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But frauds and little scams. And there's something that a scams constantly does: it constantly goes to zero. But Bitcoin didn't. Bitcoin still had a multi-billion dollar net worth, even after crashing, even after all the problem came out. The enormous hack. And that woke something up for me.
Therefore I can't disregard that. I've got to go dig much deeper." Therefore I began taking a trip all around the world. I started going to Bitcoin occasions; I began to talking to individuals that were smarter than me in this space. And what I understood is that Blockchain innovation and the execution of Blockchain innovation by the Bitcoin network was transformational.
Which, Ryan, is, I can't overemphasize how enormous that is! The ramifications of that, of being able to have information that we don't need to have it independently verified, it's cryptographically confirmed. That idea can ripple out throughout the whole greater economy. And when that penny dropped, I understood I needed to devote all my professional resources into ending up being a professional in this area.
And do you think, I indicate you pointed out 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 totally understand recognition process . We were simply discussing how I'm leaving to go to China, to China. And paradise prohibited it's over $10,000, and after that all of a sudden there's other individuals getting alerted about it, like the IRS and things like that. Do you believe that the typical folks don't possibly understand about these processes, so they don't maybe see what you're saying as this development, they do not see it in their daily life? Or what do you think of that? I think that's true.
It's not as simple as firing up a web browser and going to e-trade. com and pressing a buy button and buying it, right? You've got to go to an exchange, you have actually got to publish your identity documents, then you have actually got to wait to get validated, and after that finally, you can go purchase some Bitcoin.
So, a lot of individuals discover that too bothersome, which's why the individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: individuals that want to put in possibly the 20 minutes required to go through a procedure which just takes five minutes if you wish to establish a brokerage account.
"Oh Teeka, we love your concepts, however gosh, setting up a crypto account is so challenging." 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 larger. So you're actually really making money a huge quantity of cash to go through perhaps, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a concern of time, Ryan, prior to you'll have the ability to buy cryptocurrencies directly through your trading software application. And can you envision 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.
Right now you discussed the procedure that people go through, and something I want to expose too that you didn't mention, but I know a lot of folks who fight with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can just buy $500 a week.
As difficult as possible, right, like Coinbase. It 'd take me permanently prior to I could begin purchasing 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 Web, 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 suggest, we remain in the early days of that innovation, however similar to during that period of time, for the folks that had the vision to see where the future was going, and after that purchased in on some of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a second, due to the fact that I'm constantly curious to talk with individuals who are, especially someone like yourself, who's devoted the last, you know, the better part of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like an average individual? That's a fantastic concern.
They're two totally various 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. Therefore what provides it worth is that it is, there's only going to be a minimal amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. Therefore if you take a 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 really, with present innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore when people 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 stating, "We don't rely on paper currency, you can print an unlimited quantity of it. It's really not secure, and the government can take it far from you." - Whereas with Bitcoin, right , go ahead.
Yeah. Or individuals that were in Cypress, or just people who have suffered through either hyperinflation, 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 driver for more adoption, due to the fact that they currently do not believe in their own currency? Yeah, and I think we've currently seen that.
So yes, and this is a thing that a great deal of American or Western investors have a hard time getting their head around. They resemble, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't require Bitcoin - 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 utility coins. And energy coins are generally used, let's state Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is essentially an international computer system that you can write computer system programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an energy token, because you're essentially buying 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 give people an idea, like a very basic one that I would picture you 'd called an energy token, resembles FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's kind of this very same kind of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, because it's on a lot of different areas and. And you type of discussed having this boots on the ground experience. Now, considering that we're looking at the bulk of these are probably utility based, remedy? Mm-hmm (affirmative). Most of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, but I believe the genuine opportunity depends on the utility coin area.
There's all of these ICOs that were occurring, those slowed down a bit with some modifications to a couple of things that was going on, but individuals are going to come out of the woodwork and start to develop utility coins- Correct, yeah. And individuals require to comprehend that not all energy coins are created equal.
So you have the benefit of committing your occupation to this, so you can head out there and do the recon, you can fulfill the founders, you can check the code, and so on. However for an average individual, there's now what, over 1,000 various types of coins offered, practically 1,200 I believe. 'Cause generally it'll crash 80% approximately - Does the group have experience of executing in a successful way in another area of their life? And it does not even need to be directly associated to cryptocurrency, it doesn't need to be even straight related to software, right? So, but I want to see a performance history of success in something, right? If it's 4 guys in a space that are simply out of college, unless they've got some actually great advisors behind them, I'm probably not going to provide them any cash.
Yeah. I believe that in marketing in basic, my world of company, we constantly look for problems and how we can resolve them. Now, are the problems things that individuals are trying to resolve a part of the Blockchain generally? Or would you say 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 solutions that, so I'll provide you an example.
And the reason that we purchased it is due to the fact that they discovered a method to make files tamper-proof, and it's 99% less expensive than existing innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the guy that started it has a track record of creating computer system programs that entire states run their entire operations on, right? So you have actually got fine, the clever person has built huge computer programs, excellent group, resolving an enormous issue that is going to cut big costs.
I suggest, it doesn't get any simpler than that in terms of deciding who to put cash behind. And a lot of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have an actually simple guideline, Ryan. If I don't comprehend something, I put up my hand, and I say, "I didn't understand what you just said." Mm-hmm (affirmative).