So, a lot of individuals find that too bothersome, which's why the people that are actually making the most amount of money today in cryptocurrencies are the early adopters: individuals that are willing to put in perhaps the 20 minutes needed to go through a procedure which simply takes 5 minutes if you desire to set up a brokerage account.
" Oh Teeka, we like your ideas, but gosh, setting up a crypto account is so difficult." 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 truly getting paid a massive amount of cash to go through possibly, you understand, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, but it is just a question of time, Ryan, before you'll be able to purchase cryptocurrencies straight through your trading software application. 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 people go through, and something I desire to expose too that you didn't mention, but I understand a lot of folks who have problem 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, right, like Coinbase. It 'd take me permanently before I might 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 remember the early days of the Internet, when we were getting on the Web, we were doing it with 56k modems, right? I indicate 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 indicate, we remain in the early days of that technology, but just like throughout 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 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 with people who are, particularly someone like yourself, who's devoted the last, you know, the bulk of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like an average individual? That's an excellent concern.
They're two totally various 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. And so what offers it worth is that it is, there's just going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the deals on the Bitcoin network. Therefore if you 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 truly, with current technology, the Bitcoin network is so big right now, 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 saying, "We do not trust fiat money, you can print a limitless quantity of it. It's truly not protect, and the federal 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 need for, in Argentina for example, high need 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 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 investors have a bumpy ride 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 require Bitcoin. But there are billions of people in the world that do not have stable currencies.
Yeah. And so there's this whole burgeoning international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are generally utilized, let's say Ethereum, which a lot of people learn about Ethereum. Ethereum is essentially a global computer that you can write computer programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an utility token, because you're essentially buying shows 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 give people an idea, like a very simple one that I would picture you 'd called an energy token, resembles FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's sort of this same kind of network result that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on many different areas and. I do not know the ins and outs of it, however as an example for someone who might simply be really standard in their understanding of this, there are a lot of various kinds of energies that are readily available.
And you sort of discussed having this boots on the ground experience. Now, because we're taking a look at the bulk of these are most likely energy based, correct? Mm-hmm (affirmative). The majority of the coins that I recommend and take a look at are utility-based. We have a couple of cryptocurrencies, but I believe the real opportunity lies in the utility coin area.
There's all of these ICOs that were taking place, those decreased a little bit with some changes to a couple of things that was going on, however people are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And individuals need to understand that not all energy coins are developed equal.
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 examine the code, etc. However for a typical individual, there's now what, over 1,000 various types of coins readily available, almost 1,200 I think.
How do they do that? That's a fantastic concern. I will say that 95% of ICOs are either fraudulent or simply bad ideas. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a dreadful idea, that somebody provides $40 million to. Right? Yeah, totally. So yeah, so I don't truly take part in numerous ICOs, and I advise you probably side step that market, unless you've got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause typically it'll crash 80% approximately. Which's when we actually begin taking a look at the idea in more information. 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 requires to be solved? One of the big drawbacks with very clever, technical individuals, is that they like to resolve issues that nobody cares about resolving.
Does the team have experience of performing in an effective manner in another area of their life? And it does not even have to be straight associated to cryptocurrency, it doesn't have to be even directly related to software application, right? So, however I wish to see a performance history of success in something, right? If it's 4 guys in a space that are just out of college, unless they've got some really excellent consultants behind them, I'm probably not going to give them any money.
Yeah. I think that in marketing in basic, my world of organization, we continuously search for issues and how we can solve them. Now, are the problems things that individuals are attempting to fix a part of the Blockchain usually? Or would you say it's better if they're fixing type 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 provide you an example.
And the reason that we bought it is since they discovered a way to make files tamper-proof, and it's 99% less expensive than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that began it has a track record of creating computer system programs that whole states run their whole operations on, right? So you have actually got alright, the smart guy has actually constructed huge computer programs, fantastic team, solving an enormous issue that is going to cut big expenses.
I suggest, it does not get any simpler than that in terms of deciding who to put cash behind. And a lot of this is common sense, and a lot of folks will try to make things more complicated than it is. And I have an actually simple guideline, Ryan. If I do not comprehend something, I put up my hand, and I say, "I didn't comprehend what you simply said." 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 an excellent idea. 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 bigger business.
Ryan: So you've taken a look at business that are huge business, you have actually examined much bigger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you discussed, it is nearly simply sound judgment. You just have to sort of take a look at it and think logically about what's going on, and pull the emotion out? You need to pull the emotion out, and there are no traditional metrics that you can take a look at.
Okay. What I can utilize that I discovered from working on Wall Street across three decades, is how to read individuals. I've satisfied 10s of thousands of individuals throughout my career. I've fulfilled insiders; I have actually satisfied fund supervisors, I have actually satisfied stock promoters, I've met all these different types of characters along the method.
So I believe that's most likely one of my super powers, if you will. And if you have actually got an excellent BS detector, you ought to listen to it. Okay. You should absolutely listen to it. If I'm sitting down and I'm talking with someone, and they have actually got all the bonifides, but you know, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are so many other deals out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you know, you sort of pointed out at the start, Bitcoin and Ethereum, most people have actually become aware of these 2, especially Bitcoin, since it appears like it remains in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's turned up from state $3,000 not too long back, it's quite volatile. Do they kind of await a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You understand? Yeah that's a great question.
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