So, a lot of individuals discover that too bothersome, and that's why individuals that are literally making the most amount of cash today in cryptocurrencies are the early adopters: people that are willing to put in perhaps the 20 minutes needed to go through a procedure which just takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your concepts, however gosh, establishing a crypto account is so challenging." What I inform them is I state, "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 truly earning money a huge amount of money to go through maybe, you understand, 20 minutes of a pain in the neck.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, before you'll be able to purchase cryptocurrencies directly through your trading software. And can you picture what will happen 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 discussed the procedure that people go through, and something I want to expose too that you didn't discuss, but I understand a lot of folks who battle with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can only purchase $500 a week.
As tough as possible, ideal, like Coinbase. It 'd take me forever before I could start purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I imply, it's if you remember the early days of the Web, when we were getting on the Internet, we were doing it with 56k modems, right? I indicate it would take 20 minutes to pack a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I imply, we remain in the early days of that technology, however much like during that time period, 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 outright 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, specifically someone like yourself, who's devoted the last, you understand, the bulk of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like an average individual? That's a fantastic concern.
They're two absolutely different things, however 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 provides it worth is that it is, there's only going to be a restricted amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. And so if you look at that Bitcoin network, individuals continuously attempt to hack it. However because of the nature of the network, today it's been unhackable. And truly, with current technology, the Bitcoin network is so huge 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 since they're saying, "We do not rely on fiat money, you can print a limitless quantity of it. It's truly not secure, and the government can take it far from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or individuals that remained in Cypress, or simply individuals 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 nations that could potentially be a driver for more adoption, due to the fact that they already do not think in their own currency? Yeah, and I think we've already seen that.
So yes, and this is a thing that a great deal of American or Western investors have a hard time getting their head around. They resemble, "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. But there are billions of people on the planet that don't have stable currencies.
Yeah. And so there's this whole blossoming worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are generally used, let's state Ethereum, which a great deal of people understand about Ethereum. Ethereum is basically a worldwide computer that you can write computer programs for and run computer system programs on an internationally decentralized computer program.
So we consider something like Ether an utility token, due to the fact that 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 people a concept, like a very simple one that I would picture you 'd called an energy token, is like FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's type of this very same kind of network result that you have with Bitcoin, where it's like unstoppable example, because it's on many different areas and. I don't understand the ins and outs of it, however as an example for someone who might simply be very basic in their understanding of this, there are so many various kinds of utilities that are readily available.
And you sort of pointed out having this boots on the ground experience. Now, given that we're taking a look at the bulk of these are probably utility based, remedy? Mm-hmm (affirmative). Many of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, however I believe the genuine opportunity 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 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 understand that not all utility coins are produced equivalent.
So you have the advantage of devoting your occupation to this, so you can head out there and do the recon, you can satisfy the creators, you can check the code, and so on. But for an average individual, there's now what, over 1,000 different types of coins readily available, nearly 1,200 I believe.
How do they do that? That's a fantastic concern. I will state that 95% of ICOs are either deceitful or just bad concepts. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a horrible concept, that someone gives $40 million to. Right? Yeah, completely. So yeah, so I do not truly take part in many ICOs, and I advise you most likely side step that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause generally it'll crash 80% approximately. Which's when we actually start taking a look at the idea in more detail. So here are some fast and dirty things that you should take a look at, right? So, one is, are they fixing an issue that requires to be resolved? One of the huge disadvantages with extremely clever, technical people, is that they like to fix issues that no one appreciates fixing.
Does the team have experience of executing in an effective manner in another area of their life? And it doesn't even need to be directly associated to cryptocurrency, it doesn't have to be even directly related to software application, right? So, but I wish to see a performance history of success in something, right? If it's four guys in a room that are just out of college, unless they've got some truly good consultants behind them, I'm most likely not going to give them any cash.
Yeah. I think that in marketing in basic, my world of company, we continuously look for problems and how we can fix them. Now, are the problems things that people are trying to resolve a part of the Blockchain generally? Or would you say it's better if they're fixing 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 basically searching for options that, so I'll provide you an example.
And the reason that we purchased it is since they discovered a method to make documents tamper-proof, and it's 99% more affordable than current technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that started it has a performance history of producing computer programs that whole states run their whole operations on, right? So you have actually got alright, the clever man has built huge computer programs, fantastic group, fixing a huge issue that is going to cut big costs.
I suggest, it does not get any easier than that in regards to deciding who to put cash behind. And a lot of this is common sense, and a lot of folks will try to make things more complicated than it is. And I have an actually easy guideline, Ryan. If I don't comprehend something, I set up my hand, and I say, "I didn't understand what you just said." Mm-hmm (affirmative).
And after that if the person that you're speaking to can't dumb it down enough where you comprehend it, then it's most likely not a great idea. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience examining companies and looking at much, much larger companies.
Ryan: So you've looked at business that are big companies, you have actually evaluated much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you pointed out, it is practically just typical sense. You just need to type of look at it and believe rationally about what's going on, and pull the feeling out? You need 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 discovered from working on Wall Street throughout three years, is how to read people. I've fulfilled 10s of countless individuals throughout my career. I have actually fulfilled insiders; I have actually satisfied 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 probably one of my extremely powers, if you will. And if you've got a great BS detector, you need to listen to it. Okay. You ought to absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually got all the bonifides, but you know, there's simply; it's not sitting well with me, there's something about them that's not sitting well with me.
There are many other deals out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you understand, you kind of pointed out at the beginning, Bitcoin and Ethereum, many individuals have heard of these 2, particularly Bitcoin, since it appears like it remains in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's turned up from state $3,000 not too long ago, it's quite volatile. Do they kind of wait for a pullback, or do they simply 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 terrific concern.
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