So, a lot of people discover that too inconvenient, and that's why individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: people that want to put in maybe the 20 minutes needed to go through a procedure which just takes five minutes if you wish to establish a brokerage account.
" Oh Teeka, we enjoy your ideas, however 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 entire cryptocurrency market will be 10x bigger. So you're actually truly earning money a massive amount of money to go through maybe, you know, 20 minutes of a discomfort 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 buy cryptocurrencies directly through your trading software application. And can you picture what will take place to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that individuals go through, and one thing I wish to bring to light too that you didn't discuss, however I know a lot of folks who fight 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 challenging as possible, right, like Coinbase. It 'd take me permanently before 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 Web, when we were getting on the Web, we were doing it with 56k modems, right? I imply 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 imply, we remain in the early days of that technology, but simply like throughout that amount 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 an action back for a second, because I'm always curious to talk with individuals who are, particularly somebody like yourself, who's devoted the last, you know, the lion's share of the last couple of years to actually go both feet in on this. How do you explain cryptocurrency to like an average person? That's a great question.
They're two totally different things, but 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 gives it value is that it is, there's just going to be a restricted 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 take a look at that Bitcoin network, individuals constantly attempt to hack it. But because of the nature of the network, today it's been unhackable. And actually, with existing technology, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
Therefore when individuals put, you have actually got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're stating, "We do not trust fiat money, you can print an unlimited amount of it. It's really not protect, and the government can take it far from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or individuals that were in Cypress, or simply people who have actually suffered through either run-away inflation, 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 possibly be a driver for more adoption, because they already do not believe in their own currency? Yeah, and I think we've already seen that.
So yes, and this is a thing that a lot of American or Western investors have a difficult time getting their head around. They're like, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not need Bitcoin. But there are billions of individuals worldwide that don't have steady currencies.
Yeah. Therefore there's this entire growing international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy 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 compose computer programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an energy token, since you're essentially buying programming power. So I wouldn't actually consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide individuals an idea, like an extremely basic one that I would imagine you 'd called an energy token, resembles FileCoin.
Where the concept is that essentially you're hosting files through a peer-based network, and there's kind of this same kind of network effect that you have with Bitcoin, where it resembles unstoppable kind of thing, since it's on numerous different areas and. I do not know the ins and outs of it, but as an example for somebody who may simply be really fundamental in their understanding of this, there are a lot of various types of energies that are available.
And you type of pointed out having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). The majority of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, but I believe the genuine chance depends on the energy coin space.
There's all of these ICOs that were occurring, those decreased a bit with some changes to a couple of things that was going on, but individuals are going to come out of the woodwork and begin to develop energy coins- Correct, yeah. And people require to understand that not all utility coins are developed equal.
So you have the benefit of committing your profession to this, so you can head out there and do the reconnaissance, you can fulfill the creators, you can examine the code, etc. But for an average individual, there's now what, over 1,000 different kinds of coins offered, nearly 1,200 I think.
How do they do that? That's an excellent concern. I will say that 95% of ICOs are either deceitful or simply bad concepts. Okay. Right? There's nothing worse than someone that's young, earnest, with a dreadful idea, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I do not actually get involved in many ICOs, and I advise you most likely side action that market, unless you've got an unique relationship, and you can get in on the pre-ICO, and after that blow it out when it trades.
'Cause usually it'll crash 80% approximately. And that's when we actually start taking a look at the idea in more information. So here are some quick and dirty things that you should take a look at, right? So, one is, are they resolving an issue that needs to be fixed? Among the huge downsides with really smart, technical people, is that they like to resolve issues that nobody appreciates resolving.
Does the group have experience of carrying out in an effective manner in another area of their life? And it doesn't even need to be straight related to cryptocurrency, it doesn't need to be even directly associated to software application, right? So, but I wish to see a track record of success in something, right? If it's four men in a space that are just out of college, unless they have actually got some actually excellent consultants behind them, I'm probably not going to give them any cash.
Yeah. I think that in marketing in general, my world of business, we constantly search for issues and how we can solve them. Now, are the problems things that individuals are trying to solve 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 basically searching for options that, so I'll offer you an example.
And the reason that we purchased it is due to the fact that they found a way to make files tamper-proof, and it's 99% cheaper than existing 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 system programs that entire states run their entire operations on, right? So you've got fine, the wise person has actually built huge computer programs, terrific group, fixing a huge problem that is going to cut huge expenses.
I indicate, it does not get any easier than that in terms of choosing 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 complicated than it is. And I have a truly easy guideline, Ryan. If I don't 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 with can't dumb it down enough where you comprehend it, then it's most likely not an excellent idea. Right, right. It's going to be simple to understand. And do you feel that you have years of experience assessing companies and taking a look at much, much larger business.
Ryan: So you've taken a look at business that are big business, you've evaluated 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 mentioned, it is almost simply typical sense. You just have to sort of take a look at it and think logically about what's going on, and pull the emotion out? You need to pull the feeling out, and there are no traditional metrics that you can take a look at.
Okay. What I can use that I discovered from dealing with Wall Street across 3 decades, is how to check out people. I've met tens of thousands of people throughout my profession. I have actually satisfied experts; I have actually fulfilled fund supervisors, I have actually met stock promoters, I have actually satisfied all these various kinds of characters along the way.
So I believe that's probably among my very powers, if you will. And if you have actually got an excellent BS detector, you ought to listen to it. Okay. You need to absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, but 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 look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you know, you type of mentioned at the start, Bitcoin and Ethereum, many people have actually become aware of these 2, particularly Bitcoin, since it looks like it's 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 turned up from state $3,000 not too long ago, it's quite volatile. Do they kind of wait on a pullback, or do they simply state, "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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