So, a lot of people discover that too inconvenient, and that's why the individuals that are actually making the most amount of cash today in cryptocurrencies are the early adopters: individuals that want to put in perhaps the 20 minutes required to go through a procedure which simply takes 5 minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your ideas, but gosh, establishing a crypto account is so challenging." 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 larger. So you're actually really making money a huge quantity of cash to go through maybe, you know, 20 minutes of a nuisance.
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. And can you imagine what will take place to this whole market when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Today you mentioned the process that people go through, and one thing I wish to expose too that you didn't point out, but I understand a lot of folks who deal with this too, is oh, and by the way, you can only buy $1,000 a week. Or you can only buy $500 a week.
As hard as possible, right, like Coinbase. It 'd take me permanently before I could begin buying in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I indicate, it's if you keep in mind the early days of the Web, 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 imply, we remain in the early days of that technology, but much like during that duration 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 companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, due to the fact that I'm constantly curious to speak to people who are, particularly someone like yourself, who's dedicated the last, you know, the much better part of the last couple of years to actually go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's a fantastic question.
They're 2 completely various things, however 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 provides it worth is that it is, there's just going to be a minimal amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, validating the transactions on the Bitcoin network. And so 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 truly, with existing innovation, the Bitcoin network is so big right now, you can't co-opt it, you can't take it over.
Therefore 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 do not trust fiat money, you can print an unrestricted quantity of it. It's really not protect, and the government can take it far from you." - Whereas with Bitcoin, right , proceed.
Yeah. Or individuals that were in Cypress, or simply individuals who have actually suffered through either devaluation, 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 possibly be a catalyst for more adoption, due to the fact that they already don't think in their own currency? Yeah, and I think we have actually 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're like, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. However there are billions of individuals on the planet that do not have steady currencies.
Yeah. And so there's this entire burgeoning worldwide demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called utility coins. And energy coins are essentially used, let's say Ethereum, which a great deal of people understand 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 think about something like Ether an energy token, because you're essentially buying programs power. So I wouldn't truly consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide individuals an idea, like an extremely simple one that I would envision you 'd called an utility token, resembles FileCoin.
Where the concept is that essentially 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, due to the fact that it's on a lot of different areas and. I do not know the ins and outs of it, however as an example for somebody who may simply be very standard in their understanding of this, there are so many different kinds of utilities that are available.
And you type of pointed out having this boots on the ground experience. Now, because we're looking at the bulk of these are most likely energy based, remedy? 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 genuine opportunity lies in the energy coin space.
There's all of these ICOs that were happening, those decreased a bit with some changes to a couple of things that was going on, but people are going to come out of the woodwork and start to develop energy coins- Correct, yeah. And individuals need to understand that not all utility coins are created equal.
So you have the advantage of devoting your occupation to this, so you can head out there and do the reconnaissance, you can satisfy the founders, you can inspect the code, etc. However for an average individual, there's now what, over 1,000 different kinds of coins available, nearly 1,200 I believe.
How do they do that? That's an excellent question. I will say that 95% of ICOs are either deceptive or just bad ideas. Okay. Right? There's nothing worse than somebody that's young, earnest, with a dreadful idea, that someone gives $40 million to. Right? Yeah, absolutely. So yeah, so I do not actually take part in lots of ICOs, and I recommend you most likely side action that market, unless you've got a special relationship, and you can get in on the pre-ICO, and then blow it out when it trades.
'Cause typically it'll crash 80% approximately. And that's when we really start looking at the concept in more information. So here are some fast and dirty things that you should look at, right? So, one is, are they fixing a problem that requires to be solved? Among the big drawbacks with really smart, technical people, is that they like to solve problems that no one appreciates fixing.
Does the group have experience of executing in an effective way in another area of their life? And it doesn't even need to be directly related to cryptocurrency, it doesn't have to be even straight related to software, right? So, but I desire to see a performance history of success in something, right? If it's 4 guys in a room that are just out of college, unless they have actually got some really excellent advisors behind them, I'm most likely not going to give them any money.
Yeah. I believe that in marketing in basic, my world of organization, we constantly search for issues and how we can fix them. Now, are the issues things that people are trying to resolve a part of the Blockchain usually? Or would you say it's better if they're resolving 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 looking for services that, so I'll give 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 current innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the man that started it has a track record of creating computer programs that whole states run their entire operations on, right? So you've got all right, the wise person has actually built substantial computer programs, excellent group, fixing a massive problem that is going to cut huge expenses.
I suggest, it does not get any simpler than that in terms of choosing who to put cash behind. And a great deal of this prevails sense, and a great deal of folks will try to make things more complicated than it is. And I have a truly simple rule, Ryan. If I do not comprehend something, I put up my hand, and I state, "I didn't understand what you just stated." Mm-hmm (affirmative).
And after that if the person that you're speaking to can't dumb it down enough where you comprehend it, then it's probably not a good concept. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience examining business and looking at much, much larger business.
Ryan: So you have actually looked at companies that are huge business, you've evaluated much larger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, sort of the infancy, that as you mentioned, it is nearly just good sense. You simply have to sort of take a look at it and think rationally about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no traditional metrics that you can look at.
Okay. What I can utilize that I gained from dealing with Wall Street across three years, is how to read individuals. I've satisfied tens of countless individuals throughout my career. I've fulfilled insiders; I've satisfied fund managers, I've met stock promoters, I've fulfilled all these various types of characters along the way.
So I think that's most likely among my incredibly powers, if you will. And if you have actually got an excellent BS detector, you should listen to it. Okay. You should absolutely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, however you understand, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are so numerous other offers out there to take a look at. Yeah, there's excessive opportunity. Yeah. And speaking of chance, you know, you sort of mentioned at the start, Bitcoin and Ethereum, the majority of people have actually become aware of these two, particularly Bitcoin, due to the fact that it seems like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 recently; it's come up from say $3,000 not too long earlier, it's rather volatile. Do they kind of wait on a pullback, or do they just 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 a terrific concern.
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