So, a lot of individuals find that too troublesome, and that's why the people that are actually making the most amount of money right now in cryptocurrencies are the early adopters: people that are prepared to put in possibly the 20 minutes required to go through a procedure which just takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your ideas, however gosh, establishing 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 a massive amount of cash to go through maybe, you know, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, but it is simply a concern of time, Ryan, before you'll have the ability to purchase cryptocurrencies straight through your trading software application. And can you envision what will happen to this entire market when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that people go through, and something I wish to expose too that you didn't point out, but I understand a lot of folks who have a hard time with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can only purchase $500 a week.
As tough as possible, best, like Coinbase. It 'd take me forever before I might start purchasing in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I mean, it's if you remember the early days of the Internet, when we were getting on the Internet, 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 mean, we're in the early days of that innovation, however similar to throughout that period of time, for the folks that had the vision to see where the future was going, and then bought in on a few of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm constantly curious to talk to individuals who are, especially somebody like yourself, who's devoted the last, you understand, the better part of the last few years to truly go both feet in on this. How do you explain cryptocurrency to like an average individual? That's a fantastic question.
They're two completely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to money. So Bitcoin would be a cryptocurrency. Therefore what offers 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. Therefore 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 actually, with existing technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you have actually got individuals who have literally 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 an unlimited amount of it. It's truly not secure, and the government can take it away from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or people that remained in Cypress, or just people who have suffered through either devaluation, or there's a high demand for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those countries that could possibly be a driver for more adoption, because they already don't think in their own currency? Yeah, and I believe we have actually currently 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're like, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not require Bitcoin. But there are billions of people in the world that do not have stable currencies.
Yeah. And so there's this entire burgeoning global need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And utility coins are generally used, let's say Ethereum, which a great deal of people understand about Ethereum. Ethereum is essentially an international computer system that you can write computer programs for and run computer programs on an internationally decentralized computer program.
So we think about something like Ether an energy token, since you're essentially purchasing 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 provide individuals a concept, like an extremely basic one that I would imagine you 'd called an energy token, resembles FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's type of this very same kind of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on so many different areas and. I do not know the ins and outs of it, however as an example for somebody who might just be really standard in their understanding of this, there are many various kinds of energies that are offered.
And you sort of discussed having this boots on the ground experience. Now, since we're looking at the bulk of these are most likely utility based, fix? Mm-hmm (affirmative). Many of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, however I think the genuine opportunity lies in the utility coin area.
There's all of these ICOs that were taking place, those decreased a little bit with some modifications to a couple of things that was going on, however people are going to come out of the woodwork and start to produce utility coins- Correct, yeah. And individuals need to comprehend that not all utility coins are created equivalent.
So you have the benefit of dedicating your profession to this, so you can head out there and do the recon, you can meet the creators, you can inspect the code, and so on. However for a typical individual, there's now what, over 1,000 different types of coins readily available, almost 1,200 I think.
How do they do that? That's a fantastic concern. I will say that 95% of ICOs are either deceptive or simply bad concepts. Okay. Right? There's nothing worse than somebody that's young, earnest, with a horrible concept, that somebody provides $40 million to. Right? Yeah, totally. So yeah, so I do not really take part in lots of ICOs, and I advise you probably side step that market, unless you have actually 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. Which's when we really begin taking a look at the idea in more detail. So here are some fast and unclean things that you should look at, right? So, one is, are they fixing a problem that needs to be resolved? Among the huge downsides with extremely wise, technical individuals, is that they like to fix issues that no one cares about solving.
Does the group have experience of executing in a successful way in another area of their life? And it doesn't even need to be directly associated to cryptocurrency, it does not need to be even straight related to software, right? So, but I want to see a track record of success in something, right? If it's four guys in a room that are just out of college, unless they've got some actually good advisors behind them, I'm most likely not going to give them any money.
Yeah. I believe that in marketing in basic, my world of service, we constantly look for problems and how we can resolve them. Now, are the issues things that people are attempting to solve a part of the Blockchain normally? Or would you say it's much better if they're solving sort 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 generally looking for services that, so I'll offer you an example.
And the factor that we bought it is since they found a way to make files tamper-proof, and it's 99% more affordable than current technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that began it has a performance history of developing computer system programs that whole states run their whole operations on, right? So you've got fine, the wise guy has actually constructed substantial computer programs, excellent team, solving a massive issue that is going to cut substantial expenses.
I indicate, it doesn't get any easier than that in regards to choosing who to put money behind. And a great deal of this prevails sense, and a lot of folks will attempt to make things more complex than it is. And I have an actually basic guideline, Ryan. If I do not comprehend something, I installed my hand, and I state, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And then if the individual that you're speaking to can't dumb it down enough where you understand it, then it's most likely not an excellent idea. Right, right. It's going to be basic to understand. And do you feel that you have years of experience examining business and taking a look at much, much larger business.
Ryan: So you've taken a look at companies that are huge companies, you've 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 mentioned, it is nearly just good sense. You simply have to sort of look at it and think logically about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no standard metrics that you can look at.
Okay. What I can use that I learned from working on Wall Street across three decades, is how to check out people. I've satisfied tens of countless people throughout my profession. I have actually met insiders; I've satisfied fund supervisors, I have actually met stock promoters, I have actually satisfied all these various types of characters along the way.
So I believe that's most likely among my incredibly powers, if you will. And if you've got a great BS detector, you need to listen to it. Okay. You must absolutely listen to it. If I'm sitting down and I'm talking with someone, and they have actually 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 many other deals out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you sort of pointed out at the start, Bitcoin and Ethereum, the majority of people have become aware of these 2, particularly Bitcoin, since it looks like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's shown up from say $3,000 not too long ago, it's rather volatile. Do they sort of wait for 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 an excellent question.
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