So, a lot of individuals discover that too inconvenient, and that's why the individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: people that are ready to put in possibly the 20 minutes required to go through a process which just takes 5 minutes if you desire to set up a brokerage account.
" Oh Teeka, we like your ideas, however gosh, establishing a crypto account is so difficult." What I inform 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 in fact truly getting paid a huge amount of cash to go through possibly, you understand, 20 minutes of a pain in the neck.
So you can't buy Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies straight through your trading software. And can you imagine what will take place to this entire marketplace when buying Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the process that individuals go through, and one thing I want to expose too that you didn't mention, however I understand a great deal of folks who have a hard time with this too, is oh, and by the way, you can just purchase $1,000 a week. Or you can only buy $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me forever before I could begin buying in size on Coinbase. They resemble, 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 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 imply, we remain in the early days of that innovation, however just 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 companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, because I'm always curious to speak with people who are, particularly someone like yourself, who's devoted the last, you know, the much better part of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like an average person? That's a great question.
They're two completely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to cash. So Bitcoin would be a cryptocurrency. And so what offers it value 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 computer systems, validating the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals constantly attempt to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And really, with existing innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you have actually got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We don't rely on fiat money, you can print an endless 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 remained in Cypress, or simply people who have suffered through either hyperinflation, or there's a high need for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those nations that could potentially be a catalyst for more adoption, because they currently do not believe in their own currency? Yeah, and I believe we have actually currently seen that.
So yes, and this is a thing that a great deal of American or Western financiers have a difficult time getting their head around. They resemble, "Well I don't require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not require Bitcoin. But there are billions of people worldwide that don't have stable 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 utility 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 compose computer system programs for and run computer system programs on an internationally decentralized computer system program.
So we think about something like Ether an energy token, because you're basically buying programming power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer people a concept, like a really easy one that I would imagine you 'd called an energy token, is like FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's sort of this very same kind of network impact that you have with Bitcoin, where it's like unstoppable example, because it's on so lots of different areas and. I do not understand the ins and outs of it, but as an example for someone who may simply be very fundamental in their understanding of this, there are a lot of different types of utilities that are readily available.
And you kind of mentioned having this boots on the ground experience. Now, since we're taking a look at the bulk of these are most likely energy based, remedy? Mm-hmm (affirmative). The majority of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, but I believe the genuine chance depends on the utility coin area.
There's all of these ICOs that were happening, those slowed down a bit with some changes to a few things that was going on, however individuals are going to come out of the woodwork and begin to develop utility coins- Correct, yeah. And individuals need to understand that not all energy coins are created equivalent.
So you have the advantage of dedicating your occupation to this, so you can head out there and do the reconnaissance, you can satisfy the founders, you can examine the code, and so on. But for an average individual, there's now what, over 1,000 various kinds of coins readily available, almost 1,200 I believe.
How do they do that? That's a fantastic concern. I will say that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with a horrible concept, that somebody gives $40 million to. Right? Yeah, totally. So yeah, so I don't truly participate in lots of ICOs, and I advise you most likely side action that market, unless you've 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 two. And that's when we truly begin looking at the idea in more detail. So here are some quick and dirty things that you should look at, right? So, one is, are they fixing a problem that needs to be fixed? One of the big drawbacks with really wise, technical people, is that they like to solve issues that nobody cares about resolving.
Does the team have experience of executing 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 straight related to software application, right? So, however I wish to see a track record of success in something, right? If it's 4 guys in a space that are just out of college, unless they've got some actually excellent advisors behind them, I'm most likely not going to give them any money.
Yeah. I believe that in marketing in basic, my world of service, we constantly search for problems and how we can resolve them. Now, are the problems things that individuals are attempting to fix a part of the Blockchain typically? Or would you say it's better if they're solving kind 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 searching for solutions that, so I'll provide you an example.
And the factor that we bought it is due to the fact that they found a method to make documents tamper-proof, and it's 99% less expensive than existing 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 performance history of creating computer system programs that entire states run their entire operations on, right? So you've got alright, the wise person has developed big computer system programs, great team, resolving a huge issue that is going to cut huge expenses.
I imply, it does not get any easier than that in terms of choosing who to put money behind. And a great deal of this prevails sense, and a great deal of folks will attempt to make things more complicated than it is. And I have a truly simple guideline, Ryan. If I don't understand something, I set up my hand, and I state, "I didn't understand what you simply said." Mm-hmm (affirmative).
And after that if the person that you're speaking to can't dumb it down enough where you comprehend it, then it's probably not an excellent idea. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience evaluating companies and looking at much, much bigger companies.
Ryan: So you have actually looked at companies that are big business, you have actually assessed 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 simply good sense. You just have to type of take a look at it and think reasonably about what's going on, and pull the feeling out? You have to pull the emotion out, and there are no standard metrics that you can take a look at.
Okay. What I can use that I gained from working on Wall Street throughout three decades, is how to check out people. I've fulfilled 10s of thousands of people throughout my career. I've met experts; I've satisfied fund managers, I've fulfilled stock promoters, I have actually met all these various types of characters along the way.
So I believe that's probably one of my very powers, if you will. And if you have actually got a great BS detector, you must listen to it. Okay. You need to definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually got all the bonifides, however you understand, there's simply; it's not sitting well with me, there's something about them that's not agreeing with me.
There are numerous other offers out there to look at. Yeah, there's too much chance. Yeah. And speaking of chance, you know, you type of mentioned at the beginning, Bitcoin and Ethereum, the majority of people have actually heard of these 2, especially Bitcoin, due to the fact that it seems 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 come up from say $3,000 not too long back, it's rather volatile. Do they sort of await a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in 10 years." You know? Yeah that's a great question.
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