So, a lot of individuals discover that too troublesome, and that's why the people that are literally making the most amount of money today in cryptocurrencies are the early adopters: people that are willing to put in maybe the 20 minutes needed to go through a process which just takes 5 minutes if you want to set up a brokerage account.
" Oh Teeka, we love your concepts, but gosh, setting up a crypto account is so difficult." What I tell them is I say, "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 bigger. So you're actually really getting paid a huge amount of cash to go through maybe, you understand, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a concern of time, Ryan, before you'll be able to buy cryptocurrencies directly through your trading software application. And can you picture what will occur to this whole marketplace when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you discussed the procedure that individuals go through, and something I want to bring to light too that you didn't discuss, but I know a lot of folks who battle with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can only purchase $500 a week.
As challenging as possible, best, like Coinbase. It 'd take me forever before I could begin purchasing in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I mean, it's if you keep in mind the early days of the Internet, when we were getting on the Internet, we were doing it with 56k modems, right? I imply 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 suggest, we remain in the early days of that technology, but simply like during 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 absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, because I'm constantly curious to speak to people who are, specifically somebody like yourself, who's devoted the last, you know, the better part of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like an average individual? That's a great concern.
They're two totally different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to money. So Bitcoin would be a cryptocurrency. Therefore what offers it value is that it is, there's just going to be a minimal quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the deals on the Bitcoin network. And so if you look at that Bitcoin network, individuals constantly try to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And truly, with current innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
And so 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 do not rely on paper currency, you can print an unlimited quantity of it. It's truly not secure, and the government can take it far from you." - Whereas with Bitcoin, best , 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 demand for, in Argentina for instance, 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 already do not think in their own currency? Yeah, and I think we've already seen that.
So yes, and this is a thing that a great deal of American or Western financiers have a tough time getting their head around. They resemble, "Well I do not need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. But there are billions of people on the planet that do not have steady currencies.
Yeah. Therefore there's this entire growing international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are generally utilized, let's state Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is basically an international computer that you can write computer system programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an utility token, due to the fact that you're basically purchasing programming power. So I would not 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 an extremely easy one that I would picture you 'd called an energy token, is like FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's type of this same type of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on numerous different locations and. I do not know the ins and outs of it, however as an example for somebody who might just be really standard in their understanding of this, there are a lot of different kinds of utilities that are available.
And you type of mentioned having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a few cryptocurrencies, but I believe the genuine chance lies in the utility coin area.
There's all of these ICOs that were happening, those slowed down a little bit with some modifications to a couple of things that was going on, but people are going to come out of the woodwork and start to create energy coins- Correct, yeah. And individuals require to comprehend that not all energy coins are created equivalent.
So you have the advantage of committing your occupation to this, so you can head out there and do the reconnaissance, you can meet the creators, you can check the code, and so on. However for a typical person, 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 deceptive or just bad ideas. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with a horrible concept, that someone offers $40 million to. Right? Yeah, completely. So yeah, so I don't really participate in many ICOs, and I recommend you probably side action that market, unless you have actually got an unique relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause generally it'll crash 80% or so. And that's when we actually begin taking a look at the idea in more detail. So here are some quick 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 smart, technical people, is that they like to solve problems that nobody cares about resolving.
Does the group have experience of performing in a successful manner in another area of their life? And it doesn't even need to be directly associated to cryptocurrency, it doesn't have to be even straight related to software, right? So, but I wish to see a track record of success in something, right? If it's four guys in a room that are simply out of college, unless they have actually got some truly excellent advisors behind them, I'm probably not going to provide any money.
Yeah. I believe that in marketing in basic, my world of organization, we continuously try to find issues and how we can solve them. Now, are the issues things that individuals are trying to fix a part of the Blockchain normally? Or would you state it's better if they're fixing sort 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 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 files tamper-proof, and it's 99% more affordable than current technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the guy that began it has a track record of developing computer programs that entire states run their entire operations on, right? So you have actually got okay, the wise man has constructed big computer system programs, excellent team, resolving an enormous issue that is going to cut huge expenses.
I suggest, it doesn't get any simpler than that in regards to choosing who to put cash behind. And a great deal of this is common sense, and a lot of folks will attempt to make things more complex than it is. And I have a truly simple guideline, Ryan. If I don't comprehend something, I installed 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 comprehend it, then it's most likely not an excellent concept. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience examining business and taking a look at much, much larger business.
Ryan: So you've looked at companies that are big companies, you've assessed much larger 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 nearly simply good sense. You simply have to sort of take a look at it and believe 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 discovered from working on Wall Street throughout 3 years, is how to read people. I've fulfilled tens of thousands of people throughout my profession. I have actually fulfilled experts; I have actually fulfilled fund managers, I've met stock promoters, I've met all these different types of characters along the method.
So I believe that's probably among my very powers, if you will. And if you've got a great BS detector, you must listen to it. Okay. You must absolutely 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 know, there's just; it's not agreeing 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 understand, you kind of discussed at the start, Bitcoin and Ethereum, the majority of people have actually heard of these 2, particularly Bitcoin, due to the fact that it appears like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading nearly upwards of $6,000 just recently; it's turned up from state $3,000 not too long back, it's quite volatile. Do they sort of wait on a pullback, or do they simply state, "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 question.
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