So, a great deal of individuals find that too bothersome, and that's why the individuals that are actually making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are willing to put in maybe the 20 minutes needed to go through a procedure which simply takes 5 minutes if you want to set up a brokerage account.
" Oh Teeka, we love your concepts, but gosh, establishing a crypto account is so challenging." What I tell 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 larger. So you're in fact really getting paid a huge amount of cash to go through maybe, you understand, 20 minutes of a pain in the neck.
So you can't buy Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, prior to you'll be able to purchase cryptocurrencies straight through your trading software application. And can you envision what will take place 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 process that people go through, and something I wish to bring to light too that you didn't mention, however I understand a lot of folks who have problem with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can just buy $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me permanently before I could start buying in size on Coinbase. They resemble, 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 Web, we were doing it with 56k modems, right? I indicate it would take 20 minutes to fill 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 innovation, but just like during that amount of time, for the folks that had the vision to see where the future was going, and then purchased in on some of these young business, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm always curious to speak with individuals who are, specifically somebody 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 explain cryptocurrency to like an average individual? That's an excellent concern.
They're 2 absolutely different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative 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 quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, confirming the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals continuously try to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And really, with present innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
And so when people put, you have actually got individuals who have literally own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're saying, "We don't trust fiat money, you can print an endless quantity of it. It's truly not protect, and the federal government can take it away from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or people that remained in Cypress, or simply individuals who have suffered through either run-away inflation, or there's a high need for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those nations that could potentially be a driver for more adoption, because they already don't believe 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 bumpy ride 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 steady currency, right? You don't require Bitcoin. However there are billions of people in the world that don't have stable 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 essentially utilized, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially a global computer system that you can compose computer system programs for and run computer system programs on an internationally decentralized computer program.
So we consider something like Ether an energy token, since you're basically purchasing programs power. So I wouldn't really consider 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 simple one that I would picture you 'd called an utility token, is like FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's sort of this exact same kind of network effect that you have with Bitcoin, where it's like unstoppable kind of thing, because it's on many various areas and. I don't understand the ins and outs of it, but as an example for somebody who may simply be really standard in their understanding of this, there are a lot of various types of utilities that are offered.
And you kind of discussed having this boots on the ground experience. Now, given that we're taking a look at the bulk of these are probably utility based, fix? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, but I think the genuine opportunity depends on the energy coin space.
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 people are going to come out of the woodwork and start to produce energy coins- Correct, yeah. And individuals require to understand that not all utility coins are created equivalent.
So you have the benefit of dedicating your profession to this, so you can go out there and do the reconnaissance, you can satisfy the creators, you can check the code, etc. But for an average person, there's now what, over 1,000 different types of coins readily available, nearly 1,200 I believe.
How do they do that? That's a great concern. I will state that 95% of ICOs are either deceptive or simply bad ideas. Okay. Right? There's absolutely nothing even worse than someone that's young, earnest, with a horrible idea, that someone offers $40 million to. Right? Yeah, completely. So yeah, so I do not actually take part in numerous ICOs, and I advise you probably side step that market, unless you have actually got an unique relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause normally it'll crash 80% or so. Which's when we actually start taking a look at the idea in more information. So here are some fast and filthy things that you should take a look at, right? So, one is, are they solving an issue that needs to be fixed? Among the huge drawbacks with extremely wise, technical people, is that they like to fix problems that nobody cares about fixing.
Does the team have experience of performing in an effective way in another location of their life? And it doesn't even need to be directly associated to cryptocurrency, it doesn't need to be even straight associated to software application, right? So, however I want to see a track record of success in something, right? If it's 4 people in a space that are just out of college, unless they've got some truly great consultants behind them, I'm probably not going to provide any cash.
Yeah. I think that in marketing in general, my world of company, we constantly try to find issues and how we can solve them. Now, are the issues things that individuals are attempting to solve a part of the Blockchain typically? Or would you state it's better if they're solving sort 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 basically searching for options that, so I'll provide you an example.
And the factor that we purchased it is since they found a way to make files tamper-proof, and it's 99% less expensive than present technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the person that started it has a performance history of creating computer programs that entire states run their entire operations on, right? So you have actually got alright, the smart man has actually constructed big computer programs, great team, resolving a huge issue that is going to cut substantial costs.
I imply, it does not get any simpler than that in terms of choosing who to put money behind. And a lot 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 really simple guideline, Ryan. If I don't comprehend something, I installed my hand, and I state, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And then if the individual that you're talking to can't dumb it down enough where you comprehend it, then it's probably not an excellent idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience assessing companies and taking a look at much, much larger business.
Ryan: So you have actually taken a look at business that are big companies, you've assessed much larger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you mentioned, it is almost just sound judgment. You just have to kind of appearance at it and think rationally about what's going on, and pull the feeling out? You need to pull the feeling out, and there are no conventional metrics that you can take a look at.
Okay. What I can utilize that I discovered from dealing with Wall Street across 3 decades, is how to read individuals. I've satisfied 10s of countless individuals throughout my profession. I have actually met experts; I've satisfied fund supervisors, I have actually met stock promoters, I have actually fulfilled all these different kinds of characters along the method.
So I think that's probably among my very powers, if you will. And if you've got a great BS detector, you must listen to it. Okay. You should absolutely listen to it. If I'm sitting down and I'm talking with someone, and they have actually got all the bonifides, but you know, there's simply; it's not sitting well with me, there's something about them that's not sitting well with me.
There are numerous other offers out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you understand, you kind of mentioned at the beginning, Bitcoin and Ethereum, many people have actually heard of these two, particularly Bitcoin, since it looks 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 come up from say $3,000 not too long earlier, it's quite volatile. Do they type 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 understand? Yeah that's an excellent question.
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