So, a great deal of individuals discover that too inconvenient, and that'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 maybe the 20 minutes required to go through a process which simply takes 5 minutes if you desire to establish a brokerage account.
" Oh Teeka, we love your ideas, however gosh, establishing a crypto account is so tough." What I inform 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 larger. So you're actually truly earning money a huge quantity of cash to go through perhaps, you know, 20 minutes of a pain in the neck.
So you can't buy 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 directly through your trading software application. And can you imagine 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.
Right now you pointed out the process that individuals go through, and something I desire to expose too that you didn't discuss, but I understand a lot of folks who deal with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can just purchase $500 a week.
As difficult as possible, right, like Coinbase. It 'd take me permanently prior to I could begin buying in size on Coinbase. They resemble, 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 Internet, we were doing it with 56k modems, right? I indicate 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 imply, we're in the early days of that innovation, but 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 some of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, because I'm constantly curious to talk to people who are, particularly someone like yourself, who's dedicated the last, you understand, the better part of the last few years to really go both feet in on this. How do you explain cryptocurrency to like an average individual? That's a great question.
They're 2 completely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to money. So Bitcoin would be a cryptocurrency. And so what offers it value is that it is, there's just going to be a restricted quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, people continuously try to hack it. However because of the nature of the network, today it's been unhackable. And really, with existing technology, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore when people put, you've got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We do not trust paper currency, you can print an unlimited quantity of it. It's really not secure, and the federal government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that were in Cypress, or simply individuals who have suffered through either run-away inflation, 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 potentially be a driver for more adoption, due to the fact that 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 great deal of American or Western financiers 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 need Bitcoin. But there are billions of people in the world 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 generally used, let's state Ethereum, which a lot of people know about Ethereum. Ethereum is basically an international computer that you can compose computer system programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an energy token, because you're essentially purchasing shows power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide individuals an idea, like a really easy one that I would imagine you 'd called an utility token, is like FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's sort of this exact same type of network result that you have with Bitcoin, where it resembles unstoppable example, because it's on a lot of different locations and. I don't understand the ins and outs of it, however as an example for someone who might simply be extremely basic in their understanding of this, there are so numerous different types of energies that are available.
And you kind of discussed having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are probably energy based, remedy? Mm-hmm (affirmative). Many of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, but I believe the real chance depends on the energy coin space.
There's all of these ICOs that were occurring, those slowed down 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 energy coins- Correct, yeah. And people require to understand that not all utility coins are developed equivalent.
So you have the advantage of devoting your profession to this, so you can go out there and do the recon, you can meet the creators, you can inspect the code, and so on. But for an average individual, there's now what, over 1,000 various kinds of coins offered, almost 1,200 I think.
How do they do that? That's a great concern. I will say that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a horrible concept, that someone provides $40 million to. Right? Yeah, totally. So yeah, so I don't actually get involved in many ICOs, and I suggest you most likely side step that market, unless you have actually got an unique relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause normally it'll crash 80% approximately. Which's when we truly start looking at the idea in more detail. So here are some quick and filthy things that you should take a look at, right? So, one is, are they fixing an issue that needs to be resolved? One of the huge disadvantages with really smart, technical individuals, is that they like to solve issues that nobody cares about resolving.
Does the group have experience of carrying out in a successful way in another location of their life? And it doesn't even need to be directly related to cryptocurrency, it doesn't need to be even directly related to software, right? So, but I wish to see a performance history of success in something, right? If it's four men in a room that are just out of college, unless they have actually got some really great advisors behind them, I'm probably not going to provide any cash.
Yeah. I believe that in marketing in general, my world of business, we constantly look for issues and how we can fix them. Now, are the problems things that people are attempting to solve a part of the Blockchain typically? Or would you state it's much better if they're resolving sort 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 trying to find solutions that, so I'll give you an example.
And the reason that we purchased it is since they discovered a method to make documents tamper-proof, and it's 99% more affordable than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that started it has a performance history of developing computer system programs that whole states run their whole operations on, right? So you have actually got alright, the smart man has actually developed big computer system programs, great group, solving a massive issue that is going to cut huge expenses.
I suggest, it doesn't get any easier than that in terms of deciding who to put money behind. And a lot of this is typical sense, and a great deal of folks will attempt to make things more complicated than it is. And I have an actually basic rule, Ryan. If I don't comprehend something, I put up my hand, and I say, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And after that if the person that you're speaking with can't dumb it down enough where you comprehend it, then it's probably not a good concept. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience assessing companies and looking at much, much larger business.
Ryan: So you have actually taken a look at business that are huge business, you have actually evaluated much larger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you pointed out, it is practically just good sense. You just have to kind of take a look at it and believe logically about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no traditional metrics that you can take a look at.
Okay. What I can utilize that I gained from dealing with Wall Street across 3 years, is how to read individuals. I have actually met tens of countless individuals throughout my career. I've satisfied experts; I've fulfilled fund supervisors, I have actually satisfied stock promoters, I have actually satisfied all these various kinds of characters along the method.
So I believe that's most likely one of my super powers, if you will. And if you have actually got a great BS detector, you need to listen to it. Okay. You need to definitely listen to it. If I'm taking a seat and I'm talking with someone, and they have actually got all the bonifides, however you know, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are so many other offers out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you know, you kind of pointed out at the beginning, Bitcoin and Ethereum, the majority of people have become aware of these 2, particularly Bitcoin, due to the fact that it appears 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 recently; it's come up from say $3,000 not too long back, it's quite volatile. Do they type of await a pullback, or do they just say, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a terrific question.
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