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teeka tiwari jp morgan invests in bitcoin
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But scams and small frauds. And there's something that a scams constantly does: it always goes to zero. However Bitcoin didn't. Bitcoin still had a multi-billion dollar net worth, even after crashing, even after all the problem came out. The huge hack. Which woke something up for me.
And so I can't neglect that. I have actually got to go dig deeper." And so I started traveling all around the world. I began going to Bitcoin occasions; I began to speaking with individuals that were smarter than me in this area. And what I recognized is that Blockchain technology and the implementation of Blockchain innovation by the Bitcoin network was transformational.
Which, Ryan, is, I can't overemphasize how massive that is! The ramifications of that, of being able to have data that we do not need to have it separately validated, it's cryptographically validated. That concept can ripple out throughout the whole higher economy. And when that cent dropped, I understood I needed to commit all my professional resources into ending up being a specialist in this space.
And do you think, I mean you mentioned something there about not needing to get a third-party, or intermediary to validate something. Do you feel that part of the factor that this isn't getting as much mass adoption is that a great deal of folks might not even completely understand validation process . We were just talking about how I'm leaving to go to China, to China. And heaven prohibited it's over $10,000, and after that suddenly there's other individuals getting informed about it, like the Internal Revenue Service and things like that. Do you believe that the typical folks do not possibly understand about these procedures, so they do not perhaps see what you're stating as this breakthrough, they don't see it in their everyday life? Or what do you think of that? I think that's real.
It's not as easy as firing up a web browser and going to e-trade. com and pushing a buy button and buying it, right? You have actually got to go to an exchange, you've got to submit your identity documents, then you've got to wait to get validated, and then lastly, you can go buy some Bitcoin.
So, a lot 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 prepared to put in possibly the 20 minutes needed to go through a process which simply takes 5 minutes if you wish to establish a brokerage account.
"Oh Teeka, we love your concepts, but gosh, setting up a crypto account is so difficult." What I tell them is I say, "Look, when it's simple as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The whole cryptocurrency market will be 10x larger. So you're in fact truly making money an enormous amount of cash to go through perhaps, you understand, 20 minutes of a discomfort in the neck.
So you can't buy Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies straight through your trading software application. And can you picture what will take place to this whole marketplace when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that individuals go through, and something I desire to bring to light too that you didn't discuss, but I understand a great deal of folks who battle 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 challenging as possible, best, like Coinbase. It 'd take me permanently before I might begin purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I indicate, 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 indicate 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 suggest, we remain in the early days of that innovation, however much like 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, because I'm constantly curious to speak to individuals who are, particularly someone like yourself, who's devoted the last, you understand, the lion's share of the last few years to truly go both feet in on this. How do you describe cryptocurrency to like an average individual? That's a terrific question.
They're two absolutely various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to money. So Bitcoin would be a cryptocurrency. And so what provides it value 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 computer systems, validating the transactions on the Bitcoin network. And so if you take a look at that Bitcoin network, people continuously try to hack it. However since of the nature of the network, today it's been unhackable. And truly, with existing technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when individuals 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 paper cash, you can print an unrestricted quantity of it. It's actually not secure, and the federal government can take it away from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that were in Cypress, or just people who have actually suffered through either run-away inflation, or there's a high demand 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, because they currently don't believe in their own currency? Yeah, and I believe we've currently seen that.
So yes, and this is a thing that a lot of American or Western financiers have a bumpy ride getting their head around. They're like, "Well I do not require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin - undefined. But there are billions of people worldwide that do not have stable currencies.
Yeah. And so there's this whole growing worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are generally utilized, let's say Ethereum, which a great deal of people know about Ethereum. Ethereum is basically an international computer system that you can compose computer system programs for and run computer programs on a worldwide decentralized computer program.
So we think about something like Ether an energy token, because you're basically purchasing programs power. So I would not really consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide individuals a concept, like a really basic one that I would picture you 'd called an energy token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's sort of this same type of network impact that you have with Bitcoin, where it resembles unstoppable example, because it's on many various areas and. undefined. I do not understand the ins and outs of it, but as an example for someone who might simply be very fundamental in their understanding of this, there are many different kinds of utilities that are readily available.
And you kind of discussed having this boots on the ground experience. Now, since we're looking at the bulk of these are probably utility based, correct? Mm-hmm (affirmative). The majority of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, but I believe the genuine opportunity lies in the utility coin space.
There's all of these ICOs that were happening, those slowed down a little bit with some modifications to a couple of things that was going on, however individuals are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And people require to understand that not all utility coins are produced equal.
So you have the benefit of dedicating your profession to this, so you can head out there and do the reconnaissance, you can satisfy the creators, you can check the code, etc. However for an average person, there's now what, over 1,000 various types of coins readily available, nearly 1,200 I think. 'Cause usually it'll crash 80% or so - Does the group have experience of executing in a successful manner in another area of their life? And it does not even have to be straight associated to cryptocurrency, it doesn't need to be even straight associated to software, right? So, however I wish to see a track record of success in something, right? If it's four guys in a space 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 money.
Yeah. I believe that in marketing in basic, my world of company, we constantly search for problems and how we can solve them. Now, are the issues things that people are attempting to resolve a part of the Blockchain typically? Or would you say it's better if they're fixing kind 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 looking for options that, so I'll offer you an example.
And the reason that we bought it is since they found a method to make files tamper-proof, and it's 99% cheaper than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that began it has a track record of developing computer system programs that entire states run their entire operations on, right? So you've got fine, the smart guy has actually built substantial computer system programs, excellent team, resolving an enormous problem that is going to cut huge costs.
I mean, it doesn't get any simpler than that in terms of deciding who to put money behind. And a great deal of this prevails sense, and a great deal of folks will attempt to make things more complicated than it is. And I have a really basic rule, Ryan. If I don't understand something, I installed my hand, and I state, "I didn't understand what you simply stated." Mm-hmm (affirmative).