So, a great deal of individuals find that too bothersome, which's why individuals that are literally making the most amount of cash today in cryptocurrencies are the early adopters: people that are prepared to put in perhaps the 20 minutes required to go through a process which just takes five minutes if you want to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, however gosh, setting up a crypto account is so challenging." What I inform 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 in fact truly making money a huge quantity of money to go through possibly, 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, prior to you'll be able to purchase cryptocurrencies straight through your trading software application. And can you envision what will take place to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Today you discussed the process that individuals go through, and one thing I desire to expose too that you didn't discuss, but I understand a great deal of folks who fight 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 tough as possible, ideal, like Coinbase. It 'd take me forever prior to I might begin buying in size on Coinbase. They're like, well, we'll let you purchase $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 indicate 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 indicate, we remain in the early days of that technology, however similar to during that time period, 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 absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm always curious to speak with individuals who are, particularly 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 describe cryptocurrency to like an average person? That's a fantastic question.
They're 2 totally different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to money. So Bitcoin would be a cryptocurrency. Therefore what gives it worth is that it is, there's just going to be a restricted quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals constantly attempt to hack it. But since of the nature of the network, today it's been unhackable. And truly, with existing innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're saying, "We don't rely on fiat money, you can print an endless quantity of it. It's truly not protect, and the government can take it away from you." - Whereas with Bitcoin, right , go ahead.
Yeah. Or people that were in Cypress, or simply individuals who have suffered through either run-away inflation, or there's a high need for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those countries that could possibly 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 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 don't require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. However there are billions of people on the planet that do not have steady currencies.
Yeah. Therefore there's this entire burgeoning global demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are basically utilized, let's say Ethereum, which a great deal of people understand about Ethereum. Ethereum is essentially a worldwide computer that you can compose computer programs for and run computer system programs on a worldwide decentralized computer system program.
So we think about something like Ether an energy token, because you're basically purchasing programs power. So I would not truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer people a concept, like an extremely simple one that I would imagine you 'd called an utility token, is like FileCoin.
Where the idea 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, due to the fact that it's on many different areas and. I do not understand the ins and outs of it, but as an example for someone who might simply be extremely fundamental in their understanding of this, there are many different types of energies that are readily available.
And you sort of pointed out having this boots on the ground experience. Now, since we're looking at the bulk of these are probably utility based, remedy? Mm-hmm (affirmative). Many of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, but I believe the genuine chance lies in the energy coin area.
There's all of these ICOs that were happening, those decreased a little bit with some changes to a few things that was going on, however people are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And people need to understand that not all energy coins are produced equal.
So you have the benefit of committing your occupation to this, so you can head out there and do the recon, you can satisfy the founders, you can inspect the code, and so on. However for an average individual, there's now what, over 1,000 different kinds of coins readily available, practically 1,200 I believe.
How do they do that? That's a terrific question. I will say that 95% of ICOs are either deceitful or simply bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with an awful concept, that somebody provides $40 million to. Right? Yeah, completely. So yeah, so I don't truly take part in lots of ICOs, and I advise you most likely side action that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause typically it'll crash 80% or two. Which's when we really start looking at the concept in more information. So here are some fast and dirty things that you should take a look at, right? So, one is, are they solving a problem that needs to be resolved? Among the big drawbacks with extremely wise, technical individuals, is that they like to resolve problems that nobody cares about solving.
Does the team have experience of performing in an effective way in another area of their life? And it doesn't even have to be directly related to cryptocurrency, it doesn't need to be even straight associated to software application, right? So, however I desire to see a performance history of success in something, right? If it's 4 people in a space that are simply out of college, unless they've got some really excellent consultants behind them, I'm most likely not going to provide any money.
Yeah. I believe that in marketing in basic, my world of organization, we continuously search for issues and how we can solve them. Now, are the issues things that individuals are attempting to solve a part of the Blockchain usually? Or would you state 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 essentially looking for solutions that, so I'll provide you an example.
And the reason that we bought it is because they discovered a method to make documents tamper-proof, and it's 99% cheaper than current technology, 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 whole states run their whole operations on, right? So you've got alright, the wise man has actually built big computer system programs, terrific group, solving a massive problem that is going to cut huge costs.
I suggest, it doesn't get any easier than that in terms of deciding who to put money behind. And a great deal of this is typical sense, and a lot of folks will attempt to make things more complicated than it is. And I have an actually easy rule, Ryan. If I do not comprehend something, I set up my hand, and I say, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And then if the individual that you're speaking to can't dumb it down enough where you understand it, then it's probably not a good concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience assessing business and looking at much, much larger business.
Ryan: So you've taken a look at business that are huge business, you've assessed much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you mentioned, it is almost simply sound judgment. You simply need to kind of look at it and think reasonably 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 use that I gained from working on Wall Street across three decades, is how to check out individuals. I've fulfilled tens of thousands of individuals throughout my career. I've satisfied experts; I've met fund managers, I've met stock promoters, I have actually satisfied all these various kinds of characters along the way.
So I think that's probably among my very powers, if you will. And if you have actually got a great BS detector, you must listen to it. Okay. You need to definitely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually 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 many other deals out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you type of pointed out at the start, Bitcoin and Ethereum, the majority of people have actually become aware 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 failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 just recently; it's come up from say $3,000 not too long ago, it's quite volatile. Do they sort of wait on a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You understand? Yeah that's a great concern.
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