So, a lot of individuals find that too troublesome, and that's why the individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: individuals that want to put in perhaps the 20 minutes needed to go through a process which simply takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy your concepts, however gosh, establishing a crypto account is so challenging." 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 really getting paid a huge amount of cash to go through perhaps, you understand, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, but 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 whole marketplace when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you pointed out the process that individuals go through, and one thing I wish to bring to light too that you didn't discuss, however I know a great deal of folks who struggle 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 hard as possible, best, like Coinbase. It 'd take me forever prior to I might begin purchasing in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I suggest, 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 mean 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 indicate, we remain in the early days of that technology, but just like during that duration of time, 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 second, due to the fact that I'm always curious to speak with people who are, especially someone like yourself, who's devoted the last, you know, the lion's share of the last few years to really go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a fantastic 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 option to money. So Bitcoin would be a cryptocurrency. And so what provides it value is that it is, there's only going to be a restricted amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, confirming the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people continuously attempt to hack it. However since of the nature of the network, today it's been unhackable. And really, with present innovation, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We do not rely on paper cash, you can print an unlimited amount of it. It's really not secure, and the federal government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that were in Cypress, or just individuals who have 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 catalyst for more adoption, since they currently do not think in their own currency? Yeah, and I believe we've currently 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 do not require Bitcoin, I have cash." 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 steady currencies.
Yeah. Therefore there's this whole growing international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are generally used, let's say Ethereum, which a lot of people understand about Ethereum. Ethereum is basically a worldwide computer system that you can write computer system programs for and run computer system programs on a globally decentralized computer program.
So we think about something like Ether an energy token, due to the fact that you're basically purchasing programs power. So I would not actually think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide people an idea, like a really easy one that I would imagine you 'd called an utility 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 impact that you have with Bitcoin, where it resembles unstoppable example, because it's on many different locations and. I don't know the ins and outs of it, however as an example for somebody who may just be extremely standard in their understanding of this, there are a lot of various kinds of energies that are readily available.
And you sort of pointed out having this boots on the ground experience. Now, given that we're taking a look at the bulk of these are most likely energy based, remedy? Mm-hmm (affirmative). The majority of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, but I think the real chance lies in the utility coin space.
There's all of these ICOs that were happening, those slowed down a little bit with some changes to a couple of things that was going on, but individuals are going to come out of the woodwork and start to produce utility coins- Correct, yeah. And individuals need to comprehend that not all energy coins are developed equivalent.
So you have the advantage of committing your occupation to this, so you can go out there and do the reconnaissance, you can meet the creators, you can inspect the code, and so on. But for a typical individual, there's now what, over 1,000 various kinds of coins available, nearly 1,200 I believe.
How do they do that? That's a great question. I will say that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's nothing worse than somebody that's young, earnest, with a terrible idea, that somebody provides $40 million to. Right? Yeah, absolutely. So yeah, so I don't truly take part in lots of ICOs, and I advise you probably 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 typically it'll crash 80% or so. And that's when we actually start taking a look at the idea in more information. So here are some fast and dirty things that you should take a look at, right? So, one is, are they resolving an issue that requires to be solved? One of the huge downsides with extremely smart, technical individuals, is that they like to solve issues that nobody cares about resolving.
Does the group have experience of performing in a successful manner 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 associated to software application, right? So, however I wish to see a performance history of success in something, right? If it's four guys in a room that are simply out of college, unless they've got some truly good consultants behind them, I'm most likely not going to provide any cash.
Yeah. I believe that in marketing in general, my world of organization, we constantly look for problems and how we can fix them. Now, are the issues things that individuals are attempting to resolve a part of the Blockchain typically? Or would you state it's much better if they're fixing 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 essentially searching for solutions that, so I'll give you an example.
And the factor that we purchased it is since they found a method to make files tamper-proof, and it's 99% less expensive than existing 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 okay, the wise guy has constructed big computer system programs, great group, solving an enormous issue that is going to cut substantial expenses.
I suggest, it does not get any simpler than that in terms of deciding who to put cash 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 really simple guideline, Ryan. If I do not understand something, I set up my hand, and I say, "I didn't understand what you just said." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you comprehend it, then it's most likely not a great idea. Right, right. It's going to be easy to understand. And do you feel that you have years of experience evaluating companies and taking a look at much, much larger business.
Ryan: So you've taken a look at companies that are huge business, you have actually assessed much larger marketcap type situations. Do you feel that that experience has assisted you? Or are we in such, sort of the infancy, that as you mentioned, it is almost simply good sense. You simply have to kind of take a look at it and think logically about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no standard metrics that you can look at.
Okay. What I can use that I learned from dealing with Wall Street throughout 3 years, is how to read people. I've satisfied tens of countless individuals throughout my career. I've satisfied experts; I have actually fulfilled fund managers, I've satisfied stock promoters, I've satisfied all these different kinds of characters along the method.
So I think that's most likely among my extremely powers, if you will. And if you've got a good BS detector, you need to listen to it. Okay. You ought to 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 know, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are a lot of other deals out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you understand, you sort of mentioned at the beginning, Bitcoin and Ethereum, the majority of people have actually become aware of these two, especially Bitcoin, since it appears like it's in the news all the time, something or the other.
Have they missed the boat on Bitcoin? Bitcoin is trading nearly upwards of $6,000 just recently; it's shown up from state $3,000 not too long back, it's quite volatile. Do they sort 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 ten years." You know? Yeah that's a great concern.
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