So, a lot of people discover that too inconvenient, and that's why the people that are actually making the most amount of money 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 5 minutes if you desire to set up a brokerage account.
" Oh Teeka, we enjoy your ideas, but gosh, establishing 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 larger. So you're in fact truly making money a huge quantity of cash 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, prior to you'll have the ability to buy cryptocurrencies straight through your trading software. And can you envision what will happen to this whole marketplace when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that people go through, and one thing I desire to bring to light too that you didn't discuss, but I know a lot of folks who have problem with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can only buy $500 a week.
As tough as possible, right, like Coinbase. It 'd take me forever before I could begin buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I suggest, 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 fill 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're in the early days of that innovation, but similar to during that duration of time, 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 companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm constantly curious to talk with individuals who are, specifically somebody like yourself, who's committed the last, you know, the bulk of the last few years to truly go both feet in on this. How do you explain cryptocurrency to like an average person? That's a terrific question.
They're 2 totally different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to money. So Bitcoin would be a cryptocurrency. Therefore what gives it value is that it is, there's just going to be a restricted quantity. 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 look at that Bitcoin network, people continuously attempt to hack it. However since of the nature of the network, today it's been unhackable. And actually, 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 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 amount of it. It's truly not protect, and the government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that remained in Cypress, or simply individuals who have suffered through either hyperinflation, or there's a high demand for, in Argentina for instance, high demand 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 lot of American or Western investors have a tough time getting their head around. They're like, "Well I don't require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. However there are billions of individuals on the planet that don't have stable currencies.
Yeah. Therefore there's this whole blossoming global demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are generally used, let's state Ethereum, which a lot of people learn about Ethereum. Ethereum is essentially an international computer that you can compose computer programs for and run computer system programs on a worldwide decentralized computer program.
So we think about something like Ether an utility token, because you're basically buying programming power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide individuals an idea, like a really easy one that I would picture you 'd called an utility token, resembles FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's sort of this very same kind of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on numerous various areas and. I do not know 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 numerous various types of energies that are readily available.
And you kind 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 energy based, remedy? Mm-hmm (affirmative). Many of the coins that I recommend and take a look at are utility-based. We have a few cryptocurrencies, however I think the real opportunity lies in the energy coin space.
There's all of these ICOs that were taking place, those decreased a bit with some changes to a few things that was going on, but individuals are going to come out of the woodwork and start to develop utility coins- Correct, yeah. And people need to comprehend that not all utility coins are developed equal.
So you have the advantage of devoting your profession to this, so you can head out there and do the reconnaissance, you can satisfy the founders, you can examine the code, and so on. But for an average person, there's now what, over 1,000 different types of coins readily available, practically 1,200 I believe.
How do they do that? That's an excellent question. I will state that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with a terrible idea, that somebody offers $40 million to. Right? Yeah, totally. So yeah, so I do not really take part in many ICOs, and I suggest you most likely side step that market, unless you have actually got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause normally it'll crash 80% or two. Which's when we truly start taking a look at the idea in more detail. So here are some fast and filthy things that you should look at, right? So, one is, are they solving an issue that needs to be solved? One of the big disadvantages with very smart, technical individuals, is that they like to solve problems that no one cares about resolving.
Does the team have experience of carrying out in a successful way in another area of their life? And it does not even need to be directly related to cryptocurrency, it does not have to be even straight related to software application, right? So, but I wish to see a performance history of success in something, right? If it's 4 guys in a room that are just out of college, unless they have actually got some really excellent advisors behind them, I'm most likely not going to give them any cash.
Yeah. I believe that in marketing in general, my world of organization, we continuously search for issues and how we can solve them. Now, are the problems things that individuals are attempting to fix a part of the Blockchain normally? Or would you state it's much better if they're fixing kind 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 solutions that, so I'll give you an example.
And the reason that we bought it is since they discovered a method to make documents tamper-proof, and it's 99% cheaper than current technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that started it has a performance history of producing computer system programs that entire states run their whole operations on, right? So you've got fine, the clever man has developed substantial computer system programs, fantastic team, fixing a huge issue that is going to cut big costs.
I imply, it doesn't get any simpler than that in terms of deciding who to put money behind. And a lot of this is typical sense, and a great deal of folks will attempt to make things more complex than it is. And I have an actually basic rule, Ryan. If I do not comprehend something, I installed my hand, and I state, "I didn't understand what you just stated." Mm-hmm (affirmative).
And after that if the person that you're speaking with can't dumb it down enough where you comprehend it, then it's probably not a great concept. Right, right. It's going to be easy to understand. And do you feel that you have years of experience evaluating business and taking a look at much, much bigger companies.
Ryan: So you've looked at companies that are huge companies, you have actually assessed much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you mentioned, it is nearly just sound judgment. You just have to kind of look at it and believe rationally about what's going on, and pull the emotion out? You have to pull the feeling out, and there are no conventional metrics that you can take a look at.
Okay. What I can use that I found out from working on Wall Street throughout 3 decades, is how to read individuals. I've fulfilled 10s of thousands of people throughout my career. I've fulfilled insiders; I've met fund supervisors, I have actually satisfied stock promoters, I have actually fulfilled all these various types of characters along the method.
So I think that's probably among my extremely powers, if you will. And if you've got a good BS detector, you need to listen to it. Okay. You ought to definitely 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 sitting well with me, there's something about them that's not agreeing with me.
There are a lot of other offers out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you understand, you sort of mentioned at the beginning, Bitcoin and Ethereum, a lot of people have actually heard of these two, especially Bitcoin, because 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 just recently; it's shown up from state $3,000 not too long earlier, it's rather unpredictable. Do they sort of await a pullback, or do they just state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in ten years." You know? Yeah that's an excellent concern.
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