So, a great deal of people discover that too troublesome, which's why individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: individuals that want to put in perhaps the 20 minutes required to go through a process which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your ideas, but gosh, setting up a crypto account is so difficult." What I tell 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 bigger. So you're actually truly making money an enormous quantity of money to go through perhaps, you know, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a concern of time, Ryan, before you'll have the ability to buy cryptocurrencies directly through your trading software. And can you envision what will occur to this whole marketplace 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 something I desire to expose too that you didn't discuss, however I know a great deal of folks who battle with this too, is oh, and by the way, you can only buy $1,000 a week. Or you can only buy $500 a week.
As tough as possible, right, like Coinbase. It 'd take me permanently before I might start purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I indicate, it's if you keep in mind the early days of the Internet, when we were getting on the Web, 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 indicate, we remain in the early days of that technology, but simply like during that amount of time, for the folks that had the vision to see where the future was going, and after that purchased 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, because I'm always curious to speak with individuals who are, specifically somebody like yourself, who's devoted the last, you know, the bulk of the last few years to truly go both feet in on this. How do you describe cryptocurrency to like an average person? That's a fantastic concern.
They're 2 totally different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what provides it worth is that it is, there's just going to be a limited amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the deals on the Bitcoin network. And so if you take a 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 truly, with existing innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We don't trust fiat money, you can print a limitless quantity of it. It's actually not secure, and the federal government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or people that remained in Cypress, or just people who have actually suffered through either run-away inflation, 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 currently don't think 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 investors have a difficult time getting their head around. They resemble, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't require Bitcoin. However there are billions of people on the planet that don't have steady currencies.
Yeah. Therefore there's this entire growing worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are basically utilized, let's state Ethereum, which a great deal of people learn about Ethereum. Ethereum is basically a global computer that you can write computer programs for and run computer system programs on a worldwide decentralized computer program.
So we consider something like Ether an energy token, due to the fact that you're essentially buying programs power. So I wouldn't truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide people an idea, like a really basic one that I would picture you 'd called an energy token, resembles FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's kind of this very same type of network effect that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on numerous various locations and. I do not know the ins and outs of it, however as an example for someone who may simply be really standard in their understanding of this, there are many different types of utilities that are readily available.
And you type of discussed having this boots on the ground experience. Now, given that we're looking at the bulk of these are most likely utility based, fix? Mm-hmm (affirmative). The majority of the coins that I suggest and take a look at are utility-based. We have a few cryptocurrencies, but I believe the real opportunity depends on the utility coin area.
There's all of these ICOs that were happening, those slowed down a bit with some modifications to a few things that was going on, however individuals are going to come out of the woodwork and begin to develop utility coins- Correct, yeah. And people require to understand that not all energy coins are produced equal.
So you have the benefit of devoting your profession to this, so you can go out there and do the reconnaissance, you can satisfy the creators, you can inspect the code, and so on. However for an average person, there's now what, over 1,000 different types of coins offered, practically 1,200 I believe.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either deceitful or simply bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with a terrible idea, that someone provides $40 million to. Right? Yeah, absolutely. So yeah, so I don't really take part in numerous ICOs, and I recommend you probably side step that market, unless you've got a special relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% or so. And that's when we actually start looking at the idea in more information. So here are some fast and filthy things that you should take a look at, right? So, one is, are they resolving a problem that needs to be resolved? Among the huge drawbacks with very smart, technical people, is that they like to solve problems that no one appreciates solving.
Does the team have experience of performing in an effective way in another location of their life? And it doesn't even have to be straight associated to cryptocurrency, it does not need to be even straight related to software application, right? So, however I want to see a performance history of success in something, right? If it's 4 men in a space that are just out of college, unless they have actually got some really excellent advisors behind them, I'm most likely not going to offer them any cash.
Yeah. I think that in marketing in general, my world of organization, we continuously try to find problems and how we can resolve them. Now, are the issues things that individuals are attempting to resolve 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 generally trying to find solutions that, so I'll give you an example.
And the factor that we bought it is because they discovered a method to make files tamper-proof, and it's 99% cheaper than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that began it has a track record of producing computer programs that entire states run their whole operations on, right? So you've got fine, the wise guy has built substantial computer system programs, great group, fixing a huge problem that is going to cut big expenses.
I imply, it does not get any simpler than that in regards to choosing who to put money behind. And a lot of this prevails sense, and a great deal of folks will try to make things more complicated than it is. And I have a really easy guideline, Ryan. If I do not understand something, I set up my hand, and I state, "I didn't understand what you simply stated." 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 simple to understand. And do you feel that you have years of experience evaluating business and looking at much, much larger companies.
Ryan: So you have actually taken a look at business that are big business, you have actually assessed much larger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you pointed out, it is practically just good sense. You simply have to sort of take a look at it and believe reasonably about what's going on, and pull the feeling out? You have to pull the emotion out, and there are no traditional metrics that you can look at.
Okay. What I can utilize that I gained from dealing with Wall Street across 3 years, is how to check out individuals. I've satisfied 10s of thousands of people throughout my career. I have actually met experts; I have actually satisfied fund supervisors, I've satisfied stock promoters, I've fulfilled all these different kinds of characters along the way.
So I think that's probably among my extremely powers, if you will. And if you have actually got a great BS detector, you ought to listen to it. Okay. You should 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 a lot of other deals out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you understand, you type of pointed out at the start, Bitcoin and Ethereum, many people have heard of these two, particularly Bitcoin, because 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 practically upwards of $6,000 just recently; it's come up from state $3,000 not too long earlier, it's quite volatile. Do they sort of await a pullback, or do they simply state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You understand? Yeah that's a great concern.
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