So, a lot of people find that too inconvenient, which's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: people that are willing to put in possibly the 20 minutes required to go through a process which simply takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we like your concepts, however gosh, setting up a crypto account is so difficult." 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 bigger. So you're in fact truly making money a massive amount of cash to go through perhaps, you know, 20 minutes of a pain in the neck.
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 straight through your trading software. And can you envision what will occur to this whole market when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you pointed out the process that individuals go through, and something I want to bring to light too that you didn't point out, however I know a lot of folks who fight with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can just buy $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me permanently before I could begin buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I suggest, 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 imply 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 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 some of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm always curious to talk to individuals who are, especially someone like yourself, who's dedicated the last, you know, 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 individual? That's a terrific question.
They're 2 absolutely different 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. And so what gives it worth is that it is, there's only going to be a minimal quantity. 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, individuals constantly attempt to hack it. However since of the nature of the network, today it's been unhackable. And actually, with present technology, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
And so when individuals 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 cash, you can print an unrestricted amount of it. It's actually not protect, and the government can take it far from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or individuals that were in Cypress, or simply people who have actually suffered through either devaluation, 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 catalyst for more adoption, due to the fact that they currently do not believe in their own currency? Yeah, and I believe we've currently seen that.
So yes, and this is a thing that a lot of American or Western financiers have a bumpy ride getting their head around. They're like, "Well I don't need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. But there are billions of individuals on the planet that do not have steady currencies.
Yeah. And so there's this whole burgeoning international demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are generally utilized, let's say Ethereum, which a lot of individuals know about Ethereum. Ethereum is basically a worldwide computer system that you can write computer system programs for and run computer system programs on a globally decentralized computer system program.
So we think about something like Ether an utility token, due to the fact that you're basically purchasing programming power. So I wouldn't really consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer individuals a concept, like a really simple one that I would picture you 'd called an energy token, resembles FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's kind of this very same type of network impact that you have with Bitcoin, where it's like unstoppable example, because it's on numerous different locations and. I do not understand the ins and outs of it, however as an example for someone who might just be really fundamental in their understanding of this, there are numerous different kinds of energies that are offered.
And you type of discussed having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, however I believe the genuine opportunity depends on the energy coin space.
There's all of these ICOs that were happening, those decreased a little bit with some modifications to a couple of things that was going on, but individuals are going to come out of the woodwork and begin to develop energy coins- Correct, yeah. And individuals require to understand that not all energy coins are produced equal.
So you have the advantage of dedicating your profession to this, so you can head out there and do the reconnaissance, you can satisfy the founders, you can examine the code, etc. But for a typical person, there's now what, over 1,000 various kinds of coins readily available, almost 1,200 I think.
How do they do that? That's an excellent concern. 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 a terrible idea, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I do not truly participate in numerous ICOs, and I recommend you most likely side step that market, unless you've got a special relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause usually it'll crash 80% or so. Which's when we really begin taking a look at the idea in more detail. So here are some fast and unclean things that you should take a look at, right? So, one is, are they resolving a problem that needs to be fixed? One of the huge downsides with very wise, technical individuals, is that they like to solve issues that nobody cares about fixing.
Does the group have experience of executing in an effective manner in another location of their life? And it does not even have to be directly associated to cryptocurrency, it doesn't have to be even directly associated to software, right? So, but I wish to see a performance history of success in something, right? If it's four people in a space that are simply out of college, unless they have actually got some truly great consultants behind them, I'm most likely not going to offer them any cash.
Yeah. I believe that in marketing in basic, my world of business, we constantly try to find issues and how we can fix them. Now, are the issues things that individuals 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 issue? 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 services that, so I'll give you an example.
And the factor that we bought it is since they discovered a way to make files tamper-proof, and it's 99% cheaper than present innovation, 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 track record of creating computer programs that entire states run their entire operations on, right? So you've got alright, the clever person has developed substantial computer system programs, excellent group, solving a massive issue that is going to cut big expenses.
I indicate, it does not get any easier than that in terms of choosing who to put cash behind. And a lot of this prevails sense, and a lot of folks will try to make things more complex than it is. And I have an actually easy guideline, Ryan. If I do not comprehend something, I put up my hand, and I say, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And then if the individual that you're talking with 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 easy to comprehend. And do you feel that you have years of experience examining companies and taking a look at much, much bigger business.
Ryan: So you have actually looked at companies 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, type of the infancy, that as you discussed, it is almost simply typical sense. You simply need to kind of take a look at it and think rationally 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 dealing with Wall Street across three decades, is how to check out individuals. I've met 10s of countless people throughout my career. I've satisfied insiders; I have actually met fund supervisors, I've fulfilled stock promoters, I've satisfied all these various kinds of characters along the way.
So I think that's most likely one of my very powers, if you will. And if you have actually got a good BS detector, you ought to listen to it. Okay. You should definitely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, but you know, there's simply; it's not sitting well with me, there's something about them that's not sitting well with me.
There are numerous other deals out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you understand, you sort of discussed at the beginning, Bitcoin and Ethereum, the majority of people have actually become aware of these 2, particularly Bitcoin, since it seems like it's 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 turned up from state $3,000 not too long ago, it's rather volatile. Do they sort of await 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 know? Yeah that's a fantastic concern.
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