So, a lot of people discover that too troublesome, and that's why the people that are literally making the most amount of cash today in cryptocurrencies are the early adopters: people that are ready to put in possibly the 20 minutes needed to go through a procedure which simply takes 5 minutes if you desire to set up a brokerage account.
" Oh Teeka, we like your ideas, but 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 really getting paid a massive amount of cash to go through possibly, you understand, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, before you'll have the ability to purchase cryptocurrencies straight through your trading software. 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.
Right now you pointed out the procedure that people go through, and something I wish to expose too that you didn't discuss, however I understand a lot of folks who fight with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can just purchase $500 a week.
As hard as possible, ideal, like Coinbase. It 'd take me permanently before I could start buying in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I indicate, it's if you keep in mind the early days of the Web, when we were getting on the Internet, we were doing it with 56k modems, right? I imply it would take 20 minutes to pack 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 throughout that duration 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 with individuals who are, particularly someone like yourself, who's committed the last, you know, the lion's share of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like an average individual? That's a terrific concern.
They're two totally various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to money. So Bitcoin would be a cryptocurrency. Therefore what gives it value is that it is, there's just going to be a minimal 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 look at that Bitcoin network, people constantly attempt to hack it. But since of the nature of the network, today it's been unhackable. And actually, with existing innovation, 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 since they're stating, "We do not rely on fiat money, you can print an unlimited quantity of it. It's truly not secure, and the federal government can take it far from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or people that remained in Cypress, or simply people who have suffered through either devaluation, 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 possibly be a catalyst for more adoption, due to the fact that they already do not 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 investors have a bumpy ride 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. However there are billions of individuals in the world that do not have steady currencies.
Yeah. Therefore there's this whole growing global demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are essentially used, let's say Ethereum, which a great deal of people learn about Ethereum. Ethereum is essentially a global computer system that you can compose computer system programs for and run computer programs on an internationally decentralized computer program.
So we think about something like Ether an utility token, since you're basically purchasing programs power. So I wouldn't actually consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give individuals an idea, like a very simple one that I would envision you 'd called an energy token, resembles FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's type of this same kind of network impact that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on so many different locations and. I do not know the ins and outs of it, however as an example for somebody who might just be very basic in their understanding of this, there are so numerous different types of energies that are available.
And you kind of discussed having this boots on the ground experience. Now, given that we're looking at the bulk of these are most likely utility based, fix? Mm-hmm (affirmative). The majority of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, however I believe the genuine opportunity lies in the utility coin space.
There's all of these ICOs that were happening, those decreased a little bit with some changes to a few things that was going on, however people are going to come out of the woodwork and begin to produce energy coins- Correct, yeah. And individuals need to understand that not all utility coins are produced equal.
So you have the advantage of dedicating your profession to this, so you can go out there and do the recon, you can meet the founders, you can inspect the code, etc. However for a typical individual, there's now what, over 1,000 various types of coins offered, nearly 1,200 I think.
How do they do that? That's a terrific question. I will state 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 dreadful idea, that somebody gives $40 million to. Right? Yeah, completely. So yeah, so I do not truly take part in lots of ICOs, and I recommend you probably side step that market, unless you've got an unique relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause generally it'll crash 80% approximately. Which's when we really begin looking at the idea in more detail. So here are some quick and unclean things that you should look at, right? So, one is, are they fixing an issue that requires to be solved? One of the big downsides with really clever, technical people, is that they like to fix issues that no one appreciates fixing.
Does the group have experience of performing in a successful way in another area of their life? And it doesn't even need to be directly related to cryptocurrency, it does not need to be even straight related to software, right? So, but I wish to see a performance history of success in something, right? If it's 4 men in a space that are simply out of college, unless they have actually got some really excellent advisors behind them, I'm probably not going to provide any money.
Yeah. I think that in marketing in general, my world of organization, we constantly try to find problems and how we can resolve them. Now, are the issues things that individuals are attempting to fix a part of the Blockchain typically? Or would you state it's better if they're resolving 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 generally looking for services that, so I'll provide you an example.
And the reason that we purchased it is due to the fact that they discovered a way to make files tamper-proof, and it's 99% more affordable than existing innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that began it has a performance history of creating computer system programs that whole states run their entire operations on, right? So you have actually got okay, the clever guy has developed big computer system programs, fantastic team, fixing a huge issue that is going to cut substantial costs.
I suggest, it doesn't get any simpler than that in terms of deciding who to put money behind. And a great deal of this is typical sense, and a great deal of folks will try to make things more complex than it is. And I have a truly basic rule, Ryan. If I do not understand something, I put up my hand, and I state, "I didn't understand what you simply said." Mm-hmm (affirmative).
And then if the individual that you're talking to can't dumb it down enough where you comprehend it, then it's probably not a great 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 bigger companies.
Ryan: So you have actually taken a look at business that are huge business, you have actually evaluated much bigger 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 good sense. You just need to kind of take a look at it and believe rationally about what's going on, and pull the emotion out? You have 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 dealing with Wall Street throughout three decades, is how to check out people. I've met tens of thousands of people throughout my career. I've met experts; I've fulfilled fund managers, I've met stock promoters, I have actually satisfied all these various types of characters along the way.
So I think that's probably among my very powers, if you will. And if you've got a great BS detector, you must listen to it. Okay. You ought to absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they've 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 many other deals out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you kind of mentioned at the start, Bitcoin and Ethereum, most individuals have actually heard of these 2, especially Bitcoin, since it appears like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading almost upwards of $6,000 just recently; it's turned up from say $3,000 not too long earlier, it's rather volatile. Do they sort of wait on 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 understand? Yeah that's an excellent question.
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