So, a great deal of individuals discover that too inconvenient, and that'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 maybe the 20 minutes required to go through a procedure which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we love your concepts, but gosh, establishing a crypto account is so hard." 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 entire cryptocurrency market will be 10x larger. So you're actually truly getting paid an enormous quantity of money to go through perhaps, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll be able to purchase cryptocurrencies directly through your trading software application. And can you picture what will happen to this entire market when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the process that people go through, and something I wish to bring to light too that you didn't point out, but I know a great deal of folks who have a hard time with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can only buy $500 a week.
As tough as possible, right, like Coinbase. It 'd take me forever before I might begin purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I mean, it's if you remember the early days of the Web, when we were getting on the Internet, we were doing it with 56k modems, right? I suggest it would take 20 minutes to fill 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 remain in the early days of that technology, however similar to during that duration 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 absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm always curious to talk to people who are, especially someone like yourself, who's devoted the last, you understand, the bulk of the last few years to truly go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a fantastic concern.
They're 2 absolutely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to money. So Bitcoin would be a cryptocurrency. And so what offers it worth is that it is, there's just going to be a limited quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. And so if you take a look at that Bitcoin network, people constantly attempt to hack it. But 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 big today, you can't co-opt it, you can't take it over.
And so when people put, you have actually 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 stating, "We don't trust fiat money, you can print an unrestricted amount of it. It's truly not secure, and the government can take it away from you." - Whereas with Bitcoin, best , go on.
Yeah. Or people that were in Cypress, or simply people who have actually suffered through either hyperinflation, or there's a high demand for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those nations that could potentially be a driver for more adoption, since they currently don't believe in their own currency? Yeah, and I think we have actually already seen that.
So yes, and this is a thing that a great deal of American or Western investors have a difficult time getting their head around. They resemble, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. But there are billions of individuals worldwide that do not have steady currencies.
Yeah. Therefore there's this entire burgeoning 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 used, let's state Ethereum, which a lot of individuals understand 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 program.
So we consider something like Ether an utility token, since you're essentially buying programs 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 offer individuals a concept, like an extremely simple one that I would imagine you 'd called an utility token, resembles FileCoin.
Where the concept is that basically 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 example, since it's on so many different areas and. I do not understand the ins and outs of it, however as an example for somebody who might simply be very fundamental in their understanding of this, there are numerous different types of energies that are readily available.
And you sort of pointed out having this boots on the ground experience. Now, since we're looking at the bulk of these are probably utility based, correct? Mm-hmm (affirmative). Many of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, however I think the real opportunity lies in the energy coin space.
There's all of these ICOs that were occurring, those decreased a bit with some modifications to a few things that was going on, however people are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And people need to comprehend that not all energy coins are developed equal.
So you have the advantage of committing your profession to this, so you can go out there and do the reconnaissance, you can satisfy the founders, you can inspect the code, and so on. But for an average person, there's now what, over 1,000 different kinds of coins available, almost 1,200 I believe.
How do they do that? That's a terrific question. I will say that 95% of ICOs are either fraudulent or just bad ideas. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a terrible concept, that somebody gives $40 million to. Right? Yeah, completely. So yeah, so I do not truly get involved in numerous ICOs, and I suggest you most likely side step 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 usually it'll crash 80% approximately. Which's when we actually begin taking a look at the concept in more information. So here are some fast and dirty things that you should take a look at, right? So, one is, are they solving an issue that requires to be fixed? One of the huge disadvantages with very clever, technical individuals, is that they like to resolve problems that nobody cares about solving.
Does the team have experience of carrying out in an effective way in another area of their life? And it doesn't even need to be directly associated to cryptocurrency, it does not need to be even straight associated to software, right? So, but I desire to see a track record of success in something, right? If it's four people in a space that are just out of college, unless they've got some truly great advisors behind them, I'm probably not going to provide any cash.
Yeah. I believe that in marketing in basic, my world of organization, we continuously 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 normally? Or would you say it's much better if they're solving sort 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 reason that we purchased it is since they discovered a method to make files tamper-proof, and it's 99% more affordable than existing innovation, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the guy that started it has a track record of developing computer programs that whole states run their whole operations on, right? So you've got all right, the smart person has constructed big computer programs, terrific team, fixing a massive problem that is going to cut big costs.
I mean, 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 truly simple rule, Ryan. If I don't understand something, I set up my hand, and I state, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And then if the person that you're speaking with can't dumb it down enough where you comprehend it, then it's most likely not an excellent idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience assessing companies and looking at much, much larger companies.
Ryan: So you've taken a look at business that are big business, you have actually assessed much bigger marketcap type circumstances. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you mentioned, it is nearly just sound judgment. You just need to kind of appearance at it and believe rationally about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no conventional metrics that you can take a look at.
Okay. What I can utilize that I found out from working on Wall Street throughout 3 decades, is how to read individuals. I've met tens of countless individuals throughout my career. I've satisfied experts; I have actually satisfied fund supervisors, I have actually fulfilled stock promoters, I have actually satisfied all these various kinds of characters along the method.
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 ought to listen to it. Okay. You need to absolutely listen to it. If I'm sitting down and I'm talking with someone, 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 so lots of other offers out there to look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you understand, you sort of discussed at the start, Bitcoin and Ethereum, many people have actually become aware of these 2, particularly Bitcoin, since it appears 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 recently; it's come up from say $3,000 not too long ago, it's quite unpredictable. Do they sort of wait for a pullback, or do they just say, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's an excellent question.
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