So, a great deal of people find that too bothersome, and that's why individuals that are literally making the most amount of money right now in cryptocurrencies are the early adopters: individuals that want to put in maybe the 20 minutes required to go through a procedure which just takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your ideas, however gosh, setting up a crypto account is so difficult." What I inform them is I say, "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 truly making money a massive quantity of cash to go through maybe, you understand, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, however 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 picture what will take place to this entire market when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that individuals go through, and one thing I desire to expose too that you didn't discuss, however I understand a great deal of folks who fight with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can only buy $500 a week.
As challenging as possible, ideal, like Coinbase. It 'd take me permanently prior to I could begin buying in size on Coinbase. They resemble, 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 Internet, 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 indicate, we're in the early days of that technology, but similar to throughout that amount of time, for the folks that had the vision to see where the future was going, and after that purchased in on a few of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm always curious to speak to people who are, especially 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 an average person? That's a fantastic concern.
They're two totally different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to money. So Bitcoin would be a cryptocurrency. Therefore what offers it worth is that it is, there's only going to be a limited quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, verifying the transactions on the Bitcoin network. Therefore if you look at that Bitcoin network, people continuously try to hack it. But since of the nature of the network, today it's been unhackable. And actually, with existing technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when people 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 stating, "We don't rely on fiat money, you can print an unlimited amount of it. It's really not protect, and the federal government can take it far from you." - Whereas with Bitcoin, right , go ahead.
Yeah. Or individuals that were in Cypress, or simply 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 potentially be a driver for more adoption, because 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 hard time getting their head around. They resemble, "Well I do not need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. However there are billions of individuals worldwide that don't have steady currencies.
Yeah. And so there's this whole blossoming worldwide 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 lot of people learn about Ethereum. Ethereum is essentially an international computer that you can write computer system programs for and run computer programs on an internationally decentralized computer program.
So we consider something like Ether an utility token, because you're essentially buying programming power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer people an idea, like a really easy one that I would imagine you 'd called an utility token, is like FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's sort of this same kind of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on numerous various locations and. I don't understand the ins and outs of it, but as an example for somebody who might simply be extremely basic in their understanding of this, there are so lots of different kinds of energies that are readily available.
And you type of pointed out 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 couple of cryptocurrencies, but I think the genuine chance lies in the utility coin area.
There's all of these ICOs that were happening, those slowed down a bit with some modifications to a few 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 understand that not all energy coins are created equal.
So you have the advantage of committing your occupation to this, so you can go out there and do the reconnaissance, you can satisfy the creators, you can check the code, etc. However for an average person, there's now what, over 1,000 different kinds of coins offered, nearly 1,200 I think.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a horrible concept, that someone offers $40 million to. Right? Yeah, totally. So yeah, so I don't actually participate in lots of ICOs, and I suggest you probably side action that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause typically it'll crash 80% approximately. Which's when we really begin taking a look at the concept in more information. So here are some quick and filthy things that you should take a look at, right? So, one is, are they resolving a problem that needs to be fixed? One of the big downsides with really smart, technical individuals, is that they like to fix problems that no one appreciates solving.
Does the team have experience of executing in an effective way in another location of their life? And it does not even have to be straight related to cryptocurrency, it does not have to be even directly associated to software, right? So, but I want to see a track record of success in something, right? If it's four men in a room that are simply out of college, unless they have actually got some truly excellent advisors behind them, I'm probably not going to provide them any cash.
Yeah. I think that in marketing in basic, my world of business, we continuously look for issues and how we can resolve them. Now, are the problems things that individuals are trying to fix a part of the Blockchain typically? Or would you say it's better if they're solving 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 essentially trying to find options that, so I'll offer you an example.
And the factor that we purchased it is because they found a way to make files tamper-proof, and it's 99% cheaper than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the man that started it has a performance history of producing computer programs that entire states run their entire operations on, right? So you've got alright, the clever person has built substantial computer system programs, fantastic group, fixing an enormous problem that is going to cut huge expenses.
I suggest, it doesn't get any easier than that in terms of deciding who to put cash behind. And a lot of this is typical sense, and a great deal of folks will try to make things more complicated than it is. And I have a really easy guideline, Ryan. If I do not comprehend something, I installed my hand, and I state, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And after that if the person that you're talking with can't dumb it down enough where you comprehend it, then it's probably not a good idea. Right, right. It's going to be easy to understand. And do you feel that you have years of experience evaluating companies and taking a look at much, much larger business.
Ryan: So you've looked at business that are huge business, you've assessed much larger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you pointed out, it is practically just typical sense. You simply need to kind 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 take a look at.
Okay. What I can utilize that I gained from working on Wall Street across three years, is how to check out people. I have actually satisfied tens of countless people throughout my career. I have actually satisfied insiders; I have actually satisfied fund supervisors, I've met stock promoters, I have actually satisfied all these various kinds of characters along the way.
So I think that's probably one of my extremely powers, if you will. And if you have actually got a great BS detector, you need to listen to it. Okay. You ought to definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, but you know, there's just; it's not agreeing with me, there's something about them that's not agreeing with me.
There are many other offers out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you understand, you kind of pointed out at the beginning, Bitcoin and Ethereum, the majority of people have become aware 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 nearly upwards of $6,000 just recently; it's shown 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 purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's an excellent question.
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