So, a great deal of individuals find that too bothersome, which's why individuals that are actually making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are willing to put in maybe the 20 minutes required to go through a process which just takes five minutes if you want to set up a brokerage account.
" Oh Teeka, we love your ideas, however gosh, establishing a crypto account is so tough." What I tell them is I say, "Look, when it's simple as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The whole cryptocurrency market will be 10x bigger. So you're in fact truly getting paid an enormous amount of money to go through maybe, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies straight through your trading software application. And can you picture what will occur to this entire market when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the procedure that individuals go through, and one thing I wish to bring to light too that you didn't mention, however I understand a lot of folks who have problem with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only buy $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me forever prior to I could begin purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I suggest, 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 suggest 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 suggest, we're in the early days of that technology, however just like during that amount of time, for the folks that had the vision to see where the future was going, and then bought in on some of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm always curious to speak to individuals who are, particularly someone like yourself, who's devoted the last, you know, the lion's share of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like an average individual? That's a terrific question.
They're two totally different 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 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, verifying the deals on the Bitcoin network. And so if you take a 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 really, with current technology, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
Therefore when individuals 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 fiat money, you can print a limitless quantity of it. It's really not secure, and the federal government can take it far from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or people that were in Cypress, or just people who have suffered through either hyperinflation, or there's a high demand for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those nations that could potentially be a driver for more adoption, since they already do not believe in their own currency? Yeah, and I think we've 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 resemble, "Well I do not require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of individuals on the planet that don't have stable currencies.
Yeah. And so 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 utility coins are generally used, let's say Ethereum, which a great deal of people know about Ethereum. Ethereum is basically a global computer that you can compose computer programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an utility token, due to the fact that you're basically buying programs power. So I would not really think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide people an idea, like an extremely simple one that I would envision you 'd called an utility token, is like FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's type of this exact same type of network impact that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on so numerous different locations and. I don't understand the ins and outs of it, but as an example for somebody who might simply be very basic in their understanding of this, there are so lots of different types of utilities that are readily available.
And you kind of pointed out having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are most likely energy based, correct? Mm-hmm (affirmative). Many of the coins that I advise and take a look at are utility-based. We have a couple of cryptocurrencies, but I think the genuine opportunity depends on the utility coin area.
There's all of these ICOs that were occurring, those slowed down a bit with some changes to a couple of things that was going on, however individuals are going to come out of the woodwork and start to develop utility coins- Correct, yeah. And individuals require to comprehend that not all utility coins are created equal.
So you have the advantage of devoting your occupation to this, so you can head out there and do the reconnaissance, you can satisfy the creators, you can inspect the code, etc. But for an average person, there's now what, over 1,000 different kinds of coins offered, practically 1,200 I believe.
How do they do that? That's an excellent question. I will say that 95% of ICOs are either deceptive or simply bad ideas. Okay. Right? There's nothing worse than somebody that's young, earnest, with a terrible concept, that somebody offers $40 million to. Right? Yeah, completely. So yeah, so I don't really take part in many ICOs, and I advise you probably 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 so. And that's when we really begin looking at the idea in more detail. So here are some quick and filthy things that you should take a look at, right? So, one is, are they fixing an issue that requires to be solved? Among the huge drawbacks with extremely smart, technical individuals, is that they like to fix issues that no one appreciates fixing.
Does the group have experience of executing in an effective manner in another location of their life? And it does not even need to be directly associated to cryptocurrency, it does not have to be even directly associated to software, right? So, however I wish to see a performance history of success in something, right? If it's 4 men in a room that are simply out of college, unless they have actually got some really good consultants behind them, I'm most likely not going to give them any money.
Yeah. I think that in marketing in basic, my world of business, we continuously look for issues and how we can resolve them. Now, are the issues things that individuals are attempting to fix a part of the Blockchain generally? Or would you say it's much better if they're fixing kind 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 essentially searching for options that, so I'll provide you an example.
And the factor that we bought it is because they found a way to make documents tamper-proof, and it's 99% less expensive than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that started it has a performance history of producing computer system programs that entire states run their entire operations on, right? So you have actually got okay, the clever man has actually built substantial computer system programs, excellent team, fixing a huge problem that is going to cut substantial expenses.
I suggest, it does not get any simpler than that in regards to deciding who to put money behind. And a lot of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have a really simple rule, Ryan. If I don't understand something, I installed my hand, and I state, "I didn't understand what you just said." Mm-hmm (affirmative).
And then if the person that you're talking with can't dumb it down enough where you understand it, then it's probably not a great concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience examining companies and taking a look at much, much larger companies.
Ryan: So you've taken a look at business that are big companies, you have actually evaluated much bigger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you discussed, it is nearly just sound judgment. You simply have to sort of take a look at it and believe reasonably about what's going on, and pull the emotion out? You need to pull the emotion out, and there are no traditional metrics that you can look at.
Okay. What I can use that I gained from working on Wall Street throughout three years, is how to read people. I've fulfilled 10s of thousands of people throughout my profession. I have actually satisfied insiders; I have actually fulfilled fund supervisors, I have actually met stock promoters, I have actually fulfilled all these various kinds of characters along the way.
So I believe that's most likely one of my very powers, if you will. And if you have actually got a good BS detector, you need to listen to it. Okay. You need 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 understand, there's simply; it's not sitting well with me, there's something about them that's not agreeing with me.
There are so many other deals out there to look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you sort of mentioned at the beginning, Bitcoin and Ethereum, the majority of people have actually become aware of these 2, especially Bitcoin, due to the fact that it looks like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 just recently; it's come up from state $3,000 not too long ago, it's quite unstable. Do they kind of wait for a pullback, or do they just state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's a great question.
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