So, a great deal of people find that too bothersome, which's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are ready to put in maybe the 20 minutes needed to go through a process which simply takes 5 minutes if you desire to set up a brokerage account.
" Oh Teeka, we love your concepts, but gosh, setting up a crypto account is so difficult." What I tell 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 actually truly getting paid an enormous amount of money to go through possibly, you know, 20 minutes of a pain in the neck.
So you can't buy Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, prior to you'll be able to buy cryptocurrencies directly through your trading software application. And can you imagine what will happen to this whole marketplace when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that people go through, and something I want to expose too that you didn't point out, however I understand a great deal of folks who have a hard time with this too, is oh, and by the method, you can just purchase $1,000 a week. Or you can only buy $500 a week.
As difficult as possible, right, like Coinbase. It 'd take me forever before I could begin buying in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I imply, it's if you keep in mind the early days of the Web, when we were getting on the Web, we were doing it with 56k modems, right? I indicate 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're in the early days of that technology, but much like during that period of time, for the folks that had the vision to see where the future was going, and after that 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 2nd, since I'm always curious to speak with people who are, especially someone like yourself, who's committed the last, you know, the better part of the last couple of years to truly go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a terrific concern.
They're two absolutely various things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an option to cash. So Bitcoin would be a cryptocurrency. And so what provides it worth 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 computers, verifying the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals constantly try to hack it. But due to the fact that of the nature of the network, today it's been unhackable. And really, with existing technology, the Bitcoin network is so big 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 due to the fact that they're saying, "We don't rely on paper currency, you can print an endless amount of it. It's actually not protect, and the federal government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that were in Cypress, or just people who have suffered through either devaluation, 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 catalyst for more adoption, due to the fact that they already don't believe in their own currency? Yeah, and I believe we have actually 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 resemble, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. But there are billions of people on the planet that do not have stable currencies.
Yeah. And so there's this whole growing worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are basically used, let's state Ethereum, which a lot of people learn about Ethereum. Ethereum is basically an international computer system that you can write computer programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an utility token, due to the fact that you're basically buying programming power. So I would not really think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to give people an idea, like an extremely basic one that I would envision you 'd called an energy token, is like FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's sort of this very same type of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, because it's on numerous different areas and. I do not understand the ins and outs of it, however as an example for someone who might just be very standard in their understanding of this, there are many various kinds of energies that are offered.
And you sort of mentioned having this boots on the ground experience. Now, considering that we're looking at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). The majority of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, but I believe the real chance depends on the utility coin space.
There's all of these ICOs that were taking place, those slowed down a bit with some changes to a few things that was going on, but individuals are going to come out of the woodwork and start to create energy coins- Correct, yeah. And people require to comprehend that not all energy coins are developed equal.
So you have the benefit of committing your profession 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. However for a typical person, there's now what, over 1,000 various types of coins readily available, practically 1,200 I think.
How do they do that? That's an excellent question. I will state that 95% of ICOs are either deceptive or just bad ideas. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a terrible concept, that someone offers $40 million to. Right? Yeah, completely. So yeah, so I do not truly participate in lots of ICOs, and I advise you most likely side action that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause typically it'll crash 80% or two. Which's when we really start looking at the concept in more detail. So here are some fast and unclean things that you should look at, right? So, one is, are they solving a problem that requires to be fixed? One of the huge disadvantages with very smart, technical people, is that they like to fix problems that no one cares about fixing.
Does the group have experience of carrying out in an effective manner in another location of their life? And it doesn't even have to be directly associated to cryptocurrency, it doesn't have to be even straight associated to software, right? So, but I desire to see a track record 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 probably not going to offer them any money.
Yeah. I believe that in marketing in basic, my world of service, we continuously try to find issues and how we can solve them. Now, are the problems things that people are trying to solve a part of the Blockchain usually? Or would you say it's much better if they're resolving 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 services that, so I'll offer you an example.
And the reason that we bought it is due to the fact that they found a way to make files tamper-proof, and it's 99% less expensive than current 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 performance history of producing computer programs that whole states run their entire operations on, right? So you have actually got fine, the clever guy has constructed substantial computer system programs, great team, solving a massive problem that is going to cut big costs.
I suggest, it doesn't get any easier 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 attempt to make things more complex than it is. And I have a truly easy rule, Ryan. If I do not understand something, I installed my hand, and I state, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And after that 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 comprehend. And do you feel that you have years of experience evaluating companies and taking a look at much, much larger companies.
Ryan: So you have actually taken a look at business that are huge companies, you have actually examined much larger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you pointed out, it is nearly just good sense. You simply have to kind of look at it and believe reasonably about what's going on, and pull the feeling 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 working on Wall Street throughout three years, is how to read individuals. I have actually met tens of thousands of individuals throughout my career. I've met insiders; I have actually fulfilled fund supervisors, I have actually fulfilled stock promoters, I have actually met all these different kinds of characters along the way.
So I believe that's probably among my very powers, if you will. And if you've got an excellent BS detector, you must listen to it. Okay. You ought to absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually 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 a lot of other offers out there to take a look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you understand, you sort of pointed out at the beginning, Bitcoin and Ethereum, the majority of people have actually become aware of these two, especially Bitcoin, due to the fact that it appears like it's 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 turned up from state $3,000 not too long back, it's quite volatile. Do they kind of wait on a pullback, or do they simply say, "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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