So, a great deal of people discover that too inconvenient, and that's why the people that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: people that want to put in possibly the 20 minutes needed to go through a process which simply takes five minutes if you want to establish a brokerage account.
" Oh Teeka, we like your concepts, however gosh, establishing a crypto account is so difficult." 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 whole cryptocurrency market will be 10x bigger. So you're actually really earning money a massive amount of cash to go through perhaps, you know, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, before you'll have the ability to buy cryptocurrencies directly through your trading software. And can you picture what will happen to this whole market when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you discussed the procedure that individuals go through, and one thing I want to expose too that you didn't mention, however I understand a great deal of folks who struggle with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can just buy $500 a week.
As challenging as possible, ideal, like Coinbase. It 'd take me forever before I could start purchasing in size on Coinbase. They're like, well, we'll let you buy $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 imply 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 indicate, we remain in the early days of that innovation, but just like 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 companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since I'm always curious to speak with people who are, specifically somebody like yourself, who's dedicated the last, you understand, the bulk of the last few years to really go both feet in on this. How do you explain cryptocurrency to like a typical person? That's a fantastic concern.
They're two totally different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to money. So Bitcoin would be a cryptocurrency. Therefore what provides it value is that it is, there's only going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the transactions on the Bitcoin network. And so if you look at that Bitcoin network, individuals continuously attempt to hack it. However since of the nature of the network, today it's been unhackable. And really, with existing technology, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
And so when people put, you've got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We do not trust paper cash, you can print an endless 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 individuals that were 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 countries that could possibly be a driver for more adoption, since they already don't believe in their own currency? Yeah, and I believe 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 don't need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. But there are billions of individuals worldwide that don't have steady currencies.
Yeah. Therefore there's this whole growing worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are generally used, let's say Ethereum, which a great deal of individuals know about Ethereum. Ethereum is essentially a worldwide computer system that you can write computer system programs for and run computer programs on a globally decentralized computer program.
So we consider something like Ether an energy token, because you're basically buying programs 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 an extremely simple 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 kind of this very same kind of network effect that you have with Bitcoin, where it's like unstoppable example, since it's on numerous different areas and. I don't know the ins and outs of it, but as an example for somebody who might simply be very basic in their understanding of this, there are many various kinds of utilities that are readily available.
And you type of discussed having this boots on the ground experience. Now, because we're taking a look at the bulk of these are most likely utility based, fix? Mm-hmm (affirmative). Many of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, however I believe the genuine chance lies in the utility coin area.
There's all of these ICOs that were taking place, those slowed down 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 start to create energy coins- Correct, yeah. And individuals need to understand that not all energy coins are created equivalent.
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. But for an average person, there's now what, over 1,000 different types of coins readily available, practically 1,200 I believe.
How do they do that? That's a great concern. I will say that 95% of ICOs are either deceptive or simply bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with an awful idea, that someone gives $40 million to. Right? Yeah, absolutely. So yeah, so I do not truly take part in numerous ICOs, and I recommend you most likely side step that market, unless you've got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause generally it'll crash 80% approximately. And that's when we really begin looking at the idea in more information. So here are some fast and unclean things that you should take a look at, right? So, one is, are they resolving an issue that requires to be fixed? Among the huge disadvantages with very wise, technical people, is that they like to fix issues that nobody cares about solving.
Does the team have experience of executing in an effective manner 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 associated to software, right? So, but I desire to see a performance history of success in something, right? If it's 4 people in a room that are just out of college, unless they have actually got some actually excellent advisors behind them, I'm most likely not going to provide any money.
Yeah. I think that in marketing in general, my world of service, we constantly look for issues and how we can fix them. Now, are the problems things that people are trying to fix a part of the Blockchain generally? Or would you say it's better if they're solving kind 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 trying to find options that, so I'll provide you an example.
And the factor that we purchased it is due to the fact that they discovered a way to make files tamper-proof, and it's 99% less expensive than current technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the man that started it has a performance history of producing computer programs that whole states run their entire operations on, right? So you've got all right, the clever man has actually developed big computer system programs, fantastic group, solving an enormous issue that is going to cut substantial expenses.
I imply, it doesn't get any easier than that in regards to deciding who to put cash behind. And a lot of this prevails sense, and a great deal of folks will attempt to make things more complicated than it is. And I have a really basic guideline, Ryan. If I do not comprehend something, I set up my hand, and I say, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And after that if the individual that you're talking with can't dumb it down enough where you comprehend it, then it's most likely not an excellent concept. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience assessing business and looking at much, much larger companies.
Ryan: So you have actually taken a look at business that are big business, you have actually examined much larger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you pointed out, it is nearly just good sense. You simply have to sort of appearance at it and think reasonably about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no standard metrics that you can look at.
Okay. What I can use that I discovered from dealing with Wall Street throughout 3 decades, is how to check out people. I've fulfilled 10s of countless individuals throughout my career. I have actually fulfilled insiders; I have actually satisfied fund managers, I have actually satisfied stock promoters, I've fulfilled all these different types of characters along the method.
So I think that's most likely among my very powers, if you will. And if you have actually got an excellent BS detector, you must listen to it. Okay. You should absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they have actually got all the bonifides, but you understand, there's simply; it's not agreeing with me, there's something about them that's not agreeing with me.
There are numerous other deals out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you know, you kind of pointed out at the beginning, Bitcoin and Ethereum, the majority of people have actually heard of these two, especially Bitcoin, because it appears like it remains 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 come up from state $3,000 not too long back, it's quite unpredictable. Do they type of await a pullback, or do they simply state, "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 concern.
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