So, a great deal of people discover that too troublesome, and that's why individuals that are actually making the most amount of money today in cryptocurrencies are the early adopters: individuals that are willing to put in maybe the 20 minutes required to go through a process which just takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we like your ideas, but gosh, setting up a crypto account is so challenging." What I inform them is I say, "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 actually truly getting paid an enormous quantity of money to go through perhaps, you know, 20 minutes of a discomfort in the neck.
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 buy cryptocurrencies straight through your trading software application. And can you envision what will occur to this whole marketplace when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that people go through, and one thing I wish to bring to light too that you didn't point out, however I understand a lot of folks who battle with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can just buy $500 a week.
As challenging as possible, ideal, like Coinbase. It 'd take me forever before I might start purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I indicate, it's if you remember the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I suggest 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 indicate, we're in the early days of that innovation, but just like throughout that time period, for the folks that had the vision to see where the future was going, and after that 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, since I'm constantly curious to speak with individuals who are, especially somebody 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 describe cryptocurrency to like an average individual? That's a fantastic question.
They're two completely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to money. So Bitcoin would be a cryptocurrency. And so what provides it worth is that it is, there's only going to be a minimal quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals continuously attempt to hack it. However since of the nature of the network, today it's been unhackable. And actually, with present innovation, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
Therefore when people put, you've got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We don't trust paper money, you can print an endless quantity of it. It's really not protect, and the government can take it away from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or individuals that were in Cypress, or just individuals who have actually suffered through either run-away inflation, 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 potentially be a driver for more adoption, since they already don't believe 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 financiers have a bumpy ride getting their head around. They're like, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. However there are billions of individuals worldwide that do not have stable currencies.
Yeah. And so there's this entire blossoming worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are basically utilized, let's state Ethereum, which a lot of individuals learn about Ethereum. Ethereum is basically an international computer system that you can write computer system programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an energy token, because you're basically purchasing programs power. So I would not truly think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give people an idea, like a really easy one that I would imagine you 'd called an utility token, is like FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's sort of this exact same type of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on a lot of different areas and. I do not know the ins and outs of it, but as an example for somebody who might just be very basic in their understanding of this, there are a lot of different types of energies that are readily 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 utility based, remedy? Mm-hmm (affirmative). Many of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, but I believe the genuine opportunity depends on the utility 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 create utility coins- Correct, yeah. And individuals require to comprehend that not all utility coins are produced equal.
So you have the advantage of devoting your occupation to this, so you can head out there and do the reconnaissance, you can satisfy the creators, you can inspect the code, etc. But for a typical individual, there's now what, over 1,000 different kinds of coins available, nearly 1,200 I believe.
How do they do that? That's a terrific question. I will state that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a terrible concept, that someone provides $40 million to. Right? Yeah, completely. So yeah, so I do not actually take part in lots of ICOs, and I recommend you most likely side step that market, unless you've got a special relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause normally it'll crash 80% or so. Which's when we actually start looking at the idea in more detail. So here are some fast and dirty things that you should look at, right? So, one is, are they resolving an issue that requires to be fixed? One of the big downsides with extremely clever, technical people, is that they like to fix problems that no one cares about solving.
Does the team have experience of executing in a successful manner in another area of their life? And it doesn't even have to be straight related to cryptocurrency, it doesn't have to be even straight related to software application, right? So, however I wish to see a track record of success in something, right? If it's 4 men in a room that are simply out of college, unless they've got some really good consultants behind them, I'm most likely not going to provide any cash.
Yeah. I believe that in marketing in basic, my world of business, we constantly try to find issues and how we can solve them. Now, are the issues things that people are attempting to solve a part of the Blockchain typically? Or would you state it's better if they're fixing 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 essentially trying to find services that, so I'll give you an example.
And the reason that we purchased it is because they discovered a method 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 man that began it has a track record of developing computer system programs that entire states run their whole operations on, right? So you've got alright, the wise person has constructed substantial computer system programs, terrific group, solving a massive problem that is going to cut substantial costs.
I suggest, it doesn't get any simpler than that in regards to choosing who to put cash behind. And a lot of this prevails sense, and a great deal of folks will attempt to make things more complicated than it is. And I have a truly simple guideline, Ryan. If I do not understand something, I set up my hand, and I state, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And then if the individual that you're speaking 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 easy to understand. And do you feel that you have years of experience evaluating business and looking at much, much larger business.
Ryan: So you have actually looked at companies that are huge companies, you've assessed much bigger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you mentioned, it is nearly just common 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 emotion out, and there are no conventional metrics that you can look at.
Okay. What I can utilize that I gained from working on Wall Street throughout three years, is how to read individuals. I have actually met 10s of countless individuals throughout my profession. I have actually satisfied experts; I've fulfilled fund managers, I have actually fulfilled stock promoters, I have actually fulfilled all these different types of characters along the way.
So I believe that's most likely among my very powers, if you will. And if you have actually got an excellent BS detector, you must listen to it. Okay. You ought to definitely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually 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 sitting well with me.
There are numerous other deals out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you type of discussed at the start, Bitcoin and Ethereum, many people have actually heard of these two, particularly 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 nearly upwards of $6,000 just recently; it's shown up from state $3,000 not too long ago, it's rather unstable. Do they type of wait for a pullback, or do they just say, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's an excellent question.
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