So, a great deal of individuals find that too troublesome, which's why individuals that are actually making the most amount of money today in cryptocurrencies are the early adopters: individuals that are ready to put in possibly the 20 minutes required to go through a process which simply takes five minutes if you want to establish a brokerage account.
" Oh Teeka, we like your ideas, but gosh, setting up a crypto account is so hard." What I inform them is I say, "Look, when it's simple as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The whole cryptocurrency market will be 10x bigger. So you're in fact truly getting paid a massive quantity of cash to go through perhaps, you understand, 20 minutes of a pain in the neck.
So you can't buy Bitcoin yet through their trading platform, but it is simply a concern of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies straight through your trading software. And can you imagine what will happen to this entire marketplace 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 desire 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 way, you can only buy $1,000 a week. Or you can only purchase $500 a week.
As difficult as possible, right, like Coinbase. It 'd take me permanently before I might begin 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 Internet, when we were getting on the Internet, we were doing it with 56k modems, right? I mean 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're in the early days of that technology, however just like throughout that time period, 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 outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm always curious to talk with individuals who are, especially someone like yourself, who's devoted the last, you understand, the better part of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a fantastic concern.
They're two completely different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to money. So Bitcoin would be a cryptocurrency. And so what offers it worth is that it is, there's just going to be a minimal amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. And so if you look at that Bitcoin network, people continuously try to hack it. However because of the nature of the network, today it's been unhackable. And truly, 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 literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We don't trust paper 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 on.
Yeah. Or people that remained in Cypress, or just people who have suffered through either hyperinflation, or there's a high need for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those nations that could potentially be a driver for more adoption, due to the fact that they currently don't think in their own currency? Yeah, and I think we've currently seen that.
So yes, and this is a thing that a lot of American or Western investors 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 steady currency, right? You don't need Bitcoin. But there are billions of people in the world that do not have stable currencies.
Yeah. And so there's this whole growing international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are essentially used, let's state Ethereum, which a lot of individuals learn about Ethereum. Ethereum is basically an international computer that you can compose computer system programs for and run computer system programs on an internationally decentralized computer program.
So we think about something like Ether an utility token, due to the fact that you're basically purchasing programming power. So I wouldn't truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide people an idea, like a really basic one that I would envision you 'd called an energy token, is like FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's sort of this exact same kind of network effect that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on so lots of different areas and. I do not know the ins and outs of it, however as an example for somebody who may simply be very fundamental in their understanding of this, there are so numerous different types of energies that are readily available.
And you kind of pointed out having this boots on the ground experience. Now, since we're looking at the bulk of these are most likely energy based, remedy? Mm-hmm (affirmative). The majority of the coins that I advise and take a look at are utility-based. We have a couple of cryptocurrencies, but I think the real opportunity lies in the utility coin area.
There's all of these ICOs that were occurring, those slowed down a little bit with some modifications to a couple of things that was going on, however individuals are going to come out of the woodwork and start to produce utility coins- Correct, yeah. And individuals need to comprehend that not all utility coins are developed equivalent.
So you have the benefit of committing your profession to this, so you can go out there and do the recon, you can meet the founders, you can check the code, etc. But for an average individual, there's now what, over 1,000 various types of coins offered, practically 1,200 I believe.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with an awful idea, that somebody gives $40 million to. Right? Yeah, totally. So yeah, so I do not truly get involved in numerous ICOs, and I recommend you probably side step 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 generally it'll crash 80% approximately. Which's when we truly start taking a look at the idea in more information. So here are some quick and filthy things that you should take a look at, right? So, one is, are they resolving an issue that requires to be fixed? One of the huge drawbacks with extremely wise, technical individuals, is that they like to solve problems that nobody appreciates solving.
Does the group have experience of performing in an effective manner in another area of their life? And it does not even need to be straight associated to cryptocurrency, it does not have to be even directly related to software, right? So, however I want to see a track record of success in something, right? If it's 4 people in a room that are simply out of college, unless they've got some really good advisors behind them, I'm probably not going to provide any cash.
Yeah. I believe that in marketing in general, my world of service, we constantly look for issues and how we can resolve them. Now, are the issues things that individuals are attempting to fix a part of the Blockchain generally? Or would you say 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 searching for solutions that, so I'll offer you an example.
And the factor that we bought it is due to the fact that they discovered a way to make files 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 guy that started it has a performance history of producing computer system programs that whole states run their whole operations on, right? So you have actually got okay, the clever person has actually constructed huge computer system programs, fantastic group, fixing a huge issue that is going to cut big expenses.
I imply, it doesn't get any easier than that in terms of choosing who to put cash behind. And a lot of this is typical sense, and a great deal of folks will try to make things more complex than it is. And I have an actually simple rule, Ryan. If I don't understand something, I put up my hand, and I say, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And after that if the individual that you're talking to can't dumb it down enough where you comprehend it, then it's probably not an excellent idea. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience examining companies and taking a look at much, much larger business.
Ryan: So you have actually taken a look at business that are big business, you've evaluated much larger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you pointed out, it is practically simply sound judgment. You just have to kind 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 traditional metrics that you can take a look at.
Okay. What I can utilize that I found out from dealing with Wall Street across three decades, is how to check out individuals. I've met tens of thousands of individuals throughout my career. I have actually met insiders; I have actually satisfied fund managers, I've met stock promoters, I have actually fulfilled all these different types of characters along the method.
So I believe that's probably one of my incredibly powers, if you will. And if you've got an excellent BS detector, you ought to listen to it. Okay. You ought to definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually got all the bonifides, but 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 numerous other deals out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you know, you sort of mentioned at the start, Bitcoin and Ethereum, the majority of people have heard 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 nearly upwards of $6,000 recently; it's turned up from say $3,000 not too long earlier, it's rather volatile. Do they kind of wait for a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in ten years." You know? Yeah that's an excellent question.
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