So, a great deal of people discover 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 maybe the 20 minutes required to go through a process which just takes 5 minutes if you desire to establish a brokerage account.
" Oh Teeka, we love your concepts, but gosh, establishing a crypto account is so difficult." 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 entire cryptocurrency market will be 10x larger. So you're actually truly getting paid a massive quantity of cash to go through perhaps, you understand, 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 be able to buy cryptocurrencies straight through your trading software application. And can you envision what will take place to this whole market when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Right now you discussed the process that people go through, and one thing I want to expose too that you didn't discuss, however I know a great deal of folks who have problem 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 challenging as possible, right, like Coinbase. It 'd take me permanently before I might begin buying in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I indicate, 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 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 suggest, we're 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 then bought in on a few of these young business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, because I'm constantly curious to talk with individuals who are, specifically someone like yourself, who's dedicated the last, you understand, the lion's share 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 a fantastic question.
They're two totally various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to cash. So Bitcoin would be a cryptocurrency. And so what gives it value is that it is, there's only going to be a minimal quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals continuously try to hack it. However because 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.
Therefore when individuals put, you have actually got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We do not trust fiat money, you can print a limitless quantity of it. It's truly not secure, and the government can take it far from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or individuals that were in Cypress, or just people who have suffered through either hyperinflation, or there's a high need for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a driver for more adoption, because they currently do not think in their own currency? Yeah, and I think we've already seen that.
So yes, and this is a thing that a great deal of American or Western investors 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 steady currency, right? You do not need Bitcoin. However there are billions of individuals on the planet that do not have stable currencies.
Yeah. And so there's this entire blossoming international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are essentially used, let's say Ethereum, which a lot of individuals know about Ethereum. Ethereum is essentially a worldwide computer that you can write computer programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an utility token, since you're basically purchasing programming power. So I wouldn't truly consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer people an idea, like a very simple one that I would picture you 'd called an utility token, resembles FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's sort of this exact same kind of network result that you have with Bitcoin, where it's like unstoppable kind of thing, because it's on numerous different locations and. I don't understand the ins and outs of it, but as an example for someone who might simply be really fundamental in their understanding of this, there are numerous various kinds of energies that are readily available.
And you sort of pointed out having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). The majority 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 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, however individuals are going to come out of the woodwork and start to create utility coins- Correct, yeah. And people need to understand that not all energy coins are developed equal.
So you have the advantage of committing your profession to this, so you can go out there and do the reconnaissance, you can fulfill the founders, you can examine the code, etc. But for a typical individual, there's now what, over 1,000 different types of coins offered, nearly 1,200 I think.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's nothing even worse than someone that's young, earnest, with an awful concept, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I don't actually take part in lots of ICOs, and I recommend you most likely side step that market, unless you have actually got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause normally it'll crash 80% or two. Which's when we actually begin looking 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 fixing an issue that needs to be resolved? Among the huge downsides with really clever, technical individuals, is that they like to solve problems that nobody appreciates resolving.
Does the group have experience of performing in a successful way in another area of their life? And it does not even need to be straight associated to cryptocurrency, it does not need to be even directly associated to software application, right? So, but I desire to see a track record of success in something, right? If it's four guys in a space that are simply out of college, unless they have actually got some actually good advisors behind them, I'm most likely not going to give them any money.
Yeah. I think that in marketing in basic, my world of organization, we continuously try to find problems and how we can solve them. Now, are the issues things that individuals are attempting to solve a part of the Blockchain typically? Or would you say it's much better if they're fixing 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 looking for services that, so I'll offer you an example.
And the reason that we bought it is due to the fact that they discovered a way to make files tamper-proof, and it's 99% less expensive than current innovation, 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 developing computer programs that entire states run their whole operations on, right? So you've got fine, the wise guy has actually developed huge computer programs, terrific team, resolving a huge problem that is going to cut big costs.
I indicate, it does not get any easier than that in regards to choosing who to put money behind. And a great deal of this prevails sense, and a lot of folks will try to make things more complicated than it is. And I have an actually basic rule, Ryan. If I do not understand something, I set up my hand, and I state, "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 comprehend it, then it's most likely not a good idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience examining business and looking at much, much bigger companies.
Ryan: So you've taken a look at business that are huge business, you have actually evaluated much larger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you discussed, it is nearly simply typical sense. You just need to sort of take a look at it and think rationally about what's going on, and pull the emotion out? You need to pull the emotion out, and there are no traditional metrics that you can take a look at.
Okay. What I can utilize that I gained from dealing with Wall Street across 3 years, is how to read individuals. I've satisfied 10s of countless individuals throughout my career. I have actually met experts; I've satisfied fund supervisors, I've fulfilled stock promoters, I have actually satisfied all these different types of characters along the way.
So I believe that's most likely among my extremely powers, if you will. And if you have actually got a great BS detector, you ought to listen to it. Okay. You must 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 just; it's not sitting well with me, there's something about them that's not agreeing with me.
There are a lot of other deals out there to look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you sort of pointed out at the start, Bitcoin and Ethereum, many people have heard of these 2, particularly Bitcoin, because it appears like it's 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 back, it's quite unpredictable. Do they sort 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 ten years." You understand? Yeah that's an excellent question.
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