So, a lot of individuals find that too inconvenient, which's why the people that are literally making the most amount of cash today in cryptocurrencies are the early adopters: people that are ready to put in perhaps the 20 minutes required to go through a procedure which just takes five minutes if you desire to establish a brokerage account.
" Oh Teeka, we enjoy your ideas, but gosh, establishing a crypto account is so hard." What I tell them is I say, "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 truly earning money an enormous amount of cash to go through possibly, you know, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, but it is just a question of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies straight through your trading software application. And can you envision 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 mentioned the process that people go through, and one thing I wish to expose too that you didn't mention, however I understand a lot of folks who fight with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can only purchase $500 a week.
As challenging as possible, ideal, like Coinbase. It 'd take me forever prior to I might begin buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I indicate, 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 mean 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 suggest, we remain in the early days of that innovation, but similar to during that duration 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 outright fortune.
Mm-hmm (affirmative). And let's take an action back for a second, because I'm always curious to speak to individuals who are, especially somebody like yourself, who's devoted the last, you know, the much better part of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like an average person? That's a great question.
They're two completely various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying 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 limited quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, people continuously attempt 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 huge today, you can't co-opt it, you can't take it over.
And so 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 rely on paper cash, you can print a limitless amount of it. It's really not secure, and the government can take it away from you." - Whereas with Bitcoin, ideal , go ahead.
Yeah. Or individuals that remained in Cypress, or just people who have actually suffered through either devaluation, or there's a high need for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those countries that could potentially be a catalyst for more adoption, since they currently do not 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 investors have a tough time getting their head around. They resemble, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't require Bitcoin. But there are billions of individuals on the planet that don't have stable currencies.
Yeah. Therefore there's this entire burgeoning worldwide need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are essentially utilized, let's say Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is basically a global computer system that you can compose computer system programs for and run computer programs on a globally decentralized computer program.
So we consider something like Ether an utility token, due to the fact that you're essentially purchasing programming power. So I wouldn't really consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide people a concept, like a very basic one that I would envision you 'd called an utility token, is like FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's sort of this exact same kind of network effect that you have with Bitcoin, where it resembles unstoppable example, because it's on so many various areas and. I don't understand the ins and outs of it, but as an example for somebody who may just be really basic in their understanding of this, there are so many different kinds of utilities that are available.
And you kind of discussed having this boots on the ground experience. Now, because we're taking a look at the bulk of these are most likely energy based, fix? Mm-hmm (affirmative). The majority of the coins that I advise and look at are utility-based. We have a couple of cryptocurrencies, however I believe the genuine chance depends on the energy coin space.
There's all of these ICOs that were occurring, those decreased a little bit with some modifications to a few things that was going on, however individuals are going to come out of the woodwork and start to develop energy coins- Correct, yeah. And people require to understand that not all energy coins are developed equal.
So you have the benefit of devoting your profession to this, so you can go out there and do the recon, you can meet the creators, you can examine the code, etc. However for an average individual, there's now what, over 1,000 various types of coins available, practically 1,200 I think.
How do they do that? That's a fantastic concern. I will say that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with an awful concept, that somebody offers $40 million to. Right? Yeah, totally. So yeah, so I don't truly take part in lots of ICOs, and I suggest 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 typically it'll crash 80% approximately. And that's when we actually begin looking at the concept 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 solved? One of the big disadvantages with extremely smart, technical individuals, is that they like to fix problems that no one appreciates fixing.
Does the group have experience of performing in an effective way in another area of their life? And it does not even need to be straight related to cryptocurrency, it does not need to be even straight associated to software, right? So, however I want to see a performance history of success in something, right? If it's four people in a space 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 them any money.
Yeah. I believe that in marketing in general, my world of service, we constantly search for problems and how we can resolve them. Now, are the problems things that individuals are trying to resolve a part of the Blockchain generally? Or would you state it's much better if they're fixing 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 searching for solutions that, so I'll offer you an example.
And the reason that we bought it is since they discovered a method to make documents tamper-proof, and it's 99% more affordable 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 performance history of producing computer system programs that entire states run their entire operations on, right? So you have actually got fine, the smart person has developed huge computer programs, fantastic group, solving an enormous issue that is going to cut huge costs.
I imply, it does not get any easier than that in regards to choosing who to put cash behind. And a lot of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have an actually simple rule, Ryan. If I don't understand something, I put up my hand, and I say, "I didn't comprehend what you simply 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 most likely not an excellent 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 companies.
Ryan: So you have actually taken a look at business that are big business, you have actually assessed much bigger marketcap type situations. 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 nearly just sound judgment. You just need to sort of look at it and think logically about what's going on, and pull the feeling out? You need to pull the feeling out, and there are no standard metrics that you can look at.
Okay. What I can utilize that I found out from dealing with Wall Street across three decades, is how to check out individuals. I have actually met tens of countless individuals throughout my profession. I have actually met insiders; I have actually fulfilled fund managers, I have actually fulfilled stock promoters, I have actually fulfilled all these various kinds of characters along the way.
So I believe that's most likely one of my very powers, if you will. And if you've got a good BS detector, you ought to 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 know, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are a lot of other deals out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of chance, you know, you sort of mentioned at the start, Bitcoin and Ethereum, the majority of people have heard of these two, especially Bitcoin, due to the fact that it looks 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 almost upwards of $6,000 just recently; it's turned up from say $3,000 not too long earlier, it's rather unpredictable. Do they type of wait for a pullback, or do they just say, "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 concern.
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