So, a great deal of individuals find that too inconvenient, and that's why the individuals that are actually making the most amount of money today in cryptocurrencies are the early adopters: people that are ready to put in maybe the 20 minutes required to go through a procedure which just takes 5 minutes if you want to set up a brokerage account.
" Oh Teeka, we enjoy your ideas, however gosh, establishing a crypto account is so hard." What I tell them is I say, "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 larger. So you're in fact truly earning money a massive amount of money to go through maybe, you know, 20 minutes of a pain in the neck.
So you can't purchase Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, prior to you'll be able to buy cryptocurrencies directly through your trading software application. And can you envision what will take place to this whole market when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the process that individuals go through, and something I wish to expose too that you didn't mention, but I understand a lot of folks who battle with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can just buy $500 a week.
As tough as possible, ideal, like Coinbase. It 'd take me forever before I might begin purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I suggest, 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 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 imply, we're in the early days of that technology, but similar to throughout that amount of time, for the folks that had the vision to see where the future was going, and after that bought in on some of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since I'm always curious to talk to people who are, particularly someone like yourself, who's committed the last, you know, the lion's share of the last couple of years to actually go both feet in on this. How do you explain cryptocurrency to like an average person? That's an excellent question.
They're two absolutely different things, however 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 offers it worth is that it is, there's only going to be a limited quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals continuously try to hack it. However because of the nature of the network, today it's been unhackable. And actually, with current technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when individuals put, you have actually got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not trust paper cash, you can print an endless quantity of it. It's really not protect, and the government can take it away from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or individuals that were in Cypress, or simply people who have suffered through either devaluation, or there's a high need for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those nations that could potentially be a catalyst for more adoption, due to the fact that they already don't believe 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 financiers have a difficult time getting their head around. They resemble, "Well I do not require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't require Bitcoin. But there are billions of people worldwide that don't have stable currencies.
Yeah. And so there's this whole growing international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are basically utilized, let's state Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is essentially an international computer system that you can compose computer programs for and run computer programs on an internationally decentralized computer program.
So we think about something like Ether an utility token, since you're basically purchasing programs power. So I would not truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer individuals a concept, like a very easy one that I would envision you 'd called an utility token, resembles FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's type of this exact same kind of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, because it's on so numerous different areas and. I do not know 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 numerous different kinds of utilities that are readily available.
And you kind of mentioned having this boots on the ground experience. Now, considering that we're looking at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). Most of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, however I believe the genuine chance depends on the energy coin area.
There's all of these ICOs that were happening, those slowed down a little bit with some changes to a few things that was going on, but people are going to come out of the woodwork and begin to develop energy coins- Correct, yeah. And individuals require to understand that not all energy coins are developed equal.
So you have the benefit of devoting your profession to this, so you can head out there and do the recon, you can satisfy the founders, you can inspect the code, and so on. However for an average individual, there's now what, over 1,000 different kinds of coins available, almost 1,200 I think.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either fraudulent or just bad concepts. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with an awful concept, that someone provides $40 million to. Right? Yeah, totally. So yeah, so I don't truly get involved in lots of ICOs, and I suggest you probably side step that market, unless you have actually got a special relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause typically it'll crash 80% approximately. And that's when we actually start taking a look at the concept in more detail. So here are some fast and dirty things that you should look at, right? So, one is, are they resolving an issue that needs to be fixed? One of the big disadvantages with very wise, technical people, is that they like to resolve problems that nobody appreciates resolving.
Does the group have experience of performing in an effective manner in another area of their life? And it doesn't even have to be directly associated to cryptocurrency, it doesn't need to be even directly related to software application, right? So, however I wish to see a performance history of success in something, right? If it's four guys in a room that are just out of college, unless they have actually got some really good advisors behind them, I'm probably not going to provide any cash.
Yeah. I believe that in marketing in basic, my world of service, we constantly look for issues and how we can solve them. Now, are the issues things that individuals are attempting to solve a part of the Blockchain normally? Or would you state it's much better if they're solving 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 essentially trying to find services that, so I'll offer you an example.
And the reason that we purchased it is since they found a method to make documents tamper-proof, and it's 99% less expensive than current technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that began it has a performance history of developing computer programs that whole states run their whole operations on, right? So you've got alright, the clever guy has developed big computer system programs, fantastic group, resolving an enormous issue that is going to cut substantial costs.
I imply, it doesn't get any simpler than that in terms of choosing who to put money behind. And a lot of this is common sense, and a great deal of folks will attempt to make things more complex than it is. And I have a really simple rule, Ryan. If I do not understand something, I put up my hand, and I state, "I didn't understand what you just stated." 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 concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience examining business and taking a look at much, much larger business.
Ryan: So you've taken a look at companies that are big companies, you have actually assessed much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you mentioned, it is nearly just sound judgment. You just need to sort 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 conventional metrics that you can take a look at.
Okay. What I can use that I gained from dealing with Wall Street throughout three decades, is how to read individuals. I've met tens of countless individuals throughout my career. I have actually fulfilled insiders; I've satisfied fund supervisors, I've satisfied stock promoters, I have actually fulfilled all these various kinds of characters along the way.
So I believe that's most likely among my super powers, if you will. And if you have actually got an excellent BS detector, you must listen to it. Okay. You need to absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually 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 numerous other offers out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you understand, you sort of discussed at the beginning, Bitcoin and Ethereum, many people have actually heard of these two, particularly Bitcoin, due to the fact that 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 practically upwards of $6,000 recently; it's shown up from say $3,000 not too long earlier, it's quite unstable. Do they kind of await a pullback, or do they just 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 an excellent concern.
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