So, a lot of individuals find that too inconvenient, which's why individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: people that are willing to put in possibly the 20 minutes required to go through a process which just takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your concepts, but gosh, establishing a crypto account is so hard." 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 making money a massive amount of cash to go through possibly, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, prior to you'll have the ability to buy cryptocurrencies straight through your trading software application. And can you picture what will happen to this entire market when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that individuals go through, and something I want to bring to light too that you didn't point out, however I know a great deal of folks who battle with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can only buy $500 a week.
As hard as possible, best, like Coinbase. It 'd take me permanently prior to I might start purchasing in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I imply, 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 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 suggest, 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 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, since I'm constantly curious to talk with people who are, particularly somebody like yourself, who's devoted the last, you understand, the bulk of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like a typical person? That's an excellent concern.
They're two absolutely different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to cash. So Bitcoin would be a cryptocurrency. And so what offers it worth is that it is, there's just going to be a minimal quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the deals on the Bitcoin network. And so if you look at that Bitcoin network, individuals continuously try to hack it. However since of the nature of the network, today it's been unhackable. And actually, with existing innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We do not rely on paper currency, you can print an unrestricted amount of it. It's really not secure, and the federal government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that remained in Cypress, or just individuals who have suffered through either devaluation, or there's a high demand for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those countries that could potentially be a driver for more adoption, because 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 investors have a bumpy ride getting their head around. They're like, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. However there are billions of people in the world that don't have steady currencies.
Yeah. Therefore there's this entire blossoming global demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are basically utilized, let's say Ethereum, which a great deal of people understand about Ethereum. Ethereum is essentially a global computer system that you can compose computer programs for and run computer system programs on a globally decentralized computer program.
So we think about something like Ether an utility token, since you're essentially buying programming power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer individuals a concept, like a very easy one that I would envision you 'd called an utility token, resembles FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's kind of this same kind of network effect that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on a lot of different areas and. I do not understand the ins and outs of it, however as an example for someone who may simply be very fundamental in their understanding of this, there are so lots of different types of energies that are readily 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 utility based, correct? Mm-hmm (affirmative). The majority of the coins that I recommend and look at are utility-based. We have a few cryptocurrencies, however I think the genuine chance lies in the energy coin space.
There's all of these ICOs that were happening, those decreased a bit with some changes to a few things that was going on, however people are going to come out of the woodwork and begin to develop energy coins- Correct, yeah. And people require to understand that not all utility coins are created equal.
So you have the benefit of dedicating your profession to this, so you can head out there and do the recon, you can fulfill the founders, you can check the code, etc. But for a typical person, there's now what, over 1,000 various kinds of coins available, nearly 1,200 I believe.
How do they do that? That's a terrific question. I will say that 95% of ICOs are either deceptive or just bad ideas. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with an awful concept, that somebody offers $40 million to. Right? Yeah, completely. So yeah, so I don't truly take part in numerous ICOs, and I recommend you most likely side step that market, unless you've got an unique relationship, and you can get in on the pre-ICO, and then 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 detail. So here are some quick and unclean things that you should take a look at, right? So, one is, are they fixing a problem that requires to be fixed? One of the big drawbacks with very smart, technical people, is that they like to resolve problems that nobody appreciates fixing.
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 doesn't need to be even straight related to software application, right? So, however I desire to see a track record of success in something, right? If it's four men in a room that are just out of college, unless they've got some actually good 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 try to find problems and how we can fix them. Now, are the issues things that people are trying to resolve a part of the Blockchain typically? Or would you state it's better if they're solving kind 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 searching for options that, so I'll provide you an example.
And the factor that we bought it is due to the fact that they found a way 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 person that began it has a performance history of producing computer programs that whole states run their whole operations on, right? So you have actually got okay, the clever guy has built substantial computer programs, terrific team, resolving a massive issue that is going to cut substantial costs.
I suggest, it doesn't get any simpler 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 attempt to make things more complicated than it is. And I have a really simple rule, Ryan. If I do not understand something, I installed my hand, and I state, "I didn't understand what you just stated." Mm-hmm (affirmative).
And after that if the person that you're speaking with can't dumb it down enough where you understand it, then it's probably not a good concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience assessing companies and taking a look at much, much bigger companies.
Ryan: So you've looked at business that are big business, you have actually evaluated much bigger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you pointed out, it is nearly simply sound judgment. You just have to kind of take a look at it and think rationally about what's going on, and pull the emotion 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 discovered from working on Wall Street across 3 years, is how to read people. I have actually satisfied 10s of countless individuals throughout my career. I've met experts; I've satisfied 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 probably one of my super powers, if you will. And if you have actually got a great BS detector, you ought to listen to it. Okay. You should absolutely listen to it. If I'm sitting down and I'm talking with someone, and they have actually got all the bonifides, however you know, 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 offers out there to look at. Yeah, there's too much chance. Yeah. And speaking of chance, you understand, you sort of mentioned 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 remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's shown up from say $3,000 not too long earlier, it's quite unstable. Do they kind of wait for a pullback, or do they just state, "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 fantastic question.
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