So, a great deal of individuals discover that too bothersome, which's why the people that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: people that are ready to put in perhaps 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 like your concepts, but gosh, establishing a crypto account is so difficult." What I tell them is I say, "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 actually really getting paid a huge quantity of cash to go through possibly, you know, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before 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 buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Right now you pointed out the process that people go through, and one thing I want to bring to light too that you didn't mention, but I understand a lot of folks who have problem with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can only buy $500 a week.
As difficult as possible, ideal, like Coinbase. It 'd take me permanently prior to I could 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 Internet, we were doing it with 56k modems, right? I indicate 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 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 absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a second, due to the fact that I'm always curious to speak to people who are, specifically someone like yourself, who's dedicated the last, you understand, the better part of the last couple of years to actually go both feet in on this. How do you explain cryptocurrency to like an average person? That's a great question.
They're 2 totally various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what gives it worth is that it is, there's only going to be a limited 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. And so if you look at that Bitcoin network, people constantly try to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And really, with present innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when people put, you've got people who have literally 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 unrestricted amount of it. It's actually not protect, and the government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or individuals that were in Cypress, or just individuals who have actually suffered through either hyperinflation, or there's a high demand for, in Argentina for example, high need 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 think in their own currency? Yeah, and I believe we have actually 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 resemble, "Well I do not require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't require Bitcoin. However there are billions of people worldwide that don't have steady currencies.
Yeah. Therefore there's this entire burgeoning worldwide demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are basically utilized, let's say Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is essentially an international computer system that you can write computer programs for and run computer programs on a worldwide decentralized computer program.
So we consider something like Ether an energy token, due to the fact that you're essentially buying shows power. So I wouldn't actually consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give individuals a concept, like a really basic one that I would picture you 'd called an utility token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's kind of this same type of network effect that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on a lot of various locations and. I don't understand the ins and outs of it, but as an example for someone who may simply be really basic in their understanding of this, there are many different types of energies that are readily available.
And you type of discussed having this boots on the ground experience. Now, because we're looking at the bulk of these are probably utility based, correct? 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 genuine chance lies in the energy coin area.
There's all of these ICOs that were occurring, those slowed down a bit with some modifications to a couple of things that was going on, however people are going to come out of the woodwork and start to create utility coins- Correct, yeah. And individuals need to comprehend that not all utility coins are created equal.
So you have the benefit of devoting your profession to this, so you can head out there and do the reconnaissance, you can meet the creators, you can inspect the code, etc. However 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 a great concern. I will say that 95% of ICOs are either deceptive or just bad ideas. Okay. Right? There's nothing even worse than someone that's young, earnest, with an awful idea, that someone offers $40 million to. Right? Yeah, totally. So yeah, so I do not actually take part in many 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 normally it'll crash 80% approximately. Which's when we actually start looking at the concept in more detail. So here are some quick and dirty things that you should take a look at, right? So, one is, are they solving a problem that requires to be solved? Among the huge disadvantages with really clever, technical people, is that they like to resolve issues that no one appreciates solving.
Does the group have experience of performing in a successful way in another area of their life? And it doesn't even have to be straight associated to cryptocurrency, it does not need to be even directly related to software, right? So, however I wish to see a performance history of success in something, right? If it's 4 men in a room that are simply out of college, unless they've got some really excellent advisors behind them, I'm probably not going to provide any cash.
Yeah. I think that in marketing in general, my world of business, we continuously search for problems and how we can resolve them. Now, are the issues things that individuals are attempting to fix a part of the Blockchain normally? Or would you say it's much 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 basically trying to find options that, so I'll offer you an example.
And the factor that we bought it is due to the fact that they found a way to make documents tamper-proof, and it's 99% cheaper than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that started it has a track record of producing computer programs that whole states run their entire operations on, right? So you've got okay, the wise guy has actually developed huge computer system programs, fantastic team, fixing an enormous problem that is going to cut huge expenses.
I indicate, it does not get any simpler than that in regards to deciding who to put cash behind. And a great deal of this prevails sense, and a lot of folks will attempt to make things more complicated than it is. And I have a truly basic guideline, Ryan. If I do not comprehend something, I installed my hand, and I say, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And after that if the person that you're speaking with can't dumb it down enough where you understand it, then it's probably not an excellent idea. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience evaluating companies and looking at much, much bigger companies.
Ryan: So you've looked at companies that are huge business, you've examined much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you mentioned, it is nearly just sound judgment. You simply need to kind of take a look at it and think reasonably about what's going on, and pull the feeling out? You have to pull the feeling out, and there are no conventional metrics that you can look at.
Okay. What I can utilize that I gained from working on Wall Street throughout three years, is how to check out individuals. I have actually satisfied 10s of countless individuals throughout my profession. I've met experts; I have actually satisfied fund managers, I've fulfilled stock promoters, I have actually met all these various types of characters along the method.
So I believe that's most likely one of my extremely powers, if you will. And if you have actually got a good BS detector, you ought to listen to it. Okay. You must absolutely listen to it. If I'm sitting down and I'm talking with somebody, 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 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 opportunity, you understand, you type of discussed at the beginning, Bitcoin and Ethereum, the majority of people have heard of these two, particularly Bitcoin, since 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 nearly upwards of $6,000 just recently; it's turned up from say $3,000 not too long earlier, it's rather unpredictable. Do they type 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 10 years." You know? Yeah that's a great concern.
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