So, a lot of people find that too inconvenient, and that's why the individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: people that are ready to put in maybe the 20 minutes needed to go through a process which simply takes five minutes if you want to set up a brokerage account.
" Oh Teeka, we like your concepts, however gosh, establishing a crypto account is so hard." What I inform them is I say, "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 bigger. So you're actually really making money a massive amount of cash to go through maybe, you understand, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, before you'll be able to purchase cryptocurrencies directly through your trading software application. And can you picture what will occur to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that individuals go through, and something I want to bring to light too that you didn't mention, but I know a great deal of folks who have problem 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 challenging as possible, ideal, like Coinbase. It 'd take me permanently before I might start purchasing 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 pack 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're in the early days of that innovation, however simply like throughout that amount of time, for the folks that had the vision to see where the future was going, and then purchased in on a few of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm always curious to talk with people who are, especially somebody like yourself, who's dedicated the last, you know, the much better part of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like an average individual? That's an excellent concern.
They're 2 absolutely 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 provides it worth is that it is, there's only going to be a minimal quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, people continuously try to hack it. However because of the nature of the network, today it's been unhackable. And actually, with existing 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 have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't rely on fiat money, you can print an unrestricted quantity of it. It's truly not protect, and the federal government can take it far from you." - Whereas with Bitcoin, right , go on.
Yeah. Or individuals that were in Cypress, or simply individuals who have suffered through either hyperinflation, or there's a high need for, in Argentina for example, high demand 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 believe we've already 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're like, "Well I do not need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. But there are billions of people worldwide that don't have stable currencies.
Yeah. Therefore there's this whole burgeoning worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And utility coins are generally utilized, let's say Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is essentially a worldwide computer that you can write computer system programs for and run computer system programs on a worldwide decentralized computer system program.
So we consider something like Ether an utility token, because you're basically buying shows power. So I would not really think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide people a concept, like a very basic one that I would picture you 'd called an energy token, resembles FileCoin.
Where the concept is that essentially 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 kind of thing, because it's on numerous various areas and. I don't understand the ins and outs of it, but as an example for someone who might just be very standard in their understanding of this, there are many different types of utilities that are offered.
And you kind of mentioned having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably energy 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, however I believe the genuine opportunity depends on the utility coin area.
There's all of these ICOs that were taking place, those slowed down a 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 utility coins- Correct, yeah. And individuals need to understand that not all utility coins are created equal.
So you have the benefit of devoting your profession to this, so you can head out there and do the reconnaissance, you can satisfy the founders, you can check the code, etc. But for a typical individual, there's now what, over 1,000 different types of coins readily available, nearly 1,200 I believe.
How do they do that? That's a terrific question. I will say that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a dreadful idea, that somebody provides $40 million to. Right? Yeah, totally. So yeah, so I do not really take part in lots of ICOs, and I suggest you probably side step that market, unless you've got a special relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% or so. And that's when we actually begin taking a look at the idea in more detail. So here are some quick and dirty things that you should take a look at, right? So, one is, are they resolving a problem that needs to be fixed? Among the big disadvantages with really smart, technical people, is that they like to fix problems that nobody cares about fixing.
Does the team have experience of executing in an effective manner in another location of their life? And it does not even need to be straight related to cryptocurrency, it does not need to be even directly related to software application, right? So, but I want to see a track record of success in something, right? If it's 4 people in a room that are simply out of college, unless they've got some truly great consultants behind them, I'm probably not going to provide any cash.
Yeah. I believe that in marketing in general, my world of company, we constantly try to find problems and how we can resolve them. Now, are the issues things that people are trying to fix a part of the Blockchain normally? Or would you say it's better if they're solving 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 searching for services that, so I'll provide you an example.
And the reason that we purchased it is because they discovered a way to make documents tamper-proof, and it's 99% more affordable than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that started it has a performance history of developing computer programs that whole states run their whole operations on, right? So you've got okay, the wise guy has actually developed big computer programs, excellent group, fixing an enormous problem that is going to cut big costs.
I indicate, it does not get any simpler than that in terms of choosing who to put cash behind. And a great deal of this prevails sense, and a great deal of folks will attempt to make things more complex than it is. And I have a truly simple rule, Ryan. If I do not understand something, I set up my hand, and I say, "I didn't understand what you just said." Mm-hmm (affirmative).
And after that if the individual that you're talking with 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 simple to understand. And do you feel that you have years of experience evaluating business and looking at much, much larger companies.
Ryan: So you have actually looked at business that are huge business, you've evaluated much bigger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you discussed, it is almost simply sound judgment. You simply need to kind of appearance at it and think rationally 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 throughout 3 decades, is how to read people. I've satisfied tens of thousands of people throughout my profession. I have actually fulfilled experts; I've fulfilled fund supervisors, I have actually satisfied stock promoters, I've fulfilled all these different types of characters along the method.
So I think 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 must 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 know, there's simply; it's not agreeing with me, there's something about them that's not agreeing with me.
There are numerous other deals out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you understand, you sort of pointed out at the start, Bitcoin and Ethereum, the majority of people have actually heard of these two, especially Bitcoin, because it appears like it's in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading nearly upwards of $6,000 recently; it's shown up from state $3,000 not too long earlier, it's quite unstable. Do they kind of await a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's an excellent question.
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