teeka tiwari editor, palm beach confidentia
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But scams and little frauds. And there's one thing that a scams constantly does: it always goes to zero. But Bitcoin didn't. Bitcoin still had a multi-billion dollar net worth, even after crashing, even after all the bad news came out. The massive hack. Which woke something up for me.
And so I can't neglect that. I have actually got to go dig deeper." Therefore I began taking a trip all around the world. I began going to Bitcoin occasions; I started to speaking with individuals that were smarter than me in this area. And what I understood is that Blockchain technology and the application of Blockchain technology by the Bitcoin network was transformational.
Which, Ryan, is, I can't overstate how enormous that is! The implications of that, of being able to have information that we do not need to have it independently validated, it's cryptographically confirmed. That principle can ripple out throughout the whole higher economy. And when that penny dropped, I knew I needed to dedicate all my expert resources into ending up being a specialist in this space.
And do you believe, I mean you discussed something there about not needing to get a third-party, or intermediary to confirm something. Do you feel that part of the reason that this isn't getting as much mass adoption is that a lot of folks might not even fully understand recognition process . We were just discussing how I'm leaving to go to China, to China. And heaven forbid it's over $10,000, and after that suddenly there's other people getting informed about it, like the IRS and things like that. Do you think that the average folks do not maybe understand about these procedures, so they don't possibly see what you're stating as this development, they don't see it in their daily life? Or what do you think of that? I think that holds true.
It's not as easy as firing up a web internet browser and going to e-trade. com and pressing a buy button and purchasing it, right? You have actually got to go to an exchange, you've got to submit your identity documents, then you have actually got to wait to get validated, and then finally, you can go buy some Bitcoin.
So, a lot of people discover that too troublesome, and that's why individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: people that are prepared to put in perhaps 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 enjoy your concepts, but gosh, establishing a crypto account is so challenging." 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 in fact really earning money a huge quantity of money to go through maybe, you understand, 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 be able to buy cryptocurrencies straight through your trading software. And can you imagine what will take place to this entire market when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that people go through, and one thing I desire to bring to light too that you didn't discuss, however I understand a great deal of folks who struggle with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only buy $500 a week.
As tough as possible, ideal, like Coinbase. It 'd take me forever before I could start buying in size on Coinbase. They're like, 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 suggest 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're in the early days of that innovation, but simply like throughout that period 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 business, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm constantly curious to talk with people who are, particularly someone like yourself, who's devoted 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 explain cryptocurrency to like an average person? That's a fantastic question.
They're two completely different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to cash. So Bitcoin would be a cryptocurrency. Therefore what offers 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, verifying the deals on the Bitcoin network. And so if you look at that Bitcoin network, individuals continuously attempt to hack it. But since of the nature of the network, today it's been unhackable. And truly, with existing technology, 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've got people 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 do not trust fiat money, you can print an unlimited amount of it. It's really not protect, and the federal government can take it away from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that were in Cypress, or just people who have suffered through either run-away inflation, 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, because they already don't think in their own currency? Yeah, and I think we've currently seen that.
So yes, and this is a thing that a lot of American or Western financiers have a tough time getting their head around. They're like, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin - Yeah. And so there's this entire blossoming international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are basically used, let's say Ethereum, which a great deal of people learn about Ethereum. Ethereum is essentially a worldwide computer that you can compose computer system programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an energy token, since you're basically purchasing shows power. So I would not truly 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 an extremely easy one that I would imagine you 'd called an utility token, is like FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's sort of this very same type of network effect that you have with Bitcoin, where it's like unstoppable example, due to the fact that it's on so many various locations and. undefined. I do not understand the ins and outs of it, however as an example for someone who may just be really standard in their understanding of this, there are numerous different kinds of utilities that are offered.
And you type of pointed out having this boots on the ground experience. Now, since we're looking at the bulk of these are most likely energy based, fix? Mm-hmm (affirmative). The majority of the coins that I recommend and look at are utility-based. We have a few cryptocurrencies, however I think the genuine opportunity lies in the energy coin area.
There's all of these ICOs that were taking place, those slowed down a bit with some modifications to a few things that was going on, however individuals are going to come out of the woodwork and start to produce energy coins- Correct, yeah. And individuals require to understand that not all energy coins are created equivalent.
So you have the benefit of dedicating your occupation to this, so you can go out there and do the recon, you can satisfy the founders, you can examine the code, etc. However for a typical individual, there's now what, over 1,000 various kinds of coins offered, almost 1,200 I believe. 'Cause usually it'll crash 80% or two - Does the team have experience of executing in a successful way in another location of their life? And it doesn't even need to be directly related to cryptocurrency, it does not need to be even straight related to software, right? So, however I wish to see a track record of success in something, right? If it's 4 guys in a space that are just out of college, unless they have actually got some really good consultants behind them, I'm most likely not going to offer them any cash.
Yeah. I think that in marketing in basic, my world of business, we continuously look for issues and how we can resolve them. Now, are the issues things that people are attempting to resolve a part of the Blockchain typically? Or would you say it's much better if they're fixing kind 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 searching for options that, so I'll give you an example.
And the factor that we purchased it is since they discovered a method to make files tamper-proof, and it's 99% cheaper than existing innovation, 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 performance history of developing computer programs that whole states run their entire operations on, right? So you've got all right, the clever person has actually constructed big computer system programs, fantastic team, resolving a huge issue that is going to cut huge expenses.
I imply, it does not get any simpler than that in regards to choosing who to put cash behind. And a great deal of this is typical sense, and a lot of folks will try to make things more complicated than it is. And I have a truly easy guideline, Ryan. If I don't comprehend something, I set up my hand, and I state, "I didn't understand what you simply stated." Mm-hmm (affirmative).