So, a great deal of people discover that too troublesome, and that's why individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: individuals that are willing to put in maybe the 20 minutes needed to go through a process which simply takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we like your concepts, however gosh, setting up 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 whole cryptocurrency market will be 10x larger. So you're actually really making money an enormous amount of money to go through perhaps, you know, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies straight through your trading software. And can you imagine what will occur to this whole marketplace when buying Bitcoin or any cryptocurrency is as simple as shooting 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 point out, however I understand a lot of folks who fight with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can only buy $500 a week.
As difficult as possible, ideal, like Coinbase. It 'd take me permanently prior to I could start buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I indicate, 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 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 suggest, we're in the early days of that innovation, however just like throughout that time period, for the folks that had the vision to see where the future was going, and after that bought in on a few of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, because I'm constantly curious to speak with people who are, particularly someone like yourself, who's devoted the last, you understand, the bulk of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like an average person? That's an excellent question.
They're two completely various things, but 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. Therefore what offers it value is that it is, there's only going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals continuously attempt to hack it. But since of the nature of the network, today it's been unhackable. And actually, with current 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 have actually got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We do not rely on fiat money, you can print an unrestricted quantity of it. It's actually not secure, and the government can take it far from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or individuals that were in Cypress, or just people who have suffered through either hyperinflation, or there's a high demand for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a catalyst for more adoption, because they currently do not think in their own currency? Yeah, and I believe we have actually currently seen that.
So yes, and this is a thing that a great deal 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 don't need Bitcoin. However there are billions of people in the world that don't have steady currencies.
Yeah. Therefore there's this whole growing global need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are basically used, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is basically an international computer that you can write computer programs for and run computer programs on an internationally decentralized computer program.
So we consider something like Ether an energy token, due to the fact that you're essentially buying shows power. So I would not actually consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give people an idea, like a really basic one that I would envision you 'd called an energy token, resembles FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's kind of this exact same kind of network impact that you have with Bitcoin, where it's like unstoppable example, because it's on numerous different locations and. I do not understand the ins and outs of it, but as an example for somebody who may just be very standard in their understanding of this, there are so many different types of utilities that are readily available.
And you type of pointed out having this boots on the ground experience. Now, because we're looking at the bulk of these are probably energy based, remedy? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, however I believe the genuine chance lies in the utility coin area.
There's all of these ICOs that were happening, those decreased a bit with some modifications to a couple of things that was going on, however 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 equivalent.
So you have the advantage of devoting your profession to this, so you can go out there and do the reconnaissance, you can meet the founders, you can check the code, etc. However for an average individual, there's now what, over 1,000 different types of coins available, practically 1,200 I believe.
How do they do that? That's a great question. I will say that 95% of ICOs are either deceitful or just bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a horrible concept, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I do not really take part in lots of ICOs, and I recommend you most likely side action that market, unless you have actually 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% or two. And that's when we really begin taking a look at the concept in more information. So here are some fast and unclean things that you should look at, right? So, one is, are they fixing a problem that requires to be fixed? Among the huge downsides with extremely clever, technical people, is that they like to resolve issues that no one cares about fixing.
Does the team have experience of executing in an effective manner in another area of their life? And it doesn't even have to be straight associated to cryptocurrency, it does not have to be even directly related to software application, right? So, but I wish 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 consultants behind them, I'm probably not going to provide any money.
Yeah. I believe that in marketing in general, my world of organization, we continuously look for issues and how we can solve them. Now, are the problems things that people are attempting to solve a part of the Blockchain generally? Or would you state it's 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 searching for solutions that, so I'll offer you an example.
And the reason that we purchased it is due to the fact that they discovered a way to make documents tamper-proof, and it's 99% more affordable than current 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 performance history of creating computer programs that entire states run their entire operations on, right? So you've got all right, the wise person has constructed huge computer system programs, terrific team, resolving a huge problem that is going to cut huge expenses.
I imply, it does not get any simpler than that in terms of deciding who to put cash behind. And a great deal of this is typical sense, and a great deal of folks will attempt to make things more complicated than it is. And I have a truly basic rule, Ryan. If I do not comprehend something, I set up my hand, and I say, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And after that if the person that you're speaking to can't dumb it down enough where you understand it, then it's probably not a great concept. Right, right. It's going to be simple to understand. And do you feel that you have years of experience examining companies and looking at much, much larger business.
Ryan: So you have actually looked at companies that are big business, you've evaluated much larger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you mentioned, it is practically just good sense. You simply have to type of look at it and think logically about what's going on, and pull the emotion out? You need to pull the emotion out, and there are no traditional metrics that you can take a look at.
Okay. What I can use that I gained from dealing with Wall Street throughout three years, is how to read individuals. I've fulfilled 10s of thousands of individuals throughout my profession. I have actually fulfilled experts; I have actually met fund managers, I have actually fulfilled stock promoters, I have actually met all these different kinds of characters along the method.
So I believe that's probably one of my extremely powers, if you will. And if you've got a good BS detector, you should 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 have actually got all the bonifides, however you know, there's just; it's not sitting well with me, there's something about them that's not agreeing with me.
There are so lots of other deals out there to look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you sort of mentioned at the start, Bitcoin and Ethereum, the majority of people have actually become aware of these 2, especially Bitcoin, due to the fact that it appears like it's 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 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 buy some Bitcoin, see you in 10 years." You understand? Yeah that's a fantastic question.
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