So, a lot of people discover that too troublesome, which's why the people that are literally making the most amount of money right now in cryptocurrencies are the early adopters: individuals that want to put in possibly the 20 minutes needed to go through a procedure which simply takes five minutes if you desire to establish a brokerage account.
" Oh Teeka, we love your ideas, but gosh, setting up a crypto account is so challenging." 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 bigger. So you're actually really earning money a huge amount of money to go through possibly, you know, 20 minutes of a discomfort in the neck.
So you can't buy Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, prior to you'll be able to buy cryptocurrencies straight through your trading software application. And can you imagine what will happen to this whole marketplace when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the procedure that individuals go through, and something I desire to expose too that you didn't discuss, but I know 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 buy $500 a week.
As difficult as possible, ideal, like Coinbase. It 'd take me forever before I might start purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I suggest, 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 imply 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 indicate, we're in the early days of that technology, however simply like throughout that time period, for the folks that had the vision to see where the future was going, and then purchased in on a few of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, because I'm always curious to speak with individuals who are, especially somebody like yourself, who's dedicated the last, you understand, the much better part of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's a fantastic question.
They're 2 totally different 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. And so what offers it worth is that it is, there's only going to be a restricted quantity. There'll never ever 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, individuals continuously attempt to hack it. But because of the nature of the network, today it's been unhackable. And really, with existing innovation, the Bitcoin network is so huge today, 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 because they're stating, "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 away from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or people that were in Cypress, or just individuals who have suffered through either devaluation, or there's a high need for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those countries that could potentially be a catalyst for more adoption, due to the fact that they currently don't believe in their own currency? Yeah, and I think 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 need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. But there are billions of people in the world that do not have stable currencies.
Yeah. And so there's this whole growing international demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are essentially used, let's state Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially a worldwide computer that you can write computer system programs for and run computer system programs on an internationally decentralized computer program.
So we think about something like Ether an utility token, due to the fact that you're essentially purchasing shows power. So I wouldn't really consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer individuals an idea, like a really easy one that I would picture you 'd called an utility token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's sort of this very same type of network effect that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on a lot of different areas and. I do not know the ins and outs of it, however as an example for somebody who may simply be really basic in their understanding of this, there are many different kinds of utilities that are offered.
And you sort of pointed out having this boots on the ground experience. Now, since we're looking at the bulk of these are most likely utility based, correct? Mm-hmm (affirmative). Most of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, but I believe the genuine chance depends on the utility coin area.
There's all of these ICOs that were occurring, those decreased 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 create energy coins- Correct, yeah. And people require to understand that not all energy coins are developed equal.
So you have the benefit of dedicating your occupation to this, so you can go out there and do the recon, you can satisfy the creators, you can examine the code, etc. However for a typical individual, there's now what, over 1,000 various types of coins offered, practically 1,200 I think.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either fraudulent or just bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with a horrible idea, that somebody provides $40 million to. Right? Yeah, totally. So yeah, so I don't actually take part in numerous ICOs, and I advise you most likely side step that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause generally it'll crash 80% or two. And that's when we really start looking at the concept in more detail. So here are some fast and unclean things that you should look at, right? So, one is, are they resolving a problem that requires to be solved? One of the big disadvantages with really smart, technical people, is that they like to resolve problems that nobody cares about fixing.
Does the team have experience of performing in a successful manner in another location of their life? And it does not even need to be directly related to cryptocurrency, it doesn't have to be even directly related to software application, right? So, but I wish to see a performance history of success in something, right? If it's four guys in a space that are just out of college, unless they have actually got some really great consultants 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 continuously try to find issues and how we can resolve them. Now, are the issues things that individuals are attempting to fix a part of the Blockchain normally? Or would you say it's much better if they're fixing sort 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 generally looking for solutions that, so I'll provide you an example.
And the factor that we purchased it is due to the fact that they found a way to make documents tamper-proof, and it's 99% more affordable 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 began it has a track record of creating computer programs that whole states run their whole operations on, right? So you have actually got alright, the smart person has actually developed substantial computer programs, fantastic group, solving an enormous problem that is going to cut big expenses.
I imply, it doesn't get any simpler than that in terms of deciding who to put money behind. And a lot of this is common sense, and a lot of folks will attempt to make things more complicated than it is. And I have a truly basic guideline, Ryan. If I do not understand something, I installed my hand, and I state, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And after that if the individual that you're speaking to can't dumb it down enough where you comprehend it, then it's probably not a good idea. Right, right. It's going to be easy to understand. And do you feel that you have years of experience examining business and looking at much, much bigger business.
Ryan: So you've taken a look at business that are huge business, you've evaluated much larger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you pointed out, it is almost simply good sense. You simply need to kind of take a look at it and think rationally about what's going on, and pull the emotion out? You have to pull the feeling out, and there are no traditional metrics that you can look at.
Okay. What I can utilize that I found out from working on Wall Street across 3 decades, is how to check out people. I have actually met tens of countless individuals throughout my profession. I've satisfied experts; I have actually met fund supervisors, I've satisfied stock promoters, I have actually satisfied all these different types of characters along the method.
So I believe that's probably among my incredibly powers, if you will. And if you have actually got an excellent BS detector, you need to listen to it. Okay. You need to definitely listen to it. If I'm sitting down and I'm talking with someone, and they have actually got all the bonifides, but you know, there's just; it's not agreeing with me, there's something about them that's not agreeing with me.
There are many other offers out there to take a 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, the majority of people have actually heard of these 2, especially Bitcoin, since it looks 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 shown up from say $3,000 not too long ago, it's quite unstable. Do they kind of await a pullback, or do they just say, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You understand? Yeah that's a fantastic concern.
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