So, a lot of people discover that too troublesome, which's why the people that are actually making the most amount of cash right now in cryptocurrencies are the early adopters: people that want to put in maybe the 20 minutes required to go through a procedure which simply takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we love your concepts, but gosh, establishing a crypto account is so hard." What I tell them is I say, "Look, when it's simple as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The entire cryptocurrency market will be 10x bigger. So you're actually really earning money a massive quantity of money to go through perhaps, you know, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, but it is simply a concern of time, Ryan, before you'll be able 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 shooting up your e-trade, or fidelity tradings platform.
Right now you pointed out the procedure that individuals go through, and something I wish to bring to light too that you didn't mention, however I understand a great deal of folks who have problem 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, best, like Coinbase. It 'd take me permanently prior to I might start buying in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I imply, 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 suggest 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 imply, we're in the early days of that technology, however simply like throughout 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 absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, due to the fact that I'm always curious to speak to people who are, particularly someone like yourself, who's committed the last, you understand, the lion's share of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like a typical person? That's an excellent question.
They're 2 completely different things, but 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 provides 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 computer systems, validating the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, individuals continuously attempt to hack it. But because of the nature of the network, today it's been unhackable. And actually, 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 actually own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We do not rely on fiat money, you can print an endless quantity of it. It's truly not secure, and the government can take it away from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that were in Cypress, or simply people who have suffered through either run-away inflation, or there's a high demand for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those nations that could possibly be a catalyst for more adoption, since they already don't believe in their own currency? Yeah, and I believe we've already seen that.
So yes, and this is a thing that a great deal of American or Western investors have a bumpy ride 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 don't require Bitcoin. However there are billions of people on the planet that do not have stable currencies.
Yeah. Therefore there's this whole blossoming worldwide demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are generally utilized, let's state Ethereum, which a lot of people understand about Ethereum. Ethereum is essentially an international computer that you can write computer programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an utility token, due to the fact that you're essentially buying shows power. So I would not actually consider 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 picture you 'd called an utility token, is like FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's kind of this very same type of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on numerous different locations and. I don't know the ins and outs of it, but as an example for somebody who may simply be extremely fundamental in their understanding of this, there are a lot of different types of energies that are readily available.
And you kind of discussed having this boots on the ground experience. Now, since we're taking a look at the bulk of these are most likely energy based, fix? Mm-hmm (affirmative). The majority of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, however I think the real opportunity depends on the utility coin area.
There's all of these ICOs that were happening, those slowed down a little bit with some modifications to a couple of things that was going on, however individuals are going to come out of the woodwork and start to develop utility coins- Correct, yeah. And people need to comprehend that not all energy coins are created equal.
So you have the advantage of committing your occupation to this, so you can head out there and do the recon, you can fulfill the creators, you can examine the code, etc. But for a typical person, there's now what, over 1,000 different types of coins available, practically 1,200 I think.
How do they do that? That's a fantastic concern. I will state that 95% of ICOs are either fraudulent 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, completely. So yeah, so I do not actually participate in lots of ICOs, and I recommend you probably side action that market, unless you've got an unique relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause generally it'll crash 80% approximately. Which's when we truly begin taking a look at the idea in more detail. So here are some fast and unclean things that you should take a look at, right? So, one is, are they resolving a problem that needs to be fixed? Among the big drawbacks with really clever, technical individuals, is that they like to solve problems that no one cares about solving.
Does the group have experience of performing in a successful way in another location of their life? And it doesn't even need to be directly related to cryptocurrency, it does not have to be even straight related to software application, right? So, but I desire to see a performance history of success in something, right? If it's 4 men in a space that are just out of college, unless they have actually got some really great consultants behind them, I'm probably not going to provide any money.
Yeah. I believe that in marketing in basic, my world of business, we continuously look for problems and how we can resolve them. Now, are the issues things that individuals are attempting to solve a part of the Blockchain usually? Or would you state it's better if they're solving kind 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 essentially trying to find services that, so I'll give you an example.
And the factor that we bought it is due to the fact that they discovered a way 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 after that on top of that, the man that started it has a track record of producing computer programs that whole states run their entire operations on, right? So you've got fine, the smart guy has actually built huge computer programs, fantastic team, resolving a huge issue that is going to cut substantial expenses.
I suggest, it doesn't get any simpler than that in terms of choosing who to put money behind. And a lot of this prevails sense, and a lot of folks will try to make things more complex than it is. And I have a really basic guideline, Ryan. If I don't comprehend something, I put up my hand, and I say, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you understand it, then it's most likely not a good idea. Right, right. It's going to be basic to comprehend. And do you feel that you have years of experience examining business and looking at much, much bigger business.
Ryan: So you have actually taken a look at business that are huge business, you have actually examined much bigger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you discussed, it is practically simply good sense. You just need to kind of look at it and think rationally about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no traditional metrics that you can look at.
Okay. What I can utilize that I learned from dealing with Wall Street throughout 3 decades, is how to read individuals. I've met 10s of countless people throughout my profession. I've met insiders; I have actually fulfilled fund managers, I've fulfilled stock promoters, I have actually fulfilled all these different types of characters along the method.
So I think that's most likely one of my super powers, if you will. And if you have actually got an excellent BS detector, you should listen to it. Okay. You must definitely listen to it. If I'm taking a seat and I'm talking with someone, and they have actually got all the bonifides, however you understand, there's just; it's not agreeing with me, there's something about them that's not agreeing with me.
There are so many other offers out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you understand, you sort of mentioned at the start, Bitcoin and Ethereum, the majority of people have heard of these two, especially Bitcoin, since it looks like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 just recently; it's come up from state $3,000 not too long back, it's rather unpredictable. Do they sort of wait on a pullback, or do they simply say, "Okay, I'm going to buy some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's a terrific question.
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