So, a great deal of people discover that too inconvenient, and that's why the individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: people that are willing to put in perhaps the 20 minutes required to go through a process which simply takes five minutes if you want to set up a brokerage account.
" Oh Teeka, we love your ideas, but gosh, establishing a crypto account is so hard." 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 entire cryptocurrency market will be 10x larger. So you're actually really earning money an enormous amount of money to go through possibly, you know, 20 minutes of a discomfort in the neck.
So you can't purchase Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, before you'll be able to purchase cryptocurrencies straight through your trading software. And can you envision what will occur 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 pointed out the process that people go through, and one thing I desire to expose too that you didn't discuss, but I know a lot of folks who deal with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can just buy $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me forever prior to I could start purchasing 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 Web, we were doing it with 56k modems, right? I suggest 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 innovation, but simply like throughout that time period, for the folks that had the vision to see where the future was going, and then bought 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, due to the fact that I'm constantly curious to talk to individuals who are, particularly somebody like yourself, who's committed the last, you understand, the lion's share of the last couple of years to really go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a fantastic question.
They're 2 absolutely different 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 gives it worth is that it is, there's only going to be a restricted 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. Therefore if you look at that Bitcoin network, people continuously 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 big today, 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 due to the fact that they're stating, "We don't trust paper money, you can print an unlimited quantity of it. It's really not protect, and the federal government can take it far from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or individuals that remained in Cypress, or just people who have actually suffered through either hyperinflation, or there's a high demand 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, 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 lot of American or Western financiers have a bumpy ride getting their head around. They're like, "Well I don't require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You do not need Bitcoin. However there are billions of people on the planet that don't have stable currencies.
Yeah. Therefore there's this whole blossoming worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are generally utilized, let's state Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is basically an international computer system that you can write computer programs for and run computer programs on a globally decentralized computer system program.
So we consider something like Ether an utility token, because you're essentially purchasing shows power. So I wouldn't really consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide individuals an idea, like an extremely easy one that I would imagine you 'd called an utility token, is like FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's kind of this same kind of network result that you have with Bitcoin, where it resembles unstoppable example, since it's on numerous various locations and. I do not 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 a lot of different kinds of utilities that are readily available.
And you sort of mentioned having this boots on the ground experience. Now, because we're looking at the bulk of these are most likely energy based, correct? Mm-hmm (affirmative). Most of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, however I believe the genuine opportunity depends on the energy coin space.
There's all of these ICOs that were taking place, those decreased a bit with some changes to a couple of things that was going on, but people are going to come out of the woodwork and start to produce utility coins- Correct, yeah. And people need to understand that not all energy coins are created equivalent.
So you have the benefit of devoting your occupation to this, so you can head out there and do the reconnaissance, you can meet the founders, you can check the code, and so on. However for a typical individual, there's now what, over 1,000 various kinds of coins offered, nearly 1,200 I believe.
How do they do that? That's a great concern. I will state that 95% of ICOs are either fraudulent or just bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a horrible idea, that someone gives $40 million to. Right? Yeah, totally. So yeah, so I don't really take part in many ICOs, and I advise you most likely 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 normally it'll crash 80% or two. And that's when we really begin taking a look at the idea in more detail. So here are some fast and filthy things that you should look at, right? So, one is, are they resolving a problem that needs to be resolved? Among the big downsides with extremely clever, technical individuals, is that they like to resolve problems that nobody appreciates fixing.
Does the team have experience of performing in a successful manner in another area of their life? And it doesn't even have to be straight related to cryptocurrency, it does not need to be even straight associated to software application, right? So, however I wish to see a performance history of success in something, right? If it's 4 people in a space that are just out of college, unless they've got some really great consultants behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in basic, my world of organization, we continuously search for issues and how we can fix them. Now, are the issues things that individuals are trying to fix a part of the Blockchain normally? 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 essentially looking for solutions that, so I'll provide you an example.
And the reason that we purchased it is due to the fact that they found a method to make files tamper-proof, and it's 99% more affordable than existing technology, 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 fine, the wise man has actually constructed huge computer programs, fantastic team, resolving a massive issue that is going to cut huge expenses.
I mean, it doesn't get any easier than that in terms of choosing who to put money behind. And a lot of this is common sense, and a lot of folks will attempt to make things more complicated than it is. And I have a really basic rule, Ryan. If I do not comprehend something, I installed my hand, and I state, "I didn't understand what you simply 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 basic to comprehend. And do you feel that you have years of experience assessing business and taking a look at much, much bigger companies.
Ryan: So you have actually looked at business that are huge companies, you have actually evaluated much bigger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you mentioned, it is almost just good sense. You simply need to type of take a look at it and believe reasonably about what's going on, and pull the emotion out? You have to pull the feeling out, and there are no standard metrics that you can look at.
Okay. What I can use that I discovered from working on Wall Street across three years, is how to check out people. I've met tens of thousands of people throughout my profession. I have actually met insiders; I have actually fulfilled fund supervisors, I've satisfied stock promoters, I've fulfilled all these different kinds of characters along the method.
So I believe that's probably among my super powers, if you will. And if you've got a great BS detector, you ought to listen to it. Okay. You ought to definitely listen to it. If I'm taking a seat and I'm talking with someone, 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 offers out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you understand, you type of discussed at the beginning, Bitcoin and Ethereum, many people have actually heard of these 2, especially Bitcoin, since 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 almost upwards of $6,000 recently; it's come up from state $3,000 not too long back, it's quite volatile. Do they type of await a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a great question.
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