So, a lot of people discover that too inconvenient, which'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 possibly the 20 minutes required to go through a procedure which simply takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your ideas, but gosh, setting up a crypto account is so hard." 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 in fact really getting paid a huge quantity of cash to go through maybe, you understand, 20 minutes of a discomfort in the neck.
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 purchase cryptocurrencies directly through your trading software application. And can you imagine what will occur to this entire market when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the procedure that people go through, and one thing I wish to expose too that you didn't point out, however I know a great deal of folks who battle with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can just purchase $500 a week.
As hard as possible, best, like Coinbase. It 'd take me forever prior to I might start buying in size on Coinbase. They resemble, well, we'll let you buy $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 load 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 innovation, but much like during that period 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 business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, since I'm always curious to speak to individuals who are, specifically someone like yourself, who's dedicated the last, you understand, the lion's share of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a great question.
They're two totally various 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. And so what offers 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 computer systems, confirming the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, people constantly try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And truly, with existing innovation, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
And so when people put, you have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We do not rely on paper money, you can print an unrestricted quantity of it. It's truly not protect, and the federal government can take it far from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or individuals that were in Cypress, or simply individuals who have actually 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 countries that could potentially be a driver for more adoption, since they already don't believe 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 financiers have a difficult 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. However there are billions of people on the planet that do not have stable currencies.
Yeah. And so there's this entire blossoming global demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are basically used, let's say Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is essentially a global computer system that you can write computer programs for and run computer system programs on an internationally decentralized computer system program.
So we think about something like Ether an utility token, since you're basically buying programming 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 give individuals an idea, like an extremely easy one that I would envision you 'd called an utility token, resembles FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's sort of this same type of network result that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on so many different areas and. I do not understand the ins and outs of it, however as an example for somebody who might simply be really basic in their understanding of this, there are a lot of various types of utilities that are available.
And you sort of discussed having this boots on the ground experience. Now, because we're looking at the bulk of these are probably utility based, fix? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, but I think the genuine chance lies in the energy coin area.
There's all of these ICOs that were occurring, those decreased a little bit with some modifications to a few things that was going on, however people are going to come out of the woodwork and start to create utility coins- Correct, yeah. And individuals need to understand that not all energy coins are developed equal.
So you have the benefit of committing your occupation to this, so you can head out there and do the recon, you can fulfill the founders, you can examine the code, etc. But for a typical individual, there's now what, over 1,000 various types of coins offered, almost 1,200 I think.
How do they do that? That's an excellent question. I will say that 95% of ICOs are either deceitful or simply bad concepts. Okay. Right? There's nothing even worse than someone that's young, earnest, with a horrible idea, that someone gives $40 million to. Right? Yeah, totally. So yeah, so I don't truly participate in lots of ICOs, and I advise you probably side action that market, unless you've got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause generally it'll crash 80% or so. Which's when we truly start looking 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 an issue that needs to be resolved? One of the big drawbacks with very smart, technical people, is that they like to fix problems that nobody appreciates solving.
Does the group have experience of carrying out in an effective manner in another location of their life? And it does not even need to be straight associated to cryptocurrency, it doesn't have to be even straight associated to software application, 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 have actually got some actually excellent consultants 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 search for problems and how we can resolve them. Now, are the problems things that individuals are attempting to solve a part of the Blockchain typically? Or would you state it's much 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 basically searching for solutions that, so I'll provide you an example.
And the factor that we purchased it is since they found a way 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 began it has a performance history of developing computer programs that whole states run their entire operations on, right? So you've got alright, the smart man has built huge computer programs, fantastic group, solving a massive problem that is going to cut huge costs.
I suggest, it doesn't get any easier than that in terms of choosing who to put money behind. And a great deal of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have a truly easy guideline, Ryan. If I don't understand something, I installed my hand, and I say, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And then if the individual that you're speaking with can't dumb it down enough where you understand it, then it's most likely not a great concept. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience assessing companies and taking a look at much, much bigger companies.
Ryan: So you have actually taken a look at companies that are huge companies, you have actually assessed much bigger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you discussed, it is practically just typical sense. You simply have to type of take a 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 standard metrics that you can look at.
Okay. What I can use that I gained from working on Wall Street across three years, is how to check out people. I've fulfilled tens of countless people throughout my career. I have actually satisfied insiders; I have actually fulfilled fund supervisors, I've satisfied stock promoters, I have actually fulfilled all these various kinds of characters along the way.
So I think that's most likely among my super powers, if you will. And if you've got a great BS detector, you should listen to it. Okay. You need to definitely listen to it. If I'm sitting down and I'm talking with somebody, and they've got all the bonifides, however you know, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are a lot of other offers 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 beginning, Bitcoin and Ethereum, many people have become aware of these 2, especially Bitcoin, due to the fact that it seems 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 turned up from state $3,000 not too long back, it's rather unpredictable. Do they type of wait for a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's a fantastic concern.
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