So, a lot of individuals find that too troublesome, which's why individuals that are literally making the most amount of cash today in cryptocurrencies are the early adopters: people that are prepared 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 concepts, however gosh, setting up a crypto account is so challenging." What I tell them is I state, "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 in fact truly getting paid a massive quantity of money to go through perhaps, 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 be able to purchase cryptocurrencies directly through your trading software application. And can you imagine what will take place to this entire market when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that individuals go through, and one thing I want to bring to light too that you didn't mention, but I understand a great deal of folks who struggle with this too, is oh, and by the way, you can only buy $1,000 a week. Or you can just purchase $500 a week.
As difficult as possible, ideal, like Coinbase. It 'd take me permanently prior to I might start buying 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 Internet, we were doing it with 56k modems, right? I imply 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 indicate, we remain in the early days of that innovation, however similar to throughout that time period, 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 second, due to the fact that I'm always curious to talk with people who are, especially someone like yourself, who's dedicated the last, you know, the bulk of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like an average person? That's a fantastic concern.
They're two absolutely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what offers it worth is that it is, there's just going to be a restricted quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals constantly attempt to hack it. However because of the nature of the network, today it's been unhackable. And truly, with existing innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
And so when people put, you've got people 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 currency, you can print a limitless amount of it. It's actually not protect, and the federal government can take it far from you." - Whereas with Bitcoin, right , go ahead.
Yeah. Or individuals that remained in Cypress, or just people who have actually 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 nations that could potentially be a catalyst for more adoption, due to the fact that they currently do not think in their own currency? Yeah, and I think we've already 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 resemble, "Well I don't require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. However there are billions of individuals worldwide that don't have stable currencies.
Yeah. Therefore there's this entire burgeoning global need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are generally used, let's say Ethereum, which a great deal of individuals know about Ethereum. Ethereum is basically an international computer that you can write computer programs for and run computer system programs on a worldwide decentralized computer program.
So we consider something like Ether an utility token, since you're essentially purchasing programs power. So I would not really consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give people an idea, like a very easy one that I would envision you 'd called an energy token, is like FileCoin.
Where the idea is that generally 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 kind of thing, because it's on numerous different areas and. I don't know the ins and outs of it, however as an example for somebody who might just be extremely basic in their understanding of this, there are many various types of utilities that are available.
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, fix? Mm-hmm (affirmative). The majority of the coins that I advise and look at are utility-based. We have a couple of cryptocurrencies, but I believe the real chance lies in the utility coin space.
There's all of these ICOs that were happening, those decreased a bit with some modifications to a few things that was going on, however people are going to come out of the woodwork and begin to produce utility coins- Correct, yeah. And individuals require to comprehend that not all energy coins are developed equal.
So you have the advantage of committing your occupation to this, so you can head out there and do the reconnaissance, you can satisfy the founders, you can inspect the code, etc. But for an average person, there's now what, over 1,000 different kinds of coins offered, almost 1,200 I believe.
How do they do that? That's a great question. I will state that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's nothing worse than somebody that's young, earnest, with a horrible concept, that somebody offers $40 million to. Right? Yeah, absolutely. So yeah, so I don't really take part in lots of ICOs, and I recommend you probably side action that market, unless you've got a special relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause generally it'll crash 80% or so. Which's when we actually start looking at the concept in more detail. So here are some quick and dirty things that you should take a look at, right? So, one is, are they resolving an issue that needs to be fixed? Among the huge drawbacks with very wise, technical people, is that they like to fix problems that no one appreciates resolving.
Does the group have experience of carrying out in a successful manner in another area of their life? And it does not even need to be straight associated to cryptocurrency, it does not have to be even directly related to software application, right? So, but I desire to see a performance history of success in something, right? If it's four people in a room that are just out of college, unless they have actually got some really good consultants behind them, I'm probably not going to offer them any cash.
Yeah. I think that in marketing in basic, my world of company, we continuously look for issues and how we can fix them. Now, are the problems things that people are trying to solve a part of the Blockchain generally? Or would you say it's much better if they're solving kind 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 services that, so I'll provide you an example.
And the reason that we bought it is because they discovered a way to make files tamper-proof, and it's 99% less expensive than current technology, 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 developing computer programs that entire states run their entire operations on, right? So you've got alright, the clever man has actually built huge computer system programs, great group, fixing a massive issue that is going to cut substantial costs.
I mean, it does not get any simpler than that in terms of deciding 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 complicated than it is. And I have a truly basic rule, Ryan. If I do not comprehend something, I put up my hand, and I say, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And after that if the individual 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 examining companies and taking a look at much, much bigger business.
Ryan: So you've taken a look at companies that are big business, you have actually assessed much larger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you mentioned, it is nearly simply sound judgment. You just need to type of appearance at it and think reasonably about what's going on, and pull the emotion 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 found out from dealing with Wall Street across three years, is how to read people. I've fulfilled tens of countless individuals throughout my profession. I've fulfilled experts; I've met fund managers, I've satisfied stock promoters, I've satisfied all these different types of characters along the way.
So I believe that's probably one of my very powers, if you will. And if you've got an excellent BS detector, you need to listen to it. Okay. You ought to 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 simply; it's not agreeing with me, there's something about them that's not agreeing with me.
There are so numerous other deals out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you understand, you type of discussed at the beginning, Bitcoin and Ethereum, many people have actually heard of these two, particularly Bitcoin, since 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 practically upwards of $6,000 recently; it's come up from state $3,000 not too long back, it's quite volatile. Do they sort of wait on a pullback, or do they simply 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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