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teeka tiwari chief investment analyst the palm beach letter
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But frauds and small scams. And there's one thing that a fraud 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 massive hack. And that woke something up for me.
Therefore I can't disregard that. I've got to go dig much deeper." And so I began traveling all around the world. I began going to Bitcoin occasions; I started to speaking with individuals that were smarter than me in this space. And what I realized is that Blockchain innovation and the execution of Blockchain innovation by the Bitcoin network was transformational.
And that, Ryan, is, I can't overemphasize how huge that is! The ramifications of that, of being able to have data that we don't require to have it individually validated, it's cryptographically confirmed. That concept can ripple out throughout the whole higher economy. And when that cent dropped, I knew I needed to commit all my expert resources into ending up being a professional in this space.
And do you think, I indicate you discussed something there about not having to get a third-party, or intermediary to verify something. Do you feel that part of the factor that this isn't getting as much mass adoption is that a lot of folks might not even completely understand recognition procedure . We were simply speaking about how I'm delegating go to China, to China. And heaven prohibited it's over $10,000, and then all of a sudden there's other individuals getting alerted 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 don't perhaps see what you're stating as this advancement, 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 browser and going to e-trade. com and pushing a buy button and purchasing it, right? You've got to go to an exchange, you've got to upload your identity documents, then you've got to wait to get confirmed, and after that finally, you can go buy some Bitcoin.
So, a great deal of people find that too inconvenient, which's why individuals that are literally making the most amount of cash today in cryptocurrencies are the early adopters: people that want to put in possibly the 20 minutes required to go through a process which simply takes 5 minutes if you wish to set up a brokerage account.
"Oh Teeka, we like your concepts, but gosh, setting up a crypto account is so difficult." What I inform them is I state, "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 actually truly making money a huge quantity of cash to go through perhaps, you understand, 20 minutes of a pain in the neck.
So you can't buy Bitcoin yet through their trading platform, however it is simply a concern of time, Ryan, prior to you'll be able to purchase cryptocurrencies directly through your trading software application. And can you imagine what will happen to this whole market when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you discussed the process that people go through, and something I wish to bring to light too that you didn't discuss, however I understand a great deal of folks who battle with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can just purchase $500 a week.
As hard as possible, best, like Coinbase. It 'd take me permanently prior to I might begin purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I imply, it's if you remember the early days of the Internet, when we were getting on the Web, 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 indicate, we're in the early days of that technology, however much like during that amount of time, for the folks that had the vision to see where the future was going, and then bought 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 second, because I'm constantly curious to speak to individuals who are, especially somebody like yourself, who's devoted the last, you understand, the better part of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like an average person? That's a terrific concern.
They're 2 completely different things, but 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 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 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 truly, with existing technology, the Bitcoin network is so huge 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 because they're saying, "We do not trust paper currency, you can print an unrestricted amount of it. It's truly not protect, and the government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or individuals that were in Cypress, or simply people who have suffered through either hyperinflation, or there's a high need for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those nations that could potentially be a driver for more adoption, since they currently do not think in their own currency? Yeah, and I believe 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're like, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not require Bitcoin - undefined. However there are billions of individuals worldwide that don't have steady currencies.
Yeah. Therefore there's this entire blossoming worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are generally used, let's state Ethereum, which a great deal of individuals know about Ethereum. Ethereum is basically a global computer system that you can compose computer programs for and run computer programs on an internationally decentralized computer system program.
So we think about something like Ether an utility token, since you're basically purchasing programming power. So I wouldn't truly consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer people a concept, like a very easy one that I would envision 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 sort of this very same type of network effect that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on many various locations and. And you type of pointed out having this boots on the ground experience. Now, since we're taking a look at the bulk of these are most likely utility based, fix? 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 real opportunity depends on the energy coin space.
There's all of these ICOs that were happening, 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 begin to produce energy coins- Correct, yeah. And people need to comprehend that not all energy coins are produced equivalent.
So you have the benefit of dedicating your occupation to this, so you can head out there and do the recon, you can fulfill the creators, you can examine the code, and so on. However for a typical person, there's now what, over 1,000 various types of coins available, almost 1,200 I think. 'Cause usually it'll crash 80% or two - Does the team have experience of performing in an effective manner in another location of their life? And it doesn't even need to be straight associated to cryptocurrency, it doesn't need to be even straight associated to software application, right? So, however I wish to see a performance history of success in something, right? If it's 4 people in a room that are simply out of college, unless they have actually got some actually good advisors behind them, I'm most likely not going to provide any money.
Yeah. I think that in marketing in general, my world of company, we constantly try to find issues and how we can resolve them. Now, are the problems things that people are trying to resolve a part of the Blockchain typically? Or would you state 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 essentially trying to find solutions that, so I'll provide you an example.
And the factor that we bought it is because they discovered a way to make files tamper-proof, and it's 99% more affordable than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that started it has a performance history of producing computer programs that whole states run their entire operations on, right? So you have actually got okay, the clever person has actually developed huge computer system programs, fantastic group, resolving an enormous problem that is going to cut huge expenses.
I imply, it does not get any easier than that in regards to deciding who to put money behind. And a lot of this prevails sense, and a lot of folks will attempt to make things more complicated than it is. And I have a truly easy guideline, Ryan. If I don't comprehend something, I installed my hand, and I state, "I didn't understand what you simply said." Mm-hmm (affirmative).