So, a great deal of people find that too troublesome, and that's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that want to put in maybe the 20 minutes needed to go through a process which just takes five minutes if you want to establish a brokerage account.
" Oh Teeka, we enjoy your ideas, but gosh, establishing a crypto account is so challenging." What I tell 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 actually truly earning money a huge 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, before you'll have the ability to buy cryptocurrencies straight through your trading software application. And can you envision what will occur to this entire marketplace when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the process that individuals go through, and something I desire to bring to light too that you didn't point out, but I understand a great deal of folks who battle with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can just purchase $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me permanently prior to I might start buying in size on Coinbase. They're like, 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 pack a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I imply, we're in the early days of that innovation, but similar to during that time period, for the folks that had the vision to see where the future was going, and then purchased in on some of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, due to the fact that I'm constantly curious to speak with individuals who are, specifically somebody like yourself, who's dedicated the last, you understand, the lion's share of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like an average individual? That's a fantastic question.
They're 2 totally various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to money. So Bitcoin would be a cryptocurrency. And so what provides it worth is that it is, there's just going to be a limited quantity. There'll never ever 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 look at that Bitcoin network, people constantly attempt to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And really, with current innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when people put, you've got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We do not trust fiat money, you can print a limitless amount of it. It's really not secure, and the government can take it away from you." - Whereas with Bitcoin, best , go on.
Yeah. Or individuals that remained in Cypress, or simply people who have actually suffered through either devaluation, or there's a high need for, in Argentina for example, 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 don't believe in their own currency? Yeah, and I believe we have actually already seen that.
So yes, and this is a thing that a lot of American or Western investors have a difficult time getting their head around. They resemble, "Well I don't require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You do not need Bitcoin. But there are billions of people on the planet that do not have stable currencies.
Yeah. And so there's this entire burgeoning international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And utility coins are basically utilized, let's state Ethereum, which a great deal of people know about Ethereum. Ethereum is essentially a worldwide computer that you can write computer system programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an utility token, because you're basically buying programs power. So I wouldn't actually think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer individuals an idea, like an extremely basic one that I would envision you 'd called an energy token, is like FileCoin.
Where the idea is that essentially 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 resembles unstoppable kind of thing, since it's on so many different locations and. I do not know the ins and outs of it, however as an example for somebody who may just be very basic in their understanding of this, there are many various kinds 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 utility based, remedy? Mm-hmm (affirmative). Most of the coins that I recommend and take a look at are utility-based. We have a few cryptocurrencies, but I think the real chance lies in the utility coin space.
There's all of these ICOs that were taking place, those slowed down a bit with some modifications to a few things that was going on, however individuals are going to come out of the woodwork and begin to produce energy coins- Correct, yeah. And people require to understand that not all energy coins are produced equal.
So you have the benefit of committing your occupation to this, so you can head out there and do the reconnaissance, you can meet the creators, you can check the code, etc. However for a typical individual, there's now what, over 1,000 various kinds of coins available, practically 1,200 I believe.
How do they do that? That's a fantastic concern. I will state that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with a dreadful idea, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I don't actually take part in lots of ICOs, and I suggest you probably side step that market, unless you've got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause normally it'll crash 80% or two. Which's when we truly start looking 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 fixed? One of the big drawbacks with really clever, technical people, is that they like to fix problems that no one cares about fixing.
Does the group have experience of executing in an effective way in another area of their life? And it doesn't even need to be directly related to cryptocurrency, it doesn't need to be even directly associated to software, right? So, however I wish to see a track record of success in something, right? If it's four guys in a space that are just out of college, unless they have actually got some truly great advisors behind them, I'm probably not going to provide any cash.
Yeah. I think that in marketing in general, my world of business, we continuously try to find problems and how we can solve them. Now, are the problems things that individuals are trying to resolve a part of the Blockchain usually? Or would you state it's 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 looking for services that, so I'll give you an example.
And the factor that we bought it is due to the fact that they discovered a way to make files tamper-proof, and it's 99% less expensive than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that began it has a performance history of creating computer system programs that whole states run their whole operations on, right? So you've got alright, the wise man has constructed substantial computer system programs, excellent team, fixing a huge problem that is going to cut substantial expenses.
I mean, it doesn't get any easier than that in terms of deciding who to put cash behind. And a lot of this is common sense, and a great deal of folks will attempt to make things more complex than it is. And I have a truly simple guideline, Ryan. If I don't comprehend 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 individual that you're talking to can't dumb it down enough where you comprehend it, then it's probably not an excellent idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience evaluating business and taking a look at much, much bigger business.
Ryan: So you have actually taken a look at business that are big companies, you've evaluated 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 pointed out, it is almost simply typical sense. You just have to sort of appearance at it and think rationally 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 found out from dealing with Wall Street across three years, is how to check out people. I have actually satisfied 10s of countless individuals throughout my career. I've satisfied insiders; I've fulfilled fund supervisors, I've met stock promoters, I have actually satisfied all these different kinds of characters along the way.
So I believe that's most likely among my super powers, if you will. And if you've got an excellent BS detector, you ought to listen to it. Okay. You should 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 understand, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are so many other offers out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you understand, you sort of mentioned at the beginning, Bitcoin and Ethereum, many people have become aware of these two, particularly Bitcoin, because 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 recently; it's shown up from state $3,000 not too long earlier, it's quite volatile. Do they kind of wait for a pullback, or do they simply state, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's an excellent question.
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