So, a great deal of people find that too inconvenient, and that's why individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: people that are willing to put in possibly the 20 minutes needed to go through a process which simply takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we like your ideas, but gosh, establishing a crypto account is so hard." What I inform them is I say, "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 getting paid an enormous quantity of money to go through perhaps, you know, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a concern of time, Ryan, before you'll have the ability to purchase cryptocurrencies directly through your trading software application. And can you picture what will occur to this whole market when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that individuals go through, and something I wish to expose too that you didn't point out, but I know a lot of folks who deal with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can only purchase $500 a week.
As hard as possible, best, like Coinbase. It 'd take me permanently prior to I could start purchasing 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 Web, 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 indicate, we remain in the early days of that innovation, but similar to throughout that duration of time, for the folks that had the vision to see where the future was going, and then purchased in on a few of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since I'm always curious to speak with individuals who are, especially someone like yourself, who's committed the last, you know, the lion's share of the last couple of years to truly go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a great question.
They're two totally different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to cash. So Bitcoin would be a cryptocurrency. Therefore what provides it value is that it is, there's just going to be a limited quantity. There'll never ever 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, people constantly attempt to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And truly, with current innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
And so when individuals put, you've got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We don't trust fiat money, you can print an unrestricted quantity of it. It's actually not secure, and the federal government can take it away from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or people that remained in Cypress, or just people who have suffered through either devaluation, 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 possibly be a catalyst for more adoption, because they already do not 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 hard time getting their head around. They're like, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. However there are billions of individuals on the planet that do not have steady currencies.
Yeah. Therefore there's this whole growing international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are generally utilized, let's say Ethereum, which a lot of individuals learn about Ethereum. Ethereum is essentially an international computer system that you can compose computer system programs for and run computer programs on an internationally decentralized computer system program.
So we think about something like Ether an energy token, due to the fact that you're essentially buying programs power. So I would not actually think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide people a concept, like an extremely easy one that I would envision you 'd called an energy token, resembles FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's sort of this very same type of network result that you have with Bitcoin, where it resembles unstoppable example, since it's on so many different areas and. I don't understand the ins and outs of it, but as an example for someone who may just be extremely fundamental in their understanding of this, there are many various kinds of energies that are offered.
And you sort of mentioned having this boots on the ground experience. Now, considering that we're looking at the bulk of these are most likely energy based, remedy? Mm-hmm (affirmative). The majority of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, however I believe the genuine opportunity lies in the utility coin area.
There's all of these ICOs that were taking place, those decreased a little bit with some changes to a few things that was going on, but individuals are going to come out of the woodwork and begin to develop energy coins- Correct, yeah. And individuals require to comprehend that not all energy coins are developed equivalent.
So you have the advantage of devoting your occupation to this, so you can head out there and do the reconnaissance, you can fulfill the creators, you can check the code, etc. However for an average individual, there's now what, over 1,000 various types of coins readily available, almost 1,200 I think.
How do they do that? That's a fantastic concern. I will state that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's nothing worse than somebody that's young, earnest, with a dreadful concept, that someone gives $40 million to. Right? Yeah, totally. So yeah, so I don't actually take part in many ICOs, and I advise you probably side action that market, unless you've got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% or so. Which's when we really start looking at the idea in more detail. So here are some fast and filthy things that you should look at, right? So, one is, are they resolving an issue that needs to be solved? Among the big disadvantages with really smart, technical people, is that they like to resolve problems that no one cares about solving.
Does the team have experience of carrying out in an effective manner in another location of their life? And it does not even need to be directly related to cryptocurrency, it doesn't need to be even directly related to software, right? So, however I wish to see a track record of success in something, right? If it's 4 people in a space that are just 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 believe that in marketing in general, my world of service, we constantly look for problems and how we can solve them. Now, are the problems things that individuals are trying to fix a part of the Blockchain generally? Or would you state it's much better if they're solving kind 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 searching for solutions that, so I'll give you an example.
And the factor that we purchased it is due to the fact that they found a way to make documents tamper-proof, and it's 99% more affordable than current technology, 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 track record of developing computer programs that entire states run their entire operations on, right? So you have actually got alright, the smart person has actually built huge computer system programs, great group, solving an enormous issue that is going to cut big costs.
I indicate, it does not get any easier than that in regards to deciding who to put cash behind. And a great deal of this is common sense, and a great deal of folks will attempt to make things more complex than it is. And I have a truly easy rule, Ryan. If I do not understand something, I put up my hand, and I say, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And after that if the person that you're speaking with can't dumb it down enough where you understand it, then it's probably not an excellent 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've taken a look at business that are huge business, you have actually assessed much larger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you discussed, it is nearly simply good sense. You simply need to kind of take a look at it and think reasonably about what's going on, and pull the feeling out? You need 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 working on Wall Street across three years, is how to read people. I have actually met 10s of countless individuals throughout my profession. I've satisfied insiders; I have actually met fund managers, I've satisfied stock promoters, I've met all these different kinds of characters along the way.
So I think that's probably one of my very powers, if you will. And if you've got a great BS detector, you should listen to it. Okay. You ought to definitely listen to it. If I'm taking a seat and I'm talking with someone, and they've 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 a lot of other deals out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you understand, you sort of pointed out at the beginning, Bitcoin and Ethereum, the majority of people have actually heard of these two, especially Bitcoin, since it looks 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 come up from say $3,000 not too long back, 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 purchase some Bitcoin, see you in 10 years." You understand? Yeah that's an excellent concern.
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