So, a great deal of people find that too troublesome, which's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that want to put in maybe the 20 minutes required to go through a procedure which just takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy your ideas, however gosh, establishing a crypto account is so challenging." 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 really earning money a massive quantity of money to go through perhaps, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a concern of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies directly through your trading software application. And can you imagine what will take place to this whole marketplace when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you discussed the procedure that individuals go through, and something I want to bring to light too that you didn't discuss, but I understand a lot of folks who have problem with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can just purchase $500 a week.
As challenging as possible, ideal, like Coinbase. It 'd take me permanently before I could start purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I imply, 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 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 mean, we're 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 then bought in on a few of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm always curious to speak with people who are, particularly someone like yourself, who's dedicated the last, you understand, the bulk of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like an average person? That's a terrific question.
They're 2 completely various things, but 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 worth is that it is, there's just going to be a restricted amount. 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. And so 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 actually, with present innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when people put, you have actually got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We do not trust paper currency, you can print an unlimited quantity of it. It's truly not protect, and the government can take it away from you." - Whereas with Bitcoin, right , go on.
Yeah. Or people that remained in Cypress, or just people who have suffered through either run-away inflation, or there's a high demand for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those nations that could potentially be a driver for more adoption, due to the fact that they currently do not think in their own currency? Yeah, and I believe we've currently 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 require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. However there are billions of people in the world that do not have steady currencies.
Yeah. Therefore there's this entire blossoming worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are essentially utilized, let's state Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is basically an international computer system that you can write computer programs for and run computer programs on a globally decentralized computer system program.
So we think about something like Ether an energy token, since you're basically purchasing shows power. So I wouldn't actually think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer individuals a concept, like a very easy one that I would picture you 'd called an utility token, resembles FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's sort of this same kind of network effect that you have with Bitcoin, where it resembles unstoppable example, since it's on many various locations and. I do not know the ins and outs of it, but as an example for someone who might simply be very basic in their understanding of this, there are numerous different kinds of energies 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 most likely utility based, correct? Mm-hmm (affirmative). The majority of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, however I think the genuine chance lies in the energy coin area.
There's all of these ICOs that were happening, those slowed down a little bit with some changes to a few things that was going on, however people are going to come out of the woodwork and start to create utility coins- Correct, yeah. And people need to understand that not all utility coins are produced equal.
So you have the benefit of committing your occupation to this, so you can head out there and do the reconnaissance, you can meet the creators, you can examine the code, and so on. However for a typical person, 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 fantastic question. I will state that 95% of ICOs are either deceitful or simply bad concepts. Okay. Right? There's nothing worse than someone that's young, earnest, with a terrible concept, that someone provides $40 million to. Right? Yeah, completely. So yeah, so I don't actually take part in lots of 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 typically it'll crash 80% approximately. Which's when we really start taking a look at the concept in more detail. So here are some quick and filthy things that you should take a look at, right? So, one is, are they solving a problem that requires to be resolved? One of the huge drawbacks with extremely smart, technical people, is that they like to resolve issues that no one cares about resolving.
Does the group have experience of executing in an effective way in another area of their life? And it does not even have to be directly associated to cryptocurrency, it does not need to be even directly related to software application, right? So, however I desire to see a performance history of success in something, right? If it's 4 men in a space that are just out of college, unless they've got some really excellent consultants behind them, I'm most likely not going to provide any cash.
Yeah. I think that in marketing in basic, my world of business, we continuously try to find issues and how we can solve them. Now, are the issues things that individuals are attempting to resolve a part of the Blockchain usually? Or would you state 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 trying to find options that, so I'll offer you an example.
And the reason that we purchased it is since they found a way to make documents tamper-proof, and it's 99% cheaper than present technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that began it has a track record of producing computer programs that entire states run their whole operations on, right? So you've got fine, the clever guy has developed huge computer programs, excellent group, resolving a huge problem that is going to cut substantial costs.
I suggest, it does not get any simpler than that in regards to deciding who to put cash behind. And a lot of this prevails sense, and a lot of folks will try to make things more complex than it is. And I have a really easy rule, Ryan. If I don't comprehend something, I put up my hand, and I state, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And after that 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 good concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience examining companies and taking a look at much, much larger companies.
Ryan: So you've taken a look at business that are big companies, 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 practically simply sound judgment. You just need to type of take a look at it and think rationally about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no conventional metrics that you can look at.
Okay. What I can use that I learned from working on Wall Street across three decades, is how to check out individuals. I have actually met 10s of thousands of people throughout my career. I've fulfilled experts; I've satisfied fund supervisors, I've satisfied stock promoters, I've satisfied all these various kinds of characters along the way.
So I believe that's most likely among my extremely powers, if you will. And if you've got a good BS detector, you need to listen to it. Okay. You should absolutely listen to it. If I'm sitting down and I'm talking with someone, and they have actually 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 a lot of other offers out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you understand, you kind of mentioned at the beginning, Bitcoin and Ethereum, most people have become aware of these two, particularly Bitcoin, due to the fact that 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 recently; it's come up from say $3,000 not too long back, it's quite unstable. Do they kind of await a pullback, or do they simply state, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's an excellent question.
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