So, a great deal of people discover that too troublesome, which's why the individuals that are literally making the most amount of money right now in cryptocurrencies are the early adopters: people that are ready to put in possibly the 20 minutes required to go through a process which just takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we enjoy your ideas, however gosh, establishing a crypto account is so hard." 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 earning money a huge amount of cash to go through perhaps, you understand, 20 minutes of a discomfort in the neck.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a concern of time, Ryan, prior to you'll have the ability to buy cryptocurrencies straight through your trading software application. And can you envision what will happen to this entire market when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the process that people go through, and something I wish to bring to light too that you didn't point out, but I understand a lot of folks who fight with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can only purchase $500 a week.
As challenging as possible, best, like Coinbase. It 'd take me permanently prior to I could start purchasing in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I mean, it's if you keep in mind the early days of the Web, when we were getting on the Web, we were doing it with 56k modems, right? I imply 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 imply, we're in the early days of that innovation, however much like during that amount 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 business, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since 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 actually go both feet in on this. How do you explain cryptocurrency to like an average person? That's a fantastic concern.
They're 2 completely various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an option to cash. So Bitcoin would be a cryptocurrency. And so what offers it worth is that it is, there's just going to be a limited quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. And so if you 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 actually, with current technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We don't rely on fiat money, you can print a limitless quantity of it. It's really not protect, and the federal government can take it far from you." - Whereas with Bitcoin, right , go on.
Yeah. Or individuals that remained in Cypress, or simply people who have suffered through either hyperinflation, or there's a high demand for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those nations that could potentially be a driver for more adoption, since they currently do not believe in their own currency? Yeah, and I believe we have actually currently seen that.
So yes, and this is a thing that a great deal of American or Western investors have a hard 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 stable currency, right? You do not require Bitcoin. But there are billions of individuals in the world that do not have stable currencies.
Yeah. Therefore there's this entire blossoming international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are basically used, let's say Ethereum, which a lot of individuals learn about Ethereum. Ethereum is basically a worldwide computer that you can write computer system programs for and run computer system programs on an internationally decentralized computer program.
So we consider something like Ether an utility token, because you're essentially buying programming power. So I would not actually think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give individuals an idea, like an extremely basic one that I would imagine you 'd called an energy token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's sort of this same kind of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on a lot of various locations and. I do not understand the ins and outs of it, but as an example for somebody who may simply be extremely basic in their understanding of this, there are many different kinds of utilities that are available.
And you sort of discussed having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably utility 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, but I think the real opportunity lies in the energy coin space.
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 individuals are going to come out of the woodwork and begin to produce energy coins- Correct, yeah. And people need to comprehend that not all energy coins are developed equal.
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. But for a typical individual, there's now what, over 1,000 various kinds of coins available, almost 1,200 I believe.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's nothing worse than somebody that's young, earnest, with an awful idea, that someone offers $40 million to. Right? Yeah, absolutely. So yeah, so I don't actually participate in numerous 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 after that blow it out when it trades.
'Cause normally it'll crash 80% or so. Which's when we actually begin looking at the idea in more detail. So here are some quick and unclean things that you should look at, right? So, one is, are they resolving a problem that needs to be fixed? Among the huge downsides with very smart, technical individuals, is that they like to solve problems that no one cares about solving.
Does the team have experience of executing in a successful manner in another location of their life? And it does not even need to be straight related to cryptocurrency, it doesn't need to be even straight related to software, right? So, however I wish to see a track record of success in something, right? If it's 4 guys in a room that are just out of college, unless they have actually got some actually great consultants behind them, I'm probably not going to offer them any money.
Yeah. I think that in marketing in basic, my world of company, 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 generally? Or would you say it's much better if they're resolving 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 searching for services 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 present technology, 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 track record of creating computer system programs that whole states run their entire operations on, right? So you have actually got okay, the smart person has actually constructed big computer programs, great team, fixing an enormous problem that is going to cut substantial expenses.
I suggest, it does not get any easier than that in regards to deciding who to put cash behind. And a lot of this is typical sense, and a great deal of folks will attempt to make things more complex than it is. And I have a really 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 after that if the individual that you're talking to can't dumb it down enough where you comprehend it, then it's most likely not a great concept. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience examining companies and taking a look at much, much larger business.
Ryan: So you've looked at companies that are huge companies, you've examined much bigger marketcap type situations. 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 just good sense. You just need to kind of take a look at it and think reasonably about what's going on, and pull the emotion out? You need to pull the emotion out, and there are no conventional metrics that you can look at.
Okay. What I can utilize that I learned from working on Wall Street throughout three years, is how to read people. I've satisfied tens of countless individuals throughout my career. I've satisfied experts; I have actually satisfied fund managers, I've fulfilled stock promoters, I have actually fulfilled all these different kinds of characters along the method.
So I think that's probably one of my very powers, if you will. And if you have actually got a great BS detector, you ought to listen to it. Okay. You ought to definitely listen to it. If I'm taking a seat and I'm talking with someone, and they have actually got all the bonifides, however you understand, there's just; it's not sitting well with me, there's something about them that's not sitting well with me.
There are so numerous other offers out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you understand, you sort of discussed at the start, Bitcoin and Ethereum, most people have become aware of these two, especially Bitcoin, since it looks like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading nearly upwards of $6,000 just recently; it's turned up from say $3,000 not too long back, it's quite unstable. Do they sort of await a pullback, or do they simply say, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a great question.
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