So, a lot of individuals discover that too troublesome, which's why the people that are literally making the most amount of cash today in cryptocurrencies are the early adopters: individuals that are prepared to put in perhaps the 20 minutes needed to go through a procedure which just takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we like your concepts, however gosh, setting up a crypto account is so challenging." What I inform them is I state, "Look, when it's simple 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 getting paid an enormous quantity of money to go through possibly, 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, before you'll have the ability to buy cryptocurrencies directly through your trading software. And can you imagine what will happen to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the procedure that individuals go through, and something I wish to expose too that you didn't discuss, but I know a lot of folks who struggle with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only purchase $500 a week.
As hard as possible, best, like Coinbase. It 'd take me permanently 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 remember the early days of the Internet, when we were getting on the Internet, we were doing it with 56k modems, right? I mean 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 indicate, we're 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 then bought in on some of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm constantly curious to speak to individuals who are, specifically somebody like yourself, who's devoted the last, you understand, the lion's share 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 an excellent concern.
They're 2 totally different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to money. So Bitcoin would be a cryptocurrency. And so what provides it worth is that it is, there's just going to be a limited quantity. 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. Therefore if you take a look at that Bitcoin network, individuals constantly try to hack it. But because of the nature of the network, today it's been unhackable. And truly, with existing technology, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We do not trust fiat money, you can print an unlimited quantity of it. It's truly not protect, and the government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that remained in Cypress, or just people who have actually suffered through either hyperinflation, or there's a high need for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those nations that could possibly be a driver for more adoption, since they currently don't think in their own currency? Yeah, and I think we've already seen that.
So yes, and this is a thing that a lot of American or Western financiers have a tough time getting their head around. They resemble, "Well I do not need Bitcoin, I have cash." 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. Therefore there's this whole burgeoning global demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are basically utilized, let's state Ethereum, which a great deal of people learn about Ethereum. Ethereum is essentially a worldwide 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 utility token, because you're essentially purchasing programs power. So I wouldn't truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer people an idea, like a really easy one that I would envision 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 kind of this very same type of network effect that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on numerous various areas and. I don't understand 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 so many different kinds of utilities that are readily available.
And you type of mentioned having this boots on the ground experience. Now, since we're looking at the bulk of these are probably utility based, remedy? Mm-hmm (affirmative). Many of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, however I think the real opportunity lies in the energy 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, however individuals are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And people need to understand that not all energy coins are created equivalent.
So you have the advantage of dedicating your occupation to this, so you can go out there and do the reconnaissance, you can fulfill the founders, you can inspect the code, etc. However for an average individual, there's now what, over 1,000 different kinds of coins readily available, nearly 1,200 I think.
How do they do that? That's an excellent concern. I will say 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 somebody provides $40 million to. Right? Yeah, totally. So yeah, so I don't actually get involved in lots of ICOs, and I suggest you most likely side step that market, unless you've 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? Among the huge drawbacks with extremely clever, technical individuals, is that they like to solve issues that no one cares about fixing.
Does the team have experience of performing in an effective manner in another area of their life? And it doesn't even have to be straight associated to cryptocurrency, it does not 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 4 men in a space that are simply out of college, unless they've got some truly good consultants behind them, I'm most likely not going to offer them any cash.
Yeah. I believe that in marketing in general, my world of service, we continuously search for problems and how we can fix them. Now, are the problems things that individuals are attempting to solve a part of the Blockchain typically? Or would you state it's better if they're solving type 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 basically trying to find services that, so I'll give you an example.
And the reason that we bought it is because they found a way to make documents tamper-proof, and it's 99% less expensive than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that started it has a track record of creating computer system programs that whole states run their entire operations on, right? So you've got fine, the clever man has constructed huge computer programs, great group, resolving a huge issue that is going to cut substantial costs.
I mean, it doesn't get any simpler than that in terms of choosing who to put money behind. And a lot of this is typical sense, and a lot of folks will attempt to make things more complex than it is. And I have a truly simple guideline, Ryan. If I do not understand something, I installed my hand, and I state, "I didn't comprehend what you just said." Mm-hmm (affirmative).
And then if the person that you're speaking to can't dumb it down enough where you understand it, then it's probably not a great concept. Right, right. It's going to be easy to understand. And do you feel that you have years of experience evaluating companies and taking a look at much, much bigger business.
Ryan: So you have actually looked at business that are big business, you've examined 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 discussed, it is practically just good sense. You just need to type of look at it and think rationally about what's going on, and pull the feeling out? You have to pull the emotion out, and there are no conventional metrics that you can take a look at.
Okay. What I can use that I discovered from dealing with Wall Street across three decades, is how to check out people. I've met tens of thousands of individuals throughout my profession. I have actually fulfilled experts; I've satisfied fund supervisors, I've fulfilled stock promoters, I've fulfilled all these various kinds of characters along the method.
So I think that's most likely among my extremely powers, if you will. And if you have actually got an excellent BS detector, you should listen to it. Okay. You ought to definitely listen to it. If I'm sitting down and I'm talking with someone, and they've got all the bonifides, but you understand, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are a lot of other offers out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you understand, you type of discussed at the start, Bitcoin and Ethereum, the majority of people have actually 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 failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 just recently; it's turned up from state $3,000 not too long earlier, it's quite unstable. Do they sort of wait for 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 ten years." You know? Yeah that's an excellent question.
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