So, a lot of individuals discover that too troublesome, and that's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are willing to put in possibly the 20 minutes needed to go through a process which simply takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we enjoy your concepts, but gosh, setting up a crypto account is so difficult." What I inform them is I say, "Look, when it's simple as going to your Fidelity account, Bitcoin will be $20,000 a coin," right? The whole cryptocurrency market will be 10x bigger. So you're in fact truly earning money a huge quantity of cash to go through possibly, you know, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, but it is simply a question of time, Ryan, prior to you'll have the ability to buy cryptocurrencies straight through your trading software application. And can you picture 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.
Right now you discussed the process that people go through, and something I wish to bring to light too that you didn't point out, however I know a lot of folks who deal 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 difficult as possible, ideal, like Coinbase. It 'd take me forever prior to I could begin buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I indicate, it's if you remember the early days of the Internet, when we were getting on the Internet, 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 mean, we remain in the early days of that innovation, but much like throughout that period 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 business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since I'm always curious to speak to people who are, especially someone like yourself, who's dedicated the last, you know, the better part of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like an average person? That's an excellent question.
They're two completely various things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to money. So Bitcoin would be a cryptocurrency. Therefore what provides it worth 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, confirming the transactions on the Bitcoin network. And so if you take a look at that Bitcoin network, individuals continuously attempt to hack it. However because of the nature of the network, today it's been unhackable. And truly, 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 do not rely on paper money, you can print a limitless amount of it. It's really not protect, and the federal government can take it far from you." - Whereas with Bitcoin, best , go on.
Yeah. Or people that were in Cypress, or just individuals who have suffered through either hyperinflation, or there's a high demand for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those nations that could potentially be a driver for more adoption, due to the fact that they currently don't believe in their own currency? Yeah, and I believe we have actually already seen that.
So yes, and this is a thing that a lot of American or Western financiers have a tough time getting their head around. They're like, "Well I don't need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't require Bitcoin. However there are billions of individuals worldwide that don't have stable currencies.
Yeah. Therefore there's this whole blossoming global demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are basically used, let's say Ethereum, which a great deal of people learn 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 program.
So we think about something like Ether an utility token, due to the fact that you're essentially purchasing programming power. So I wouldn't truly consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give people an idea, like a very simple one that I would imagine you 'd called an energy token, is like FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's kind of this very same type of network effect that you have with Bitcoin, where it resembles unstoppable example, since it's on a lot of various areas and. I don't know the ins and outs of it, however as an example for somebody who might simply be extremely fundamental in their understanding of this, there are many various kinds of utilities that are available.
And you type of pointed out having this boots on the ground experience. Now, since we're looking at the bulk of these are probably utility based, remedy? Mm-hmm (affirmative). The majority of the coins that I advise and take a look at are utility-based. We have a couple of cryptocurrencies, however I believe the genuine chance lies in 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, but individuals are going to come out of the woodwork and start to create utility coins- Correct, yeah. And people need to comprehend that not all energy coins are developed equivalent.
So you have the benefit of committing your profession to this, so you can go out there and do the recon, you can satisfy the creators, you can examine the code, and so on. But for a typical person, there's now what, over 1,000 various kinds of coins readily available, practically 1,200 I think.
How do they do that? That's a fantastic concern. I will say that 95% of ICOs are either deceitful or just bad ideas. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with an awful concept, that someone offers $40 million to. Right? Yeah, absolutely. So yeah, so I don't truly take part in lots of ICOs, and I recommend you most likely side step that market, unless you have actually got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% or two. And that's when we really begin looking at the idea in more information. So here are some quick and unclean things that you should look at, right? So, one is, are they resolving an issue that requires to be resolved? One of the big downsides with extremely smart, technical people, is that they like to fix issues that nobody appreciates fixing.
Does the group have experience of performing in a successful way in another location of their life? And it does not even have to be directly related to cryptocurrency, it doesn't need to be even directly related to software, right? So, but I desire to see a performance history of success in something, right? If it's four people in a space that are just out of college, unless they have actually got some actually excellent consultants behind them, I'm most likely not going to provide any cash.
Yeah. I believe that in marketing in general, my world of business, we constantly look for issues and how we can fix them. Now, are the issues things that individuals are attempting to resolve a part of the Blockchain generally? Or would you state it's better if they're resolving type 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 services that, so I'll offer you an example.
And the reason that we purchased it is due to the fact that they discovered a method to make documents tamper-proof, and it's 99% cheaper than current 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 entire states run their whole operations on, right? So you have actually got all right, the smart man has constructed huge computer programs, fantastic team, resolving a massive problem that is going to cut big costs.
I suggest, it doesn't get any simpler than that in terms of choosing who to put money behind. And a lot of this is common sense, and a great deal of folks will try to make things more complicated than it is. And I have a truly easy guideline, Ryan. If I don't understand something, I installed my hand, and I state, "I didn't understand what you just stated." Mm-hmm (affirmative).
And then if the individual that you're talking to can't dumb it down enough where you comprehend it, then it's probably not an excellent concept. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience evaluating business and taking a look at much, much bigger business.
Ryan: So you've looked at business that are huge business, you've examined 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 discussed, it is nearly just typical sense. You simply have to type of take a look at it and believe reasonably about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no traditional metrics that you can take a look at.
Okay. What I can use that I gained from dealing with Wall Street throughout 3 decades, is how to read individuals. I've satisfied tens of thousands of people throughout my profession. I've met experts; I've satisfied fund managers, I have actually met stock promoters, I have actually satisfied all these various kinds of characters along the way.
So I think that's most likely one of my incredibly powers, if you will. And if you have actually got an excellent BS detector, you should listen to it. Okay. You must absolutely listen to it. If I'm taking a seat and I'm talking with someone, and they've 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 numerous other offers out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you know, you type of discussed at the beginning, Bitcoin and Ethereum, many individuals have heard of these 2, particularly Bitcoin, since it appears like it remains in the news all the time, something or the other.
Have they missed out on the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's come up from state $3,000 not too long back, it's rather unstable. Do they kind 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 know? Yeah that's a terrific concern.
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