So, a lot of people find that too inconvenient, and that's why the individuals that are literally making the most amount of money right now in cryptocurrencies are the early adopters: individuals that are ready to put in possibly the 20 minutes needed to go through a process which simply takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we love your concepts, but gosh, setting up a crypto account is so challenging." What I tell them is I state, "Look, when it's simple 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 truly making money a huge amount of cash to go through perhaps, you understand, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, but it is just a question of time, Ryan, before you'll have the ability to buy cryptocurrencies directly through your trading software application. And can you picture what will happen to this whole marketplace when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that individuals go through, and something I wish to expose too that you didn't mention, however I know a lot of folks who battle with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can only buy $500 a week.
As difficult as possible, ideal, like Coinbase. It 'd take me permanently prior to I might begin buying in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I mean, it's if you remember the early days of the Web, when we were getting on the Internet, we were doing it with 56k modems, right? I suggest 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 mean, we remain in the early days of that technology, however much like throughout that amount of time, for the folks that had the vision to see where the future was going, and then purchased in on a few of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, due to the fact that I'm constantly curious to speak with people who are, especially someone like yourself, who's committed the last, you understand, the lion's share of the last few years to truly go both feet in on this. How do you explain cryptocurrency to like a typical 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 option to money. So Bitcoin would be a cryptocurrency. Therefore what offers it value is that it is, there's just going to be a limited amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, individuals constantly attempt to hack it. However because of the nature of the network, today it's been unhackable. And truly, with current technology, the Bitcoin network is so huge 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 actually 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 a limitless amount of it. It's actually not protect, and the government can take it far from you." - Whereas with Bitcoin, right , go on.
Yeah. Or people that were 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 catalyst for more adoption, due to the fact that they already do not think 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 investors have a difficult time getting their head around. They resemble, "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. But there are billions of people in the world that do not have steady currencies.
Yeah. Therefore there's this whole growing international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are basically used, let's state Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is basically an international computer that you can write computer programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an energy token, since you're essentially purchasing programming power. So I wouldn't actually consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer people a concept, like a very easy one that I would envision you 'd called an utility token, is like FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's type of this same type of network effect that you have with Bitcoin, where it resembles unstoppable example, because it's on numerous various locations and. I don't know the ins and outs of it, but as an example for someone who might just be really standard in their understanding of this, there are many various kinds of energies that are offered.
And you kind of mentioned having this boots on the ground experience. Now, because we're looking at the bulk of these are probably utility based, correct? 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 lies in the utility coin area.
There's all of these ICOs that were taking place, those decreased a little 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 produce utility coins- Correct, yeah. And people need to comprehend that not all energy coins are created equivalent.
So you have the benefit of committing your occupation to this, so you can go out there and do the recon, you can meet the founders, you can inspect the code, and so on. But for a typical person, there's now what, over 1,000 different kinds of coins readily available, almost 1,200 I think.
How do they do that? That's a fantastic question. I will say that 95% of ICOs are either fraudulent or just bad ideas. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with an awful idea, that someone provides $40 million to. Right? Yeah, completely. So yeah, so I don't actually take part in many ICOs, and I recommend you most likely side action 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 generally it'll crash 80% approximately. Which's when we truly start taking a look at the idea 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 solved? Among the big drawbacks with really clever, technical individuals, is that they like to fix problems that no one appreciates fixing.
Does the team have experience of carrying out in an effective manner in another location of their life? And it does not even need to be directly related to cryptocurrency, it doesn't need to be even directly associated to software application, right? So, but I want to see a track record of success in something, right? If it's 4 men in a space that are simply out of college, unless they've got some actually good consultants behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in basic, my world of company, we constantly search for problems and how we can resolve them. Now, are the issues things that people are attempting to resolve a part of the Blockchain normally? Or would you say it's better if they're resolving 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 searching for solutions that, so I'll provide you an example.
And the factor that we purchased it is due to the fact that they found a way to make files tamper-proof, and it's 99% less expensive than present technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the guy that started it has a performance history of creating computer system programs that whole states run their whole operations on, right? So you have actually got all right, the wise person has actually built big computer programs, fantastic group, solving an enormous problem that is going to cut huge costs.
I imply, it doesn't get any simpler than that in terms of choosing who to put money behind. And a lot of this prevails sense, and a lot of folks will attempt to make things more complicated than it is. And I have a truly simple rule, Ryan. If I do not understand something, I installed my hand, and I state, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And after that if the individual that you're speaking to can't dumb it down enough where you comprehend it, then it's most likely not a good concept. Right, right. It's going to be simple to understand. And do you feel that you have years of experience examining business and taking a look at much, much larger companies.
Ryan: So you have actually looked at business that are huge companies, you've examined much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you discussed, it is nearly simply sound judgment. You just need to type of appearance at it and think rationally about what's going on, and pull the emotion out? You have to pull the feeling out, and there are no conventional metrics that you can take a look at.
Okay. What I can utilize that I found out from working on Wall Street throughout three decades, is how to check out people. I've fulfilled 10s of countless individuals throughout my career. I've met experts; I have actually met fund managers, I have actually fulfilled stock promoters, I've satisfied all these different types of characters along the way.
So I think that's most likely among my super powers, if you will. And if you've got an excellent BS detector, you ought to 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've got all the bonifides, however you understand, there's simply; it's not sitting well with me, there's something about them that's not agreeing with me.
There are so many other offers out there to look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you understand, you kind of mentioned at the start, Bitcoin and Ethereum, the majority of people have become aware of these 2, especially Bitcoin, due to the fact that it seems like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading nearly upwards of $6,000 recently; it's shown up from state $3,000 not too long earlier, it's rather unstable. Do they type of wait for a pullback, or do they just state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's an excellent concern.
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