So, a lot of individuals discover that too troublesome, which's why individuals that are literally making the most amount of cash today 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 like your concepts, however gosh, setting up a crypto account is so hard." 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 in fact truly earning money an enormous amount of money to go through perhaps, you understand, 20 minutes of a discomfort in the neck.
So you can't purchase Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, prior to you'll have the ability to buy cryptocurrencies directly through your trading software. And can you imagine what will occur to this entire market when purchasing Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the procedure that individuals go through, and one thing I want to expose too that you didn't mention, however I understand a lot of folks who have problem with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can just buy $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me forever before I might begin purchasing in size on Coinbase. They're like, 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 Internet, we were doing it with 56k modems, right? I suggest 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 technology, but similar to throughout that amount of time, for the folks that had the vision to see where the future was going, and then purchased in on some of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm constantly curious to talk with individuals who are, especially somebody like yourself, who's committed 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 terrific concern.
They're 2 totally different things, however 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. Therefore what gives it worth is that it is, there's just going to be a minimal 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. And so if you look at that Bitcoin network, people continuously attempt to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And truly, with existing innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore 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 rely on paper currency, you can print an unlimited amount of it. It's truly not protect, and the government can take it far from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or individuals that remained in Cypress, or simply people who have actually suffered through either hyperinflation, 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 potentially be a catalyst for more adoption, because 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 lot of American or Western investors have a difficult time 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 stable currency, right? You do not require Bitcoin. However there are billions of individuals worldwide that do not have steady currencies.
Yeah. Therefore there's this whole burgeoning worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are basically utilized, let's state Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is essentially an international computer system that you can compose computer system programs for and run computer programs on a globally decentralized computer program.
So we consider something like Ether an utility token, because you're essentially purchasing shows power. So I would not really think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer individuals an idea, like a very simple one that I would envision you 'd called an energy token, is like FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's kind of this very same kind of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on many various locations and. I do not know the ins and outs of it, however as an example for someone who may just be very fundamental in their understanding of this, there are many various types of utilities that are available.
And you type of discussed having this boots on the ground experience. Now, since we're taking a look at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). The majority of the coins that I recommend and take a look at are utility-based. We have a few cryptocurrencies, but I think the genuine chance lies in the energy coin space.
There's all of these ICOs that were happening, those decreased a little bit with some changes to a few things that was going on, however individuals are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And people need to understand that not all energy coins are developed equal.
So you have the advantage of committing your profession to this, so you can head out there and do the reconnaissance, you can fulfill the creators, you can check the code, and so on. However for an average individual, there's now what, over 1,000 various kinds of coins readily available, practically 1,200 I believe.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a dreadful concept, that someone provides $40 million to. Right? Yeah, absolutely. So yeah, so I don't really take part in numerous ICOs, and I advise you most likely side step that market, unless you have actually got a special relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause usually it'll crash 80% or so. Which's when we actually 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 solving a problem that needs to be fixed? Among the big drawbacks with really clever, technical people, is that they like to solve problems that no one appreciates fixing.
Does the group have experience of executing in an effective way in another area of their life? And it does not even need to be directly associated to cryptocurrency, it does not need to be even straight associated to software, right? So, but I wish to see a performance history of success in something, right? If it's four people in a space that are just out of college, unless they have actually got some truly great advisors behind them, I'm most likely not going to provide any cash.
Yeah. I think that in marketing in basic, my world of service, we continuously search for issues and how we can fix them. Now, are the issues things that people are trying to fix a part of the Blockchain usually? Or would you say it's better if they're resolving kind 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 looking for options that, so I'll offer you an example.
And the factor that we bought it is due to the fact that they found a method to make documents tamper-proof, and it's 99% less expensive than present technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the man that started it has a track record of creating computer system programs that entire states run their entire operations on, right? So you've got okay, the wise man has actually built big computer system programs, terrific group, solving a massive issue that is going to cut big expenses.
I suggest, it does not get any easier than that in terms of deciding who to put money behind. And a great deal of this is typical sense, and a lot of folks will attempt to make things more complex than it is. And I have a truly easy guideline, Ryan. If I don't understand something, I installed my hand, and I say, "I didn't understand what you simply said." Mm-hmm (affirmative).
And after that if the person that you're talking to can't dumb it down enough where you understand it, then it's most likely not a great idea. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience evaluating business and looking at much, much bigger business.
Ryan: So you've taken a look at business that are big business, you've evaluated much larger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you pointed out, it is nearly just good sense. You just have to type of take a 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 standard metrics that you can look at.
Okay. What I can utilize that I gained from working on Wall Street throughout 3 decades, is how to check out individuals. I've met tens of countless people throughout my career. I've fulfilled experts; I have actually met fund supervisors, I have actually fulfilled stock promoters, I've fulfilled all these various kinds of characters along the way.
So I believe that's probably one of my extremely powers, if you will. And if you have actually got a good BS detector, you need to listen to it. Okay. You should definitely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually got all the bonifides, however you understand, 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 many other deals out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you know, you kind of mentioned at the start, Bitcoin and Ethereum, the majority of individuals have actually become aware of these 2, especially 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 state $3,000 not too long earlier, it's rather volatile. Do they kind of wait on a pullback, or do they just say, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a great concern.
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