So, a lot of people find that too inconvenient, 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 perhaps the 20 minutes required to go through a procedure which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we love your ideas, but gosh, setting up a crypto account is so hard." What I inform them is I state, "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 in fact truly earning money a huge quantity 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, prior to you'll be able to purchase cryptocurrencies directly through your trading software application. And can you imagine what will take place to this entire market when buying 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 mention, but I know a great deal of folks who battle with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can just purchase $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 resemble, well, we'll let you buy $500 a week, Teeka. I suggest, it's if you remember the early days of the Web, when we were getting on the Internet, we were doing it with 56k modems, right? I mean it would take 20 minutes to load 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, however similar to during that time period, for the folks that had the vision to see where the future was going, and after that bought in on some of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since I'm always curious to talk with people who are, specifically someone like yourself, who's devoted the last, you understand, the bulk of the last few years to truly go both feet in on this. How do you describe cryptocurrency to like an average person? That's a fantastic question.
They're 2 completely different 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 gives it value is that it is, there's just going to be a limited quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, verifying the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals continuously attempt to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And truly, with current technology, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
And so when people put, you have actually got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't rely on paper currency, you can print a limitless quantity of it. It's actually not secure, and the federal government can take it far from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or individuals that remained in Cypress, or just individuals who have actually suffered through either devaluation, or there's a high demand for, in Argentina for example, high need for a black market of U.S. dollars. Correct. Are those countries that could possibly be a catalyst for more adoption, due to the fact that they already don't think in their own currency? Yeah, and I think we have actually already seen that.
So yes, and this is a thing that a lot of American or Western investors have a tough time getting their head around. They resemble, "Well I do not require Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You do not require Bitcoin. But there are billions of individuals on the planet that do not have steady currencies.
Yeah. Therefore there's this entire burgeoning global need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And utility coins are generally utilized, let's say Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is basically a global computer that you can compose computer system programs for and run computer programs on an internationally decentralized computer system program.
So we consider something like Ether an energy token, due to the fact that you're basically buying programs 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 offer individuals a concept, like a very easy one that I would picture you 'd called an energy token, resembles FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's kind of this exact same kind of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, since it's on many different areas and. I do not know 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 various kinds of energies that are available.
And you type of discussed having this boots on the ground experience. Now, considering that we're taking a look at the bulk of these are probably energy based, fix? 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 real chance depends on the utility coin area.
There's all of these ICOs that were taking place, those slowed down a bit with some modifications to a couple of things that was going on, however individuals are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And individuals require to understand that not all energy coins are created equal.
So you have the advantage of devoting your occupation to this, so you can go out there and do the recon, you can satisfy the creators, you can inspect the code, etc. However for an average individual, there's now what, over 1,000 various types of coins readily available, practically 1,200 I believe.
How do they do that? That's a terrific question. I will state 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 horrible concept, that somebody offers $40 million to. Right? Yeah, totally. So yeah, so I do not actually take part in numerous ICOs, and I suggest you probably side action 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 generally it'll crash 80% approximately. Which's when we actually start taking a look at the concept in more information. So here are some quick and unclean things that you should look at, right? So, one is, are they resolving a problem that requires to be solved? One of the huge disadvantages with extremely smart, technical people, is that they like to solve issues that no one appreciates resolving.
Does the team have experience of performing in an effective manner 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 application, right? So, however I wish to see a track record of success in something, right? If it's four guys in a room that are just out of college, unless they have actually got some actually 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 company, we constantly look for issues and how we can resolve them. Now, are the problems things that people are trying to solve a part of the Blockchain typically? Or would you state it's better if they're fixing 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 generally trying to find options that, so I'll provide you an example.
And the reason that we bought it is because they discovered a way to make documents 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 guy that began it has a track record of developing computer programs that whole states run their whole operations on, right? So you've got alright, the smart person has built big computer system programs, excellent team, resolving an enormous issue that is going to cut substantial costs.
I mean, it does not get any simpler than that in regards to deciding who to put money behind. And a lot of this is typical sense, and a lot of folks will try to make things more complex than it is. And I have a really basic rule, Ryan. If I do not comprehend something, I put up my hand, and I say, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And after that if the person that you're talking to can't dumb it down enough where you comprehend it, then it's probably not a great concept. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience evaluating business and looking at much, much larger companies.
Ryan: So you have actually looked at companies that are big companies, you've assessed much larger marketcap type situations. 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 practically just sound judgment. You just need to type of appearance at it and believe logically about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no traditional metrics that you can look at.
Okay. What I can utilize that I gained from dealing with Wall Street throughout 3 years, is how to check out people. I've satisfied tens of thousands of people throughout my profession. I have actually satisfied insiders; I have actually met fund managers, I've satisfied stock promoters, I have actually satisfied all these different types of characters along the method.
So I believe that's most likely one of my extremely powers, if you will. And if you've got a good BS detector, you need to listen to it. Okay. You must absolutely 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 agreeing with me.
There are numerous other deals out there to look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you know, you sort of pointed out at the beginning, Bitcoin and Ethereum, the majority of individuals have heard of these two, particularly Bitcoin, since it appears like it's in the news all the time, something or the other.
Have they failed 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 quite volatile. Do they sort of await a pullback, or do they just say, "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 an excellent question.
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