So, a lot of individuals find that too troublesome, and that's why individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: individuals that are ready to put in maybe the 20 minutes needed to go through a procedure which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we enjoy 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 bigger. So you're in fact really earning money a massive quantity of cash to go through possibly, you understand, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, but it is just a question of time, Ryan, before you'll have the ability to buy cryptocurrencies straight through your trading software application. And can you envision what will happen to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the procedure that people go through, and one thing I desire to expose too that you didn't discuss, however I know a lot of folks who battle with this too, is oh, and by the way, you can only buy $1,000 a week. Or you can just purchase $500 a week.
As tough as possible, best, like Coinbase. It 'd take me permanently before I could start purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I mean, 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 suggest 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're in the early days of that innovation, however similar to during that amount of time, for the folks that had the vision to see where the future was going, and then purchased in on a few of these young companies, they made an absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a second, since I'm constantly curious to speak with individuals who are, particularly somebody like yourself, who's dedicated the last, you know, the lion's share of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like an average individual? That's a fantastic question.
They're 2 completely various things, but 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. And so what gives it value 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 computer systems, verifying the deals on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people continuously attempt to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And actually, with present technology, the Bitcoin network is so huge today, you can't co-opt it, you can't take it over.
And so when individuals put, you've got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not rely on paper money, you can print an unlimited amount of it. It's truly not protect, and the government can take it away from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or individuals that remained in Cypress, or simply individuals who have suffered through either hyperinflation, or there's a high need for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those countries that could possibly be a driver for more adoption, since they currently do not believe in their own currency? Yeah, and I believe we have actually already seen that.
So yes, and this is a thing that a lot of American or Western investors have a bumpy ride 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 stable currency, right? You do not require Bitcoin. But there are billions of individuals worldwide that do not have stable 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 energy coins. And energy coins are generally utilized, let's say Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is basically a global computer system that you can write computer system programs for and run computer system programs on an internationally decentralized computer system program.
So we consider something like Ether an utility token, due to the fact that you're basically purchasing programming power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals an idea, like a very basic one that I would picture you 'd called an utility token, resembles FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's type of this very same type of network impact that you have with Bitcoin, where it's like unstoppable example, because it's on numerous various locations and. I do not understand the ins and outs of it, however as an example for someone who might simply be really fundamental in their understanding of this, there are many different kinds of utilities that are available.
And you sort of discussed having this boots on the ground experience. Now, considering that we're looking at the bulk of these are probably energy based, remedy? Mm-hmm (affirmative). The majority of the coins that I advise and take a look at are utility-based. We have a couple of cryptocurrencies, however I think the real chance lies in the utility coin area.
There's all of these ICOs that were happening, those decreased a little bit with some modifications to a few things that was going on, however individuals are going to come out of the woodwork and begin to develop energy coins- Correct, yeah. And people require to comprehend that not all utility coins are produced equal.
So you have the benefit of dedicating your occupation to this, so you can go out there and do the recon, you can fulfill the creators, you can examine the code, etc. But for a typical individual, there's now what, over 1,000 different types of coins available, 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 even worse than somebody that's young, earnest, with a terrible idea, that someone offers $40 million to. Right? Yeah, absolutely. So yeah, so I don't really take part in numerous 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 then blow it out when it trades.
'Cause generally it'll crash 80% approximately. Which's when we truly start taking a look 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 solving an issue that requires to be fixed? Among the huge downsides with extremely smart, technical people, is that they like to solve issues that nobody appreciates fixing.
Does the group have experience of executing in an effective manner in another location of their life? And it does not even need to be directly associated to cryptocurrency, it does not need to be even straight related to software application, right? So, however I want to see a performance history of success in something, right? If it's 4 men in a room that are just out of college, unless they've got some actually good advisors behind them, I'm most likely not going to provide them any money.
Yeah. I think that in marketing in general, my world of service, we constantly try to find problems and how we can fix them. Now, are the issues things that people are attempting to solve a part of the Blockchain normally? Or would you state it's much better if they're solving type of a mass issue? 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 give you an example.
And the factor that we purchased it is since they discovered a way to make documents tamper-proof, and it's 99% more affordable than existing technology, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the person that started it has a performance history of developing computer system programs that entire states run their entire operations on, right? So you have actually got okay, the smart man has actually constructed substantial computer programs, great team, resolving a massive problem that is going to cut big costs.
I mean, it doesn't 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 lot of folks will attempt to make things more complicated than it is. And I have an actually basic guideline, Ryan. If I do not understand something, I put up my hand, and I say, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And then if the person that you're talking to can't dumb it down enough where you understand it, then it's probably not a good concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience examining companies and taking a look at much, much larger companies.
Ryan: So you have actually taken a look at companies that are big business, you have actually evaluated much bigger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you discussed, it is almost just sound judgment. You just have to sort of take a look at it and believe logically about what's going on, and pull the emotion out? You need to pull the emotion out, and there are no traditional metrics that you can take a look at.
Okay. What I can utilize that I found out from working on Wall Street across three decades, is how to check out individuals. I have actually satisfied tens of thousands of individuals throughout my career. I've fulfilled experts; I have actually fulfilled fund managers, I have actually fulfilled stock promoters, I have actually fulfilled all these different kinds 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 an excellent BS detector, you ought to listen to it. Okay. You should definitely listen to it. If I'm taking a seat and I'm talking with someone, and they have actually got all the bonifides, but you understand, there's simply; it's not sitting well 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 excessive opportunity. Yeah. And speaking of chance, you know, you sort of discussed at the start, Bitcoin and Ethereum, the majority of people have heard of these 2, especially Bitcoin, because it appears like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's shown up from state $3,000 not too long ago, it's rather unstable. Do they kind 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 ten years." You understand? Yeah that's an excellent concern.
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