So, a lot of people find that too troublesome, which's why the people that are actually making the most amount of money right now in cryptocurrencies are the early adopters: individuals that are ready to put in perhaps the 20 minutes required to go through a process which simply takes 5 minutes if you want to set up a brokerage account.
" Oh Teeka, we love your ideas, but gosh, setting up a crypto account is so tough." What I inform them is I say, "Look, when it's easy as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The whole cryptocurrency market will be 10x larger. So you're actually really getting paid a huge quantity of money to go through maybe, you understand, 20 minutes of a nuisance.
So you can't buy Bitcoin yet through their trading platform, but it is simply a concern of time, Ryan, before you'll be able to purchase cryptocurrencies straight through your trading software. And can you envision what will happen to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the process that people go through, and one thing I want to bring to light too that you didn't point out, however I understand a lot of folks who fight with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only purchase $500 a week.
As hard as possible, ideal, like Coinbase. It 'd take me permanently prior to I might begin buying in size on Coinbase. They're like, well, we'll let you buy $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 remain in the early days of that technology, however similar to during that time period, for the folks that had the vision to see where the future was going, and then bought in on a few of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since I'm constantly curious to speak to individuals who are, specifically someone like yourself, who's dedicated the last, you understand, the much better part of the last couple of years to truly go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a terrific concern.
They're two completely various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to money. So Bitcoin would be a cryptocurrency. And so what offers it worth is that it is, there's just going to be a limited amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the transactions on the Bitcoin network. Therefore if you look at that Bitcoin network, people continuously try to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And actually, with current technology, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
Therefore when people put, you've got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We don't rely on paper cash, you can print an endless quantity of it. It's really not secure, and the government can take it far from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or individuals that remained in Cypress, or simply people who have actually 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 possibly be a catalyst for more adoption, due to the fact that they currently don't think in their own currency? Yeah, and I believe we have actually already seen that.
So yes, and this is a thing that a lot of American or Western investors have a hard time getting their head around. They resemble, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of individuals on the planet that do not have steady currencies.
Yeah. Therefore there's this whole blossoming international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are basically utilized, let's state Ethereum, which a lot of individuals learn about Ethereum. Ethereum is essentially an international computer that you can write computer system 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 buying programming 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 offer people an idea, like a really simple one that I would picture you 'd called an utility token, is like FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's sort of this same kind of network effect 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 don't know the ins and outs of it, however as an example for someone who may just be extremely standard in their understanding of this, there are so numerous various kinds of utilities that are offered.
And you type of discussed having this boots on the ground experience. Now, considering that we're looking at the bulk of these are most likely energy 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, however I think the real chance depends on the utility coin space.
There's all of these ICOs that were happening, those slowed down a bit with some modifications to a few things that was going on, but people are going to come out of the woodwork and begin to develop energy coins- Correct, yeah. And people require to comprehend that not all utility coins are created 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 check the code, and so on. But for an average person, there's now what, over 1,000 various kinds of coins available, practically 1,200 I think.
How do they do that? That's a fantastic concern. I will say that 95% of ICOs are either deceptive or just bad ideas. Okay. Right? There's nothing worse than someone that's young, earnest, with a dreadful idea, that somebody offers $40 million to. Right? Yeah, completely. So yeah, so I don't actually take part in many ICOs, and I suggest you most likely side action that market, unless you have actually got a special relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause typically it'll crash 80% or so. Which's when we truly start taking a look 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 fixing a problem that requires to be resolved? Among the huge downsides with really smart, technical people, is that they like to resolve issues that no one appreciates resolving.
Does the group have experience of performing in an effective manner in another area of their life? And it does not even have to be directly related to cryptocurrency, it doesn't need to be even directly associated to software application, right? So, however I desire to see a performance history of success in something, right? If it's four men in a space that are just out of college, unless they've got some actually good advisors behind them, I'm probably not going to offer them any money.
Yeah. I believe that in marketing in general, my world of business, we constantly search for problems and how we can solve them. Now, are the issues things that people are attempting to resolve a part of the Blockchain normally? Or would you say it's better if they're resolving kind 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 factor that we purchased it is because they found a way 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 guy that started it has a track record of developing computer programs that entire states run their whole operations on, right? So you have actually got fine, the clever person has actually developed big computer system programs, fantastic group, fixing an enormous problem that is going to cut substantial expenses.
I indicate, it does not get any simpler than that in terms of deciding who to put cash behind. And a lot of this prevails sense, and a great deal of folks will attempt to make things more complicated than it is. And I have an actually simple guideline, Ryan. If I do not understand something, I installed my hand, and I state, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And after that if the individual that you're speaking to can't dumb it down enough where you understand it, then it's probably not a good concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience evaluating companies and taking a look at much, much larger companies.
Ryan: So you have actually looked at companies that are big companies, you have actually evaluated much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you discussed, it is almost just sound judgment. You simply need to kind of take a look at it and think logically about what's going on, and pull the feeling out? You have to pull the feeling out, and there are no traditional metrics that you can look at.
Okay. What I can utilize that I gained from dealing with Wall Street throughout three years, is how to read individuals. I've fulfilled 10s of countless individuals throughout my career. I have actually satisfied insiders; I've met fund supervisors, I have actually fulfilled stock promoters, I've met all these different types of characters along the way.
So I believe that's most likely among my extremely powers, if you will. And if you have actually got a good BS detector, you ought to listen to it. Okay. You ought to absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they've got all the bonifides, but you understand, there's simply; it's not agreeing with me, there's something about them that's not agreeing with me.
There are many other offers out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you type of discussed at the beginning, Bitcoin and Ethereum, the majority of people have actually become aware of these two, especially Bitcoin, because it looks 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 say $3,000 not too long earlier, it's rather unstable. Do they sort of await 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 10 years." You understand? Yeah that's a great question.
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