So, a lot of people discover that too bothersome, which's why individuals that are actually making the most amount of money today in cryptocurrencies are the early adopters: people that want to put in maybe the 20 minutes needed to go through a process which simply takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we like your ideas, however gosh, establishing a crypto account is so hard." What I tell 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 bigger. So you're in fact really getting paid a massive amount of money to go through maybe, you know, 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, prior to you'll be able to buy cryptocurrencies directly through your trading software application. And can you imagine what will occur to this whole marketplace when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you discussed the procedure that people go through, and one thing I want to expose too that you didn't discuss, however I understand a lot of folks who have problem with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can just purchase $500 a week.
As tough as possible, right, like Coinbase. It 'd take me forever before I could start purchasing in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I mean, it's if you remember the early days of the Web, when we were getting on the Internet, we were doing it with 56k modems, right? I imply it would take 20 minutes to fill 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 remain in the early days of that innovation, however similar to throughout that amount of time, for the folks that had the vision to see where the future was going, and after that purchased in on a few of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm constantly curious to speak with people who are, specifically somebody like yourself, who's dedicated the last, you understand, the bulk of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a terrific concern.
They're two completely different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying 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 limited 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. Therefore if you take a 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 truly, with existing innovation, the Bitcoin network is so huge 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 stating, "We don't rely on paper money, you can print a limitless quantity of it. It's really not protect, and the government can take it away from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or people that were in Cypress, or simply individuals who have actually suffered through either hyperinflation, or there's a high need for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those nations that could potentially be a catalyst for more adoption, because they already do not think 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 tough time getting their head around. They resemble, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't require Bitcoin. But there are billions of people in the world that do not have stable currencies.
Yeah. And so there's this whole burgeoning worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are essentially used, let's say Ethereum, which a great deal of people understand about Ethereum. Ethereum is basically an international computer system that you can write computer system programs for and run computer programs on an internationally decentralized computer program.
So we think about something like Ether an energy token, since you're basically purchasing programs power. So I would not actually think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide individuals a concept, like a really basic one that I would picture you 'd called an energy token, is like FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's type of this same type of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, because it's on numerous various locations 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 so numerous different types of utilities that are offered.
And you sort of pointed out having this boots on the ground experience. Now, considering that we're looking at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). The majority of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, but I think the real opportunity lies in the energy coin area.
There's all of these ICOs that were occurring, those decreased a little bit with some modifications to a couple of things that was going on, but individuals are going to come out of the woodwork and start to produce energy coins- Correct, yeah. And individuals require to comprehend that not all utility coins are created equal.
So you have the advantage of dedicating your profession to this, so you can head out there and do the recon, you can meet the creators, you can check the code, etc. But for an average person, there's now what, over 1,000 various kinds of coins readily available, practically 1,200 I think.
How do they do that? That's a terrific question. I will say that 95% of ICOs are either deceptive or simply bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with a horrible concept, that someone provides $40 million to. Right? Yeah, completely. So yeah, so I do not actually take part in numerous ICOs, and I advise you probably side action that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause typically it'll crash 80% approximately. Which's when we actually start taking a look at the concept in more information. So here are some fast and unclean things that you should take a look at, right? So, one is, are they resolving an issue that requires to be solved? Among the huge downsides with very smart, technical people, is that they like to fix problems that no one appreciates fixing.
Does the team have experience of executing in an effective way in another area of their life? And it does not even have to be directly associated to cryptocurrency, it doesn't have to be even directly associated to software, right? So, however I desire 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've got some truly great advisors behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in basic, my world of organization, we constantly search for problems and how we can fix them. Now, are the issues things that individuals are trying to solve a part of the Blockchain normally? Or would you say it's better if they're fixing 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 essentially searching for services that, so I'll offer you an example.
And the factor that we purchased it is due to the fact that they discovered a way to make documents tamper-proof, and it's 99% more affordable than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that started it has a performance history of creating computer programs that entire states run their entire operations on, right? So you have actually got okay, the wise man has actually developed big computer system programs, great team, resolving an enormous issue that is going to cut big costs.
I mean, it does not get any simpler than that in terms of deciding who to put cash behind. And a great deal of this is typical sense, and a great deal of folks will attempt to make things more complicated than it is. And I have a truly 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 then if the person that you're speaking with can't dumb it down enough where you understand it, then it's probably not a great idea. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience examining companies and looking at much, much larger business.
Ryan: So you've taken a look at companies that are big business, you've assessed much bigger marketcap type circumstances. 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 just common sense. You simply need to sort of 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 conventional metrics that you can take a look at.
Okay. What I can use that I gained from dealing with Wall Street throughout 3 years, is how to check out individuals. I have actually satisfied 10s of countless individuals throughout my career. I've fulfilled insiders; I have actually fulfilled fund managers, I've fulfilled stock promoters, I have actually satisfied all these different types of characters along the way.
So I think that's most likely one of my extremely powers, if you will. And if you have actually got a great BS detector, you ought to listen to it. Okay. You ought to absolutely listen to it. If I'm taking a seat 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 deals out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you know, you sort of discussed at the start, Bitcoin and Ethereum, many individuals have become aware of these two, particularly Bitcoin, because it looks like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 just recently; it's shown up from say $3,000 not too long back, it's quite volatile. Do they type of wait on a pullback, or do they simply state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a great concern.
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