So, a lot of individuals find that too troublesome, and that's why individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: individuals that want to put in maybe the 20 minutes required to go through a procedure 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 challenging." What I inform 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 in fact really making 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 simply a concern of time, Ryan, before you'll be able to buy cryptocurrencies straight through your trading software application. And can you picture what will happen to this whole 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 individuals go through, and one thing I want to bring to light too that you didn't mention, but I know a lot of folks who have problem with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can just buy $500 a week.
As challenging as possible, best, like Coinbase. It 'd take me permanently prior to I could begin purchasing in size on Coinbase. They resemble, 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 Internet, we were doing it with 56k modems, right? I indicate it would take 20 minutes to pack 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 remain in the early days of that technology, but similar to throughout that period 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 business, they made an absolute 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 with individuals who are, particularly someone like yourself, who's devoted the last, you know, 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 individual? That's a fantastic concern.
They're 2 absolutely different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option 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 amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. Therefore if you look at that Bitcoin network, people constantly attempt to hack it. However because of the nature of the network, today it's been unhackable. And actually, with existing technology, 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 have actually got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We don't rely on fiat money, you can print an unrestricted quantity of it. It's actually not protect, and the government can take it far from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or people that were in Cypress, or simply individuals who have actually suffered through either devaluation, or there's a high need for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a driver for more adoption, due to the fact that they currently do not think in their own currency? Yeah, and I believe we've already 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're like, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. However there are billions of individuals on the planet that don't have steady currencies.
Yeah. Therefore there's this whole growing worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are essentially used, let's say Ethereum, which a lot of people understand about Ethereum. Ethereum is essentially an international computer system that you can write computer system programs for and run computer programs on a globally decentralized computer system program.
So we consider something like Ether an utility token, since you're essentially buying programs power. So I would not truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide people an idea, like a very easy one that I would picture you 'd called an energy token, resembles FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's type of this exact same type of network effect that you have with Bitcoin, where it's like unstoppable example, because it's on numerous various locations and. I do not understand the ins and outs of it, but as an example for somebody who might just be extremely basic in their understanding of this, there are many various kinds of utilities that are offered.
And you kind of pointed out having this boots on the ground experience. Now, since we're taking a look at the bulk of these are probably utility based, remedy? Mm-hmm (affirmative). The majority of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, but I think the genuine opportunity lies in the utility coin space.
There's all of these ICOs that were taking place, those slowed down a little bit with some changes to a couple of things that was going on, but individuals are going to come out of the woodwork and start to create energy coins- Correct, yeah. And individuals need to comprehend that not all energy coins are produced equivalent.
So you have the benefit of committing your occupation to this, so you can head out there and do the recon, you can meet the creators, you can examine the code, and so on. But for an average person, there's now what, over 1,000 different kinds of coins readily available, almost 1,200 I believe.
How do they do that? That's a great concern. I will state that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a terrible concept, that somebody provides $40 million to. Right? Yeah, completely. So yeah, so I do not truly take part in numerous ICOs, and I suggest you most likely side step that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause normally it'll crash 80% or two. And that's when we truly begin looking at the concept in more information. So here are some quick and unclean things that you should take a look at, right? So, one is, are they solving an issue that needs to be fixed? One of the big downsides with extremely clever, technical individuals, is that they like to resolve issues that no one appreciates resolving.
Does the team have experience of performing in a successful manner in another area of their life? And it does not even need to be straight associated to cryptocurrency, it does not need to be even directly related to software application, right? So, but I wish to see a track record of success in something, right? If it's four people in a room that are just out of college, unless they have actually got some truly excellent consultants behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in general, my world of organization, we continuously look for problems and how we can solve them. Now, are the problems things that people are trying to resolve a part of the Blockchain generally? Or would you say it's better if they're resolving sort 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 services that, so I'll give you an example.
And the reason that we purchased it is because they discovered a way to make documents tamper-proof, and it's 99% less expensive than existing innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the man that began it has a track record of creating computer system programs that whole states run their entire operations on, right? So you've got fine, the wise man has developed substantial computer system programs, fantastic team, resolving an enormous issue that is going to cut huge costs.
I mean, it does not get any simpler than that in terms of choosing who to put money behind. And a lot of this is common sense, and a great deal of folks will attempt to make things more complicated than it is. And I have an actually easy rule, Ryan. If I don't understand something, I put up my hand, and I state, "I didn't comprehend what you just said." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you understand it, then it's probably not an excellent concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience assessing companies and looking at much, much larger business.
Ryan: So you've taken a look at business that are huge business, you've examined much larger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you discussed, it is practically just sound judgment. You simply have to type of look at it and think rationally 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 learned from working on Wall Street across three decades, is how to check out individuals. I have actually satisfied 10s of thousands of people throughout my career. I have actually fulfilled experts; I've met fund managers, I've fulfilled stock promoters, I've fulfilled all these different kinds of characters along the method.
So I think that's probably one of my incredibly powers, if you will. And if you've got an excellent BS detector, you must listen to it. Okay. You ought to absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, however you understand, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are numerous other offers out there to look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you know, you sort of pointed out at the start, Bitcoin and Ethereum, the majority of people have actually become aware of these two, particularly Bitcoin, since it appears like it's in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 just recently; it's shown up from say $3,000 not too long back, it's quite unpredictable. Do they sort of await 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 a great concern.
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