So, a great deal of people discover that too bothersome, and that's why individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: people that want to put in possibly the 20 minutes required to go through a process which simply takes 5 minutes if you desire to set up a brokerage account.
" Oh Teeka, we love your concepts, however gosh, establishing a crypto account is so difficult." 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 actually truly getting paid a massive amount of money to go through maybe, you know, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll be able to purchase cryptocurrencies directly through your trading software. And can you envision what will take place to this whole marketplace 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 want to expose too that you didn't point out, but I understand a lot of folks who deal 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 tough as possible, best, like Coinbase. It 'd take me permanently before I could start purchasing in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I suggest, it's if you keep in mind the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I indicate 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 suggest, we're in the early days of that technology, but much like throughout that amount of time, for the folks that had the vision to see where the future was going, and after that purchased in on some of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a second, due to the fact that I'm always curious to talk to individuals who are, especially someone like yourself, who's dedicated the last, you understand, the lion's share of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like an average person? That's an excellent question.
They're two totally various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what offers 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 take a 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 existing innovation, 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 actually own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't rely on paper cash, you can print an unrestricted amount of it. It's actually not protect, and the federal government can take it away from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or people that were in Cypress, or just individuals who have actually suffered through either hyperinflation, or there's a high need for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those countries that could possibly be a driver for more adoption, since they already don't think in their own currency? Yeah, and I think we have actually already seen that.
So yes, and this is a thing that a lot of American or Western financiers have a hard time getting their head around. They resemble, "Well I don't 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 individuals worldwide that do not have stable currencies.
Yeah. Therefore there's this entire growing international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are basically used, let's state Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is essentially an international computer that you can compose computer system programs for and run computer programs on a worldwide decentralized computer program.
So we consider something like Ether an energy token, since you're basically purchasing programming power. So I would not truly 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 an extremely basic one that I would imagine you 'd called an utility token, resembles FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's type of this same type of network result that you have with Bitcoin, where it's like unstoppable example, since it's on many various locations and. I don't understand the ins and outs of it, however as an example for somebody who might simply be really fundamental in their understanding of this, there are numerous various types of energies that are available.
And you type of pointed out having this boots on the ground experience. Now, considering that we're looking at the bulk of these are most likely energy based, fix? Mm-hmm (affirmative). The majority of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, however I think the genuine opportunity lies in the energy coin area.
There's all of these ICOs that were occurring, those slowed down a bit with some modifications to a couple of things that was going on, but individuals are going to come out of the woodwork and start to produce energy coins- Correct, yeah. And people need to comprehend that not all energy coins are developed equal.
So you have the advantage of dedicating your occupation to this, so you can head out there and do the recon, you can meet the founders, you can check the code, and so on. But for a typical individual, there's now what, over 1,000 different types of coins offered, nearly 1,200 I believe.
How do they do that? That's a fantastic question. I will say that 95% of ICOs are either deceptive or simply bad concepts. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with a horrible idea, that somebody provides $40 million to. Right? Yeah, absolutely. So yeah, so I do not really take part in lots of ICOs, and I recommend you most likely side action 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 typically it'll crash 80% or two. And that's when we really start taking a look at the concept in more information. So here are some quick and unclean things that you should look at, right? So, one is, are they fixing a problem that needs to be resolved? One of the big drawbacks with extremely clever, technical individuals, is that they like to resolve issues that nobody appreciates solving.
Does the group have experience of performing in an effective manner in another location of their life? And it doesn't even need to be directly related to cryptocurrency, it does not have to be even straight associated to software, right? So, however I wish to see a performance history of success in something, right? If it's 4 men in a space that are just out of college, unless they have actually got some actually great advisors behind them, I'm most likely not going to provide any money.
Yeah. I think that in marketing in basic, my world of service, we constantly look for issues and how we can resolve them. Now, are the issues things that people are trying to resolve a part of the Blockchain typically? Or would you say it's much better if they're solving sort 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 generally searching for options that, so I'll provide you an example.
And the factor that we purchased it is due to the fact that they discovered a way to make files tamper-proof, and it's 99% less expensive than existing 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 developing computer programs that entire states run their entire operations on, right? So you've got fine, the wise guy has actually developed huge computer system programs, excellent team, solving an enormous problem that is going to cut huge expenses.
I mean, it doesn't get any easier than that in terms of choosing who to put money behind. And a lot of this prevails sense, and a lot of folks will attempt to make things more complex than it is. And I have a truly simple rule, Ryan. If I do not comprehend something, I set up my hand, and I state, "I didn't understand what you just stated." Mm-hmm (affirmative).
And then if the individual that you're talking to can't dumb it down enough where you comprehend it, then it's probably not a great idea. Right, right. It's going to be basic 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 huge companies, you've assessed much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you mentioned, it is almost simply good sense. You simply need to sort of take a look at it and think 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 utilize that I learned from working on Wall Street across 3 years, is how to read individuals. I've satisfied 10s of countless individuals throughout my profession. I have actually met experts; I have actually met fund supervisors, I have actually fulfilled stock promoters, I've satisfied all these different types of characters along the method.
So I think that's probably among my super powers, if you will. And if you have actually got a good 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've got all the bonifides, but you understand, there's simply; it's not sitting well with me, there's something about them that's not sitting well with me.
There are numerous other offers out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you understand, you kind of pointed out at the beginning, Bitcoin and Ethereum, the majority of people have heard of these two, especially Bitcoin, due to the fact that it looks 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 recently; it's turned up from say $3,000 not too long ago, it's quite unstable. Do they kind of wait for a pullback, or do they just state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's an excellent concern.
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