So, a great deal of people discover that too bothersome, and that's why the people that are actually making the most amount of money right now in cryptocurrencies are the early adopters: individuals that want to put in possibly the 20 minutes needed to go through a process which simply takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy your concepts, however gosh, setting up a crypto account is so challenging." 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 entire cryptocurrency market will be 10x bigger. So you're actually truly getting paid a massive amount 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 just a question of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies directly through your trading software. And can you envision what will take place to this entire market when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that people go through, and one thing I wish to bring to light too that you didn't discuss, however 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 hard as possible, right, like Coinbase. It 'd take me permanently before I could start purchasing in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I indicate, it's if you remember the early days of the Web, when we were getting on the Web, 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 suggest, we're in the early days of that technology, but much like throughout that time period, for the folks that had the vision to see where the future was going, and then purchased in on some of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a second, because I'm constantly curious to speak with people who are, specifically somebody like yourself, who's devoted 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 person? That's a great concern.
They're 2 completely different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to cash. So Bitcoin would be a cryptocurrency. And so what provides it worth 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 computers, validating the transactions on the Bitcoin network. Therefore 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 actually, with existing technology, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
And so when people put, you have actually got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We do not rely on fiat money, you can print an unrestricted amount of it. It's truly not protect, and the federal government can take it far from you." - Whereas with Bitcoin, right , go ahead.
Yeah. Or individuals that were in Cypress, or just individuals who have suffered through either run-away inflation, 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 possibly be a catalyst for more adoption, due to the fact that they currently don't think in their own currency? Yeah, and I believe we've currently seen that.
So yes, and this is a thing that a great deal of American or Western investors have a difficult time getting their head around. They resemble, "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 don't have steady currencies.
Yeah. And so there's this entire growing international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are generally utilized, let's state Ethereum, which a lot of people learn about Ethereum. Ethereum is essentially a worldwide computer system that you can write computer programs for and run computer programs on a globally decentralized computer system program.
So we think about something like Ether an utility token, due to the fact that you're basically buying programming power. So I would not actually think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer people an idea, like an extremely basic one that I would picture you 'd called an energy token, resembles FileCoin.
Where the idea is that basically 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's like unstoppable example, because it's on so many various locations and. I don't understand the ins and outs of it, but as an example for someone who might just be extremely standard in their understanding of this, there are so numerous different types of energies that are available.
And you type 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). Most of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, but I think the real chance depends on the energy coin space.
There's all of these ICOs that were taking place, those decreased a little 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 create utility coins- Correct, yeah. And people need to comprehend that not all energy coins are produced equivalent.
So you have the advantage of dedicating your profession to this, so you can head out there and do the recon, you can satisfy the founders, you can inspect the code, etc. However for a typical individual, there's now what, over 1,000 different types of coins readily available, practically 1,200 I think.
How do they do that? That's a terrific concern. I will say that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's nothing worse than somebody that's young, earnest, with a horrible concept, that someone gives $40 million to. Right? Yeah, completely. So yeah, so I do not really get involved in many ICOs, and I suggest you probably side step that market, unless you've got a special relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause generally it'll crash 80% approximately. Which's when we actually begin taking a look at the concept in more detail. So here are some fast and unclean things that you should look at, right? So, one is, are they solving an issue that needs to be solved? One of the huge disadvantages with really smart, technical individuals, is that they like to fix problems that nobody cares about solving.
Does the team have experience of performing in a successful way in another location of their life? And it does not even have to be directly associated 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 four men in a room that are just out of college, unless they've got some really good consultants behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in basic, my world of business, we constantly try to find problems and how we can resolve them. Now, are the issues things that people are trying to resolve a part of the Blockchain normally? Or would you state it's much better if they're solving sort 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 basically trying to find options that, so I'll offer you an example.
And the reason that we purchased it is because they found a method to make files tamper-proof, and it's 99% cheaper than existing 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 track record of developing computer system programs that whole states run their whole operations on, right? So you have actually got okay, the wise person has developed huge computer programs, fantastic team, solving a massive problem that is going to cut huge costs.
I mean, it doesn't get any easier than that in terms of deciding who to put cash behind. And a great deal of this is common sense, and a great deal of folks will try to make things more complex than it is. And I have a truly easy guideline, Ryan. If I don't understand something, I put up my hand, and I state, "I didn't comprehend what you just stated." 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 idea. Right, right. It's going to be basic to understand. And do you feel that you have years of experience assessing companies and looking at much, much bigger business.
Ryan: So you've taken a look at companies that are big companies, you've evaluated much bigger marketcap type scenarios. 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 nearly just common sense. You just need to type of appearance at it and think logically about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no traditional 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've fulfilled tens of thousands of people throughout my profession. I have actually satisfied experts; I've met fund supervisors, I've met stock promoters, I have actually fulfilled all these various kinds of characters along the way.
So I believe that's probably among my very powers, if you will. And if you've got an excellent BS detector, you should 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 have actually got all the bonifides, however you know, 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 too much chance. 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 two, especially Bitcoin, because it seems like it's in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading nearly upwards of $6,000 recently; it's shown up from say $3,000 not too long earlier, it's rather unstable. Do they sort of wait on a pullback, or do they simply state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You understand? Yeah that's a great concern.
Copyright© how to invest in blockchain All Rights Reserved Worldwide