So, a lot of individuals find that too troublesome, which's why the people that are actually making the most amount of cash today in cryptocurrencies are the early adopters: people that want to put in perhaps the 20 minutes needed to go through a procedure which simply takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy your ideas, however gosh, establishing a crypto account is so difficult." What I tell them is I state, "Look, when it's simple 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 making money a massive quantity of money to go through perhaps, you understand, 20 minutes of a pain in the neck.
So you can't purchase Bitcoin yet through their trading platform, but it is just a question of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies directly through your trading software application. And can you envision what will take place to this entire market when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you discussed the process that individuals go through, and something I desire to expose too that you didn't mention, however I understand a lot of folks who battle with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only buy $500 a week.
As difficult as possible, right, like Coinbase. It 'd take me permanently prior to I could start purchasing in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I mean, it's if you remember 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 load 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're in the early days of that innovation, however similar to during that amount of time, for the folks that had the vision to see where the future was going, and then bought in on a few of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm constantly curious to speak with individuals who are, specifically somebody like yourself, who's devoted the last, you understand, the lion's share of the last few years to truly go both feet in on this. How do you describe cryptocurrency to like an average person? That's an excellent question.
They're 2 totally various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to money. So Bitcoin would be a cryptocurrency. And so what gives it worth is that it is, there's just going to be a restricted amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, verifying the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals continuously attempt to hack it. But since of the nature of the network, today it's been unhackable. And really, with current innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when people put, you've got individuals who have actually 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 currency, you can print an unrestricted amount of it. It's really not secure, and the government can take it away from you." - Whereas with Bitcoin, right , go on.
Yeah. Or people that were in Cypress, or simply individuals who have suffered through either devaluation, or there's a high demand for, in Argentina for instance, high demand 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 already don't believe 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 hard 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 don't require Bitcoin. However there are billions of people in the world that do not have steady currencies.
Yeah. And so there's this whole blossoming worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are generally utilized, let's state Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is essentially an international computer system that you can write computer programs for and run computer system programs on a globally decentralized computer system program.
So we think about something like Ether an energy token, since you're basically purchasing programs power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give individuals a concept, like an extremely easy one that I would envision you 'd called an energy token, resembles FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's type of this very same type of network impact that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on many various areas and. I don't understand the ins and outs of it, but as an example for somebody who might simply be very basic in their understanding of this, there are a lot of various kinds of utilities that are readily available.
And you kind of discussed having this boots on the ground experience. Now, since we're looking at the bulk of these are probably energy based, remedy? Mm-hmm (affirmative). The majority of the coins that I recommend and take a look at are utility-based. We have a few cryptocurrencies, however I believe the real opportunity depends on the energy coin space.
There's all of these ICOs that were happening, those decreased a 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 produce utility coins- Correct, yeah. And individuals require to comprehend that not all energy coins are produced equal.
So you have the benefit of committing your profession to this, so you can head out there and do the recon, you can fulfill the creators, you can examine the code, etc. However for a typical person, there's now what, over 1,000 various kinds of coins offered, nearly 1,200 I think.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either deceptive or just bad ideas. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with an awful idea, that someone gives $40 million to. Right? Yeah, completely. So yeah, so I do not actually participate in lots of ICOs, and I advise you probably side step that market, unless you've got an unique relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause usually it'll crash 80% approximately. And that's when we actually begin taking a look at the concept in more detail. So here are some quick and filthy things that you should look at, right? So, one is, are they fixing an issue that needs to be fixed? One of the huge drawbacks with extremely wise, technical people, is that they like to fix issues that nobody appreciates solving.
Does the group have experience of executing in a successful manner in another location of their life? And it doesn't even have to be straight associated to cryptocurrency, it doesn't need to be even directly related to software, right? So, but I wish to see a performance history of success in something, right? If it's four men in a room that are just out of college, unless they've got some truly good consultants behind them, I'm most likely not going to offer them any money.
Yeah. I think that in marketing in basic, my world of organization, we constantly try to find issues and how we can fix 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 kind of a mass issue? Something like FileCoin, or something else that would be more mass appeal? Or is it a mix of both? Well I'm essentially searching for solutions that, so I'll give you an example.
And the reason that we purchased it is due to the fact that they discovered a method to make documents tamper-proof, and it's 99% less expensive 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 system programs that whole states run their whole operations on, right? So you've got alright, the smart person has constructed big computer system programs, great team, solving a massive issue that is going to cut substantial costs.
I mean, it does not get any easier than that in regards to deciding who to put money behind. And a great deal of this prevails 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 set up my hand, and I state, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And after that if the person that you're talking to can't dumb it down enough where you comprehend it, then it's most likely not an excellent idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience examining business and looking at much, much larger business.
Ryan: So you have actually looked at business that are huge business, you have actually assessed 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 typical sense. You just have to kind of take a look at it and believe rationally about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no conventional metrics that you can take a look at.
Okay. What I can use that I gained from dealing with Wall Street across three years, is how to check out people. I have actually met 10s of thousands of individuals throughout my profession. I have actually fulfilled experts; I've fulfilled fund managers, I've satisfied stock promoters, I've met all these various kinds of characters along the way.
So I believe that's probably among my extremely powers, if you will. And if you've got a great 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've got all the bonifides, but 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 numerous other deals out there to look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you know, you kind of mentioned at the start, Bitcoin and Ethereum, most people have actually become aware of these two, especially Bitcoin, because it appears like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 just recently; it's turned up from say $3,000 not too long ago, it's quite unstable. Do they type of wait for a pullback, or do they just say, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in ten years." You understand? Yeah that's a terrific question.
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