will occur to this whole market when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Today you discussed the procedure that people go through, and something I want to expose too that you didn't mention, however I understand a lot of folks who have problem with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can only purchase $500 a week.
As hard as possible, right, like Coinbase. It 'd take me forever prior to I might begin buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I suggest, 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 pack a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I mean, we remain in the early days of that innovation, but similar to during that amount of time, for the folks that had the vision to see where the future was going, and after that purchased in on some of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm constantly curious to talk with individuals who are, particularly someone like yourself, who's committed the last, you understand, the bulk of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a fantastic concern.
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 cash. So Bitcoin would be a cryptocurrency. And so what offers it worth is that it is, there's just going to be a limited quantity. 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 look at that Bitcoin network, individuals constantly try to hack it. However because of the nature of the network, today it's been unhackable. And really, with present innovation, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
And so when people put, you've got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We don't rely on fiat money, you can print a limitless quantity of it. It's really not protect, and the federal government can take it away from you." - Whereas with Bitcoin, right , go on.
Yeah. Or people that remained in Cypress, or simply people who have actually suffered through either run-away inflation, or there's a high demand for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those countries that could possibly be a driver for more adoption, since they already do not think in their own currency? Yeah, and I believe we have actually already seen that.
So yes, and this is a thing that a lot of American or Western financiers have a bumpy ride getting their head around. They resemble, "Well I do not need Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. But there are billions of people worldwide that do not have stable currencies.
Yeah. And so there's this whole burgeoning worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are essentially used, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is basically a global computer system that you can compose computer programs for and run computer programs on a worldwide decentralized computer system program.
So we consider something like Ether an utility token, since you're basically buying programs power. So I would not really think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give individuals a concept, like a really easy one that I would picture you 'd called an utility 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's like unstoppable kind of thing, since it's on a lot of various areas and. I don't understand the ins and outs of it, however as an example for somebody who might simply be very fundamental in their understanding of this, there are a lot of different kinds of energies that are offered.
And you kind of mentioned 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). The majority of the coins that I recommend and take a look at are utility-based. We have a few cryptocurrencies, however I believe the genuine opportunity lies in the utility coin space.
There's all of these ICOs that were occurring, those slowed down a little bit with some changes to a few things that was going on, however people are going to come out of the woodwork and start to develop utility coins- Correct, yeah. And individuals require to understand that not all energy coins are produced equal.
So you have the advantage of dedicating your profession to this, so you can head out there and do the reconnaissance, you can fulfill the creators, you can inspect the code, etc. But for a typical individual, there's now what, over 1,000 various kinds of coins readily available, almost 1,200 I think.
How do they do that? That's a terrific concern. I will state that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a terrible concept, that somebody provides $40 million to. Right? Yeah, totally. So yeah, so I do not actually get involved in lots of ICOs, and I suggest you probably 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 generally it'll crash 80% approximately. Which's when we actually start taking a look at the concept in more information. So here are some fast and filthy things that you should look at, right? So, one is, are they resolving an issue that requires to be fixed? Among the huge disadvantages with extremely clever, technical individuals, is that they like to fix problems that no one appreciates resolving.
Does the team have experience of carrying out in an effective manner in another area of their life? And it doesn't even have to be directly associated to cryptocurrency, it doesn't need to be even straight associated to software, right? So, however I wish to see a track record of success in something, right? If it's 4 guys in a room that are just out of college, unless they have actually got some truly good advisors behind them, I'm most likely not going to give them any cash.
Yeah. I think that in marketing in basic, my world of company, we constantly try to find problems and how we can fix them. Now, are the issues things that individuals are trying to fix a part of the Blockchain typically? Or would you say it's better if they're solving sort 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 services that, so I'll offer 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 innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that began it has a track record of producing computer programs that entire states run their entire operations on, right? So you have actually got fine, the clever person has built huge computer system programs, great team, solving an enormous problem that is going to cut huge costs.
I suggest, 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 try to make things more complex than it is. And I have a truly easy rule, Ryan. If I don't understand something, I set up my hand, and I state, "I didn't understand what you just stated." Mm-hmm (affirmative).
And then if the person that you're talking with can't dumb it down enough where you understand it, then it's most likely not an excellent idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience evaluating business and looking at much, much larger business.
Ryan: So you've looked at companies that are huge business, you have actually assessed much bigger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you mentioned, it is practically just typical sense. You simply have to sort of take a look at it and think logically about what's going on, and pull the feeling out? You have to pull the emotion out, and there are no standard metrics that you can take a look at.
Okay. What I can use that I learned from working on Wall Street throughout three years, is how to check out individuals. I've met 10s of countless individuals throughout my career. I have actually fulfilled experts; I have actually satisfied fund managers, I have actually satisfied stock promoters, I have actually met all these different types of characters along the method.
So I believe that's probably one of my very powers, if you will. And if you've got a great BS detector, you must listen to it. Okay. You ought to definitely 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 just; it's not agreeing with me, there's something about them that's not agreeing with me.
There are a lot of other deals out there to look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you know, you type of mentioned at the beginning, Bitcoin and Ethereum, the majority of people have become aware of these 2, particularly Bitcoin, because it appears like it remains in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's come up from say $3,000 not too long earlier, it's quite unstable. Do they kind of await 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 10 years." You understand? Yeah that's a fantastic concern.
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