So, a lot of individuals find that too troublesome, which's why the individuals that are literally making the most amount of cash today in cryptocurrencies are the early adopters: individuals that want to put in perhaps the 20 minutes required to go through a process which just takes 5 minutes if you want to set up a brokerage account.
" Oh Teeka, we enjoy your ideas, but gosh, setting up a crypto account is so hard." What I inform them is I state, "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 in fact truly making money a massive quantity of cash to go through perhaps, you understand, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll have the ability to buy cryptocurrencies directly through your trading software application. And can you picture what will take place to this whole marketplace when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that individuals go through, and one thing I want to expose too that you didn't point out, however I know 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 only buy $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me forever prior to I could start purchasing in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I indicate, 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 imply 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 indicate, we're in the early days of that innovation, however similar to throughout that amount of time, for the folks that had the vision to see where the future was going, and after that bought in on some of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, since I'm always curious to speak with individuals who are, particularly somebody like yourself, who's committed the last, you know, the much better part of the last few years to really go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a great concern.
They're 2 absolutely 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 gives 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 computers, verifying the transactions on the Bitcoin network. And so if you look at that Bitcoin network, individuals constantly attempt to hack it. But since of the nature of the network, today it's been unhackable. And truly, with present technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when individuals put, you've got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We don't rely on paper money, you can print a limitless amount of it. It's truly not secure, and the federal government can take it far from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or people that were in Cypress, or just people who have suffered through either hyperinflation, or there's a high need for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a driver for more adoption, since they already don't believe in their own currency? Yeah, and I think we have actually already seen that.
So yes, and this is a thing that a great deal of American or Western financiers have a difficult time getting their head around. They resemble, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't require Bitcoin. But there are billions of individuals on the planet that don't have stable currencies.
Yeah. And so there's this entire burgeoning global need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And utility coins are essentially utilized, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially a worldwide computer system that you can compose computer system programs for and run computer system programs on a globally decentralized computer program.
So we think about something like Ether an energy token, since you're basically buying shows power. So I would not actually consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals a concept, like an extremely easy one that I would picture you 'd called an energy token, is like FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's type of this same type of network result that you have with Bitcoin, where it's like unstoppable example, because it's on a lot of various locations and. I don't know the ins and outs of it, but as an example for someone who may just be very standard in their understanding of this, there are a lot of different types of utilities that are offered.
And you sort of pointed out having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably utility based, fix? Mm-hmm (affirmative). Most of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, however I think the genuine opportunity lies in the energy coin area.
There's all of these ICOs that were taking place, those decreased a little bit with some changes to a few things that was going on, however individuals are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And individuals need to understand that not all utility coins are created equal.
So you have the advantage of devoting your occupation to this, so you can go out there and do the recon, you can meet the founders, you can inspect the code, and so on. However for a typical individual, there's now what, over 1,000 different kinds of coins available, nearly 1,200 I think.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either fraudulent or just bad concepts. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a horrible idea, that somebody provides $40 million to. Right? Yeah, absolutely. So yeah, so I do not really take part in lots of ICOs, and I recommend you probably side action that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause normally it'll crash 80% or two. Which's when we actually begin taking a look at the idea in more information. So here are some quick and dirty things that you should look at, right? So, one is, are they resolving a problem that needs to be fixed? One of the big drawbacks with really clever, technical people, is that they like to fix issues that no one cares about fixing.
Does the team have experience of executing in a successful manner in another location of their life? And it does not even need to be directly associated to cryptocurrency, it doesn't need to be even straight related to software application, right? So, however I desire to see a track record of success in something, right? If it's four people in a space that are just out of college, unless they've got some truly excellent advisors behind them, I'm most likely not going to provide any cash.
Yeah. I think that in marketing in general, my world of business, we constantly look for issues and how we can resolve them. Now, are the issues things that individuals are trying to solve a part of the Blockchain normally? Or would you say it's better if they're resolving type of a mass issue? Something like FileCoin, or something else that would be more mass appeal? Or is it a mix of both? Well I'm basically looking for services that, so I'll give 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% cheaper than present 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 creating computer programs that whole states run their whole operations on, right? So you have actually got alright, the clever guy has built big computer system programs, terrific team, resolving a huge issue that is going to cut big expenses.
I suggest, it doesn't get any simpler than that in terms of choosing who to put money behind. And a lot of this is typical sense, and a lot of folks will try to make things more complicated than it is. And I have a truly basic rule, Ryan. If I don't comprehend something, I put up my hand, and I say, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And then 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 good concept. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience assessing business and taking a look at much, much bigger business.
Ryan: So you've looked at companies that are big companies, you have actually assessed much larger marketcap type situations. 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 almost simply typical sense. You just need to sort of appearance at it and believe logically about what's going on, and pull the emotion 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 use that I gained from working on Wall Street throughout 3 decades, is how to check out individuals. I have actually satisfied tens of thousands of people throughout my profession. I've met experts; I have actually fulfilled fund supervisors, I've met stock promoters, I've satisfied all these various kinds of characters along the way.
So I believe that's most likely one of my extremely powers, if you will. And if you have actually got an excellent BS detector, you should listen to it. Okay. You ought to absolutely listen to it. If I'm sitting down and I'm talking with someone, and they've got all the bonifides, but you know, there's simply; it's not agreeing with me, there's something about them that's not agreeing with me.
There are numerous other deals out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you understand, you kind of pointed out at the start, Bitcoin and Ethereum, a lot of individuals have actually become aware of these 2, especially Bitcoin, since it looks like it's 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 say $3,000 not too long earlier, it's quite volatile. Do they type of wait on 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 a terrific question.
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