So, a lot of individuals discover that too inconvenient, which's why the people that are actually making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are willing to put in possibly the 20 minutes needed to go through a procedure which simply takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, establishing a crypto account is so tough." What I tell them is I say, "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 bigger. So you're actually really earning money an enormous quantity of money to go through maybe, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, but it is just a question of time, Ryan, prior to you'll be able to buy cryptocurrencies directly through your trading software. And can you envision what will happen to this whole market when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you discussed the procedure that people go through, and something I wish to expose too that you didn't mention, however I understand a great deal of folks who struggle with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can just purchase $500 a week.
As challenging 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 buy $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 mean 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 innovation, but just like throughout that amount of time, for the folks that had the vision to see where the future was going, and after that 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 second, due to the fact that I'm constantly curious to speak with individuals who are, specifically someone like yourself, who's committed the last, you understand, the much better part of the last few years to really go both feet in on this. How do you explain cryptocurrency to like a typical person? That's a great question.
They're two absolutely various things, however 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 gives it value is that it is, there's just going to be a minimal amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the transactions on the Bitcoin network. Therefore 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 actually, with existing technology, 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 due to the fact that they're saying, "We do not trust paper money, you can print an endless amount of it. It's really not protect, and the government can take it far from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or individuals that were in Cypress, or just individuals who have actually suffered through either devaluation, 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 possibly be a catalyst for more adoption, due to the fact that they already don't think in their own currency? Yeah, and I think we've already 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 stable currency, right? You don't require Bitcoin. But there are billions of individuals in the world that don't have stable currencies.
Yeah. Therefore there's this entire blossoming global demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are essentially used, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially a global computer system that you can compose computer programs for and run computer system 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 programming 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 give people a concept, like a really 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 type of this exact same kind of network result that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on numerous various locations and. I do not know the ins and outs of it, however as an example for somebody who may just be really standard in their understanding of this, there are many different kinds of utilities that are available.
And you type of discussed having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are most likely utility based, remedy? Mm-hmm (affirmative). The majority of the coins that I recommend and take a look at are utility-based. We have a few cryptocurrencies, but I think the genuine opportunity depends on the energy coin space.
There's all of these ICOs that were taking place, those decreased a little bit with some changes to a couple of things that was going on, but individuals are going to come out of the woodwork and start to develop energy coins- Correct, yeah. And people need to comprehend that not all energy coins are created equivalent.
So you have the benefit of dedicating your occupation 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 person, there's now what, over 1,000 various kinds of coins readily available, practically 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 just bad ideas. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with an awful concept, that someone gives $40 million to. Right? Yeah, absolutely. So yeah, so I do not really 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 typically it'll crash 80% approximately. And that's when we truly start looking at the idea in more detail. So here are some quick and unclean things that you should take a look at, right? So, one is, are they fixing a problem that requires to be solved? One of the big disadvantages with extremely wise, technical people, is that they like to fix issues that nobody cares about solving.
Does the group have experience of executing in an effective manner in another area of their life? And it does not even have to be directly associated to cryptocurrency, it does not need to be even straight related to software application, right? So, but I wish to see a track record of success in something, right? If it's 4 guys in a space that are simply out of college, unless they've got some actually great consultants behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in general, my world of company, 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 say it's better if they're solving sort 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 essentially trying to find solutions that, so I'll offer you an example.
And the reason that we bought it is since they found a method to make documents tamper-proof, and it's 99% less expensive than present 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 producing computer system programs that whole states run their entire operations on, right? So you have actually got fine, the wise person has constructed substantial computer programs, great group, fixing a huge problem that is going to cut huge expenses.
I suggest, it does not get any easier than that in terms of deciding who to put cash behind. And a lot of this prevails sense, and a great deal of folks will attempt to make things more complex than it is. And I have a really simple rule, Ryan. If I don't comprehend something, I set up my hand, and I say, "I didn't understand what you simply said." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you comprehend it, then it's most likely not a good concept. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience assessing business and looking at much, much larger companies.
Ryan: So you've taken a look at companies that are huge business, you have actually 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 practically simply typical sense. You simply need to type of 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 traditional metrics that you can look at.
Okay. What I can use that I found out from working on Wall Street throughout three years, is how to read people. I have actually satisfied 10s of countless people throughout my profession. I've fulfilled experts; I have actually met fund supervisors, I've satisfied stock promoters, I have actually met all these different kinds of characters along the way.
So I think that's most likely among my extremely powers, if you will. And if you have actually got a good BS detector, you should listen to it. Okay. You ought to absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, however you know, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are a lot of other deals out there to look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you sort of discussed at the start, Bitcoin and Ethereum, most people have become aware of these 2, particularly Bitcoin, because it looks 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 come up from state $3,000 not too long back, it's rather volatile. Do they sort of wait for 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 ten years." You know? Yeah that's a fantastic question.
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