So, a great deal of people discover that too bothersome, and that's why the people that are actually 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 procedure which simply takes five minutes if you want to set up a brokerage account.
" Oh Teeka, we love your ideas, however gosh, setting up a crypto account is so hard." 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 whole cryptocurrency market will be 10x bigger. So you're in fact really earning money a massive quantity of cash to go through maybe, you understand, 20 minutes of a headache.
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. And can you imagine what will occur to this entire marketplace when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that people go through, and one thing I wish to expose too that you didn't mention, however I understand a great deal of folks who have a hard time with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can just purchase $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me forever before I might begin buying in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I mean, it's if you remember the early days of the Web, when we were getting on the Internet, we were doing it with 56k modems, right? I suggest 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 innovation, however much like during that period 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 an action back for a 2nd, due to the fact that I'm constantly curious to speak with people who are, particularly somebody like yourself, who's devoted the last, you know, the lion's share of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like an average individual? That's an excellent concern.
They're two absolutely different 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 worth is that it is, there's just going to be a limited amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, people continuously attempt to hack it. But because of the nature of the network, today it's been unhackable. And truly, with existing innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
And so when individuals put, you've got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We don't trust fiat money, you can print an endless amount of it. It's actually not protect, and the federal government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that were in Cypress, or simply individuals 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 countries that could potentially be a catalyst for more adoption, because they currently do not believe in their own currency? Yeah, and I think we have actually currently 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 resemble, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of individuals worldwide that do not have steady currencies.
Yeah. And so there's this whole blossoming international demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are essentially used, let's say Ethereum, which a lot of individuals know about Ethereum. Ethereum is essentially a worldwide computer system that you can compose computer programs for and run computer programs on an internationally decentralized computer program.
So we think about something like Ether an energy token, because you're essentially buying programming power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give people a concept, like a really simple one that I would picture you 'd called an utility token, resembles FileCoin.
Where the idea is that essentially 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's like unstoppable example, since it's on a lot of various locations and. I don't understand the ins and outs of it, however as an example for someone who may simply be really standard in their understanding of this, there are many various types of energies that are readily available.
And you kind of mentioned having this boots on the ground experience. Now, since we're taking a look at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, but I believe the genuine chance depends on the utility coin space.
There's all of these ICOs that were occurring, those slowed down a bit with some changes to a couple of things that was going on, but individuals are going to come out of the woodwork and start to create utility coins- Correct, yeah. And people need to comprehend that not all energy coins are created equal.
So you have the advantage of dedicating your occupation to this, so you can head out there and do the reconnaissance, you can meet the creators, you can check the code, etc. But for an average person, there's now what, over 1,000 various kinds of coins 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 deceitful or just bad concepts. Okay. Right? There's nothing worse than somebody that's young, earnest, with a horrible concept, that someone offers $40 million to. Right? Yeah, absolutely. So yeah, so I don't truly take part in numerous ICOs, and I recommend you probably side action that market, unless you have actually got an unique relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause normally it'll crash 80% or so. Which's when we really start looking at the concept in more information. So here are some fast and unclean things that you should take a look at, right? So, one is, are they solving an issue that needs to be resolved? Among the huge downsides with very smart, technical individuals, is that they like to fix issues that nobody cares about fixing.
Does the group have experience of executing in a successful manner in another area of their life? And it does not even need to be directly associated to cryptocurrency, it doesn't have to be even straight associated to software application, right? So, but I desire to see a track record of success in something, right? If it's 4 people in a room that are simply out of college, unless they've got some really good advisors behind them, I'm probably not going to offer them any cash.
Yeah. I believe that in marketing in basic, my world of service, we constantly search for issues and how we can solve them. Now, are the issues things that people are attempting to fix a part of the Blockchain typically? Or would you say it's better if they're solving 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 trying to find services that, so I'll offer you an example.
And the reason that we purchased it is because they discovered a method to make documents tamper-proof, and it's 99% cheaper than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that started it has a performance history of producing computer programs that entire states run their whole operations on, right? So you have actually got alright, the smart person has actually built substantial computer system programs, fantastic group, solving a massive problem that is going to cut big expenses.
I suggest, it doesn't get any easier than that in terms of choosing who to put money behind. And a lot of this prevails sense, and a great deal of folks will attempt to make things more complicated than it is. And I have an actually simple rule, Ryan. If I do not comprehend something, I installed my hand, and I say, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you comprehend it, then it's most likely not a good concept. Right, right. It's going to be simple to understand. And do you feel that you have years of experience examining companies and taking a look at much, much larger companies.
Ryan: So you've taken a look at business that are huge companies, you've assessed much larger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you mentioned, it is almost just sound judgment. You just have to sort of appearance 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 standard metrics that you can look at.
Okay. What I can use that I gained from working on Wall Street across three years, is how to check out individuals. I've fulfilled tens of thousands of individuals throughout my career. I've fulfilled insiders; I've fulfilled fund managers, I have actually satisfied stock promoters, I've fulfilled all these various kinds of characters along the method.
So I think that's most likely among my incredibly powers, if you will. And if you've got a great BS detector, you need to listen to it. Okay. You ought to definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, but you know, there's simply; it's not agreeing with me, there's something about them that's not agreeing with me.
There are a lot of other offers out there to look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you know, you type of pointed out at the beginning, Bitcoin and Ethereum, many people have actually become aware of these 2, particularly Bitcoin, because it seems like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading nearly upwards of $6,000 recently; it's come up from say $3,000 not too long ago, it's rather unstable. Do they sort of wait on a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's a terrific question.
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