So, a great deal of people discover that too inconvenient, which's why individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: people that are prepared to put in possibly the 20 minutes needed to go through a process which simply takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we like your concepts, but gosh, establishing a crypto account is so tough." What I inform them is I state, "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 larger. So you're actually truly earning money an enormous amount of cash to go through maybe, you know, 20 minutes of a headache.
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 occur to this whole marketplace when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you pointed out the process that people go through, and something I wish to expose too that you didn't mention, but I know a great deal of folks who fight with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can only buy $500 a week.
As challenging as possible, best, like Coinbase. It 'd take me permanently before I might start purchasing 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 Internet, when we were getting on the Internet, we were doing it with 56k modems, right? I suggest 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 mean, we remain in the early days of that innovation, however simply like during that amount of time, for the folks that had the vision to see where the future was going, and then purchased in on a few of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a second, since I'm always curious to talk with individuals who are, especially somebody like yourself, who's devoted the last, you understand, the bulk of the last couple of years to really go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a terrific question.
They're 2 totally various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying 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 limited amount. There'll never 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 try to hack it. But since of the nature of the network, today it's been unhackable. And really, with present innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when people put, you've got people 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 money, you can print an unrestricted amount of it. It's really not protect, and the federal government can take it away from you." - Whereas with Bitcoin, best , go on.
Yeah. Or individuals that remained in Cypress, or simply 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 nations that could potentially be a driver for more adoption, due to the fact that they currently don't believe in their own currency? Yeah, and I think we've currently seen that.
So yes, and this is a thing that a lot of American or Western financiers have a difficult 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 require Bitcoin. However there are billions of individuals in the world that don't have steady currencies.
Yeah. And so there's this whole burgeoning international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are basically used, let's say Ethereum, which a lot of people understand about Ethereum. Ethereum is basically a global computer system that you can compose computer system programs for and run computer programs on a worldwide decentralized computer program.
So we think about something like Ether an utility token, because you're basically purchasing shows power. So I wouldn't actually think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give individuals an idea, like a very easy one that I would envision you 'd called an energy token, is like FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's sort of this very same type of network result that you have with Bitcoin, where it's like unstoppable kind of thing, because it's on a lot of various locations and. I don't understand the ins and outs of it, but as an example for someone who may just be really fundamental in their understanding of this, there are numerous various kinds of utilities that are offered.
And you sort of discussed having this boots on the ground experience. Now, considering that we're looking at the bulk of these are most likely utility based, remedy? Mm-hmm (affirmative). Most of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, however I believe the real opportunity depends on the utility coin space.
There's all of these ICOs that were taking place, those decreased 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 create utility coins- Correct, yeah. And people need to understand that not all energy coins are produced equal.
So you have the advantage of devoting your profession 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. But for a typical person, there's now what, over 1,000 various types of coins available, practically 1,200 I believe.
How do they do that? That's a terrific concern. I will state 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 horrible concept, that somebody provides $40 million to. Right? Yeah, totally. So yeah, so I don't truly get involved in numerous ICOs, and I recommend you most likely side action that market, unless you've got an unique relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause usually it'll crash 80% or so. Which's when we actually begin taking a look at the concept in more detail. So here are some fast and unclean things that you should look at, right? So, one is, are they resolving an issue that needs to be fixed? One of the big disadvantages with extremely clever, technical individuals, is that they like to resolve problems that no one cares about fixing.
Does the team have experience of executing in an effective manner in another location of their life? And it doesn't even have to be straight associated to cryptocurrency, it doesn't need to be even directly associated to software application, right? So, however I wish to see a track record of success in something, right? If it's four guys in a room that are just out of college, unless they have actually got some actually good consultants behind them, I'm most likely not going to provide any money.
Yeah. I think that in marketing in basic, my world of business, we continuously try to find problems and how we can resolve them. Now, are the problems things that individuals are trying to fix a part of the Blockchain typically? Or would you state it's much 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 generally trying to find options that, so I'll offer you an example.
And the reason that we bought it is due to the fact that they found a method to make files tamper-proof, and it's 99% cheaper 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 producing computer programs that whole states run their entire operations on, right? So you have actually got alright, the clever person has actually built huge computer system programs, excellent team, solving a massive problem that is going to cut huge expenses.
I indicate, it does not get any simpler than that in regards to deciding who to put cash behind. And a lot of this prevails sense, and a lot of folks will attempt to make things more complicated than it is. And I have a really simple guideline, Ryan. If I do not understand 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 talking with can't dumb it down enough where you understand it, then it's probably not a good idea. Right, right. It's going to be simple to understand. And do you feel that you have years of experience assessing companies and taking a look at much, much bigger companies.
Ryan: So you have actually looked at business that are big companies, you've assessed much bigger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you discussed, it is almost simply good sense. You just have to type of take a look at it and believe rationally 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 use that I gained from dealing with Wall Street throughout three years, is how to read individuals. I've fulfilled tens of thousands of people throughout my career. I have actually fulfilled insiders; I've met fund managers, I have actually satisfied stock promoters, I've satisfied all these different kinds of characters along the method.
So I believe that's probably among my super powers, if you will. And if you have actually got a great BS detector, you must listen to it. Okay. You ought to definitely listen to it. If I'm sitting down and I'm talking with someone, and they've got all the bonifides, however you understand, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are numerous other deals out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you understand, you type of pointed out at the beginning, Bitcoin and Ethereum, many people have become aware of these 2, especially Bitcoin, because it looks 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 just recently; it's shown up from state $3,000 not too long earlier, it's rather unpredictable. Do they sort of wait on a pullback, or do they just 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 fantastic question.
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