So, a great deal of people 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 want to put in maybe the 20 minutes required to go through a process which simply takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, however gosh, establishing a crypto account is so hard." 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 entire cryptocurrency market will be 10x bigger. So you're actually really earning money a massive quantity of money to go through maybe, you know, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll have the ability to buy cryptocurrencies straight through your trading software. And can you picture what will occur to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you pointed out the process that people go through, and one thing I wish to expose too that you didn't discuss, however I know a lot of folks who have a hard time with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can just buy $500 a week.
As hard as possible, ideal, like Coinbase. It 'd take me forever before I could begin buying in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I suggest, it's if you keep in mind the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I indicate it would take 20 minutes to load 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 remain in the early days of that technology, however simply like throughout that amount of time, for the folks that had the vision to see where the future was going, and then bought in on some of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm constantly curious to speak with individuals who are, specifically someone like yourself, who's committed the last, you understand, the bulk of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like an average individual? That's a great concern.
They're 2 totally various things, however 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. Therefore what provides it worth is that it is, there's just going to be a minimal amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, verifying the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people continuously try to hack it. However since of the nature of the network, today it's been unhackable. And really, with current technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when people put, you have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We don't rely on paper money, you can print an unrestricted quantity of it. It's truly not secure, and the government can take it away from you." - Whereas with Bitcoin, ideal , proceed.
Yeah. Or individuals 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 example, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a driver for more adoption, since they currently 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 bumpy ride getting their head around. They resemble, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not require Bitcoin. But there are billions of people worldwide that do not have stable currencies.
Yeah. Therefore there's this whole burgeoning global 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 great deal of people learn about Ethereum. Ethereum is basically an international computer that you can compose computer programs for and run computer system programs on a worldwide decentralized computer program.
So we consider something like Ether an energy token, because you're essentially purchasing programs power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide people an idea, like a very easy 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 same type of network result that you have with Bitcoin, where it's like unstoppable kind of thing, because it's on so lots of different areas and. I don't understand the ins and outs of it, but as an example for somebody who may just be very fundamental in their understanding of this, there are a lot of different kinds of utilities 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, remedy? Mm-hmm (affirmative). The majority of the coins that I recommend and look at are utility-based. We have a few cryptocurrencies, however I believe the real chance lies in the energy coin space.
There's all of these ICOs that were happening, those slowed down a bit with some changes to a couple of things that was going on, but individuals are going to come out of the woodwork and start to produce utility coins- Correct, yeah. And individuals require to comprehend that not all utility coins are produced equivalent.
So you have the advantage of devoting your profession to this, so you can head out there and do the recon, you can satisfy the founders, you can examine the code, etc. But for a typical person, there's now what, over 1,000 various types of coins readily available, nearly 1,200 I believe.
How do they do that? That's an excellent question. I will say that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with a horrible concept, that someone provides $40 million to. Right? Yeah, absolutely. So yeah, so I don't actually participate in numerous ICOs, and I recommend you most likely side action that market, unless you've got an unique relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause usually it'll crash 80% approximately. And that's when we really start looking at the concept in more information. So here are some fast and unclean things that you should look at, right? So, one is, are they solving an issue that needs to be solved? Among the big downsides with very clever, technical people, is that they like to solve issues that no one cares about solving.
Does the group have experience of executing in a successful manner in another area of their life? And it does not even have to be directly associated to cryptocurrency, it doesn't need to be even directly associated to software application, 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 really good advisors behind them, I'm probably not going to provide any money.
Yeah. I think that in marketing in basic, my world of business, we constantly try to find problems and how we can resolve them. Now, are the issues things that people are attempting to resolve a part of the Blockchain generally? Or would you state it's much better if they're solving sort of a mass issue? Something like FileCoin, or something else that would be more mass appeal? Or is it a mix of both? Well I'm basically trying to find options that, so I'll offer you an example.
And the reason that we bought it is because they found a way to make files tamper-proof, and it's 99% less expensive than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that began it has a track record of creating computer programs that whole states run their entire operations on, right? So you've got fine, the clever person has developed substantial computer system programs, terrific team, solving a massive problem that is going to cut huge expenses.
I mean, it does not get any simpler than that in terms of deciding who to put money behind. And a great deal of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have an actually easy guideline, Ryan. If I do not understand something, I put up my hand, and I state, "I didn't understand what you simply said." Mm-hmm (affirmative).
And after that if the person that you're speaking to can't dumb it down enough where you understand it, then it's most likely not a good concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience examining companies and looking at much, much bigger business.
Ryan: So you have actually looked at business that are big companies, you've evaluated much bigger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you mentioned, it is almost just good sense. You just need to kind of appearance at it and believe logically about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no standard metrics that you can take a look at.
Okay. What I can use that I gained from working on Wall Street across three decades, is how to read individuals. I have actually fulfilled tens of countless individuals throughout my profession. I've satisfied insiders; I have actually satisfied fund supervisors, I've met stock promoters, I have actually met all these various types of characters along the method.
So I think that's most likely one of my super powers, if you will. And if you have actually got a great BS detector, you should listen to it. Okay. You must definitely 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 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 numerous other deals out there to look at. Yeah, there's too much chance. Yeah. And speaking of chance, you understand, you type of discussed at the beginning, Bitcoin and Ethereum, a lot of people have become aware of these two, especially Bitcoin, due to the fact that it appears 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 recently; it's come up from state $3,000 not too long ago, it's quite unstable. Do they sort of wait for a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in ten years." You understand? Yeah that's an excellent concern.
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