So, a great deal of individuals find that too troublesome, which's why the individuals that are literally making the most amount of cash today in cryptocurrencies are the early adopters: individuals that are prepared to put in maybe the 20 minutes required to go through a procedure which simply takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we like your ideas, however gosh, setting up a crypto account is so challenging." 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 whole cryptocurrency market will be 10x bigger. So you're actually truly getting paid a huge quantity of cash to go through perhaps, you understand, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, however it is just a question of time, Ryan, before you'll be able to purchase cryptocurrencies straight through your trading software. And can you imagine what will occur to this entire market when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that individuals go through, and one thing I want to bring to light too that you didn't discuss, but I know a great deal of folks who deal 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 tough as possible, best, like Coinbase. It 'd take me permanently before I could start purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I indicate, 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 mean 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 innovation, however similar to throughout 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 absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, due to the fact that I'm constantly curious to speak with people who are, particularly somebody like yourself, who's devoted the last, you know, the bulk of the last few years to truly go both feet in on this. How do you explain cryptocurrency to like an average person? That's a fantastic concern.
They're two completely different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting 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 ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, people constantly attempt to hack it. But since of the nature of the network, today it's been unhackable. And actually, with present innovation, 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 due to the fact that they're saying, "We don't rely on paper currency, you can print an unrestricted amount of it. It's really not secure, and the government can take it away from you." - Whereas with Bitcoin, best , go on.
Yeah. Or individuals that were in Cypress, or just individuals who have suffered through either devaluation, or there's a high demand for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those countries that could possibly be a driver for more adoption, due to the fact that they currently 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 hard time getting their head around. They resemble, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of individuals worldwide that don't have steady currencies.
Yeah. Therefore there's this whole growing global demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And utility coins are essentially utilized, let's say Ethereum, which a lot of individuals learn about Ethereum. Ethereum is basically a worldwide computer that you can write computer programs for and run computer programs on a worldwide decentralized computer system program.
So we think about something like Ether an utility token, due to the fact that you're essentially buying programs power. So I would not truly consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give individuals a concept, like an extremely simple one that I would picture you 'd called an utility token, resembles FileCoin.
Where the idea is that essentially 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 resembles unstoppable example, because it's on numerous various areas and. I do not understand the ins and outs of it, however as an example for somebody who might simply be really basic in their understanding of this, there are numerous various types of energies that are offered.
And you sort of mentioned having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). Many of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, however I think the genuine chance depends on the energy coin area.
There's all of these ICOs that were occurring, those decreased a little bit with some modifications to a few things that was going on, however individuals are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And people require to comprehend that not all energy coins are developed equivalent.
So you have the advantage of devoting your occupation to this, so you can go out there and do the reconnaissance, you can fulfill the founders, you can inspect the code, etc. But for a typical individual, there's now what, over 1,000 various types of coins offered, almost 1,200 I think.
How do they do that? That's an excellent concern. I will state that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's absolutely nothing even worse than somebody that's young, earnest, with a dreadful concept, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I don't actually participate in numerous ICOs, and I advise you probably side step that market, unless you have actually got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause typically it'll crash 80% or two. Which's when we truly begin taking a look at the concept in more information. So here are some fast and filthy things that you should take a look at, right? So, one is, are they resolving a problem that needs to be fixed? Among the big disadvantages with extremely wise, technical people, is that they like to solve problems that nobody appreciates fixing.
Does the group have experience of performing in an effective way in another location of their life? And it doesn't even have to be directly related to cryptocurrency, it doesn't need to be even straight related to software application, right? So, however I desire 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 really good consultants behind them, I'm most likely not going to provide any cash.
Yeah. I think that in marketing in basic, my world of service, we continuously try to find issues 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 fixing 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 generally looking for services that, so I'll offer you an example.
And the reason that we bought it is due to the fact that they discovered a way to make documents tamper-proof, and it's 99% more affordable than present innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that began it has a performance history of developing computer system programs that whole states run their entire operations on, right? So you've got fine, the wise man has constructed substantial computer system programs, excellent group, solving an enormous issue that is going to cut substantial costs.
I suggest, it does not get any easier than that in regards to deciding who to put money behind. And a lot of this is typical sense, and a lot of folks will attempt to make things more complex than it is. And I have an actually easy guideline, Ryan. If I don't comprehend something, I set up my hand, and I state, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And after that if the individual that you're speaking with can't dumb it down enough where you understand it, then it's most likely not a great concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience assessing business and taking a look at much, much larger business.
Ryan: So you've looked at companies that are big companies, you have actually evaluated much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you discussed, it is nearly just good sense. You just need to sort of look at it and think rationally 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 dealing with Wall Street throughout three decades, is how to read individuals. I've satisfied 10s of thousands of people throughout my career. I have actually satisfied insiders; I have actually satisfied fund managers, I have actually fulfilled stock promoters, I have actually fulfilled all these different kinds of characters along the method.
So I believe that's probably among my extremely powers, if you will. And if you have actually got a great BS detector, you need to listen to it. Okay. You must absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually got all the bonifides, but you know, 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 look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you know, you type of discussed at the start, Bitcoin and Ethereum, the majority of people have actually heard of these 2, particularly Bitcoin, since it looks 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 recently; it's shown up from say $3,000 not too long earlier, it's rather volatile. Do they type 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 a terrific question.
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