So, a lot of people find that too troublesome, and that's why the people that are literally making the most amount of cash today in cryptocurrencies are the early adopters: people that are willing to put in maybe the 20 minutes needed to go through a procedure which just takes 5 minutes if you desire to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, setting up a crypto account is so tough." 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 bigger. So you're actually really getting paid a massive amount of money 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 question of time, Ryan, before you'll have the ability to purchase cryptocurrencies directly through your trading software. And can you picture what will take place to this whole market when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that people go through, and one thing I wish to bring to light too that you didn't mention, but I understand a great deal of folks who fight with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only purchase $500 a week.
As tough as possible, right, like Coinbase. It 'd take me permanently before I might start purchasing in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I mean, it's if you keep in mind the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I mean it would take 20 minutes to pack 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 technology, however simply like during 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 absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a second, due to the fact that I'm constantly curious to speak with people who are, especially someone like yourself, who's committed the last, you know, 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 an excellent 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. Therefore what offers it worth is that it is, there's only going to be a limited amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, people constantly attempt to hack it. However because of the nature of the network, today it's been unhackable. And really, with present innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not trust fiat money, you can print an endless amount of it. It's actually not protect, and the government can take it away from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that were in Cypress, or simply individuals who have suffered through either run-away inflation, or there's a high demand for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those countries that could potentially be a driver for more adoption, due to the fact that they currently 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 difficult time getting their head around. They're like, "Well I don't need Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of people worldwide that do not have stable currencies.
Yeah. And so there's this entire blossoming international demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are essentially used, let's say Ethereum, which a great deal of people know about Ethereum. Ethereum is basically a global computer system that you can write computer programs for and run computer programs on a worldwide decentralized computer program.
So we consider something like Ether an energy token, since you're basically buying shows power. So I wouldn't truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide individuals a concept, like an extremely basic one that I would picture you 'd called an utility token, resembles FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's sort of this exact same type of network result that you have with Bitcoin, where it resembles unstoppable example, because it's on so many different areas and. I do not understand the ins and outs of it, but as an example for somebody who may just be extremely basic in their understanding of this, there are many different kinds of utilities that are readily available.
And you kind of mentioned having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably utility based, remedy? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, however I believe the real chance lies in the energy coin space.
There's all of these ICOs that were occurring, those decreased a little bit with some modifications to a few things that was going on, but individuals are going to come out of the woodwork and start to produce utility coins- Correct, yeah. And individuals require to comprehend that not all energy coins are created equal.
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. However for an average individual, there's now what, over 1,000 different types of coins available, almost 1,200 I believe.
How do they do that? That's a great question. I will state that 95% of ICOs are either deceitful or just bad concepts. Okay. Right? There's nothing worse than someone that's young, earnest, with a horrible idea, that someone offers $40 million to. Right? Yeah, absolutely. So yeah, so I don't truly take part in many ICOs, and I recommend you probably side step that market, unless you've got a special relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause normally it'll crash 80% or two. And that's when we really start looking at the concept in more information. So here are some quick and unclean things that you should take a look at, right? So, one is, are they resolving a problem that needs to be solved? One of the big disadvantages with extremely smart, technical people, is that they like to solve issues that no one appreciates solving.
Does the team have experience of carrying out in a successful way in another area of their life? And it doesn't even need to be straight related to cryptocurrency, it doesn't have to be even straight related to software, right? So, but I want to see a track record of success in something, right? If it's 4 men in a room that are simply out of college, unless they've got some really excellent consultants behind them, I'm probably not going to offer them any cash.
Yeah. I think that in marketing in general, my world of company, we constantly try to find issues and how we can fix them. Now, are the issues things that individuals are trying to resolve a part of the Blockchain normally? Or would you state it's better if they're fixing sort 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 trying to find services that, so I'll give you an example.
And the reason that we bought it is since they discovered a way 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 guy that began it has a performance history of producing computer programs that entire states run their whole operations on, right? So you've got alright, the wise guy has developed substantial computer system programs, terrific group, resolving a huge problem that is going to cut substantial costs.
I imply, it doesn't get any easier than that in regards to deciding who to put money behind. And a great deal of this prevails sense, and a great deal of folks will attempt to make things more complex than it is. And I have a really basic guideline, Ryan. If I do not understand something, I set up my hand, and I say, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And after that if the person that you're talking to can't dumb it down enough where you understand it, then it's probably not a great concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience examining companies and taking a look at much, much larger companies.
Ryan: So you've looked at companies that are huge companies, you have actually examined much larger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you mentioned, it is practically simply typical sense. You just need to type of take a look at it and think logically about what's going on, and pull the feeling out? You have to pull the feeling out, and there are no traditional metrics that you can look at.
Okay. What I can utilize that I gained from working on Wall Street throughout three decades, is how to read individuals. I've met tens of thousands of individuals throughout my career. I have actually satisfied experts; I have actually met fund managers, I've satisfied stock promoters, I've satisfied all these different kinds of characters along the way.
So I believe that's most likely one of my super powers, if you will. And if you have actually got a good BS detector, you must listen to it. Okay. You must definitely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, but you know, there's simply; it's not agreeing with me, there's something about them that's not agreeing with me.
There are so numerous other deals out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you understand, you kind of mentioned at the start, Bitcoin and Ethereum, many people have heard of these two, particularly Bitcoin, since it appears like it remains 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 state $3,000 not too long back, it's rather unpredictable. Do they type of wait for a pullback, or do they simply say, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's a great concern.
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