So, a lot of people find that too bothersome, which's why the people that are actually making the most amount of cash today in cryptocurrencies are the early adopters: individuals that are ready to put in possibly the 20 minutes required to go through a procedure which just takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we enjoy your ideas, however gosh, establishing a crypto account is so hard." 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 entire cryptocurrency market will be 10x larger. So you're in fact really getting paid a massive amount of cash to go through possibly, you know, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, prior to you'll be able to buy cryptocurrencies straight through your trading software. And can you picture what will occur to this entire market when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the process that people go through, and something I wish to bring to light too that you didn't point out, but I know a lot of folks who fight 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, ideal, like Coinbase. It 'd take me permanently before I could begin purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I imply, 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 imply 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 technology, however similar to throughout that amount of time, for the folks that had the vision to see where the future was going, and then purchased in on a few of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm always curious to talk with people who are, especially someone like yourself, who's dedicated the last, you understand, the bulk of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like an average individual? That's a great concern.
They're two completely 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 provides it value is that it is, there's only going to be a limited amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, individuals continuously try to hack it. However since of the nature of the network, today it's been unhackable. And actually, with current innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
Therefore when people put, you have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We don't trust fiat money, you can print an unlimited quantity of it. It's really not protect, and the government can take it far from you." - Whereas with Bitcoin, best , go on.
Yeah. Or individuals that remained in Cypress, or simply individuals who have actually 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 catalyst for more adoption, due to the fact that they currently do not think in their own currency? Yeah, and I believe we've currently seen that.
So yes, and this is a thing that a lot of American or Western financiers have a bumpy ride getting their head around. They resemble, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't require Bitcoin. However there are billions of individuals worldwide that do not have steady currencies.
Yeah. And so there's this whole burgeoning worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are basically utilized, let's state Ethereum, which a lot of individuals know about Ethereum. Ethereum is essentially a global computer that you can write computer programs for and run computer programs on an internationally decentralized computer program.
So we think about something like Ether an energy token, since you're essentially purchasing shows 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 offer individuals a concept, like an extremely simple one that I would envision you 'd called an energy token, is like FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's kind of this exact same kind of network result that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on so lots of different locations and. I don't understand the ins and outs of it, however as an example for somebody who might simply be very basic in their understanding of this, there are numerous various kinds of utilities that are offered.
And you type of mentioned having this boots on the ground experience. Now, because we're taking a look at the bulk of these are most likely energy based, fix? Mm-hmm (affirmative). The majority of the coins that I suggest and 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 occurring, 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 start to develop utility coins- Correct, yeah. And people need to comprehend that not all energy coins are developed equivalent.
So you have the benefit of dedicating 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 a typical individual, there's now what, over 1,000 different types of coins available, nearly 1,200 I think.
How do they do that? That's a great concern. I will state that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with a horrible concept, that someone offers $40 million to. Right? Yeah, completely. So yeah, so I do not really participate in many ICOs, and I recommend you probably 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 normally it'll crash 80% approximately. And that's when we truly begin 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 solving a problem that requires to be fixed? Among the big downsides with really smart, technical people, is that they like to resolve problems that nobody cares about fixing.
Does the group have experience of performing in an effective manner in another area of their life? And it doesn't even have to be straight associated to cryptocurrency, it doesn't have to be even straight related to software, right? So, however I desire to see a performance history of success in something, right? If it's 4 people in a room that are just out of college, unless they have actually got some actually excellent advisors behind them, I'm probably not going to provide any money.
Yeah. I believe that in marketing in basic, my world of business, we constantly try to find issues and how we can fix them. Now, are the issues things that individuals are trying to resolve a part of the Blockchain generally? Or would you state it's much better if they're fixing 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 essentially looking for services that, so I'll offer you an example.
And the factor that we bought it is since they found a way to make files tamper-proof, and it's 99% more affordable than current technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that began it has a performance history of creating computer system programs that whole states run their whole operations on, right? So you have actually got alright, the wise man has developed huge computer system programs, great team, solving a massive issue that is going to cut big expenses.
I indicate, it doesn't get any easier than that in regards to deciding who to put money behind. And a lot of this is typical sense, and a lot of folks will try to make things more complex than it is. And I have a truly simple rule, Ryan. If I don't understand something, I put up my hand, and I state, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And after that if the person that you're talking with can't dumb it down enough where you understand it, then it's most likely not a great concept. Right, right. It's going to be simple to understand. And do you feel that you have years of experience evaluating companies and taking a look at much, much larger companies.
Ryan: So you've taken a look at companies that are huge business, you've evaluated 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 discussed, it is practically simply typical sense. You simply have to kind of take a look at it and think reasonably about what's going on, and pull the feeling out? You have to pull the feeling out, and there are no standard metrics that you can take a look at.
Okay. What I can use that I gained from working on Wall Street throughout 3 decades, is how to check out individuals. I have actually fulfilled tens of thousands of individuals throughout my profession. I have actually satisfied insiders; I've met fund managers, I have actually fulfilled stock promoters, I've satisfied all these different 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 need 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 have actually 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 a lot of other deals out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you kind of mentioned at the beginning, Bitcoin and Ethereum, many people have heard of these two, especially Bitcoin, because it looks like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's shown up from say $3,000 not too long back, it's rather volatile. Do they type of await a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's a fantastic concern.
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