So, a lot of individuals find that too inconvenient, which's why the people that are literally making the most amount of cash 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 set up a brokerage account.
" Oh Teeka, we love your concepts, however gosh, setting up a crypto account is so hard." What I inform them is I state, "Look, when it's easy 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 truly earning money an enormous amount of cash to go through maybe, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll be able to purchase cryptocurrencies directly through your trading software. 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.
Today you pointed out the process that individuals go through, and one thing I wish to bring to light too that you didn't mention, however I know a great deal of folks who struggle 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 challenging as possible, ideal, like Coinbase. It 'd take me permanently prior to I might start purchasing in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I imply, it's if you keep in mind the early days of the Web, when we were getting on the Internet, we were doing it with 56k modems, right? I mean 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 mean, we remain in the early days of that innovation, however just 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 companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm constantly curious to talk to individuals who are, particularly someone like yourself, who's devoted the last, you understand, the much better part of the last couple of years to truly go both feet in on this. How do you describe cryptocurrency to like an average person? That's a terrific question.
They're two totally different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to money. So Bitcoin would be a cryptocurrency. Therefore what gives it worth is that it is, there's just going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. And so if you look at that Bitcoin network, individuals continuously try to hack it. But since of the nature of the network, today it's been unhackable. And actually, with present innovation, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
Therefore when people put, you have actually 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 trust fiat money, you can print a limitless quantity of it. It's truly not protect, and the government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or people that remained in Cypress, or just individuals who have suffered through either hyperinflation, 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 potentially be a driver for more adoption, since they currently don't believe in their own currency? Yeah, and I think we have actually already 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're like, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. However there are billions of individuals in the world that do not have steady currencies.
Yeah. Therefore there's this entire blossoming worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are basically used, let's state Ethereum, which a lot of people learn about Ethereum. Ethereum is essentially an international computer that you can write computer system programs for and run computer system programs on an internationally decentralized computer program.
So we consider something like Ether an utility token, due to the fact that you're basically purchasing programming power. So I wouldn't actually consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide people an idea, like a really easy one that I would imagine you 'd called an utility token, resembles FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's kind of this very same type of network effect that you have with Bitcoin, where it's like unstoppable example, since it's on a lot of different locations and. I do not understand the ins and outs of it, but as an example for someone who might simply be very standard in their understanding of this, there are a lot of different types of energies that are readily available.
And you type of discussed having this boots on the ground experience. Now, considering that we're looking at the bulk of these are probably utility based, correct? Mm-hmm (affirmative). The majority of the coins that I recommend and take a look at are utility-based. We have a couple of cryptocurrencies, but I believe the genuine opportunity depends on the energy coin area.
There's all of these ICOs that were happening, those decreased a little bit with some modifications to a few things that was going on, however people are going to come out of the woodwork and begin to develop utility coins- Correct, yeah. And people need to understand that not all utility coins are produced equal.
So you have the advantage of dedicating your profession to this, so you can head out there and do the reconnaissance, you can meet the founders, you can check the code, etc. However for a typical individual, there's now what, over 1,000 various kinds of coins readily available, nearly 1,200 I believe.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either deceptive or just bad ideas. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a terrible idea, that someone gives $40 million to. Right? Yeah, absolutely. So yeah, so I do not truly take part in many ICOs, and I advise you probably side action that market, unless you've got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% approximately. And that's when we really start looking at the concept in more detail. So here are some quick and unclean things that you should take a look at, right? So, one is, are they solving an issue that needs to be resolved? Among the huge downsides with very clever, technical individuals, is that they like to resolve issues that no one appreciates solving.
Does the group have experience of performing in a successful manner in another location of their life? And it does not even have to be straight related to cryptocurrency, it doesn't have to be even straight associated to software, right? So, but I desire to see a track record of success in something, right? If it's 4 guys in a room that are simply out of college, unless they have actually got some actually great consultants behind them, I'm most likely not going to provide any cash.
Yeah. I believe that in marketing in general, my world of company, we continuously look for issues and how we can resolve them. Now, are the problems things that people are trying to resolve a part of the Blockchain usually? Or would you state it's better if they're resolving sort 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 generally searching for services that, so I'll provide you an example.
And the factor that we bought it is due to the fact that they discovered a way to make documents tamper-proof, and it's 99% less expensive than present technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that began it has a performance history of creating computer programs that whole states run their entire operations on, right? So you've got okay, the smart person has actually constructed substantial computer programs, fantastic team, solving a massive problem that is going to cut substantial expenses.
I imply, it doesn't get any simpler than that in regards to deciding who to put cash behind. And a great deal of this prevails sense, and a lot of folks will try to make things more complex than it is. And I have a truly basic rule, Ryan. If I do not understand something, I set up my hand, and I state, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And after that if the individual that you're talking to can't dumb it down enough where you comprehend it, then it's probably not an excellent concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience examining companies and looking at much, much bigger companies.
Ryan: So you have actually looked at business that are big companies, you've 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 discussed, it is practically just sound judgment. You just have to type of take a look at it and believe logically 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 gained from dealing with Wall Street across 3 years, is how to check out people. I've satisfied 10s of thousands of people throughout my career. I have actually fulfilled insiders; I have actually met fund managers, I've fulfilled stock promoters, I've met 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 have actually got a good BS detector, you ought to listen to it. Okay. You need to absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, however you know, 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 look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you understand, you sort of pointed out at the beginning, Bitcoin and Ethereum, most individuals have actually heard of these two, especially 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 almost upwards of $6,000 recently; it's turned up from state $3,000 not too long earlier, it's quite unstable. Do they kind 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 10 years." You understand? Yeah that's an excellent question.
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