So, a lot of individuals find that too troublesome, and that's why the people that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are willing to put in perhaps the 20 minutes needed to go through a process which just takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your concepts, however gosh, establishing a crypto account is so hard." 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 whole cryptocurrency market will be 10x larger. So you're actually really earning money an enormous amount 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 straight through your trading software. And can you imagine what will happen to this entire market when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that people go through, and one thing I desire to bring to light too that you didn't mention, but I know a lot of folks who battle with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only purchase $500 a week.
As hard as possible, ideal, 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 Web, when we were getting on the Web, we were doing it with 56k modems, right? I imply 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 imply, we're in the early days of that innovation, however similar to throughout that amount 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 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 always curious to talk with people who are, specifically someone like yourself, who's devoted the last, you know, the better part of the last couple of years to truly go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's a terrific question.
They're two completely various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to cash. So Bitcoin would be a cryptocurrency. Therefore what gives it worth is that it is, there's only going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. And so if you look at that Bitcoin network, people continuously attempt to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And truly, with existing innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so 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 saying, "We don't trust paper money, you can print an unrestricted quantity of it. It's really not secure, and the government can take it away from you." - Whereas with Bitcoin, right , go on.
Yeah. Or individuals that remained in Cypress, or simply people who have suffered through either run-away inflation, or there's a high demand 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, because they already 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 lot of American or Western financiers have a bumpy ride getting their head around. They resemble, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't require Bitcoin. But there are billions of individuals worldwide that do not have steady currencies.
Yeah. And so there's this whole burgeoning global need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are generally used, let's say Ethereum, which a lot of people understand about Ethereum. Ethereum is essentially an international computer system that you can write computer programs for and run computer programs on an internationally decentralized computer program.
So we consider something like Ether an energy token, because you're basically buying programs power. So I would not really consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer individuals a concept, like a really basic one that I would picture you 'd called an utility token, is like FileCoin.
Where the idea 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 example, because it's on many various areas and. I don't understand the ins and outs of it, but as an example for someone who may simply be really fundamental in their understanding of this, there are a lot of various types of utilities that are available.
And you kind of discussed having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably energy based, remedy? Mm-hmm (affirmative). Most of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, however I believe the real opportunity lies in the utility coin area.
There's all of these ICOs that were happening, those slowed down a bit with some changes to a couple of things that was going on, but people are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And people require to understand that not all energy coins are developed equivalent.
So you have the advantage of committing your occupation to this, so you can go out there and do the reconnaissance, you can fulfill the founders, you can examine the code, etc. But for a typical person, there's now what, over 1,000 various kinds of coins available, nearly 1,200 I believe.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either deceptive or just bad ideas. Okay. Right? There's nothing even worse than somebody that's young, earnest, with an awful concept, that somebody provides $40 million to. Right? Yeah, completely. So yeah, so I don't actually take part in many ICOs, and I advise you probably side step that market, unless you've got an unique 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% approximately. And that's when we really start looking at the concept in more information. So here are some quick and unclean things that you should take a look at, right? So, one is, are they resolving a problem that needs to be solved? Among the big disadvantages with really clever, technical individuals, is that they like to solve issues that nobody appreciates resolving.
Does the group have experience of performing in a successful manner in another area of their life? And it does not even need to be directly related to cryptocurrency, it doesn't have to be even straight associated to software, right? So, but I desire to see a track record of success in something, right? If it's four people in a space that are just out of college, unless they've got some really great advisors behind them, I'm most likely not going to offer them any money.
Yeah. I believe that in marketing in general, my world of organization, we constantly look for issues and how we can solve them. Now, are the problems things that individuals are trying to resolve a part of the Blockchain typically? Or would you state it's better if they're solving type of a mass problem? 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 services that, so I'll give 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% cheaper than existing innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that began it has a track record of producing computer system programs that whole states run their whole operations on, right? So you have actually got all right, the smart person has actually built huge computer system programs, excellent group, fixing an enormous issue that is going to cut big expenses.
I indicate, it does not get any easier than that in terms of choosing who to put cash behind. And a great deal of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have a truly simple guideline, Ryan. If I do not comprehend something, I installed my hand, and I state, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And then if the person that you're speaking with can't dumb it down enough where you comprehend it, then it's probably not a great concept. Right, right. It's going to be simple to understand. And do you feel that you have years of experience evaluating companies and looking at much, much bigger business.
Ryan: So you have actually looked at companies that are big business, you've examined much larger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you discussed, it is practically simply sound judgment. You just need to type of appearance at it and think 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 look at.
Okay. What I can utilize that I gained from working on Wall Street across 3 decades, is how to check out individuals. I have actually met tens of countless individuals throughout my profession. I have actually fulfilled experts; I've fulfilled fund supervisors, I have actually fulfilled stock promoters, I've satisfied all these various kinds of characters along the way.
So I think that's probably one of my super powers, if you will. And if you have actually got an excellent BS detector, you ought to listen to it. Okay. You must definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually 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 offers out there to look at. Yeah, there's excessive chance. Yeah. And speaking of opportunity, you know, you kind of discussed at the beginning, Bitcoin and Ethereum, the majority of people have actually become aware of these two, especially 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 nearly upwards of $6,000 just recently; it's turned up from say $3,000 not too long back, it's quite unstable. Do they kind of wait for a pullback, or do they just state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's a fantastic question.
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