So, a great deal of individuals find that too inconvenient, and that's why individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: people that are willing to put in perhaps the 20 minutes required to go through a procedure which just takes five minutes if you want to establish a brokerage account.
" Oh Teeka, we love your ideas, however gosh, establishing a crypto account is so tough." What I inform them is I state, "Look, when it's easy as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The whole cryptocurrency market will be 10x larger. So you're actually truly earning money a massive quantity of money to go through perhaps, you understand, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, prior to you'll be able to purchase cryptocurrencies directly through your trading software. And can you imagine what will take place to this entire marketplace when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the process that individuals go through, and something I desire to expose too that you didn't point out, however I know a lot of folks who have problem with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can just buy $500 a week.
As tough as possible, best, like Coinbase. It 'd take me forever prior to I could start buying 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 Web, when we were getting on the Web, 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 suggest, we remain in the early days of that innovation, but simply like throughout that time period, 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 a step back for a 2nd, because I'm constantly curious to talk to individuals who are, especially someone like yourself, who's devoted the last, you know, the better part of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a terrific question.
They're 2 totally different 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. And so what offers it worth is that it is, there's just going to be a restricted 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. Therefore if you take a look at that Bitcoin network, people constantly try to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And actually, with current technology, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
Therefore 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 stating, "We don't rely on fiat money, you can print an unrestricted amount of it. It's actually not protect, and the federal government can take it far from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or individuals that were in Cypress, or simply individuals who have suffered through either hyperinflation, or there's a high demand for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those countries that could potentially be a catalyst for more adoption, due to the fact that they already do not think in their own currency? Yeah, and I think we have actually currently seen that.
So yes, and this is a thing that a great deal of American or Western financiers have a difficult time getting their head around. They resemble, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't require Bitcoin. But there are billions of individuals in the world that don't have steady currencies.
Yeah. Therefore there's this whole blossoming global demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And utility coins are generally utilized, let's state Ethereum, which a great deal of people understand about Ethereum. Ethereum is essentially a worldwide computer that you can write computer programs for and run computer programs on a globally decentralized computer program.
So we think about something like Ether an energy token, due to the fact that you're essentially buying programs power. So I would not actually think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer individuals a concept, like an extremely easy one that I would envision you 'd called an utility token, resembles FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's sort of this same kind of network effect that you have with Bitcoin, where it's like unstoppable example, because it's on numerous various locations and. I don't understand the ins and outs of it, however as an example for somebody who may simply be very standard in their understanding of this, there are a lot of various kinds of energies that are available.
And you sort of pointed out having this boots on the ground experience. Now, since we're taking a look at the bulk of these are most likely utility based, remedy? Mm-hmm (affirmative). Many of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, however I think the genuine chance depends on the energy 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 people are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And individuals require to comprehend that not all energy coins are produced equal.
So you have the benefit of devoting your occupation to this, so you can go out there and do the reconnaissance, you can fulfill the creators, you can examine the code, etc. But for an average person, there's now what, over 1,000 various types of coins offered, almost 1,200 I think.
How do they do that? That's an excellent question. I will say that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a terrible idea, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I do not really take part in lots of ICOs, and I advise you probably side action that market, unless you've got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause usually it'll crash 80% or so. Which's when we really begin taking a look at the idea in more information. So here are some quick and dirty things that you should take a look at, right? So, one is, are they solving an issue that requires to be resolved? Among the huge drawbacks with extremely smart, technical people, is that they like to fix issues that nobody cares about fixing.
Does the team have experience of carrying out in an effective manner in another location of their life? And it does not even have to be straight associated to cryptocurrency, it does not have to be even directly associated to software application, right? So, but I want to see a track record of success in something, right? If it's four men in a space that are just out of college, unless they've got some really great consultants behind them, I'm most likely not going to provide them any money.
Yeah. I think that in marketing in basic, my world of company, we constantly try to find issues and how we can fix them. Now, are the problems things that individuals are attempting to solve a part of the Blockchain generally? Or would you say it's better if they're resolving type 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 trying to find solutions that, so I'll offer you an example.
And the reason that we purchased it is because they discovered a method to make documents 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 guy that started it has a track record of producing computer programs that whole states run their whole operations on, right? So you've got all right, the wise man has built big computer system programs, terrific team, fixing a huge issue that is going to cut substantial costs.
I suggest, it does not get any easier than that in terms of deciding who to put cash behind. And a lot of this prevails sense, and a great deal of folks will try to make things more complicated than it is. And I have an actually simple rule, Ryan. If I do not comprehend something, I put up my hand, and I say, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And after that if the individual that you're talking with can't dumb it down enough where you understand it, then it's probably not a great concept. Right, right. It's going to be simple to understand. And do you feel that you have years of experience assessing business and taking a look at much, much bigger business.
Ryan: So you've looked at business that are huge companies, you've assessed much bigger marketcap type scenarios. 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 simply typical sense. You simply have to type of appearance at it and think reasonably about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no traditional metrics that you can take a look at.
Okay. What I can utilize that I discovered from dealing with Wall Street throughout 3 years, is how to read people. I've satisfied 10s of thousands of individuals throughout my career. I have actually satisfied experts; I have actually met fund managers, I've satisfied stock promoters, I've fulfilled all these various types of characters along the way.
So I believe that's most likely one of my extremely powers, if you will. And if you've got a good BS detector, you should listen to it. Okay. You must definitely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, however you know, there's just; it's not sitting well with me, there's something about them that's not agreeing with me.
There are many other deals out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you sort of discussed at the start, Bitcoin and Ethereum, many people have heard of these 2, especially Bitcoin, due to the fact that it appears like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 just recently; it's turned up from state $3,000 not too long back, it's rather unstable. Do they kind of wait for a pullback, or do they just state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's a great concern.
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