So, a lot of individuals discover that too troublesome, and that's why the individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: people that want to put in possibly the 20 minutes required to go through a process which simply takes 5 minutes if you want to establish a brokerage account.
" Oh Teeka, we like your ideas, but gosh, setting up a crypto account is so challenging." 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 in fact truly earning money a huge amount of cash to go through possibly, you know, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies straight through your trading software application. And can you picture what will occur to this whole marketplace when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that people go through, and something I want to expose too that you didn't point out, however I understand a great deal of folks who have a hard time with this too, is oh, and by the way, you can only buy $1,000 a week. Or you can only buy $500 a week.
As challenging as possible, ideal, like Coinbase. It 'd take me forever prior to I might begin buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I mean, it's if you keep in mind 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 pack 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 innovation, but much like during that amount of time, for the folks that had the vision to see where the future was going, and after that 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, because I'm always curious to speak with people who are, specifically somebody like yourself, who's dedicated the last, you know, the bulk of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's a fantastic question.
They're two totally different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting 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 restricted quantity. 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. 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 really, with present technology, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't trust paper currency, you can print an endless amount of it. It's actually not secure, and the federal government can take it away from you." - Whereas with Bitcoin, right , go ahead.
Yeah. Or people that were in Cypress, or simply individuals who have actually suffered through either hyperinflation, or there's a high need for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those countries that could potentially be a driver for more adoption, since they already don't believe 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 require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. However there are billions of individuals in the world that don't have steady currencies.
Yeah. And so there's this entire blossoming 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 used, let's state Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is essentially a global computer that you can compose computer system programs for and run computer programs on a worldwide decentralized computer system program.
So we think about something like Ether an utility token, since you're basically buying shows power. So I wouldn't really consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide individuals a concept, like a really easy one that I would envision you 'd called an utility 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 exact same kind of network effect that you have with Bitcoin, where it resembles unstoppable kind of thing, due to the fact that it's on many different locations and. I do not know the ins and outs of it, however as an example for somebody who might simply be extremely standard in their understanding of this, there are a lot of various types of utilities that are offered.
And you type of pointed out having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are most likely energy based, remedy? Mm-hmm (affirmative). Most of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, however I believe the genuine chance depends on the utility coin space.
There's all of these ICOs that were taking place, those slowed down 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 start to create utility coins- Correct, yeah. And people require to understand that not all energy coins are produced equivalent.
So you have the advantage of dedicating your profession to this, so you can head out there and do the recon, you can satisfy the founders, you can check the code, etc. However for an average individual, there's now what, over 1,000 various types of coins offered, practically 1,200 I think.
How do they do that? That's a fantastic question. I will state that 95% of ICOs are either deceptive or just bad concepts. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with a terrible concept, that somebody provides $40 million to. Right? Yeah, absolutely. So yeah, so I do not actually participate in numerous ICOs, and I recommend you most likely side step that market, unless you've got an unique relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause typically it'll crash 80% or so. And that's when we really begin taking a look at the concept in more information. So here are some fast and filthy things that you should look at, right? So, one is, are they fixing an issue that requires to be fixed? Among the big disadvantages with really wise, technical individuals, is that they like to resolve problems that nobody cares about solving.
Does the group have experience of executing in a successful way in another location of their life? And it doesn't even need to be straight related to cryptocurrency, it does not have to be even straight related to software application, right? So, but I desire 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've got some actually good advisors behind them, I'm most likely not going to provide them any money.
Yeah. I believe that in marketing in general, my world of business, we constantly search for problems and how we can fix them. Now, are the problems things that individuals are attempting to fix a part of the Blockchain typically? Or would you state it's better if they're solving 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 trying to find solutions 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% more affordable than current innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that began it has a performance history of developing computer system programs that entire states run their entire operations on, right? So you have actually got okay, the wise person has built huge computer system programs, great team, resolving a massive issue that is going to cut big expenses.
I imply, it doesn't get any easier than that in regards to deciding who to put cash behind. And a lot of this prevails sense, and a lot of folks will try to make things more complicated than it is. And I have an actually simple rule, Ryan. If I don't comprehend something, I installed my hand, and I say, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And then if the individual that you're speaking to can't dumb it down enough where you comprehend 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 assessing business and taking a look at much, much larger companies.
Ryan: So you've taken a look at companies that are big business, you have actually assessed much larger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you pointed out, it is nearly simply sound judgment. You just have to kind of look at it and believe 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 look at.
Okay. What I can use that I found out from dealing with Wall Street across three decades, is how to read individuals. I have actually met 10s of thousands of individuals throughout my career. I've satisfied experts; I've met fund supervisors, I've met stock promoters, I've fulfilled all these different types of characters along the way.
So I think that's most likely one of my very powers, if you will. And if you have actually got a good BS detector, you need to listen to it. Okay. You need to definitely 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 a lot of other offers out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of chance, you know, you kind of pointed out at the start, Bitcoin and Ethereum, the majority of individuals have become aware of these 2, especially Bitcoin, since 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 nearly upwards of $6,000 recently; it's shown up from state $3,000 not too long earlier, it's quite volatile. Do they sort of wait for 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 understand? Yeah that's a great concern.
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