So, a great deal 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: individuals that want to put in possibly the 20 minutes needed to go through a process which simply takes 5 minutes if you desire to set up a brokerage account.
" Oh Teeka, we love your ideas, however gosh, setting up a crypto account is so challenging." What I inform them is I state, "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 larger. So you're actually truly getting paid a huge 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, however it is just a question of time, Ryan, prior to you'll have the ability to buy cryptocurrencies straight through your trading software application. And can you envision what will take place to this whole marketplace when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that people go through, and something I wish to expose too that you didn't mention, but I understand a lot of folks who fight with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can only buy $500 a week.
As tough as possible, ideal, like Coinbase. It 'd take me permanently before I could begin 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 Internet, when we were getting on the Internet, we were doing it with 56k modems, right? I indicate 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 remain in the early days of that innovation, however much like throughout that duration of time, for the folks that had the vision to see where the future was going, and then bought in on some of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, due to the fact that I'm constantly curious to talk with individuals who are, specifically somebody like yourself, who's dedicated the last, you know, the better part of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a terrific question.
They're 2 completely different things, however 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. And so what provides it value 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 computer systems, verifying the transactions on the Bitcoin network. And so if you take a look at that Bitcoin network, individuals constantly try to hack it. But 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 people 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 saying, "We don't rely on paper currency, you can print an unrestricted quantity of it. It's actually not protect, and the government can take it far from you." - Whereas with Bitcoin, right , go ahead.
Yeah. Or people that were in Cypress, or just individuals who have suffered through either hyperinflation, or there's a high demand for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a driver for more adoption, because they currently don't believe in their own currency? Yeah, and I believe we have actually currently seen that.
So yes, and this is a thing that a lot of American or Western financiers have a difficult time getting their head around. They resemble, "Well I don't need Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You do not require Bitcoin. But there are billions of people on the planet that do not have steady currencies.
Yeah. And so there's this whole growing international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are generally utilized, let's state Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is basically a global computer that you can write computer system programs for and run computer system programs on a worldwide decentralized computer program.
So we think about something like Ether an utility token, due to the fact that you're basically buying programs power. So I wouldn't really consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer individuals a concept, like a really easy one that I would picture you 'd called an utility token, resembles FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's type of this very same type of network impact that you have with Bitcoin, where it resembles unstoppable example, because it's on many various locations and. I don't understand the ins and outs of it, however as an example for somebody who may just be extremely fundamental in their understanding of this, there are so numerous different types of energies that are available.
And you kind of mentioned having this boots on the ground experience. Now, given that we're looking at the bulk of these are probably utility based, fix? Mm-hmm (affirmative). The majority of the coins that I advise and take a look at are utility-based. We have a couple of cryptocurrencies, however I think the real opportunity depends on the energy coin space.
There's all of these ICOs that were taking place, those decreased a 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 create energy coins- Correct, yeah. And individuals require to comprehend that not all utility coins are created equivalent.
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 founders, you can examine the code, etc. However for an average person, there's now what, over 1,000 various types of coins readily available, practically 1,200 I think.
How do they do that? That's a terrific concern. I will state that 95% of ICOs are either deceptive or simply bad concepts. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with a terrible idea, that somebody offers $40 million to. Right? Yeah, totally. So yeah, so I do not truly take part in numerous ICOs, and I suggest you most likely side step 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 generally it'll crash 80% or two. Which's when we really begin looking at the concept in more detail. So here are some fast and unclean things that you should take a look at, right? So, one is, are they fixing a problem that requires to be solved? Among the big disadvantages with very smart, technical people, is that they like to resolve issues that no one appreciates solving.
Does the team have experience of carrying out in an effective manner in another area of their life? And it does not even need to be straight associated to cryptocurrency, it doesn't have to be even straight related to software application, right? So, however I want to see a track record of success in something, right? If it's four guys in a space that are just out of college, unless they've got some really excellent advisors behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in basic, my world of business, we constantly try to find issues and how we can solve them. Now, are the problems things that people are attempting to resolve a part of the Blockchain usually? 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 searching for options that, so I'll offer you an example.
And the factor that we bought it is because they found a way to make files tamper-proof, and it's 99% less expensive than existing technology, 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 track record of developing computer programs that entire states run their whole operations on, right? So you've got all right, the clever guy has actually built big computer system programs, great group, fixing a massive problem that is going to cut huge expenses.
I suggest, it does not get any simpler than that in terms of choosing who to put cash behind. And a lot of this prevails sense, and a lot of folks will attempt to make things more complex than it is. And I have a really simple guideline, Ryan. If I don't comprehend something, I installed my hand, and I state, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And then if the individual that you're talking to 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 basic to comprehend. And do you feel that you have years of experience assessing business and looking at much, much bigger companies.
Ryan: So you have actually taken a look at companies that are big companies, you have actually assessed much larger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you pointed out, it is almost simply good sense. You just have to sort of appearance at it and believe rationally about what's going on, and pull the feeling out? You need 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 dealing with Wall Street throughout 3 years, is how to read people. I've satisfied 10s of countless people throughout my career. I have actually fulfilled experts; I've met fund managers, I've fulfilled stock promoters, I've fulfilled all these various types of characters along the way.
So I think that's most likely one of my extremely powers, if you will. And if you've got an excellent BS detector, you should listen to it. Okay. You need to definitely listen to it. If I'm sitting down and I'm talking with someone, and they have actually 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 a lot of other deals out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you understand, you sort of pointed out at the beginning, Bitcoin and Ethereum, the majority of people have actually heard of these two, particularly Bitcoin, because it seems like it's 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 rather unpredictable. Do they sort of wait for a pullback, or do they just state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in ten years." You understand? Yeah that's a great concern.
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