So, a great deal of individuals find that too troublesome, which's why individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: people that want to put in perhaps the 20 minutes required to go through a procedure which just takes five minutes if you want to set up a brokerage account.
" Oh Teeka, we enjoy your ideas, but gosh, establishing a crypto account is so tough." What I inform them is I state, "Look, when it's easy as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The entire cryptocurrency market will be 10x larger. So you're actually really earning money an enormous quantity 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 have the ability to purchase cryptocurrencies straight through your trading software application. And can you imagine what will take place to this whole market when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you discussed the process that individuals go through, and one thing I wish to bring to light too that you didn't mention, however I understand a lot 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 hard as possible, ideal, like Coinbase. It 'd take me permanently prior to I could begin buying in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I suggest, 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 imply 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 suggest, we're in the early days of that innovation, however similar to during that amount of time, for the folks that had the vision to see where the future was going, and after that purchased in on some 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 constantly curious to talk with individuals who are, specifically somebody like yourself, who's devoted the last, you understand, the bulk of the last few years to actually go both feet in on this. How do you explain cryptocurrency to like an average person? That's a terrific question.
They're two totally different things, however 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 provides it value is that it is, there's only going to be a restricted quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, people constantly try to hack it. However since of the nature of the network, today it's been unhackable. And truly, with present innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you have actually got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We don't trust paper currency, you can print an endless quantity of it. It's really not secure, and the federal government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that remained in Cypress, or just individuals who have actually 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 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 have actually already seen that.
So yes, and this is a thing that a lot of American or Western investors have a hard time getting their head around. They resemble, "Well I do not require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. But there are billions of individuals on the planet that do not have stable currencies.
Yeah. Therefore there's this whole growing global need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are generally utilized, let's say Ethereum, which a lot of individuals learn about Ethereum. Ethereum is essentially an international computer that you can write computer system programs for and run computer programs on a worldwide decentralized computer system program.
So we think about something like Ether an energy token, because you're basically buying shows power. So I would not really think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give individuals a concept, like a really easy one that I would envision you 'd called an utility 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 exact same kind of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on numerous different locations and. I don't know the ins and outs of it, but as an example for someone who may just be extremely standard in their understanding of this, there are a lot of different types of utilities that are available.
And you sort of pointed out having this boots on the ground experience. Now, given that we're looking at the bulk of these are probably utility based, remedy? Mm-hmm (affirmative). Many of the coins that I suggest and look at are utility-based. We have a few cryptocurrencies, however I believe the real chance depends on the utility coin area.
There's all of these ICOs that were taking place, 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 start to create utility coins- Correct, yeah. And individuals need to comprehend that not all utility coins are created equivalent.
So you have the advantage of devoting your occupation to this, so you can go out there and do the recon, you can satisfy the founders, you can examine the code, and so on. However for a typical person, there's now what, over 1,000 different kinds of coins offered, nearly 1,200 I believe.
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 even worse than somebody that's young, earnest, with a horrible concept, that someone gives $40 million to. Right? Yeah, absolutely. So yeah, so I don't really take part in many ICOs, and I advise you most likely side step that market, unless you have actually got a special relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause usually it'll crash 80% or so. And that's when we truly begin taking a look at the idea in more information. So here are some fast and dirty 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 huge drawbacks with really clever, technical people, is that they like to solve issues that nobody cares about resolving.
Does the group have experience of performing in an effective way in another location of their life? And it does not even have to be straight associated to cryptocurrency, it doesn't need to be even straight associated to software application, right? So, but I want to see a track record of success in something, right? If it's 4 guys in a room that are just out of college, unless they have actually got some truly excellent advisors behind them, I'm most likely not going to offer them any cash.
Yeah. I think that in marketing in general, my world of business, we continuously try to find 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 resolving 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 essentially searching for solutions 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 documents tamper-proof, and it's 99% more affordable than present technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that started it has a performance history of developing computer system programs that whole states run their entire operations on, right? So you have actually got okay, the clever man has constructed big computer system programs, excellent team, resolving a massive issue that is going to cut huge costs.
I indicate, it doesn't get any simpler than that in regards to choosing who to put cash behind. And a lot of this prevails sense, and a great deal of folks will attempt to make things more complicated than it is. And I have an actually simple guideline, Ryan. If I do not understand something, I put up my hand, and I say, "I didn't understand what you just 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 most likely 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 business and looking at much, much larger business.
Ryan: So you've taken a look at business that are big business, you have actually examined much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you discussed, it is practically just typical sense. You just have to type of take a look at it and believe logically 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 take a look at.
Okay. What I can use that I found out from dealing with Wall Street throughout 3 years, is how to read individuals. I've fulfilled 10s of countless people throughout my career. I have actually fulfilled insiders; I have actually satisfied fund managers, I have actually fulfilled stock promoters, I've met all these different kinds of characters along the way.
So I believe that's probably one of my incredibly powers, if you will. And if you have actually got a great BS detector, you must listen to it. Okay. You must absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, but you understand, there's just; it's not sitting well with me, there's something about them that's not agreeing with me.
There are numerous other deals out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of chance, you understand, you type of pointed out at the beginning, Bitcoin and Ethereum, many people have actually heard of these 2, particularly Bitcoin, since it seems 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 just recently; it's come up from state $3,000 not too long back, it's rather unstable. Do they sort of wait for a pullback, or do they just state, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in ten years." You understand? Yeah that's a fantastic concern.
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