So, a great deal of people discover that too troublesome, and that's why individuals that are actually making the most amount of money today in cryptocurrencies are the early adopters: people that are willing to put in perhaps the 20 minutes required to go through a process which simply takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, establishing 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 in fact truly earning money a massive quantity of money to go through maybe, 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, before you'll be able to purchase cryptocurrencies directly through your trading software application. And can you envision what will occur to this whole 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 want to expose too that you didn't discuss, however I understand a lot of folks who have problem with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can only purchase $500 a week.
As hard as possible, ideal, like Coinbase. It 'd take me forever before I could start purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I mean, 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 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 technology, but much like throughout that duration 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 companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, since I'm constantly curious to talk to people who are, especially somebody like yourself, who's devoted the last, you know, the much better part of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like a typical person? That's an excellent question.
They're two absolutely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option 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 quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals constantly try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And really, with present 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 people 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 fiat money, you can print an unrestricted amount of it. It's really not secure, and the federal government can take it far from you." - Whereas with Bitcoin, best , go on.
Yeah. Or people that remained in Cypress, or simply people who have suffered through either hyperinflation, or there's a high demand for, in Argentina for instance, high demand 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 don't 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're like, "Well I don't need Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. But there are billions of individuals in the world that do not have steady currencies.
Yeah. And so there's this whole growing international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are basically utilized, let's state Ethereum, which a lot of people learn about Ethereum. Ethereum is essentially a global computer that you can compose computer programs for and run computer system programs on a worldwide decentralized computer system program.
So we consider something like Ether an utility token, because you're basically 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 provide individuals a concept, like a very basic one that I would envision you 'd called an energy 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 impact that you have with Bitcoin, where it resembles unstoppable kind of thing, due to the fact that it's on many different areas and. I don't understand the ins and outs of it, but as an example for someone who might simply be really standard in their understanding of this, there are numerous different kinds of utilities that are offered.
And you type of discussed having this boots on the ground experience. Now, given that we're taking a look at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). The majority of the coins that I advise and take a look at are utility-based. We have a couple of cryptocurrencies, however I think the genuine opportunity lies in the utility coin space.
There's all of these ICOs that were taking place, 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 utility coins- Correct, yeah. And people require to comprehend that not all utility coins are created equal.
So you have the advantage of committing your occupation to this, so you can head out there and do the reconnaissance, you can meet the founders, you can examine the code, and so on. However for an average individual, there's now what, over 1,000 different types of coins offered, almost 1,200 I think.
How do they do that? That's a fantastic concern. I will state that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's nothing even worse than someone that's young, earnest, with an awful concept, that someone provides $40 million to. Right? Yeah, completely. So yeah, so I do not really take part in numerous ICOs, and I advise you probably side action that market, unless you have actually got a special relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause generally it'll crash 80% or two. Which's when we actually begin looking at the concept in more information. So here are some fast and unclean things that you should look at, right? So, one is, are they resolving a problem that needs to be solved? One of the huge disadvantages with really smart, technical people, is that they like to resolve issues that no one cares about solving.
Does the team have experience of performing in an effective manner in another location of their life? And it doesn't even have to be directly associated to cryptocurrency, it does not have to be even directly related to software, right? So, however I want to see a track record of success in something, right? If it's 4 guys in a space that are simply out of college, unless they have actually got some really great consultants behind them, I'm probably not going to offer them any money.
Yeah. I believe that in marketing in basic, my world of business, we continuously search for problems and how we can solve them. Now, are the issues things that people are trying to fix a part of the Blockchain usually? Or would you say it's much better if they're fixing 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 basically looking for solutions that, so I'll provide you an example.
And the reason that we bought it is because they found a way to make documents tamper-proof, and it's 99% less expensive than current innovation, 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 producing computer system programs that whole states run their whole operations on, right? So you've got alright, the wise man has actually built huge computer programs, excellent group, solving an enormous problem that is going to cut substantial costs.
I indicate, it doesn't get any simpler than that in regards to 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 complex than it is. And I have an actually simple rule, Ryan. If I don't comprehend something, I set up my hand, and I say, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And after that if the individual that you're speaking with can't dumb it down enough where you understand it, then it's probably not an excellent concept. Right, right. It's going to be simple to understand. And do you feel that you have years of experience examining business and taking a look at much, much bigger business.
Ryan: So you have actually taken a look at companies that are big companies, you've examined much bigger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you mentioned, it is practically just good sense. You just need to kind of take a look at it and believe rationally about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no traditional metrics that you can take a look at.
Okay. What I can utilize that I gained from dealing with Wall Street across three years, is how to check out individuals. I've satisfied 10s of thousands of people throughout my profession. I've met experts; I have actually met fund managers, I have actually fulfilled stock promoters, I have actually met all these different types of characters along the way.
So I think that's probably one of my very powers, if you will. And if you have actually got a good BS detector, you ought to listen to it. Okay. You must absolutely listen to it. If I'm sitting down and I'm talking with someone, and they've got all the bonifides, however you know, there's just; it's not sitting well with me, there's something about them that's not agreeing with me.
There are many other deals out there to look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you know, you sort of discussed at the start, Bitcoin and Ethereum, many people have become aware of these 2, particularly Bitcoin, because it appears like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 just recently; it's turned up from state $3,000 not too long back, it's rather unstable. Do they type of wait on a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a fantastic concern.
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