So, a great deal of individuals find that too bothersome, which's why the people 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 procedure which simply takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we love your ideas, but gosh, establishing a crypto account is so challenging." 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 entire cryptocurrency market will be 10x bigger. So you're in fact truly earning money a massive amount of money to go through perhaps, you know, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, prior to you'll be able to purchase cryptocurrencies directly through your trading software application. And can you picture what will happen to this whole market when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that people go through, and one thing I wish to expose too that you didn't mention, but I know a lot 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 buy $500 a week.
As tough as possible, best, like Coinbase. It 'd take me forever before I could start purchasing in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I indicate, 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 suggest 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 imply, we're in the early days of that technology, however much like throughout that time period, for the folks that had the vision to see where the future was going, and then bought in on a few of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a second, because I'm constantly curious to talk with people who are, specifically someone like yourself, who's dedicated the last, you know, the much better part of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's a terrific concern.
They're two absolutely various things, however 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. 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 computers, confirming the transactions on the Bitcoin network. Therefore 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 truly, with current innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
And so when individuals put, you've got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We don't trust paper currency, you can print an unlimited amount of it. It's really not protect, and the government can take it away from you." - Whereas with Bitcoin, right , go on.
Yeah. Or people that remained in Cypress, or just individuals who have actually suffered through either devaluation, or there's a high need for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those countries that could possibly be a driver for more adoption, since they already don't think in their own currency? Yeah, and I think we've already seen that.
So yes, and this is a thing that a lot of American or Western investors have a bumpy ride 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 don't need Bitcoin. But there are billions of individuals in the world that don't have stable currencies.
Yeah. Therefore there's this entire blossoming global need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are essentially used, let's say Ethereum, which a lot of people learn about Ethereum. Ethereum is basically a global computer that you can compose computer programs for and run computer programs on an internationally decentralized computer program.
So we think about something like Ether an utility token, due to the fact that you're basically buying programming power. So I wouldn't really consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer people a concept, like an extremely simple one that I would imagine 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 type of this same kind of network result that you have with Bitcoin, where it's like unstoppable example, 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 somebody who may just be extremely standard in their understanding of this, there are numerous various types of utilities that are available.
And you kind of mentioned having this boots on the ground experience. Now, since we're looking at the bulk of these are most likely utility based, remedy? Mm-hmm (affirmative). Most of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, however I think the real opportunity depends on the utility coin space.
There's all of these ICOs that were happening, those decreased a bit with some changes to a couple of things that was going on, however people are going to come out of the woodwork and start to produce energy coins- Correct, yeah. And people need to understand that not all utility coins are developed equal.
So you have the advantage of devoting your occupation to this, so you can go out there and do the recon, you can meet the founders, you can inspect the code, and so on. But for an average individual, there's now what, over 1,000 different kinds of coins available, practically 1,200 I believe.
How do they do that? That's a fantastic concern. I will say that 95% of ICOs are either deceptive or just bad ideas. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a terrible idea, that someone offers $40 million to. Right? Yeah, totally. So yeah, so I don't really participate in lots of 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 normally it'll crash 80% approximately. Which's when we truly start taking a look at the idea in more detail. So here are some quick and unclean things that you should look at, right? So, one is, are they solving an issue that needs to be fixed? Among the big disadvantages with very wise, technical people, is that they like to solve issues that nobody appreciates fixing.
Does the team have experience of performing 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 directly related to software application, right? So, however I desire to see a track record of success in something, right? If it's four people in a room that are just out of college, unless they've got some actually good advisors behind them, I'm probably not going to provide any cash.
Yeah. I believe that in marketing in general, my world of business, we continuously look for issues and how we can fix them. Now, are the issues things that people are attempting to resolve a part of the Blockchain typically? Or would you state it's much better if they're solving type 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 basically looking for options that, so I'll give you an example.
And the factor that we purchased it is because they discovered a method 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 after that on top of that, the person that began it has a track record of producing computer system programs that whole states run their whole operations on, right? So you've got alright, the smart man has actually built huge computer programs, fantastic group, fixing a massive problem that is going to cut huge expenses.
I mean, it doesn't get any easier than that in regards to choosing who to put cash behind. And a great deal of this is common sense, and a great deal of folks will attempt to make things more complex than it is. And I have a really simple rule, Ryan. If I don't understand something, I put up my hand, and I say, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And then if the person that you're talking with can't dumb it down enough where you comprehend it, then it's probably not a good concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience evaluating business and looking at much, much larger companies.
Ryan: So you have actually taken a look at business that are huge business, you have actually evaluated much larger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you discussed, it is nearly simply good sense. You just need to kind of take a look at it and believe reasonably 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 use that I learned from dealing with Wall Street throughout 3 decades, is how to check out people. I have actually fulfilled 10s of countless people throughout my profession. I have actually satisfied insiders; I have actually satisfied fund supervisors, I have actually satisfied stock promoters, I've met all these different types of characters along the way.
So I believe that's probably one of my very powers, if you will. And if you've got a good 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 understand, there's just; it's not sitting well with me, there's something about them that's not agreeing with me.
There are numerous other offers out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you understand, you type of discussed at the beginning, Bitcoin and Ethereum, the majority of people have heard of these two, especially Bitcoin, since it looks like it remains 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 come up from state $3,000 not too long back, it's quite volatile. Do they sort of await a pullback, or do they just state, "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 an excellent question.
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