So, a lot of individuals discover 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 want to put in possibly the 20 minutes needed to go through a procedure which just takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your ideas, however gosh, setting up a crypto account is so difficult." What I tell them is I say, "Look, when it's easy 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 actually truly getting paid a massive amount of cash to go through possibly, you know, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, however it is just a question of time, Ryan, before you'll have the ability to buy cryptocurrencies straight through your trading software. And can you envision what will occur 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 discussed the process that people go through, and one thing I want to expose too that you didn't mention, but I know a lot of folks who have problem with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can only buy $500 a week.
As hard as possible, best, like Coinbase. It 'd take me permanently prior to I might start buying in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I indicate, 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 indicate 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 remain in the early days of that technology, 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 a few 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 to individuals who are, specifically somebody like yourself, who's committed the last, you know, the bulk of the last couple of years to really go both feet in on this. How do you explain cryptocurrency to like an average individual? That's a great concern.
They're two completely various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what gives it value is that it is, there's just going to be a restricted amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals continuously try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And really, with existing technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when individuals 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 rely on paper money, you can print an unrestricted amount of it. It's really not protect, and the government can take it far from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or people that were in Cypress, or simply people who have suffered through either hyperinflation, or there's a high need for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those nations that could potentially be a catalyst for more adoption, because they already 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 investors have a difficult time getting their head around. They're like, "Well I do not need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't require Bitcoin. However there are billions of people on the planet that do not have stable currencies.
Yeah. Therefore there's this entire blossoming international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are basically utilized, let's say 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 system programs on a globally decentralized computer program.
So we think about something like Ether an utility token, because you're essentially buying programs power. So I would not truly think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide people an idea, like a very basic 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 sort of this exact same kind of network impact that you have with Bitcoin, where it's like unstoppable example, because it's on numerous various areas and. I don't know the ins and outs of it, but as an example for someone who may just be really fundamental in their understanding of this, there are many different kinds of energies that are available.
And you type of pointed out having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are most likely utility based, fix? Mm-hmm (affirmative). The majority of the coins that I recommend and take a look at are utility-based. We have a couple of cryptocurrencies, but I think the genuine chance lies in the utility coin area.
There's all of these ICOs that were happening, those decreased a little bit with some changes to a couple of things that was going on, however individuals are going to come out of the woodwork and start to produce utility coins- Correct, yeah. And individuals require to comprehend that not all utility coins are developed equal.
So you have the benefit of dedicating your occupation to this, so you can head out there and do the recon, you can satisfy the creators, you can inspect the code, etc. However for a typical individual, there's now what, over 1,000 various kinds of coins readily available, almost 1,200 I think.
How do they do that? That's a terrific question. I will say that 95% of ICOs are either fraudulent or just bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with an awful idea, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I don't really take part in many ICOs, and I advise you most likely side step 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 typically it'll crash 80% or so. And that's when we actually begin looking at the idea in more detail. So here are some fast and filthy things that you should take a look at, right? So, one is, are they solving an issue that needs to be resolved? One of the big downsides with extremely clever, technical individuals, is that they like to resolve problems that no one cares about solving.
Does the team have experience of executing in an effective manner 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 straight associated to software application, right? So, however 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 good advisors behind them, I'm probably not going to give them any cash.
Yeah. I believe that in marketing in general, my world of business, we continuously search for problems and how we can fix them. Now, are the issues things that people are trying to fix a part of the Blockchain usually? Or would you state it's 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 generally trying to find options that, so I'll give you an example.
And the reason that we bought it is since they found 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 then on top of that, the guy that started it has a performance history of creating computer system programs that entire states run their whole operations on, right? So you've got fine, the wise man has actually constructed huge computer system programs, fantastic team, solving a massive problem that is going to cut substantial expenses.
I indicate, it does not get any simpler than that in regards to choosing who to put money behind. And a great deal of this is typical sense, and a great deal of folks will try to make things more complicated than it is. And I have a truly easy rule, Ryan. If I do not comprehend something, I put up my hand, and I state, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And then if the person that you're talking with can't dumb it down enough where you understand it, then it's most likely not a great idea. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience assessing companies and looking at much, much bigger business.
Ryan: So you have actually looked at companies that are big business, you have actually evaluated much larger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you pointed out, it is almost simply sound judgment. You simply have to type of appearance at it and believe rationally about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no conventional metrics that you can look at.
Okay. What I can utilize that I learned from dealing with Wall Street throughout three decades, is how to read individuals. I have actually met 10s of countless individuals throughout my career. I have actually met experts; I have actually met fund supervisors, I've met stock promoters, I've satisfied all these various types of characters along the way.
So I think that's most likely one of my extremely powers, if you will. And if you have actually got a great BS detector, you must listen to it. Okay. You must absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, however you understand, there's just; it's not sitting well with me, there's something about them that's not sitting well with me.
There are many other deals out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you kind of mentioned at the beginning, Bitcoin and Ethereum, the majority of people have become aware of these 2, particularly Bitcoin, due to the fact that it seems like it's in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 just recently; it's turned up from say $3,000 not too long ago, it's rather unpredictable. Do they type of await a pullback, or do they just say, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in ten years." You know? Yeah that's a terrific concern.
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