So, a great deal of individuals find that too troublesome, which's why the individuals that are literally making the most amount of money right now in cryptocurrencies are the early adopters: individuals that are willing to put in perhaps the 20 minutes required to go through a procedure which just takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your concepts, however gosh, setting up a crypto account is so challenging." What I tell them is I state, "Look, when it's simple 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 earning money a huge quantity of money to go through possibly, you understand, 20 minutes of a discomfort in the neck.
So you can't buy Bitcoin yet through their trading platform, but it is simply a concern of time, Ryan, before you'll be able to purchase cryptocurrencies straight through your trading software application. And can you envision what will occur to this entire market 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 know a lot of folks who battle with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can just buy $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me permanently prior to I could start purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I suggest, it's if you remember the early days of the Web, when we were getting on the Web, 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 innovation, however much like during that time period, for the folks that had the vision to see where the future was going, and after that bought in on some of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm constantly curious to talk with people who are, particularly somebody like yourself, who's devoted the last, you know, 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 a typical individual? That's a fantastic concern.
They're 2 completely different things, but 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 gives it value is that it is, there's just going to be a limited amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the transactions on the Bitcoin network. Therefore if you 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 really, with present technology, 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've got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We don't rely on paper money, you can print an endless quantity of it. It's really 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 just individuals who have suffered through either run-away inflation, or there's a high need for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those countries that could possibly be a catalyst for more adoption, since they currently don't believe in their own currency? Yeah, and I think we've currently 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 money." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. But there are billions of individuals in the world that do not have stable currencies.
Yeah. And so there's this whole blossoming worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are basically used, let's state Ethereum, which a great deal of individuals know about Ethereum. Ethereum is essentially a global computer that you can write computer programs for and run computer system programs on a globally decentralized computer system program.
So we think about something like Ether an energy token, because you're essentially purchasing shows 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 an extremely simple 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 same type of network effect 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 understand the ins and outs of it, but as an example for somebody who might simply be really standard in their understanding of this, there are many different types of energies that are offered.
And you sort of discussed having this boots on the ground experience. Now, given that we're looking at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). Most of the coins that I suggest and look at are utility-based. We have a few cryptocurrencies, but I believe the real opportunity depends on the energy coin area.
There's all of these ICOs that were occurring, those slowed down a bit with some modifications to a few things that was going on, but people are going to come out of the woodwork and start to create utility coins- Correct, yeah. And individuals need to understand that not all energy coins are developed equal.
So you have the benefit of dedicating your occupation to this, so you can head out there and do the recon, you can satisfy the creators, you can examine the code, and so on. But for an average person, there's now what, over 1,000 different types of coins offered, almost 1,200 I believe.
How do they do that? That's a great concern. I will state that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's nothing even worse than someone that's young, earnest, with a terrible idea, that somebody offers $40 million to. Right? Yeah, totally. So yeah, so I don't really participate in lots of ICOs, and I recommend 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 typically it'll crash 80% approximately. Which's when we truly start taking a look at the concept in more detail. So here are some quick and filthy things that you should take a look at, right? So, one is, are they resolving an issue that requires to be resolved? Among the huge downsides with very wise, technical people, is that they like to resolve issues that nobody appreciates solving.
Does the group have experience of performing in a successful way in another area of their life? And it does not even have to be directly related to cryptocurrency, it does not need 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 4 men in a space that are just out of college, unless they have actually got some truly good consultants behind them, I'm probably not going to provide them any money.
Yeah. I think that in marketing in basic, my world of business, we continuously try to find problems and how we can solve them. Now, are the issues things that people are trying to fix a part of the Blockchain generally? Or would you say it's much better if they're resolving kind 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 solutions that, so I'll provide you an example.
And the factor that we bought it is because they discovered 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 after that on top of that, the person that began it has a track record of developing computer programs that entire states run their entire operations on, right? So you have actually got alright, the wise man has developed huge computer programs, excellent team, solving a massive problem that is going to cut substantial costs.
I suggest, it does not get any easier than that in regards to deciding who to put cash behind. And a great deal of this is common sense, and a lot of folks will attempt to make things more complicated than it is. And I have an actually simple guideline, Ryan. If I do not understand something, I put up my hand, and I state, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And then if the person that you're talking to can't dumb it down enough where you comprehend 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 examining companies and taking a look at much, much larger companies.
Ryan: So you have actually taken a look at business that are big business, you've assessed much larger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you mentioned, it is practically simply common sense. You just have to type of take a look at it and think reasonably about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no standard metrics that you can look at.
Okay. What I can use that I gained from dealing with Wall Street across 3 decades, is how to read people. I have actually met tens of thousands of individuals throughout my career. I have actually met experts; I've met fund managers, I have actually satisfied stock promoters, I have actually met all these different kinds of characters along the way.
So I believe that's probably one of my incredibly powers, if you will. And if you have actually got a good BS detector, you should listen to it. Okay. You need to absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, however 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 a lot of other deals out there to look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you know, you kind of pointed out at the start, Bitcoin and Ethereum, the majority of people have actually heard of these 2, especially Bitcoin, due to the fact that it appears 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 earlier, it's quite unpredictable. Do they type of wait on 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 understand? Yeah that's a great concern.
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