So, a lot of people discover that too inconvenient, and that'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 maybe the 20 minutes needed to go through a process which simply takes five minutes if you want to set up a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, setting up a crypto account is so difficult." What I tell them is I state, "Look, when it's easy as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The whole cryptocurrency market will be 10x larger. So you're actually truly making money a massive amount of cash to go through perhaps, you know, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, prior to you'll have the ability to buy cryptocurrencies straight through your trading software. And can you picture what will occur to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you discussed the procedure that people go through, and one thing I wish to expose too that you didn't point out, but I understand a lot 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 difficult as possible, best, like Coinbase. It 'd take me forever prior to I might begin buying in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I mean, it's if you remember the early days of the Internet, 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 imply, we remain in the early days of that technology, however similar to during that amount 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 companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, due to the fact that I'm constantly curious to talk to people who are, particularly somebody like yourself, who's devoted the last, you understand, the bulk of the last couple of years to actually go both feet in on this. How do you explain cryptocurrency to like an average person? That's an excellent question.
They're two totally different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to money. So Bitcoin would be a cryptocurrency. Therefore what offers it worth is that it is, there's only going to be a minimal quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, verifying the transactions on the Bitcoin network. And so 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 really, with present technology, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
Therefore when people put, you have actually got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We do not trust paper cash, you can print a limitless quantity of it. It's truly not protect, and the government can take it far from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or individuals that were in Cypress, or simply 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 countries that could potentially be a driver for more adoption, because they already don't think 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 bumpy ride getting their head around. They're like, "Well I do not require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. But there are billions of individuals worldwide that do not have steady currencies.
Yeah. And so there's this whole blossoming international 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 utilized, let's state Ethereum, which a lot of individuals learn about Ethereum. Ethereum is essentially a worldwide computer system that you can compose computer programs for and run computer system programs on an internationally decentralized computer program.
So we consider something like Ether an energy token, since you're essentially 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 give individuals a concept, like an extremely simple one that I would imagine you 'd called an energy token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's kind of this very same kind of network result that you have with Bitcoin, where it's like unstoppable example, because it's on so lots of different locations and. I do not know the ins and outs of it, however as an example for somebody who may simply be really standard in their understanding of this, there are so many different kinds of energies that are offered.
And you type of discussed having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are most likely utility based, remedy? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a few cryptocurrencies, but I think the genuine opportunity lies in the energy coin area.
There's all of these ICOs that were taking place, those decreased a bit with some modifications to a couple of things that was going on, but people are going to come out of the woodwork and begin to develop utility coins- Correct, yeah. And individuals need to understand that not all utility coins are created equivalent.
So you have the advantage of devoting your occupation to this, so you can go out there and do the reconnaissance, you can meet the founders, you can inspect the code, and so on. But for a typical individual, there's now what, over 1,000 different kinds of coins readily available, practically 1,200 I believe.
How do they do that? That's a terrific question. I will state that 95% of ICOs are either deceitful or just bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a terrible idea, that somebody provides $40 million to. Right? Yeah, completely. So yeah, so I don't really get involved in lots of ICOs, and I advise you probably side action 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 usually it'll crash 80% approximately. Which's when we actually start looking at the idea in more detail. So here are some fast and dirty things that you should take a look at, right? So, one is, are they resolving an issue that requires to be solved? Among the huge disadvantages with really wise, technical individuals, is that they like to solve issues that nobody cares about fixing.
Does the team have experience of executing in an effective way in another area of their life? And it doesn't even have to be straight related to cryptocurrency, it does not need to be even straight associated to software, right? So, however I wish to see a track record of success in something, right? If it's 4 men in a space that are simply out of college, unless they've got some really great consultants behind them, I'm probably not going to provide them any cash.
Yeah. I believe that in marketing in basic, my world of service, we constantly look for issues and how we can resolve them. Now, are the problems things that individuals are trying to resolve a part of the Blockchain typically? Or would you say it's 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 essentially trying to find services that, so I'll provide you an example.
And the reason that we bought it is due to the fact that they found a way to make files tamper-proof, and it's 99% more affordable than present 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 programs that whole states run their entire operations on, right? So you have actually got alright, the clever guy has constructed big computer programs, great team, fixing a huge problem that is going to cut big costs.
I imply, it doesn't get any easier than that in regards to choosing who to put money behind. And a great deal of this is typical sense, and a lot of folks will try to make things more complicated than it is. And I have an actually simple guideline, Ryan. If I do not understand something, I put up my hand, and I say, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you comprehend it, then it's most likely not a good idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience evaluating companies and taking a look at much, much larger business.
Ryan: So you have actually looked at companies that are huge companies, you have actually assessed much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you pointed out, it is practically just sound judgment. You simply need to type of look at it and believe logically 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 utilize that I gained from dealing with Wall Street throughout 3 years, is how to read people. I have actually met tens of thousands of individuals throughout my career. I have actually fulfilled experts; I have actually fulfilled fund supervisors, I have actually satisfied stock promoters, I have actually satisfied all these various types of characters along the method.
So I think that's probably among my very powers, if you will. And if you've got a good BS detector, you need to listen to it. Okay. You ought to absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they've got all the bonifides, however you understand, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are numerous other offers out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you kind of pointed out at the start, Bitcoin and Ethereum, the majority of people have actually become aware of these 2, particularly Bitcoin, because it looks like it remains 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 state $3,000 not too long back, it's rather volatile. Do they kind of wait for a pullback, or do they just say, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You understand? Yeah that's a great question.
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