So, a lot of people find that too bothersome, and that's why individuals that are literally making the most amount of money right now in cryptocurrencies are the early adopters: people that want to put in possibly the 20 minutes required to go through a procedure which just takes five minutes if you desire to set up a brokerage account.
" Oh Teeka, we enjoy your concepts, however gosh, establishing a crypto account is so challenging." What I tell them is I state, "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 really getting paid a massive amount of money to go through possibly, you know, 20 minutes of a discomfort in the neck.
So you can't purchase Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, prior to you'll be able to purchase cryptocurrencies directly through your trading software application. And can you envision what will happen to this entire market when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you discussed the procedure that individuals go through, and something I want to expose too that you didn't mention, but I understand a lot of folks who battle with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can only buy $500 a week.
As tough as possible, best, like Coinbase. It 'd take me forever prior to I might start purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I imply, 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're in the early days of that innovation, but similar to throughout that time period, 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 absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a second, due to the fact that I'm constantly curious to talk to individuals who are, especially somebody like yourself, who's dedicated the last, you know, the better part of the last couple of years to truly go both feet in on this. How do you describe cryptocurrency to like an average person? That's a great concern.
They're 2 totally different things, however 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. Therefore what gives it worth is that it is, there's just going to be a limited amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people continuously attempt to hack it. However because of the nature of the network, today it's been unhackable. And actually, with current 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 people who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't trust paper currency, you can print a limitless amount of it. It's truly not protect, and the government can take it far from you." - Whereas with Bitcoin, right , go ahead.
Yeah. Or people that were in Cypress, or simply individuals who have actually 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 nations that could potentially be a catalyst for more adoption, due to the fact that 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 financiers have a tough time getting their head around. They're like, "Well I don't require 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 people on the planet that don't have steady currencies.
Yeah. Therefore there's this entire burgeoning 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 generally utilized, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially an international computer system that you can compose computer system programs for and run computer system programs on a worldwide decentralized computer program.
So we consider something like Ether an energy token, due to the fact that you're essentially buying programs power. So I would not truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give people an idea, like a really simple one that I would imagine you 'd called an utility token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's type of this same kind of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on numerous various areas and. I don't understand the ins and outs of it, but as an example for someone who may simply be really basic in their understanding of this, there are numerous different kinds of utilities that are offered.
And you type 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, correct? Mm-hmm (affirmative). Many of the coins that I advise and take a look at are utility-based. We have a few cryptocurrencies, however I believe the genuine opportunity lies in the utility coin space.
There's all of these ICOs that were occurring, those decreased a little bit with some modifications to a couple of things that was going on, however people are going to come out of the woodwork and begin to create energy coins- Correct, yeah. And people require to comprehend that not all utility coins are created equivalent.
So you have the advantage of committing your occupation to this, so you can head out there and do the recon, you can meet the founders, you can check the code, and so on. But for an average person, there's now what, over 1,000 various types of coins offered, nearly 1,200 I believe.
How do they do that? That's a fantastic concern. I will state that 95% of ICOs are either fraudulent or just bad ideas. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a dreadful idea, that somebody offers $40 million to. Right? Yeah, totally. So yeah, so I do not truly take part in lots of ICOs, and I suggest you most likely side step that market, unless you have actually 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 two. Which's when we really begin looking at the concept in more information. 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 requires to be resolved? One of the big downsides with very clever, technical people, is that they like to solve problems that no one cares about solving.
Does the group have experience of executing in a successful way 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, but I wish 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've got some really great advisors behind them, I'm most likely not going to provide them any cash.
Yeah. I believe that in marketing in general, my world of service, we continuously try to find problems and how we can solve them. Now, are the problems things that individuals are attempting to fix a part of the Blockchain typically? Or would you say it's much better if they're resolving sort 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 options that, so I'll give you an example.
And the factor that we purchased it is because they found a method to make files tamper-proof, and it's 99% cheaper than existing innovation, 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 track record of developing computer system programs that whole states run their entire operations on, right? So you have actually got okay, the clever man has actually developed huge computer programs, terrific group, solving a huge problem that is going to cut big costs.
I mean, it does not get any easier than that in regards to deciding who to put cash behind. And a great deal 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 easy rule, Ryan. If I don't comprehend something, I set up my hand, and I state, "I didn't comprehend what you simply said." Mm-hmm (affirmative).
And then if the individual that you're speaking to can't dumb it down enough where you understand it, then it's most likely not a great concept. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience assessing companies and looking at much, much larger companies.
Ryan: So you've taken a look at companies that are huge companies, you have actually evaluated much larger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, kind of the infancy, that as you pointed out, it is nearly simply sound judgment. You simply need to sort 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 conventional metrics that you can take a look at.
Okay. What I can utilize that I gained from working on Wall Street throughout three decades, is how to check out people. I have actually met tens of countless people throughout my career. I have actually met experts; I have actually met fund managers, I have actually met stock promoters, I have actually met all these various kinds of characters along the method.
So I believe that's probably among my incredibly powers, if you will. And if you have actually got an excellent BS detector, you must listen to it. Okay. You should definitely listen to it. If I'm sitting down and I'm talking with someone, and they've got all the bonifides, but you understand, there's simply; it's not agreeing with me, there's something about them that's not sitting well with me.
There are numerous other deals out there to take a look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you understand, you type of pointed out at the beginning, Bitcoin and Ethereum, many individuals have actually become aware of these 2, especially Bitcoin, because it looks 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 nearly upwards of $6,000 recently; it's shown up from state $3,000 not too long earlier, it's quite volatile. Do they type of wait for a pullback, or do they just state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You understand? Yeah that's a great question.
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