So, a great deal of individuals find that too bothersome, and that's why individuals that are actually making the most amount of money today in cryptocurrencies are the early adopters: individuals that are willing to put in maybe the 20 minutes needed to go through a process which just takes five minutes if you want to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, setting up a crypto account is so difficult." 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 whole cryptocurrency market will be 10x larger. So you're in fact really making money a huge quantity of cash to go through perhaps, you understand, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, however it is simply a concern of time, Ryan, prior to you'll be able to buy cryptocurrencies directly through your trading software application. And can you envision what will happen to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that individuals go through, and one thing I wish to bring to light too that you didn't mention, but I know a lot of folks who fight with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can just purchase $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me forever prior to I might begin buying in size on Coinbase. They resemble, well, we'll let you purchase $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 fill a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I indicate, we're in the early days of that innovation, however much like throughout that duration 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 an action back for a second, since I'm always curious to talk with people who are, particularly someone like yourself, who's dedicated the last, you understand, the better part of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like a typical person? That's a terrific concern.
They're 2 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 worth 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, confirming the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals constantly try to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And actually, with current technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We don't trust paper money, you can print a limitless quantity of it. It's really not protect, and the federal government can take it away from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or individuals that were in Cypress, or simply individuals who have actually suffered through either devaluation, or there's a high need for, in Argentina for example, high need 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 believe 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 financiers have a bumpy ride getting their head around. They're like, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. But there are billions of individuals in the world that do not have stable currencies.
Yeah. And so there's this whole blossoming global need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are generally used, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially a global computer that you can compose computer system programs for and run computer system programs on an internationally decentralized computer system program.
So we think about something like Ether an utility token, because you're essentially buying programs 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 give individuals an idea, like a really simple one that I would picture you 'd called an energy token, is like FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's type of this exact same kind of network impact that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on so lots of different locations and. I do not know the ins and outs of it, but as an example for somebody who may simply be really fundamental in their understanding of this, there are a lot of various kinds of utilities that are readily available.
And you kind of mentioned having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). Most of the coins that I suggest and take a look at are utility-based. We have a few cryptocurrencies, however I believe the genuine opportunity lies in the energy coin area.
There's all of these ICOs that were occurring, 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 start to develop energy coins- Correct, yeah. And people require to understand that not all utility coins are produced equal.
So you have the advantage of committing your profession to this, so you can go out there and do the reconnaissance, you can satisfy the creators, you can check the code, and so on. But for a typical individual, there's now what, over 1,000 various types of coins available, nearly 1,200 I believe.
How do they do that? That's an excellent question. I will state that 95% of ICOs are either deceitful or simply bad concepts. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a horrible idea, that somebody offers $40 million to. Right? Yeah, totally. So yeah, so I don't truly get involved in numerous ICOs, and I suggest you most likely side step that market, unless you've got a special relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause normally it'll crash 80% approximately. Which's when we really begin looking at the concept 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 a problem that requires to be resolved? Among the huge drawbacks with extremely clever, technical people, is that they like to fix problems that nobody appreciates solving.
Does the team have experience of performing in an effective way in another area of their life? And it does not even have to be directly related to cryptocurrency, it doesn't need to be even straight related to software, right? So, however I desire to see a track record of success in something, right? If it's 4 men in a space that are just out of college, unless they have actually got some really good advisors behind them, I'm most likely not going to provide them any cash.
Yeah. I believe that in marketing in general, my world of business, we constantly look for issues and how we can solve them. Now, are the issues things that people are attempting to fix a part of the Blockchain normally? Or would you state it's better if they're solving type 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 basically trying to find options that, so I'll offer you an example.
And the factor that we purchased it is since they found a way to make files tamper-proof, and it's 99% less expensive than present innovation, 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 have actually got alright, the wise person has constructed substantial computer system programs, fantastic team, solving a massive problem that is going to cut substantial costs.
I imply, it does not get any easier than that in regards to choosing who to put cash behind. And a lot of this is typical sense, and a lot of folks will attempt to make things more complicated than it is. And I have an actually easy rule, Ryan. If I don't understand something, I put up my hand, and I state, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And then if the person that you're speaking with can't dumb it down enough where you understand it, then it's probably not a good concept. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience examining business and taking a look at much, much bigger companies.
Ryan: So you've taken a look at companies that are huge business, you've evaluated much bigger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you pointed out, it is nearly just typical sense. You simply have to kind of appearance at it and believe logically about what's going on, and pull the feeling out? You have to pull the emotion out, and there are no conventional metrics that you can take a look at.
Okay. What I can use that I gained from dealing with Wall Street across three decades, is how to check out people. I've met 10s of countless individuals throughout my profession. I've fulfilled insiders; I have actually satisfied fund managers, I've satisfied stock promoters, I've fulfilled all these different kinds of characters along the method.
So I think that's most likely among my incredibly powers, if you will. And if you have actually got an excellent BS detector, you should listen to it. Okay. You must absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, however you understand, 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 look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you understand, you sort of discussed at the start, Bitcoin and Ethereum, many people have heard of these 2, particularly Bitcoin, due to the fact that it appears like it remains 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 recently; it's come up from say $3,000 not too long earlier, it's rather unpredictable. Do they kind of wait on a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in ten years." You understand? Yeah that's a terrific concern.
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