So, a great deal of people discover that too inconvenient, and that's why the people that are actually making the most amount of money right now in cryptocurrencies are the early adopters: people that want to put in perhaps the 20 minutes required to go through a process which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your concepts, however gosh, establishing a crypto account is so difficult." What I tell them is I say, "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 really getting paid a massive amount of cash to go through perhaps, you know, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, however it is just a question of time, Ryan, prior to you'll have the ability to buy cryptocurrencies straight through your trading software application. And can you envision what will happen to this entire market when purchasing Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Right now you discussed the process that people go through, and one thing I wish to bring to light too that you didn't point out, but I understand a lot of folks who fight with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can just purchase $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me permanently prior to I might begin buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I suggest, 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 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 imply, we're in the early days of that technology, but simply like during that time period, for the folks that had the vision to see where the future was going, and then bought in on a few of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, since I'm always curious to speak to individuals who are, particularly somebody like yourself, who's dedicated the last, you understand, the lion's share of the last few years to really go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's an excellent 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 alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what gives it value is that it is, there's only going to be a minimal quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, verifying the transactions on the Bitcoin network. And so if you look at that Bitcoin network, people constantly attempt to hack it. But since of the nature of the network, today it's been unhackable. And truly, with present technology, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
And so when individuals put, you have actually got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not rely on paper money, you can print a limitless amount of it. It's actually not secure, and the government can take it far from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or individuals that remained in Cypress, or simply 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 catalyst for more adoption, due to the fact that they already do not believe 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 tough time getting their head around. They resemble, "Well I do not need 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 people worldwide that don't have stable currencies.
Yeah. And so there's this whole burgeoning international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are generally utilized, let's say Ethereum, which a lot of people know about Ethereum. Ethereum is essentially an international computer system that you can compose computer programs for and run computer programs on an internationally decentralized computer system program.
So we consider something like Ether an energy token, because you're basically buying programs 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 give individuals an idea, like a very easy one that I would envision you 'd called an energy token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's type of this very same kind of network result that you have with Bitcoin, where it's like unstoppable example, since it's on many different areas and. I do not understand the ins and outs of it, however as an example for someone who might just be very basic in their understanding of this, there are numerous various kinds of utilities that are readily available.
And you type of discussed having this boots on the ground experience. Now, since we're looking at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). Most of the coins that I recommend and take a look at are utility-based. We have a couple of cryptocurrencies, however I think the genuine chance lies in the utility coin space.
There's all of these ICOs that were happening, those slowed down a little bit with some modifications to a few 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 require to comprehend that not all utility coins are produced equal.
So you have the benefit of dedicating your occupation to this, so you can head out there and do the reconnaissance, you can meet the founders, you can check the code, etc. However for an average person, there's now what, over 1,000 various types of coins offered, nearly 1,200 I believe.
How do they do that? That's an excellent question. I will state that 95% of ICOs are either deceitful or just bad concepts. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a horrible idea, that someone gives $40 million to. Right? Yeah, completely. So yeah, so I don't really take part in numerous ICOs, and I suggest you probably side step that market, unless you've got an unique relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% or so. And that's when we truly start taking a look at the concept in more information. So here are some quick and filthy things that you should look at, right? So, one is, are they resolving a problem that requires to be resolved? One of the big drawbacks with extremely wise, technical people, is that they like to resolve problems that nobody appreciates solving.
Does the group have experience of carrying out in an effective way in another area of their life? And it does not even need to be directly related to cryptocurrency, it doesn't have to be even straight associated to software application, right? So, however I want to see a performance history of success in something, right? If it's four men in a space that are simply out of college, unless they've got some actually excellent advisors behind them, I'm probably not going to provide any cash.
Yeah. I believe that in marketing in basic, my world of business, we constantly look for issues and how we can fix them. Now, are the problems things that people are attempting to solve a part of the Blockchain normally? Or would you state it's better if they're fixing 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 generally searching for solutions that, so I'll offer you an example.
And the factor that we bought it is because they found a method to make files tamper-proof, and it's 99% cheaper than current innovation, 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 developing computer system programs that whole states run their whole operations on, right? So you have actually got okay, the smart guy has actually built huge computer programs, terrific team, resolving a huge issue that is going to cut huge expenses.
I suggest, it does not get any simpler than that in terms of deciding who to put money behind. And a lot of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have a really basic guideline, Ryan. If I do not understand something, I installed my hand, and I say, "I didn't understand what you just said." Mm-hmm (affirmative).
And then if the person that you're talking with can't dumb it down enough where you comprehend it, then it's probably not an excellent concept. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience evaluating companies and looking at much, much bigger business.
Ryan: So you have actually taken a look at business that are big business, you've examined much larger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you mentioned, it is almost simply good sense. You simply need to kind of appearance at it and think rationally about what's going on, and pull the feeling out? You have to pull the emotion out, and there are no traditional metrics that you can look at.
Okay. What I can use that I gained from dealing with Wall Street across 3 decades, is how to read individuals. I have actually satisfied tens of countless people throughout my career. I've satisfied experts; I have actually fulfilled fund managers, I've met stock promoters, I've satisfied all these various types of characters along the way.
So I believe that's probably among my extremely powers, if you will. And if you have actually got a good BS detector, you should listen to it. Okay. You should definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, however you know, there's just; it's not agreeing 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 opportunity, you understand, you kind of discussed at the beginning, Bitcoin and Ethereum, a lot of people have actually become aware of these two, especially Bitcoin, because it seems like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's turned up from say $3,000 not too long back, it's quite unstable. Do they sort of wait on a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's a terrific question.
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