So, a great deal of individuals discover that too inconvenient, and that's why the individuals that are actually making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that want to put in possibly the 20 minutes required to go through a process which just takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we love your ideas, but gosh, establishing a crypto account is so tough." What I tell 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 really earning money an enormous quantity of cash to go through maybe, you know, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies directly through your trading software application. And can you envision 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.
Today you pointed out the procedure that individuals go through, and one thing I wish to bring to light too that you didn't point out, however I understand a great deal of folks who deal with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can only purchase $500 a week.
As tough as possible, right, like Coinbase. It 'd take me forever before I might begin purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I suggest, it's if you keep in mind the early days of the Web, when we were getting on the Internet, 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 mean, we're in the early days of that innovation, however simply 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 an action back for a 2nd, due to the fact that I'm always curious to speak to people who are, especially someone like yourself, who's devoted the last, you understand, the much better part of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like an average person? That's a fantastic concern.
They're two totally various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to cash. So Bitcoin would be a cryptocurrency. And so 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 deals on the Bitcoin network. And so if you take a look at that Bitcoin network, people constantly attempt to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And actually, with current innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
And so when individuals put, you've got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not rely on paper money, you can print an unrestricted quantity of it. It's actually not secure, and the federal government can take it far from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or people that remained in Cypress, or just people who have actually suffered through either hyperinflation, or there's a high need 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, since they currently 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 lot of American or Western financiers have a difficult time getting their head around. They're like, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. But there are billions of people worldwide that do not have stable currencies.
Yeah. Therefore there's this entire blossoming international demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are generally utilized, let's state Ethereum, which a great deal of people learn about Ethereum. Ethereum is essentially a worldwide computer system that you can write computer system programs for and run computer system programs on an internationally decentralized computer program.
So we think about something like Ether an energy token, because you're basically buying programs power. So I would not really consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give individuals an idea, like an extremely simple one that I would imagine you 'd called an utility token, resembles FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's type of this same type of network impact that you have with Bitcoin, where it's like unstoppable example, since it's on a lot of different locations and. I do not know 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 many different types of utilities that are available.
And you type of mentioned having this boots on the ground experience. Now, since we're looking at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). Most of the coins that I suggest and take a look at are utility-based. We have a few cryptocurrencies, however I think the real opportunity depends on the energy coin area.
There's all of these ICOs that were occurring, those slowed down a little bit with some changes to a few things that was going on, however people are going to come out of the woodwork and begin to develop energy coins- Correct, yeah. And individuals need to understand that not all utility coins are created equivalent.
So you have the advantage of devoting your profession to this, so you can head out there and do the recon, you can fulfill the creators, you can examine the code, and so on. But for a typical person, there's now what, over 1,000 different kinds of coins readily available, practically 1,200 I believe.
How do they do that? That's an excellent question. I will say that 95% of ICOs are either fraudulent or just bad ideas. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with a horrible concept, that someone provides $40 million to. Right? Yeah, totally. So yeah, so I do not truly take part in numerous ICOs, and I suggest you probably side action 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 generally it'll crash 80% or so. And that's when we actually begin looking at the idea in more detail. So here are some quick and dirty things that you should take a look at, right? So, one is, are they resolving an issue that requires to be fixed? Among the huge disadvantages with extremely clever, technical people, is that they like to solve problems that no one appreciates solving.
Does the group have experience of performing in a successful way in another location of their life? And it doesn't even have to be directly related to cryptocurrency, it doesn't have to be even directly associated to software, right? So, but I desire to see a performance history of success in something, right? If it's 4 men in a room that are just out of college, unless they've got some really excellent 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 continuously search for issues and how we can solve them. Now, are the problems things that people are trying to fix a part of the Blockchain normally? Or would you say it's better if they're solving 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 searching for services that, so I'll give you an example.
And the reason that we bought it is due to the fact that they discovered a way to make documents tamper-proof, and it's 99% cheaper than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that began it has a performance history of developing computer programs that entire states run their whole operations on, right? So you've got all right, the smart person has actually built huge computer programs, terrific group, fixing an enormous problem that is going to cut big expenses.
I suggest, it does not get any simpler than that in regards to deciding who to put money behind. And a lot of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have an actually easy rule, Ryan. If I do not comprehend something, I put up my hand, and I state, "I didn't understand what you simply said." Mm-hmm (affirmative).
And after that if the individual that you're speaking to can't dumb it down enough where you comprehend it, then it's most likely not a good concept. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience evaluating companies and looking at much, much bigger business.
Ryan: So you have actually looked at companies that are huge companies, you have actually assessed much bigger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you mentioned, it is practically simply good sense. You simply have to type of appearance at it and think 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 utilize that I discovered from dealing with Wall Street throughout three decades, is how to read individuals. I've fulfilled 10s of thousands of individuals throughout my career. I've satisfied insiders; I have actually satisfied fund managers, I have actually satisfied stock promoters, I've satisfied all these different types of characters along the way.
So I think that's probably among my very powers, if you will. And if you've got an excellent BS detector, you should listen to it. Okay. You must 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 many other deals out there to look at. Yeah, there's too much chance. Yeah. And speaking of chance, you understand, you kind of mentioned at the start, Bitcoin and Ethereum, the majority of individuals have heard of these 2, particularly Bitcoin, since 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 earlier, it's rather unstable. Do they type of await a pullback, or do they just 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 an excellent question.
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