So, a great deal of individuals find that too bothersome, and that's why the individuals that are literally making the most amount of cash today in cryptocurrencies are the early adopters: individuals that want to put in possibly the 20 minutes needed to go through a procedure which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we love your concepts, however gosh, establishing a crypto account is so challenging." What I inform 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 larger. So you're in fact really earning money a huge amount of money to go through perhaps, you know, 20 minutes of a pain in the neck.
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 purchase cryptocurrencies straight through your trading software application. And can you picture what will happen to this whole market when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that people go through, and something I wish to bring to light too that you didn't point out, however I know a lot of folks who fight with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can just buy $500 a week.
As tough as possible, right, like Coinbase. It 'd take me forever before I might begin buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I imply, it's if you keep in mind 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 indicate, we remain in the early days of that technology, but similar to 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 always curious to speak to individuals who are, particularly somebody like yourself, who's dedicated the last, you know, the much better part of the last couple of years to really go both feet in on this. How do you explain cryptocurrency to like an average person? That's a fantastic concern.
They're two absolutely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to money. So Bitcoin would be a cryptocurrency. And so what offers it value is that it is, there's just going to be a limited amount. 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 look at that Bitcoin network, people continuously try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And really, with present technology, the Bitcoin network is so huge 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 literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We don't trust fiat money, you can print an unlimited quantity of it. It's really not secure, and the government can take it away from you." - Whereas with Bitcoin, best , go on.
Yeah. Or people that remained in Cypress, or just individuals who have actually suffered through either hyperinflation, or there's a high need for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a catalyst for more adoption, since they already don't believe in their own currency? Yeah, and I think we have actually currently seen that.
So yes, and this is a thing that a lot of American or Western investors have a bumpy ride getting their head around. They resemble, "Well I do not require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of individuals on the planet that do not have stable currencies.
Yeah. And so there's this entire growing global demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are generally used, let's state Ethereum, which a great deal of people understand about Ethereum. Ethereum is basically a worldwide computer system that you can write computer programs for and run computer programs on a worldwide decentralized computer program.
So we think about something like Ether an energy token, due to the fact that you're essentially buying programming power. So I wouldn't 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 simple one that I would envision you 'd called an utility token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's kind of this very same kind of network result that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on numerous different areas and. I do not understand the ins and outs of it, but as an example for someone who might simply be really standard in their understanding of this, there are a lot of various kinds of utilities that are offered.
And you sort of discussed having this boots on the ground experience. Now, since we're looking 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, but I believe the real chance lies in the energy coin area.
There's all of these ICOs that were taking place, those slowed down a bit with some changes to a couple of things that was going on, but individuals are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And people require to understand that not all energy coins are produced equal.
So you have the advantage of devoting your occupation to this, so you can go out there and do the recon, you can satisfy the creators, you can check the code, and so on. However for an average individual, there's now what, over 1,000 various kinds of coins available, almost 1,200 I think.
How do they do that? That's an excellent question. I will say that 95% of ICOs are either deceptive or simply bad concepts. Okay. Right? There's nothing worse than someone that's young, earnest, with a horrible concept, that somebody offers $40 million to. Right? Yeah, absolutely. So yeah, so I do not really participate 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 then blow it out when it trades.
'Cause typically it'll crash 80% or so. And that's when we truly start taking a look at the concept in more information. So here are some quick and dirty things that you should look at, right? So, one is, are they solving a problem that requires to be fixed? One of the huge drawbacks with very clever, technical individuals, is that they like to resolve issues that no one appreciates solving.
Does the group have experience of performing in an effective manner in another location of their life? And it does not even have to be straight related to cryptocurrency, it doesn't have to be even directly related to software application, right? So, however I want to see a track record of success in something, right? If it's four people in a space that are simply out of college, unless they've got some actually excellent advisors behind them, I'm most likely not going to provide them any cash.
Yeah. I think that in marketing in basic, my world of company, we continuously try to find issues and how we can fix them. Now, are the issues things that individuals are trying to resolve a part of the Blockchain typically? Or would you say it's much better if they're resolving type 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 basically looking for solutions that, so I'll give you an example.
And the reason that we purchased it is because they found a way to make files tamper-proof, and it's 99% cheaper than present technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that started it has a track record of creating computer system programs that whole states run their entire operations on, right? So you have actually got all right, the wise man has constructed substantial computer system programs, great team, resolving a huge issue that is going to cut huge costs.
I imply, it doesn't get any easier than that in regards to choosing who to put money behind. And a great deal of this prevails sense, and a lot of folks will try to make things more complicated than it is. And I have an actually easy guideline, Ryan. If I do not understand something, I put up my hand, and I state, "I didn't comprehend what you just said." Mm-hmm (affirmative).
And after that if the individual that you're speaking to can't dumb it down enough where you understand it, then it's most likely not a good concept. Right, right. It's going to be basic 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've taken a look at companies that are huge companies, you've 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 discussed, it is almost just typical sense. You simply need to sort of take a look at it and believe reasonably about what's going on, and pull the emotion out? You need 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 discovered from working on Wall Street throughout three decades, is how to read people. I've satisfied tens of thousands of individuals throughout my career. I've met experts; I've satisfied fund managers, I have actually met stock promoters, I've met all these different types of characters along the method.
So I think that's probably among my very powers, if you will. And if you have actually got an excellent BS detector, you ought to listen to it. Okay. You should absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually 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 so numerous other offers out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you know, you sort of discussed at the beginning, Bitcoin and Ethereum, many people have become aware of these two, especially Bitcoin, due to the fact that it appears like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 just recently; it's turned up from state $3,000 not too long earlier, it's rather unpredictable. Do they sort of wait on 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 understand? Yeah that's a terrific question.
Copyright© how to invest in blockchain All Rights Reserved Worldwide