So, a lot of people find that too inconvenient, which's why individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: people that want to put in perhaps the 20 minutes needed to go through a procedure which just takes five minutes if you want to set up a brokerage account.
" Oh Teeka, we like your concepts, however gosh, setting up a crypto account is so tough." What I tell them is I state, "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 larger. So you're actually really getting paid a massive quantity of cash to go through perhaps, you know, 20 minutes of a discomfort in the neck.
So you can't buy Bitcoin yet through their trading platform, but it is simply a concern of time, Ryan, prior to you'll have the ability to buy cryptocurrencies directly through your trading software application. And can you envision what will occur to this entire market when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Right now you pointed out the process that people go through, and one thing I wish to expose too that you didn't discuss, but I understand a lot of folks who battle with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only buy $500 a week.
As difficult 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 suggest, it's if you remember the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I mean it would take 20 minutes to fill 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 technology, however similar to throughout that duration of time, for the folks that had the vision to see where the future was going, and after that 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 second, since I'm always curious to speak to people who are, specifically someone like yourself, who's devoted the last, you know, the bulk of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like an average person? That's an excellent concern.
They're 2 absolutely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to money. So Bitcoin would be a cryptocurrency. And so what gives 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, validating the transactions on the Bitcoin network. Therefore if you look at that Bitcoin network, people continuously try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And actually, 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 have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not trust fiat money, you can print an endless quantity of it. It's really not secure, and the federal government can take it far from you." - Whereas with Bitcoin, right , go on.
Yeah. Or individuals that remained in Cypress, or just individuals who have actually suffered through either run-away inflation, or there's a high need for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those countries that could potentially be a driver for more adoption, because they already do not believe in their own currency? Yeah, and I think we've currently seen that.
So yes, and this is a thing that a lot of American or Western financiers have a difficult time getting their head around. They resemble, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't require Bitcoin. But there are billions of people in the world that do not have steady currencies.
Yeah. Therefore there's this entire burgeoning worldwide demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are generally used, let's state Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially an international computer system that you can write computer system programs for and run computer system programs on an internationally decentralized computer program.
So we think about something like Ether an energy token, because you're basically buying shows power. So I would not really think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals an idea, 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 type of this exact same kind of network effect that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on many different locations and. I don't understand the ins and outs of it, however as an example for someone who might simply be extremely standard in their understanding of this, there are many various kinds of utilities that are readily available.
And you sort 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, remedy? Mm-hmm (affirmative). The majority of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, but I believe the real chance depends on the energy coin area.
There's all of these ICOs that were happening, those decreased a bit with some changes 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 need to understand that not all energy coins are developed equivalent.
So you have the benefit of devoting your profession to this, so you can head out there and do the recon, you can fulfill the creators, you can check the code, and so on. However for an average individual, there's now what, over 1,000 different kinds of coins offered, almost 1,200 I believe.
How do they do that? That's a fantastic concern. I will say that 95% of ICOs are either fraudulent or just bad concepts. 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, absolutely. So yeah, so I don't really take part in numerous ICOs, and I recommend you probably side step that market, unless you've got a special relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% or two. Which's when we actually begin looking at the idea in more information. So here are some quick and unclean things that you should look at, right? So, one is, are they solving a problem that needs to be fixed? Among the huge disadvantages with very wise, technical people, is that they like to fix problems that no one cares about solving.
Does the group have experience of performing in an effective manner in another location of their life? And it does not even need to be straight associated to cryptocurrency, it doesn't have to be even directly associated to software, right? So, but I want to see a track record of success in something, right? If it's 4 people in a space that are simply out of college, unless they've got some truly excellent consultants behind them, I'm probably not going to offer them any cash.
Yeah. I believe that in marketing in general, my world of service, we continuously try to find problems and how we can fix them. Now, are the issues things that people are trying to solve a part of the Blockchain normally? Or would you say it's much better if they're fixing sort 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 solutions that, so I'll give you an example.
And the reason that we bought it is due to the fact that they discovered a method to make documents tamper-proof, and it's 99% more affordable than existing innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that began it has a track record of producing computer programs that entire states run their entire operations on, right? So you've got fine, the wise person has actually built substantial computer programs, fantastic team, solving a huge issue that is going to cut substantial expenses.
I indicate, it does not get any easier than that in regards to deciding who to put cash behind. And a great deal of this prevails sense, and a lot of folks will attempt to make things more complicated than it is. And I have an actually simple rule, Ryan. If I do not comprehend 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 talking to can't dumb it down enough where you understand it, then it's probably not a good idea. Right, right. It's going to be easy to understand. And do you feel that you have years of experience assessing companies and taking a look at much, much larger companies.
Ryan: So you've looked at business that are big business, you have actually assessed much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you mentioned, it is nearly just common sense. You just have to type of look at it and believe rationally 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 look at.
Okay. What I can utilize that I learned from working on Wall Street across 3 decades, is how to check out individuals. I have actually satisfied 10s of countless individuals throughout my profession. I have actually met insiders; I've satisfied fund supervisors, I have actually satisfied stock promoters, I have actually met all these various types of characters along the method.
So I believe that's probably among my super powers, if you will. And if you've got an excellent BS detector, you should listen to it. Okay. You need to 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 simply; it's not sitting well 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 too much chance. Yeah. And speaking of opportunity, you understand, you type of discussed at the beginning, Bitcoin and Ethereum, many people have actually become aware of these two, especially Bitcoin, since it seems 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 recently; it's come up from say $3,000 not too long ago, it's quite unpredictable. Do they kind of await a pullback, or do they simply say, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in ten years." You know? Yeah that's an excellent question.
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