So, a great deal of individuals find that too troublesome, which's why individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: people that want to put in possibly the 20 minutes needed to go through a process which simply takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, establishing a crypto account is so challenging." What I tell them is I say, "Look, when it's simple 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 an enormous amount of money to go through maybe, you understand, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, prior to you'll be able to buy cryptocurrencies straight 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 mentioned the procedure that individuals go through, and something I wish to expose too that you didn't mention, however I understand a lot of folks who fight with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can only purchase $500 a week.
As difficult as possible, best, 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 indicate, 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 fill 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're in the early days of that innovation, but similar to during that time period, for the folks that had the vision to see where the future was going, and after that purchased in on a few of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, since I'm always curious to speak with people who are, specifically someone like yourself, who's committed the last, you know, the lion's share of the last couple of years to actually go both feet in on this. How do you explain cryptocurrency to like an average person? That's an excellent concern.
They're two absolutely different 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. And so what provides it value is that it is, there's only going to be a limited quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, verifying the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people 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 current technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when people put, you've got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We don't rely on paper money, you can print an unlimited amount of it. It's truly not secure, and the government can take it far from you." - Whereas with Bitcoin, right , go on.
Yeah. Or individuals that remained in Cypress, or just people who have suffered through either devaluation, or there's a high demand for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those countries that could possibly be a catalyst for more adoption, because they currently do not think in their own currency? Yeah, and I believe we have actually 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 don't require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. However there are billions of individuals on the planet that don't have stable currencies.
Yeah. Therefore there's this entire burgeoning international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are basically utilized, let's state Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially a worldwide computer that you can compose computer programs for and run computer programs on a worldwide decentralized computer system program.
So we consider something like Ether an energy token, since you're essentially purchasing 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 provide people a concept, like a very simple one that I would picture you 'd called an utility token, resembles FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's type of this very same type of network result that you have with Bitcoin, where it's like unstoppable example, since it's on many various areas and. I don't understand the ins and outs of it, but as an example for somebody who might simply be extremely fundamental in their understanding of this, there are many various kinds of energies that are available.
And you kind of discussed having this boots on the ground experience. Now, given that we're taking a look at the bulk of these are most likely energy based, remedy? Mm-hmm (affirmative). Most of the coins that I suggest and take a look at are utility-based. We have a few cryptocurrencies, but I believe the genuine chance lies in the utility coin space.
There's all of these ICOs that were taking place, those slowed down a little bit with some modifications to a couple of things that was going on, however individuals are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And people require to understand that not all utility coins are developed equivalent.
So you have the benefit of committing your profession to this, so you can head out there and do the reconnaissance, you can satisfy the founders, you can inspect the code, and so on. But for an average person, there's now what, over 1,000 various types of coins available, practically 1,200 I believe.
How do they do that? That's a terrific question. I will say that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a terrible idea, that someone offers $40 million to. Right? Yeah, absolutely. So yeah, so I don't really take part in numerous ICOs, and I advise you most likely side step that market, unless you have actually got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause normally it'll crash 80% or so. And that's when we actually begin looking at the idea in more information. So here are some quick and dirty things that you should look at, right? So, one is, are they resolving a problem that needs to be resolved? Among the big disadvantages with really wise, technical people, is that they like to resolve problems that nobody appreciates resolving.
Does the team have experience of carrying out in an effective way in another location of their life? And it doesn't even need to be directly associated to cryptocurrency, it doesn't have to be even directly associated to software application, right? So, but I want to see a track record of success in something, right? If it's 4 people in a space that are simply out of college, unless they've got some really great advisors behind them, I'm most likely not going to give them any money.
Yeah. I think that in marketing in basic, my world of company, we continuously try to find problems and how we can fix them. Now, are the problems things that individuals are attempting to solve 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 essentially looking for services that, so I'll offer you an example.
And the factor that we purchased it is since they discovered a method to make files tamper-proof, and it's 99% cheaper 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 creating computer programs that entire states run their whole operations on, right? So you've got fine, the clever guy has built substantial computer programs, terrific team, solving a huge issue that is going to cut huge costs.
I mean, it doesn't get any simpler than that in terms of deciding who to put cash behind. And a great deal of this is typical sense, and a great deal of folks will try to make things more complex than it is. And I have a truly easy guideline, Ryan. If I do not understand something, I put up my hand, and I say, "I didn't understand what you just said." Mm-hmm (affirmative).
And then if the person that you're talking to can't dumb it down enough where you understand it, then it's most likely not a great concept. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience examining business and looking at much, much bigger companies.
Ryan: So you have actually taken a look at business that are huge companies, you have actually examined much bigger marketcap type circumstances. 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 simply good sense. You just need to kind of take a look at it and believe reasonably about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no conventional metrics that you can take a look at.
Okay. What I can use that I gained from working on Wall Street across three decades, is how to check out individuals. I've fulfilled 10s of thousands of individuals throughout my career. I have actually satisfied experts; I've met fund managers, I've met stock promoters, I've satisfied all these various types 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 a good BS detector, you need to listen to it. Okay. You should definitely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, but you understand, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are a lot of other deals out there to look at. Yeah, there's too much chance. Yeah. And speaking of chance, you know, you kind of mentioned at the beginning, Bitcoin and Ethereum, many people have become aware of these two, particularly Bitcoin, since it appears like it's 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 come up from state $3,000 not too long back, it's quite unpredictable. Do they type of wait for a pullback, or do they just state, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You understand? Yeah that's an excellent concern.
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