So, a lot of individuals discover that too inconvenient, which's why the people that are actually making the most amount of money right now in cryptocurrencies are the early adopters: individuals that want to put in maybe the 20 minutes needed to go through a procedure which simply takes 5 minutes if you desire to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, however 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 truly getting paid a huge amount of cash to go through perhaps, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, however it is just a question of time, Ryan, prior to you'll be able to buy cryptocurrencies straight through your trading software. And can you envision what will take place to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the process that individuals go through, and one thing I wish to bring to light too that you didn't discuss, however I understand a great deal of folks who have problem with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can just buy $500 a week.
As hard as possible, right, like Coinbase. It 'd take me forever before I could start 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 Web, when we were getting on the Web, 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 suggest, we're in the early days of that innovation, however much like throughout that amount of time, for the folks that had the vision to see where the future was going, and then bought in on some of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a second, due to the fact that I'm constantly curious to talk with people who are, especially somebody like yourself, who's dedicated the last, you understand, the better part of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like a typical person? That's a fantastic question.
They're 2 totally various 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 provides it value is that it is, there's only 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, verifying the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people constantly try to hack it. However 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 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 saying, "We don't trust paper currency, you can print a limitless amount of it. It's really not secure, and the government can take it far from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or individuals that were in Cypress, or simply people who have suffered through either devaluation, or there's a high demand for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those countries that could possibly be a driver for more adoption, due to the fact that they already do not believe in their own currency? Yeah, and I think we have actually 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're like, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. However there are billions of people worldwide that don't have stable currencies.
Yeah. Therefore there's this whole growing worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are essentially utilized, let's state Ethereum, which a great deal of people understand about Ethereum. Ethereum is basically a global computer that you can write computer system programs for and run computer programs on a worldwide decentralized computer system program.
So we consider something like Ether an utility token, since you're basically buying programs power. So I wouldn't actually consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give individuals a concept, like an extremely simple one that I would imagine you 'd called an energy 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 very same type of network effect that you have with Bitcoin, where it's like unstoppable example, because it's on so numerous different locations and. I do not know the ins and outs of it, however as an example for someone who might simply be extremely basic in their understanding of this, there are numerous different kinds of energies that are offered.
And you kind of mentioned having this boots on the ground experience. Now, considering that we're taking a look 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 couple of cryptocurrencies, but I believe the real opportunity depends on the energy coin space.
There's all of these ICOs that were happening, those decreased a bit with some changes to a couple of things that was going on, however individuals are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And individuals need to comprehend that not all utility coins are developed equal.
So you have the advantage of dedicating your occupation to this, so you can go out there and do the reconnaissance, you can fulfill the creators, you can check the code, etc. However for an average individual, there's now what, over 1,000 various kinds of coins offered, almost 1,200 I believe.
How do they do that? That's a fantastic question. I will say that 95% of ICOs are either deceptive or simply bad ideas. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with a dreadful idea, that someone provides $40 million to. Right? Yeah, absolutely. So yeah, so I don't actually participate in many ICOs, and I advise you most likely side action that market, unless you've got an unique relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% approximately. Which's when we actually start looking at the idea in more information. So here are some fast and unclean things that you should take a look at, right? So, one is, are they resolving a problem that requires to be resolved? One of the big disadvantages with extremely clever, technical people, is that they like to resolve issues that no one cares about solving.
Does the team have experience of carrying out in an effective way in another area of their life? And it does not even need to be straight related to cryptocurrency, it does not need to be even straight related to software, right? So, but I desire to see a track record of success in something, right? If it's 4 men in a space that are simply out of college, unless they have actually got some truly good advisors behind them, I'm most likely not going to provide any cash.
Yeah. I believe that in marketing in general, my world of service, we constantly search for issues and how we can solve them. Now, are the problems things that individuals are attempting to resolve a part of the Blockchain typically? Or would you say it's much better if they're resolving kind 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 generally looking for options that, so I'll give you an example.
And the factor that we bought it is since they found a way to make documents tamper-proof, and it's 99% less expensive than existing 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 entire states run their entire operations on, right? So you've got all right, the smart guy has constructed big computer system programs, excellent team, solving a massive issue that is going to cut huge expenses.
I indicate, it does not get any easier than that in regards to choosing who to put cash 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 a really simple rule, Ryan. If I do not understand something, I set up my hand, and I say, "I didn't comprehend what you just said." Mm-hmm (affirmative).
And then if the person that you're speaking with can't dumb it down enough where you comprehend it, then it's probably not an excellent concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience assessing companies and looking at much, much bigger companies.
Ryan: So you've looked at companies that are huge companies, you've examined much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you discussed, it is nearly just good sense. You just have to type of take a look at it and think rationally about what's going on, and pull the feeling out? You have to pull the feeling out, and there are no traditional metrics that you can take a look at.
Okay. What I can utilize that I gained from dealing with Wall Street across 3 decades, is how to read people. I have actually fulfilled tens of countless individuals throughout my career. I've met experts; I've met fund managers, I have actually met stock promoters, I've met all these different types of characters along the way.
So I believe that's most likely one of my extremely powers, if you will. And if you've got an excellent BS detector, you ought to listen to it. Okay. You must absolutely listen to it. If I'm sitting down 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 sitting well with me.
There are so numerous other deals out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you understand, you sort of discussed at the start, Bitcoin and Ethereum, a lot of people have 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 nearly upwards of $6,000 recently; it's come up from say $3,000 not too long earlier, it's quite unstable. Do they sort of await a pullback, or do they just say, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a fantastic concern.
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