So, a great deal of people find that too bothersome, and that's why the individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: individuals that are willing to put in perhaps the 20 minutes required to go through a process which just takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we like your ideas, however gosh, establishing a crypto account is so difficult." 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 larger. So you're in fact really making money a huge amount of money to go through possibly, you know, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll have the ability to purchase cryptocurrencies straight through your trading software application. And can you picture what will take place to this entire marketplace when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that individuals go through, and one thing I wish to expose too that you didn't mention, 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 only buy $500 a week.
As tough as possible, best, like Coinbase. It 'd take me permanently before I could start buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I imply, 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 mean 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 mean, we remain in the early days of that technology, but just like during that time period, for the folks that had the vision to see where the future was going, and then bought in on some of these young business, 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 people who are, particularly somebody like yourself, who's devoted the last, you understand, the better part of the last few years to really go both feet in on this. How do you explain cryptocurrency to like an average person? That's a terrific question.
They're 2 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. And so what provides it worth is that it is, there's only going to be a restricted amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals constantly attempt to hack it. However since of the nature of the network, today it's been unhackable. And truly, with current technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so 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 stating, "We do not rely on fiat money, you can print a limitless quantity of it. It's really not secure, and the federal government can take it away from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that remained in Cypress, or simply people who have suffered through either run-away inflation, or there's a high need for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those countries that could potentially be a driver for more adoption, since they already do not believe in their own currency? Yeah, and I believe we have actually already 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 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 people in the world that don't have steady currencies.
Yeah. Therefore there's this whole growing worldwide need for cryptocurrencies. So anyhow, 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 know about Ethereum. Ethereum is basically a global computer that you can write computer system programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an utility token, because you're basically purchasing shows power. So I wouldn't really think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide people an idea, like a very 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 type of this very same type of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on so numerous various areas and. I don't understand the ins and outs of it, however as an example for somebody who may just be extremely basic in their understanding of this, there are numerous different kinds of energies that are available.
And you sort of pointed out having this boots on the ground experience. Now, because we're taking a look at the bulk of these are most likely utility based, fix? Mm-hmm (affirmative). Many of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, however I think the real opportunity depends on the energy coin area.
There's all of these ICOs that were happening, those decreased a bit with some changes to a few things that was going on, but individuals are going to come out of the woodwork and start to create utility coins- Correct, yeah. And people require to comprehend that not all energy coins are created equivalent.
So you have the advantage of committing your profession to this, so you can go out there and do the reconnaissance, you can fulfill the founders, you can inspect the code, and so on. However for a typical individual, there's now what, over 1,000 various types of coins offered, almost 1,200 I think.
How do they do that? That's a terrific concern. I will say that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with a horrible concept, that someone gives $40 million to. Right? Yeah, totally. So yeah, so I don't really take part in numerous ICOs, and I recommend you most likely side step that market, unless you have actually got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause typically it'll crash 80% or two. Which's when we really start looking at the concept in more information. So here are some fast and unclean things that you should take a look at, right? So, one is, are they resolving an issue that needs to be resolved? One of the huge downsides with extremely wise, technical people, is that they like to resolve problems that nobody appreciates fixing.
Does the group have experience of performing in an effective manner in another area of their life? And it doesn't even have to be directly related to cryptocurrency, it does not have to be even straight associated to software application, right? So, however I wish to see a track record of success in something, right? If it's 4 people in a room that are just out of college, unless they have actually got some truly good consultants behind them, I'm most likely not going to provide any cash.
Yeah. I believe that in marketing in general, my world of company, we continuously search for issues and how we can fix them. Now, are the problems things that people are trying to solve a part of the Blockchain typically? Or would you state it's better if they're solving 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 trying to find options that, so I'll offer you an example.
And the reason that we bought it is since they discovered a way to make files tamper-proof, and it's 99% more affordable than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that started it has a performance history of producing computer programs that whole states run their entire operations on, right? So you've got all right, the wise person has actually constructed big computer system programs, excellent group, fixing a huge problem that is going to cut big expenses.
I indicate, it doesn't get any simpler than that in regards to deciding who to put cash behind. And a great deal of this prevails sense, and a lot of folks will try to make things more complicated than it is. And I have an actually basic rule, Ryan. If I don't comprehend something, I set up my hand, and I say, "I didn't understand what you simply said." Mm-hmm (affirmative).
And after that if the individual that you're speaking with can't dumb it down enough where you understand it, then it's most likely not a good idea. Right, right. It's going to be easy to understand. And do you feel that you have years of experience evaluating companies and taking a look at much, much bigger companies.
Ryan: So you have actually taken a look at companies that are big companies, you have actually examined much bigger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you pointed out, it is almost simply good sense. You simply need to sort of take a look at it and believe reasonably about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no standard metrics that you can look at.
Okay. What I can utilize that I gained from dealing with Wall Street throughout 3 years, is how to read individuals. I have actually met 10s of thousands of people throughout my profession. I've met experts; I have actually met fund managers, I've fulfilled stock promoters, I have actually satisfied all these various kinds of characters along the way.
So I think that's most likely one of my incredibly powers, if you will. And if you have actually got a good BS detector, you ought to listen to it. Okay. You must absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they have actually 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 sitting well with me.
There are so numerous other deals out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you know, you sort of mentioned at the beginning, Bitcoin and Ethereum, many people have actually become aware of these two, particularly Bitcoin, because 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 shown up from state $3,000 not too long earlier, it's rather volatile. Do they kind of wait for 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 10 years." You understand? Yeah that's a great question.
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