So, a great deal of individuals find that too bothersome, and that's why individuals that are literally making the most amount of cash right now in cryptocurrencies are the early adopters: individuals that are willing to put in possibly the 20 minutes required to go through a process which just 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 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 in fact truly earning money a massive amount of money to go through possibly, 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, before you'll have the ability to buy cryptocurrencies straight through your trading software application. And can you picture what will take place 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 discussed the process that people go through, and something I desire to bring to light too that you didn't point out, however I understand a lot of folks who battle with this too, is oh, and by the method, you can only buy $1,000 a week. Or you can only buy $500 a week.
As tough as possible, ideal, like Coinbase. It 'd take me forever prior to I might start buying 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 indicate 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 innovation, but similar to throughout that period 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 absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a second, due to the fact that I'm always curious to speak with individuals who are, particularly 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 person? That's an excellent 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 money. So Bitcoin would be a cryptocurrency. Therefore what provides it value is that it is, there's only going to be a limited quantity. There'll never ever 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, people continuously attempt to hack it. But because of the nature of the network, today it's been unhackable. And really, with current technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when individuals 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 do not trust fiat money, you can print an unlimited quantity of it. It's truly not secure, and the government can take it away from you." - Whereas with Bitcoin, best , go on.
Yeah. Or individuals that were in Cypress, or just 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, due to the fact that they already don't think in their own currency? Yeah, and I believe we've already seen that.
So yes, and this is a thing that a great deal of American or Western investors have a hard 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 steady currency, right? You do not require Bitcoin. But there are billions of individuals on the planet that don't have stable currencies.
Yeah. Therefore there's this whole burgeoning global demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are essentially utilized, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially an international computer that you can compose computer programs for and run computer programs on a worldwide decentralized computer system program.
So we consider something like Ether an utility token, since you're basically buying programs power. So I would not truly consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give individuals a concept, like a very basic one that I would picture you 'd called an utility token, resembles FileCoin.
Where the idea is that generally you're hosting files through a peer-based network, and there's kind of this same type of network impact that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on numerous various areas and. I don't know the ins and outs of it, however as an example for somebody who may simply be really standard in their understanding of this, there are so lots of different types of utilities that are offered.
And you kind of discussed having this boots on the ground experience. Now, since we're taking a look at the bulk of these are most likely utility based, fix? Mm-hmm (affirmative). Most of the coins that I recommend and take a look at are utility-based. We have a few cryptocurrencies, however I believe the real chance lies in the utility coin area.
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, however people are going to come out of the woodwork and start to develop utility coins- Correct, yeah. And individuals need to understand that not all utility coins are produced equivalent.
So you have the advantage of devoting your occupation to this, so you can head out there and do the recon, you can satisfy the founders, you can inspect the code, etc. However for a typical individual, there's now what, over 1,000 different kinds of coins available, practically 1,200 I believe.
How do they do that? That's a terrific concern. I will say that 95% of ICOs are either fraudulent or simply bad concepts. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a horrible idea, that somebody gives $40 million to. Right? Yeah, completely. So yeah, so I don't actually take part in numerous ICOs, and I suggest you most likely 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 usually it'll crash 80% or two. Which's when we actually begin looking at the idea in more detail. So here are some quick and filthy things that you should take a look at, right? So, one is, are they fixing a problem that needs to be resolved? One of the huge downsides with extremely smart, technical individuals, is that they like to fix problems that no one cares about 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 straight related to cryptocurrency, it does not need to be even straight related to software application, right? So, but I want to see a track record of success in something, right? If it's four people in a space that are just out of college, unless they have actually got some truly great consultants behind them, I'm probably not going to offer them any money.
Yeah. I believe that in marketing in basic, my world of business, we continuously try to find issues and how we can resolve them. Now, are the issues things that individuals are attempting to resolve a part of the Blockchain generally? 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 generally searching for options that, so I'll provide you an example.
And the reason that we bought it is due to the fact that they found a way to make documents tamper-proof, and it's 99% less expensive 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 started it has a performance history of producing computer programs that whole states run their entire operations on, right? So you've got okay, the smart person has actually constructed substantial computer programs, great team, resolving an enormous problem that is going to cut huge costs.
I mean, it doesn't get any simpler than that in regards to deciding who to put money behind. And a great deal of this is typical sense, and a great deal of folks will attempt to make things more complex than it is. And I have a truly simple guideline, Ryan. If I do not understand something, I installed my hand, and I state, "I didn't understand what you simply stated." Mm-hmm (affirmative).
And then if the person that you're talking with can't dumb it down enough where you understand it, then it's most likely not an excellent concept. Right, right. It's going to be basic to understand. And do you feel that you have years of experience examining business and looking at much, much bigger business.
Ryan: So you have actually taken a look at companies that are big business, you have actually 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 nearly simply good sense. You simply need to type of look at it and think reasonably about what's going on, and pull the feeling out? You have to pull the feeling out, and there are no conventional metrics that you can take a look at.
Okay. What I can use that I found out from working on Wall Street across 3 decades, is how to read people. I have actually fulfilled 10s of countless individuals throughout my profession. I have actually satisfied experts; I have actually met fund managers, I've fulfilled stock promoters, I've met all these various types of characters along the method.
So I believe that's most likely one of my very powers, if you will. And if you've got a great BS detector, you must 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 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 deals out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of opportunity, you know, you type of discussed at the start, Bitcoin and Ethereum, many people have actually heard of these two, especially Bitcoin, because it seems like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading nearly upwards of $6,000 recently; it's turned up from say $3,000 not too long ago, it's quite volatile. Do they type of await a pullback, or do they simply state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in 10 years." You know? Yeah that's an excellent question.
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