So, a great deal of individuals find that too inconvenient, which's why the individuals that are literally making the most amount of cash today in cryptocurrencies are the early adopters: individuals that are ready to put in maybe the 20 minutes required to go through a process which simply takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your ideas, however gosh, setting up a crypto account is so challenging." What I tell them is I state, "Look, when it's easy as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The whole cryptocurrency market will be 10x bigger. So you're in fact truly making money a massive amount of cash to go through perhaps, you know, 20 minutes of a pain in the neck.
So you can't buy Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, prior to you'll be able to buy cryptocurrencies straight through your trading software application. And can you picture what will happen to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you discussed the process that people go through, and one thing I desire to expose too that you didn't mention, but I know a great deal of folks who fight with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can only purchase $500 a week.
As hard as possible, right, like Coinbase. It 'd take me forever prior to I might start buying in size on Coinbase. They're like, well, we'll let you purchase $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 pack a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I indicate, we're in the early days of that innovation, but similar to throughout that period of time, for the folks that had the vision to see where the future was going, and after that purchased in on a few of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a second, due to the fact that I'm always 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 truly go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's a fantastic concern.
They're two completely various things, but 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 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 computers, validating the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people constantly try to hack it. But because of the nature of the network, today it's been unhackable. And really, with current innovation, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
And so when people put, you have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We do not rely on paper money, you can print an endless amount of it. It's really not protect, and the federal government can take it far from you." - Whereas with Bitcoin, best , go on.
Yeah. Or individuals that were in Cypress, or just people who have suffered through either devaluation, or there's a high need for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those countries that could possibly be a catalyst for more adoption, since they currently don't think in their own currency? Yeah, and I think we have actually 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 resemble, "Well I do not need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not need Bitcoin. However there are billions of individuals worldwide that do not have steady currencies.
Yeah. And so there's this entire growing international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are generally utilized, let's state Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially a global computer that you can compose computer system programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an utility token, since you're essentially purchasing shows power. So I would not actually consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide people a concept, like a very basic one that I would imagine 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 sort of this same kind of network result that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on a lot of various locations and. I don't understand the ins and outs of it, but as an example for somebody who may simply be really basic in their understanding of this, there are many different types of energies that are readily available.
And you type 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). Most of the coins that I suggest and take a look at are utility-based. We have a few cryptocurrencies, however I believe the genuine opportunity lies in the utility coin area.
There's all of these ICOs that were taking place, those slowed down a little bit with some modifications to a few things that was going on, however individuals are going to come out of the woodwork and begin to develop utility coins- Correct, yeah. And individuals need to comprehend that not all utility coins are produced equal.
So you have the benefit of dedicating your occupation to this, so you can head out there and do the recon, you can meet the creators, you can examine the code, etc. But for a typical person, there's now what, over 1,000 various kinds of coins available, almost 1,200 I believe.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with a horrible idea, that someone gives $40 million to. Right? Yeah, absolutely. So yeah, so I don't really participate in numerous ICOs, and I recommend you probably side action that market, unless you've got an unique relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause typically it'll crash 80% or so. Which's when we actually begin looking at the concept in more detail. So here are some fast and filthy things that you should take a look at, right? So, one is, are they solving a problem that requires to be solved? Among the huge drawbacks with extremely smart, technical people, is that they like to fix issues that nobody appreciates solving.
Does the group have experience of carrying out in an effective way in another area of their life? And it doesn't even have to be directly related to cryptocurrency, it doesn't have to be even directly associated to software application, right? So, but I wish to see a performance history of success in something, right? If it's four people in a room that are simply out of college, unless they have actually got some truly excellent consultants behind them, I'm most likely not going to provide any cash.
Yeah. I think that in marketing in basic, my world of company, we constantly look for issues and how we can resolve them. Now, are the issues things that individuals are trying to fix a part of the Blockchain typically? Or would you state it's much better if they're resolving 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 generally trying to find services that, so I'll provide you an example.
And the factor that we purchased it is because they discovered 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 man that started it has a performance history of creating computer system programs that whole states run their whole operations on, right? So you've got okay, the wise person has built huge computer system programs, excellent team, fixing an enormous issue that is going to cut big expenses.
I indicate, it doesn't get any easier than that in regards to choosing who to put cash behind. And a lot of this is common sense, and a lot of folks will attempt to make things more complicated than it is. And I have a really basic guideline, Ryan. If I do not comprehend something, I installed my hand, and I state, "I didn't understand what you just stated." Mm-hmm (affirmative).
And then if the individual that you're speaking to can't dumb it down enough where you comprehend it, then it's probably not a great concept. Right, right. It's going to be simple to understand. And do you feel that you have years of experience examining business and looking at much, much larger business.
Ryan: So you have actually looked at companies that are big business, you've examined much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you mentioned, it is almost simply good sense. You just need to sort of take a look at it and believe reasonably 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 use that I learned from dealing with Wall Street throughout three years, is how to read individuals. I've met tens of thousands of individuals throughout my profession. I have actually fulfilled experts; I have actually satisfied fund supervisors, I have actually satisfied stock promoters, I've satisfied all these different types of characters along the method.
So I believe that's probably among my super powers, if you will. And if you have actually got an excellent BS detector, you should listen to it. Okay. You should definitely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, however 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 offers out there to look at. Yeah, there's too much chance. Yeah. And speaking of chance, you know, you type of discussed at the beginning, Bitcoin and Ethereum, the majority of people have actually heard of these 2, especially Bitcoin, since it seems 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 say $3,000 not too long ago, it's rather volatile. 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 purchase some Bitcoin, see you in 10 years." You know? Yeah that's a fantastic concern.
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