So, a lot of people discover that too inconvenient, which's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are ready to put in maybe the 20 minutes needed to go through a procedure which just takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your ideas, but gosh, setting up a crypto account is so challenging." 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 larger. So you're actually truly making money a massive amount of cash to go through maybe, you understand, 20 minutes of a headache.
So you can't purchase Bitcoin yet through their trading platform, however it is simply a concern of time, Ryan, before you'll have the ability to buy cryptocurrencies directly through your trading software application. And can you imagine what will happen to this entire market when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that individuals go through, and one thing I wish to expose too that you didn't mention, however I know a great deal of folks who struggle with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can just purchase $500 a week.
As difficult as possible, best, like Coinbase. It 'd take me permanently before I might start buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I indicate, it's if you remember 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 imply, we remain in the early days of that innovation, however much like during that amount of time, for the folks that had the vision to see where the future was going, and then bought 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 2nd, since I'm always curious to talk with people who are, specifically somebody like yourself, who's committed the last, you know, the lion's share of the last couple of years to truly go both feet in on this. How do you describe cryptocurrency to like a typical person? That's an excellent concern.
They're 2 completely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to money. So Bitcoin would be a cryptocurrency. And so what offers it value is that it is, there's just going to be a restricted amount. 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 continuously attempt to hack it. But since of the nature of the network, today it's been unhackable. And actually, with existing innovation, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
And so when individuals put, you have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We don't trust paper cash, you can print an unlimited amount of it. It's truly not secure, and the government can take it far from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or individuals that remained in Cypress, or simply individuals who have suffered through either run-away inflation, 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 catalyst for more adoption, because they already do not believe in their own currency? Yeah, and I believe we've 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 stable currency, right? You do not require Bitcoin. But there are billions of people in the world that don't have steady currencies.
Yeah. And so there's this entire blossoming worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are basically used, let's state Ethereum, which a lot of individuals understand about Ethereum. Ethereum is basically a worldwide computer system that you can write computer system programs for and run computer programs on a globally decentralized computer program.
So we consider something like Ether an utility token, due to the fact that you're essentially purchasing shows power. So I would not truly think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide people a concept, like a very easy one that I would envision you 'd called an energy token, resembles FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's kind of this exact same kind of network result that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on so numerous different locations and. I don't understand the ins and outs of it, but as an example for somebody who might just be extremely standard in their understanding of this, there are many different kinds of utilities that are offered.
And you kind 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, correct? Mm-hmm (affirmative). The majority of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, but I think the genuine chance lies in the energy coin area.
There's all of these ICOs that were occurring, those slowed down a bit with some modifications to a couple of things that was going on, but people are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And individuals require to understand that not all utility coins are created equal.
So you have the benefit of devoting your occupation to this, so you can go out there and do the reconnaissance, you can meet the creators, you can inspect the code, etc. However for an average individual, there's now what, over 1,000 different types of coins available, practically 1,200 I believe.
How do they do that? That's a terrific concern. I will say that 95% of ICOs are either fraudulent or just bad concepts. Okay. Right? There's nothing worse than somebody that's young, earnest, with a dreadful concept, that someone offers $40 million to. Right? Yeah, completely. So yeah, so I don't truly take part in many ICOs, and I advise you probably side action that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause typically it'll crash 80% or so. Which's when we actually start looking at the idea in more detail. So here are some quick and unclean things that you should look at, right? So, one is, are they fixing a problem that needs to be resolved? One of the big disadvantages with extremely smart, technical people, is that they like to resolve issues that nobody appreciates resolving.
Does the group have experience of performing in a successful way in another area of their life? And it doesn't even need to be straight associated to cryptocurrency, it doesn't have to be even straight related to software, right? So, however I wish to see a performance history of success in something, right? If it's 4 people in a room that are just out of college, unless they have actually got some actually excellent advisors behind them, I'm most likely not going to give them any money.
Yeah. I believe that in marketing in basic, my world of service, we constantly try to find issues and how we can resolve them. Now, are the issues things that individuals are attempting to fix a part of the Blockchain typically? Or would you state it's better if they're fixing 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 basically searching for solutions that, so I'll offer you an example.
And the factor that we purchased it is since they discovered a way to make files tamper-proof, and it's 99% cheaper than current 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 entire states run their entire operations on, right? So you've got alright, the clever person has actually developed big computer system programs, fantastic team, resolving an enormous problem that is going to cut huge expenses.
I mean, it does not get any easier than that in regards to choosing who to put cash behind. And a lot of this is typical sense, and a great deal of folks will try to make things more complicated than it is. And I have a really basic rule, Ryan. If I do not understand something, I installed my hand, and I say, "I didn't understand what you simply said." Mm-hmm (affirmative).
And after that if the person that you're talking with can't dumb it down enough where you understand it, then it's probably not a great idea. Right, right. It's going to be simple to understand. And do you feel that you have years of experience evaluating business and looking at much, much bigger companies.
Ryan: So you have actually taken a look at companies that are huge companies, you have actually assessed much bigger marketcap type circumstances. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you mentioned, it is nearly simply sound judgment. You just need to type of take a look at it and think reasonably about what's going on, and pull the emotion out? You need to pull the emotion out, and there are no standard metrics that you can look at.
Okay. What I can utilize that I learned from working on Wall Street throughout 3 years, is how to read people. I've met tens of countless people throughout my career. I have actually met insiders; I've satisfied fund supervisors, I've satisfied stock promoters, I have actually met all these various types of characters along the way.
So I think that's probably one of my incredibly powers, if you will. And if you have actually got a great BS detector, you ought to listen to it. Okay. You ought to definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they have actually got all the bonifides, but you know, there's simply; it's not sitting well with me, there's something about them that's not sitting well with me.
There are numerous other offers out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you understand, you kind of pointed out at the start, Bitcoin and Ethereum, many people have become aware of these two, particularly Bitcoin, because it seems like it's in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading nearly upwards of $6,000 recently; it's turned up from state $3,000 not too long back, it's quite unpredictable. Do they type 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 10 years." You understand? Yeah that's a terrific concern.
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