So, a great deal of people find that too inconvenient, 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 perhaps 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, but gosh, establishing a crypto account is so difficult." 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 larger. So you're actually really making money a massive amount of money to go through maybe, you know, 20 minutes of a discomfort in the neck.
So you can't purchase Bitcoin yet through their trading platform, but it is simply 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 occur to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that individuals go through, and something I wish to expose too that you didn't point out, however I know a great deal of folks who have problem 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 difficult as possible, ideal, like Coinbase. It 'd take me permanently before I might start buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I suggest, 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 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 technology, but much like during that amount of time, for the folks that had the vision to see where the future was going, and after that 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 2nd, because I'm constantly curious to talk to individuals who are, specifically someone like yourself, who's devoted the last, you understand, the better part of the last couple of years to really go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a great concern.
They're 2 absolutely different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to money. So Bitcoin would be a cryptocurrency. And so what provides it worth is that it is, there's only going to be a limited amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, verifying the deals on the Bitcoin network. And so if you look at that Bitcoin network, people continuously attempt to hack it. However because of the nature of the network, today it's been unhackable. And truly, 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 actually own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We do not trust paper money, you can print an unlimited quantity of it. It's actually not protect, and the government can take it away from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or individuals that remained in Cypress, or simply people who have suffered through either run-away inflation, or there's a high need for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those countries that could possibly be a catalyst for more adoption, due to the fact that they currently 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 resemble, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not require Bitcoin. But there are billions of people worldwide that don't have steady currencies.
Yeah. Therefore there's this entire growing global need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are generally used, let's say Ethereum, which a lot of individuals learn about Ethereum. Ethereum is basically an international computer that you can compose computer system programs for and run computer programs on an internationally decentralized computer system program.
So we think about something like Ether an utility token, since you're basically purchasing programming power. So I would not actually think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give people an idea, like a really basic one that I would envision you 'd called an energy token, resembles FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's sort of this exact same kind of network impact that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on so lots of various areas and. I do not know the ins and outs of it, but as an example for someone who might just be extremely basic in their understanding of this, there are so many different types of utilities that are available.
And you type of pointed out having this boots on the ground experience. Now, because we're taking a look at the bulk of these are most likely energy based, remedy? Mm-hmm (affirmative). Many of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, but I believe the genuine opportunity depends on the energy coin space.
There's all of these ICOs that were happening, those decreased a little 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 individuals need to comprehend that not all utility coins are created equal.
So you have the advantage of committing your profession 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 a typical individual, there's now what, over 1,000 various kinds of coins available, practically 1,200 I believe.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either deceitful or simply bad ideas. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a terrible idea, that someone offers $40 million to. Right? Yeah, completely. So yeah, so I do not actually get involved in lots of ICOs, and I recommend you probably side step that market, unless you have actually 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 so. And that's when we truly start taking a look at the concept in more detail. So here are some quick and filthy things that you should look at, right? So, one is, are they fixing a problem that needs to be fixed? One of the big disadvantages with really smart, technical people, is that they like to resolve problems that no one appreciates fixing.
Does the group have experience of carrying out in a successful way in another location of their life? And it does not even have to be directly associated to cryptocurrency, it does not have to be even straight related to software application, right? So, however I want to see a performance history of success in something, right? If it's 4 people in a space that are simply out of college, unless they've got some actually good consultants behind them, I'm most likely not going to provide any cash.
Yeah. I believe that in marketing in general, my world of business, we constantly try to find problems and how we can solve them. Now, are the issues things that individuals are trying to solve a part of the Blockchain typically? Or would you state it's much 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 basically looking for services that, so I'll provide you an example.
And the reason that we purchased it is since they discovered a method to make files tamper-proof, and it's 99% more affordable than present 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 system programs that whole states run their whole operations on, right? So you've got fine, the clever guy has developed big computer programs, great team, solving a huge issue that is going to cut huge expenses.
I imply, 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 try to make things more complex than it is. And I have an actually simple guideline, Ryan. If I don't understand something, I put up my hand, and I say, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And then if the person that you're talking with can't dumb it down enough where you understand it, then it's most likely not an excellent idea. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience evaluating business and taking a look at much, much larger companies.
Ryan: So you've taken a look at companies that are huge business, you have actually assessed much larger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you discussed, it is almost just good sense. You just need to sort of appearance at it and believe 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 look at.
Okay. What I can use that I found out from working on Wall Street across 3 years, is how to check out people. I've satisfied 10s of thousands of individuals throughout my profession. I have actually fulfilled experts; I've met fund supervisors, I've satisfied stock promoters, I've satisfied all these different kinds of characters along the way.
So I believe that's most likely among my extremely powers, if you will. And if you've got an excellent BS detector, you need to listen to it. Okay. You need to absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, however you understand, there's simply; it's not sitting well with me, there's something about them that's not sitting well with me.
There are a lot of other deals out there to look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you know, you kind of discussed at the beginning, Bitcoin and Ethereum, many individuals have become aware 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 missed the boat on Bitcoin? Bitcoin is trading almost upwards of $6,000 just recently; it's shown up from state $3,000 not too long ago, it's quite unstable. Do they type of wait for a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's a terrific concern.
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