So, a lot of individuals find that too troublesome, and that's why the individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: individuals that want to put in possibly 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 like your concepts, but gosh, setting up a crypto account is so challenging." What I inform them is I say, "Look, when it's simple 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 in fact truly getting paid a huge quantity of cash 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 simply a concern of time, Ryan, before you'll have the ability to purchase cryptocurrencies directly through your trading software. And can you envision what will take place to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you discussed the procedure that individuals go through, and one thing I want to bring to light too that you didn't mention, but I know a great deal of folks who battle with this too, is oh, and by the way, you can only buy $1,000 a week. Or you can just purchase $500 a week.
As difficult as possible, right, like Coinbase. It 'd take me forever before I might begin buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I mean, it's if you keep in mind the early days of the Internet, 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 indicate, we're in the early days of that innovation, however much like throughout that duration 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 outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm always curious to speak with individuals who are, specifically somebody like yourself, who's devoted the last, you understand, the lion's share of the last few years to truly go both feet in on this. How do you describe cryptocurrency to like an average individual? That's a great question.
They're 2 completely different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what gives it value is that it is, there's just going to be a minimal amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the transactions on the Bitcoin network. And so if you take a look at that Bitcoin network, individuals constantly try to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And truly, with current innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
And so when individuals put, you have actually got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We do not trust fiat money, you can print an unlimited amount of it. It's really not protect, and the government can take it far from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or people that remained in Cypress, or just individuals who have suffered through either run-away inflation, 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 possibly be a driver for more adoption, due to the fact that they already do not 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 financiers have a hard time getting their head around. They're like, "Well I do not require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not need Bitcoin. However there are billions of people in the world that do not have steady currencies.
Yeah. And so there's this whole growing worldwide demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are basically utilized, let's say Ethereum, which a lot of individuals learn about Ethereum. Ethereum is basically a global computer system that you can compose computer programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an energy token, due to the fact that you're essentially buying programming power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals an idea, like a really basic one that I would envision you 'd called an utility token, is like FileCoin.
Where the concept is that basically 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, because it's on a lot of various locations and. I do not understand the ins and outs of it, however as an example for somebody who might simply be extremely fundamental in their understanding of this, there are so lots of different types of energies that are available.
And you type of discussed having this boots on the ground experience. Now, since we're looking at the bulk of these are probably utility based, fix? Mm-hmm (affirmative). The majority of the coins that I recommend and take a look at are utility-based. We have a few cryptocurrencies, however I believe the genuine opportunity lies in the utility coin area.
There's all of these ICOs that were taking place, those slowed down a little bit with some modifications to a few things that was going on, however people are going to come out of the woodwork and begin to produce utility coins- Correct, yeah. And people need to understand that not all energy coins are created equal.
So you have the benefit of devoting your profession to this, so you can head out there and do the reconnaissance, you can meet the founders, you can check the code, and so on. But for an average individual, there's now what, over 1,000 different types of coins offered, practically 1,200 I think.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either deceptive or simply bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a dreadful concept, that somebody gives $40 million to. Right? Yeah, completely. So yeah, so I do not really take part in many ICOs, and I recommend you probably side action that market, unless you've got a special relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause usually it'll crash 80% or two. Which's when we actually begin taking a look at the concept in more information. So here are some quick and dirty things that you should take a look at, right? So, one is, are they resolving a problem that requires to be fixed? One of the huge downsides with really clever, technical people, is that they like to solve problems that nobody appreciates resolving.
Does the group have experience of executing in an effective manner in another area of their life? And it does not even need to be directly associated to cryptocurrency, it doesn't need to be even straight related to software, right? So, but I wish to see a track record of success in something, right? If it's four guys in a room that are simply out of college, unless they have actually got some really excellent consultants behind them, I'm probably not going to provide them any money.
Yeah. I believe that in marketing in general, my world of company, we continuously look for problems and how we can fix 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 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 looking for services that, so I'll provide you an example.
And the reason that we purchased it is since they found a way 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 then on top of that, the person that started it has a performance history of developing computer programs that entire states run their entire operations on, right? So you have actually got okay, the smart guy has actually developed huge computer programs, excellent team, resolving a massive issue that is going to cut huge expenses.
I indicate, it does not get any simpler than that in terms of choosing who to put money behind. And a great deal of this prevails sense, and a great deal of folks will attempt to make things more complex than it is. And I have a really basic rule, Ryan. If I do not understand something, I set up my hand, and I say, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And after that if the person that you're talking to can't dumb it down enough where you comprehend it, then it's most likely not an excellent concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience assessing companies and taking a look at much, much bigger companies.
Ryan: So you have actually looked at companies that are big companies, you have actually examined much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you mentioned, it is practically just common sense. You just need to sort of take a look at it and believe reasonably about what's going on, and pull the feeling out? You have to pull the feeling out, and there are no traditional metrics that you can take a look at.
Okay. What I can utilize that I gained from working on Wall Street across three decades, is how to read people. I've fulfilled tens of thousands of people throughout my profession. I've met insiders; I have actually met fund managers, I have actually fulfilled stock promoters, I have actually fulfilled all these different kinds of characters along the way.
So I think that's most likely among my incredibly powers, if you will. And if you've got a great BS detector, you ought to listen to it. Okay. You ought to definitely listen to it. If I'm sitting down and I'm talking with somebody, and they've got all the bonifides, but you understand, there's simply; it's not sitting well with me, there's something about them that's not sitting well with me.
There are many other deals out there to look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you know, you kind of discussed at the start, Bitcoin and Ethereum, many people have actually heard of these two, especially 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 turned up from state $3,000 not too long earlier, it's quite unpredictable. Do they type of wait for a pullback, or do they just say, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's a terrific concern.
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