So, a lot of individuals discover that too bothersome, and that's why the people that are literally making the most amount of cash today in cryptocurrencies are the early adopters: people that are ready to put in perhaps the 20 minutes required to go through a procedure which just takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy 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 whole cryptocurrency market will be 10x larger. So you're in fact truly earning money a massive amount of cash to go through possibly, you understand, 20 minutes of a pain in the neck.
So you can't buy Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll have the ability to purchase cryptocurrencies directly through your trading software application. And can you envision what will occur to this entire marketplace when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you discussed the procedure that individuals go through, and one thing I wish to bring to light too that you didn't mention, however I know a lot of folks who have a hard time with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can just buy $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me permanently before 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 Internet, we were doing it with 56k modems, right? I mean 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're in the early days of that technology, but simply like throughout that time period, for the folks that had the vision to see where the future was going, and then 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 2nd, because I'm constantly curious to speak to individuals who are, specifically somebody like yourself, who's dedicated the last, you know, the better part of the last few years to really go both feet in on this. How do you explain cryptocurrency to like an average individual? That's a fantastic concern.
They're two absolutely different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to cash. 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, verifying the deals on the Bitcoin network. And so if you take a look at that Bitcoin network, people continuously attempt to hack it. But because 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 individuals put, you have actually got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We do not trust paper currency, you can print a limitless quantity of it. It's really not protect, and the government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that were in Cypress, or simply individuals who have suffered through either hyperinflation, or there's a high need for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those countries that could potentially be a driver for more adoption, because they already don't think in their own currency? Yeah, and I believe we have actually currently seen that.
So yes, and this is a thing that a lot of American or Western financiers have a difficult time getting their head around. They're like, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. However there are billions of individuals in the world that do not have steady currencies.
Yeah. And so there's this whole blossoming global need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are basically used, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially a worldwide computer system that you can compose computer programs for and run computer programs on a worldwide decentralized computer program.
So we think about something like Ether an utility token, because you're essentially purchasing shows power. So I would not truly consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals a concept, like a very basic 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 same kind of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, due to the fact that it's on so many various areas and. I don't know the ins and outs of it, however as an example for someone who may just be very standard in their understanding of this, there are numerous various types of utilities that are available.
And you type of pointed out having this boots on the ground experience. Now, given that we're looking at the bulk of these are probably energy based, remedy? Mm-hmm (affirmative). Many of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, however I believe the real opportunity lies in the utility coin space.
There's all of these ICOs that were taking place, those decreased a bit with some changes to a couple of things that was going on, but people are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And individuals require to understand that not all energy coins are created equal.
So you have the benefit of committing your occupation to this, so you can go out there and do the reconnaissance, you can fulfill the creators, you can inspect the code, etc. However for a typical person, there's now what, over 1,000 various 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 absolutely nothing even worse than someone that's young, earnest, with an awful idea, that somebody offers $40 million to. Right? Yeah, absolutely. So yeah, so I don't really take part in many ICOs, and I advise you probably side action 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 generally it'll crash 80% approximately. Which's when we really begin taking a look at the concept in more detail. So here are some quick and dirty things that you should take a look at, right? So, one is, are they fixing an issue that needs to be fixed? Among the huge drawbacks with really smart, technical people, is that they like to fix issues that no one cares about fixing.
Does the team have experience of performing in an effective manner in another location of their life? And it doesn't even have to be directly associated to cryptocurrency, it does not have to be even straight associated to software application, right? So, however I wish to see a track record of success in something, right? If it's 4 men in a room that are simply out of college, unless they have actually got some truly good advisors behind them, I'm probably not going to give them any cash.
Yeah. I believe that in marketing in basic, my world of business, we constantly search for problems and how we can resolve them. Now, are the issues things that individuals are trying to solve a part of the Blockchain normally? 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 generally trying to find services that, so I'll offer you an example.
And the reason that we purchased it is due to the fact that they found 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 after that on top of that, the guy that began it has a performance history of creating computer programs that whole states run their entire operations on, right? So you have actually got okay, the smart man has developed big computer programs, excellent team, solving an enormous problem that is going to cut substantial expenses.
I suggest, it doesn't get any easier than that in regards to choosing who to put money behind. And a lot of this is common sense, and a great deal of folks will attempt to make things more complex than it is. And I have a truly basic guideline, Ryan. If I do not understand something, I installed my hand, and I say, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And then if the individual that you're talking to can't dumb it down enough where you understand it, then it's probably not an excellent idea. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience examining companies and taking a look at much, much bigger companies.
Ryan: So you have actually taken a look at business that are huge companies, you have actually examined much bigger marketcap type situations. 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 good sense. You simply need to kind of look at it and believe rationally about what's going on, and pull the feeling out? You need to pull the feeling out, and there are no traditional metrics that you can look at.
Okay. What I can use that I gained from working on Wall Street throughout 3 decades, is how to check out individuals. I've satisfied tens of countless individuals throughout my profession. I've satisfied insiders; I have actually met fund supervisors, I've fulfilled stock promoters, I've satisfied all these different kinds of characters along the way.
So I think that's most likely one of my super powers, if you will. And if you've got a good BS detector, you should listen to it. Okay. You must absolutely listen to it. If I'm sitting down 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 sitting well with me.
There are numerous other offers out there to look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you know, you sort of pointed out at the start, Bitcoin and Ethereum, the majority of people have actually become aware of these 2, especially Bitcoin, since it looks like it remains in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's shown up from state $3,000 not too long earlier, it's rather unstable. Do they type of wait on 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 an excellent concern.
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