So, a lot of people discover that too inconvenient, 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 maybe the 20 minutes required to go through a procedure which just takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we love your ideas, however gosh, setting up a crypto account is so difficult." What I inform them is I say, "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 bigger. So you're in fact really getting paid a massive quantity of cash to go through possibly, you understand, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, but it is simply a question 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 entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the process that people go through, and something I want to bring to light too that you didn't mention, however I understand a lot of folks who fight with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can only purchase $500 a week.
As hard as possible, right, like Coinbase. It 'd take me forever prior to 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 Web, when we were getting on the Web, we were doing it with 56k modems, right? I indicate 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 remain in the early days of that technology, however much like during that time period, 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 2nd, because I'm constantly curious to speak to individuals who are, especially someone like yourself, who's committed the last, you understand, the much better part of the last few years to really 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 different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to cash. So Bitcoin would be a cryptocurrency. And so what offers it worth is that it is, there's just going to be a minimal amount. 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. Therefore if you look at that Bitcoin network, individuals continuously try to hack it. However due to the fact that 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.
Therefore when individuals put, you have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We do not rely on fiat money, you can print an endless amount of it. It's truly not protect, and the federal government can take it far from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or people that remained in Cypress, or just people who have suffered through either hyperinflation, or there's a high need for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those nations that could possibly be a catalyst for more adoption, since they already do not think 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 investors have a difficult time getting their head around. They're like, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. However there are billions of people in the world that do not have steady currencies.
Yeah. And so there's this entire growing international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And utility coins are basically utilized, let's say Ethereum, which a lot of individuals learn about Ethereum. Ethereum is basically a global computer that you can write computer programs for and run computer system programs on an internationally decentralized computer system program.
So we think about something like Ether an utility token, since you're essentially purchasing shows power. So I would not actually think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide individuals an idea, like an extremely easy one that I would imagine you 'd called an energy token, is like FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's sort of this very same kind of network effect that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on many various areas and. I do not know the ins and outs of it, however as an example for somebody who might simply be very basic in their understanding of this, there are numerous various types of utilities that are readily available.
And you kind of mentioned having this boots on the ground experience. Now, given that we're taking a look at the bulk of these are most likely 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, however I think the genuine chance lies in the utility coin area.
There's all of these ICOs that were taking place, those decreased 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 people require to understand that not all utility coins are created equivalent.
So you have the advantage of devoting your occupation to this, so you can head out there and do the recon, you can fulfill the founders, you can inspect the code, and so on. But for a typical individual, there's now what, over 1,000 various kinds of coins readily available, almost 1,200 I think.
How do they do that? That's a great concern. I will state that 95% of ICOs are either deceptive or just bad ideas. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with an awful idea, that somebody provides $40 million to. Right? Yeah, completely. So yeah, so I don't really take part in numerous ICOs, and I suggest you probably side step that market, unless you've got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause normally it'll crash 80% approximately. And that's when we truly start looking at the idea in more information. So here are some fast and dirty things that you should take a look at, right? So, one is, are they solving an issue that needs to be resolved? Among the big disadvantages with extremely smart, technical individuals, is that they like to resolve issues that nobody appreciates solving.
Does the team have experience of executing in an effective manner in another area of their life? And it doesn't even have to be directly related to cryptocurrency, it does not have to be even directly related to software, right? So, but I want to see a performance history of success in something, right? If it's four men in a room that are simply out of college, unless they have actually got some truly great consultants behind them, I'm probably not going to offer them any cash.
Yeah. I think that in marketing in basic, my world of service, we continuously try to find issues and how we can fix them. Now, are the issues things that individuals are attempting to resolve a part of the Blockchain normally? Or would you say it's better if they're fixing type 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 looking for solutions that, so I'll offer you an example.
And the reason that we purchased it is since they discovered a way to make files tamper-proof, and it's 99% more affordable than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the guy that began it has a track record of developing computer system programs that whole states run their entire operations on, right? So you have actually got fine, the wise guy has actually built big computer programs, excellent group, fixing a huge problem that is going to cut big expenses.
I mean, it does not get any easier than that in regards to choosing who to put money behind. And a great deal of this is common sense, and a lot of folks will attempt to make things more complex than it is. And I have an actually basic guideline, Ryan. If I do not comprehend something, I installed my hand, and I say, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And then if the individual that you're speaking to can't dumb it down enough where you understand it, then it's most likely not a good idea. Right, right. It's going to be basic to understand. And do you feel that you have years of experience evaluating companies and looking at much, much bigger business.
Ryan: So you've taken a look at companies that are huge business, you've examined much bigger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you mentioned, it is practically just good sense. You simply have to type of take a look at it and believe reasonably about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no traditional metrics that you can take a look at.
Okay. What I can utilize that I gained from working on Wall Street throughout 3 years, is how to read individuals. I have actually satisfied tens of countless people throughout my career. I have actually fulfilled insiders; I have actually satisfied fund managers, I've satisfied stock promoters, I have actually fulfilled all these different kinds of characters along the way.
So I believe that's probably one of my incredibly powers, if you will. And if you have actually got an excellent BS detector, you must listen to it. Okay. You must definitely listen to it. If I'm sitting down and I'm talking with somebody, and they've got all the bonifides, however you understand, there's simply; it's not sitting well with me, there's something about them that's not sitting well with me.
There are a lot of other deals out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you understand, you kind of discussed at the beginning, Bitcoin and Ethereum, many people have actually heard of these two, especially Bitcoin, since it looks like it remains in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's come up from say $3,000 not too long ago, it's quite unpredictable. Do they kind of await a pullback, or do they just 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 a terrific question.
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