So, a great deal of individuals discover that too bothersome, which's why the people that are literally making the most amount of money right now in cryptocurrencies are the early adopters: people that are willing to put in possibly the 20 minutes required to go through a procedure which just takes 5 minutes if you desire to establish a brokerage account.
" Oh Teeka, we like your concepts, however gosh, setting up a crypto account is so tough." 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 bigger. So you're actually really getting paid an enormous amount of money to go through perhaps, you understand, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, but it is just a question of time, Ryan, prior to you'll be able to buy cryptocurrencies straight through your trading software. And can you imagine what will happen to this whole marketplace when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that individuals go through, and something I desire to bring to light too that you didn't mention, however I know a great deal of folks who have problem with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can just buy $500 a week.
As challenging as possible, best, like Coinbase. It 'd take me permanently before I might start buying in size on Coinbase. They're like, well, we'll let you buy $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 indicate, we remain in the early days of that innovation, but just like during that amount of time, for the folks that had the vision to see where the future was going, and then bought in on some of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm always curious to talk to people who are, particularly somebody like yourself, who's committed the last, you understand, the bulk of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like an average person? That's an excellent question.
They're two completely 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 gives it value is that it is, there's only going to be a minimal 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 look at that Bitcoin network, people constantly attempt to hack it. But since of the nature of the network, today it's been unhackable. And really, with present innovation, 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 individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're saying, "We do not trust paper money, you can print an unrestricted amount of it. It's actually not secure, and the federal government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that remained in Cypress, or simply individuals who have suffered through either hyperinflation, 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 possibly be a catalyst for more adoption, since they already 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 great deal of American or Western financiers have a difficult time getting their head around. They're like, "Well I don't require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. However there are billions of individuals in the world that do not have steady currencies.
Yeah. And so there's this whole burgeoning worldwide 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 used, let's say Ethereum, which a great deal of people understand about Ethereum. Ethereum is basically a worldwide computer that you can write computer system programs for and run computer programs on a globally decentralized computer program.
So we consider something like Ether an utility token, due to the fact that you're essentially buying programming power. So I would not really consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals a concept, like a very easy one that I would imagine you 'd called an utility token, is like FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's type of this very same kind 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 don't 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 many different kinds of utilities that are available.
And you type of discussed having this boots on the ground experience. Now, considering that we're looking at the bulk of these are most likely energy based, remedy? Mm-hmm (affirmative). The majority of the coins that I suggest and take a look at are utility-based. We have a few cryptocurrencies, but I believe the genuine chance lies in the energy coin space.
There's all of these ICOs that were taking place, those decreased a bit with some changes to a few things that was going on, but individuals are going to come out of the woodwork and begin to produce energy coins- Correct, yeah. And individuals need to understand that not all utility coins are produced equivalent.
So you have the benefit of devoting your occupation to this, so you can head out there and do the reconnaissance, you can meet the creators, you can examine the code, and so on. But for a typical individual, there's now what, over 1,000 various types of coins available, practically 1,200 I believe.
How do they do that? That's a fantastic question. I will say that 95% of ICOs are either deceptive or just bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with a dreadful concept, that someone offers $40 million to. Right? Yeah, totally. So yeah, so I do not really take part in lots of ICOs, and I suggest you probably side step that market, unless you have actually got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% or two. Which's when we actually start looking at the idea in more detail. So here are some quick and dirty things that you should look at, right? So, one is, are they fixing an issue that needs to be fixed? One of the huge downsides with extremely smart, technical people, is that they like to resolve problems that nobody cares about resolving.
Does the team have experience of carrying out in a successful way in another location of their life? And it does not even need to be straight related to cryptocurrency, it does not have to be even directly associated to software application, right? So, however I wish to see a performance history of success in something, right? If it's four men in a space that are just out of college, unless they have actually got some truly 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 organization, we continuously search for problems and how we can fix them. Now, are the problems things that people are trying to fix a part of the Blockchain normally? Or would you state it's better if they're resolving sort of a mass problem? 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 solutions that, so I'll give you an example.
And the reason that we bought it is due to the fact that they found a method to make documents tamper-proof, and it's 99% less expensive than existing innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the guy that began it has a performance history of developing computer programs that whole states run their entire operations on, right? So you have actually got okay, the clever guy has actually built huge computer programs, great group, solving a huge issue that is going to cut substantial expenses.
I indicate, it doesn't get any easier than that in regards to choosing who to put money behind. And a lot of this is common sense, and a lot of folks will try to make things more complicated than it is. And I have an actually easy guideline, Ryan. If I do not understand something, I installed my hand, and I say, "I didn't understand what you just 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 concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience evaluating companies and taking a look at much, much larger business.
Ryan: So you've taken a look at companies that are big companies, you have actually examined much bigger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you mentioned, it is nearly just sound judgment. You just need to type of look at it and think reasonably about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no traditional metrics that you can look at.
Okay. What I can use that I gained from working on Wall Street across 3 years, is how to read people. I've satisfied 10s of countless people throughout my career. I have actually met insiders; I've met fund supervisors, I have actually satisfied stock promoters, I've met all these different types of characters along the method.
So I believe that's probably among my very powers, if you will. And if you have actually got a great BS detector, you ought to listen to it. Okay. You must absolutely 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 just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are a lot of other offers out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you understand, you type of pointed out at the beginning, Bitcoin and Ethereum, a lot of people have heard of these two, especially Bitcoin, due to the fact that it looks like it's in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading almost upwards of $6,000 just recently; it's turned up from say $3,000 not too long ago, it's rather unstable. Do they sort 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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