So, a great deal of people discover that too bothersome, and that's why the individuals that are actually making the most amount of money today in cryptocurrencies are the early adopters: individuals that are ready to put in perhaps the 20 minutes needed to go through a procedure which simply takes 5 minutes if you desire to establish a brokerage account.
" Oh Teeka, we like your concepts, however gosh, establishing a crypto account is so tough." 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 bigger. So you're in fact truly making money an enormous quantity of money to go through perhaps, you understand, 20 minutes of a nuisance.
So you can't purchase Bitcoin yet through their trading platform, but it is just a question of time, Ryan, prior to you'll have the ability to purchase cryptocurrencies straight through your trading software. And can you imagine what will occur to this whole marketplace when purchasing Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you discussed the process that people go through, and something I wish to expose too that you didn't discuss, but I know a lot of folks who deal with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can just buy $500 a week.
As hard as possible, right, like Coinbase. It 'd take me forever before I could begin buying in size on Coinbase. They're like, well, we'll let you purchase $500 a week, Teeka. I suggest, 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 load a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I suggest, we remain in the early days of that innovation, but simply like throughout that amount of time, for the folks that had the vision to see where the future was going, and after that 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, because I'm always curious to speak with people who are, especially somebody like yourself, who's devoted 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 an excellent concern.
They're 2 completely different things, however 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 worth is that it is, there's only going to be a limited amount. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computer systems, validating the deals on the Bitcoin network. And so if you look at that Bitcoin network, people constantly attempt to hack it. But since of the nature of the network, today it's been unhackable. And actually, with current innovation, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
Therefore when individuals put, you have actually got people who have literally own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't trust paper currency, you can print an unrestricted amount of it. It's truly not secure, and the federal government can take it away from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or people that remained in Cypress, or just people who have actually suffered through either hyperinflation, or there's a high need for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those nations that could potentially be a catalyst for more adoption, because they already don't think in their own currency? Yeah, and I believe we have actually already seen that.
So yes, and this is a thing that a great deal of American or Western financiers have a difficult time getting their head around. They're like, "Well I don't need Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You do not require Bitcoin. But there are billions of people worldwide that do not have stable currencies.
Yeah. And so there's this entire burgeoning international need for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are basically used, let's state Ethereum, which a lot of people understand about Ethereum. Ethereum is essentially a global computer that you can compose computer system programs for and run computer programs on a globally decentralized computer system program.
So we consider something like Ether an utility token, because you're basically buying programming power. So I wouldn't actually think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to give individuals an idea, like an extremely basic one that I would envision 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 sort of this same kind of network result that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on so numerous various areas and. I don't know the ins and outs of it, however as an example for someone who may simply be extremely fundamental in their understanding of this, there are so many different types of utilities that are available.
And you type of mentioned having this boots on the ground experience. Now, given that we're taking a look at the bulk of these are most likely utility based, remedy? Mm-hmm (affirmative). The majority of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, however I believe the genuine chance depends on the energy coin area.
There's all of these ICOs that were happening, those slowed down a little bit with some modifications to a few things that was going on, but people are going to come out of the woodwork and start to create energy coins- Correct, yeah. And people need to understand that not all utility coins are developed equivalent.
So you have the benefit of devoting your occupation to this, so you can go out there and do the recon, you can fulfill the creators, you can examine the code, and so on. But for a typical person, there's now what, over 1,000 various types of coins readily available, almost 1,200 I believe.
How do they do that? That's a fantastic concern. I will state that 95% of ICOs are either fraudulent or just bad ideas. Okay. Right? There's absolutely nothing worse than somebody that's young, earnest, with a horrible concept, that somebody offers $40 million to. Right? Yeah, totally. So yeah, so I do not actually participate 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 after that blow it out when it trades.
'Cause usually it'll crash 80% approximately. And that's when we actually start looking at the concept in more information. So here are some quick and filthy things that you should look at, right? So, one is, are they resolving a problem that requires to be resolved? Among the big disadvantages with really smart, technical people, is that they like to fix problems that nobody appreciates solving.
Does the group have experience of carrying out in an effective way 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, 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 simply out of college, unless they have actually got some truly good advisors behind them, I'm most likely not going to provide any cash.
Yeah. I believe that in marketing in basic, my world of service, we continuously look for problems and how we can resolve them. Now, are the problems things that people are trying to fix a part of the Blockchain generally? Or would you state it's much better if they're fixing 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 provide you an example.
And the reason that we purchased it is since they found a method to make files tamper-proof, and it's 99% less expensive than current technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that started it has a performance history of producing computer programs that whole states run their entire operations on, right? So you have actually got alright, the clever guy has actually developed substantial computer system programs, terrific team, fixing a massive issue that is going to cut huge expenses.
I suggest, it does not get any easier than that in terms of deciding who to put cash behind. And a great deal of this is typical sense, and a great deal of folks will try to make things more complex than it is. And I have a really easy guideline, Ryan. If I do not comprehend something, I set up my hand, and I state, "I didn't comprehend what you simply stated." Mm-hmm (affirmative).
And then if the individual that you're talking with can't dumb it down enough where you comprehend it, then it's probably not a good idea. Right, right. It's going to be basic to understand. And do you feel that you have years of experience assessing companies and looking at much, much bigger companies.
Ryan: So you've looked at business that are big companies, you have actually evaluated much bigger 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 almost simply good sense. You simply need to sort of look at it and believe reasonably about what's going on, and pull the feeling out? You have to pull the emotion out, and there are no standard metrics that you can look at.
Okay. What I can use that I gained from working on Wall Street throughout 3 decades, is how to read people. I've fulfilled 10s of countless people throughout my profession. I've met insiders; I've met fund managers, I have actually fulfilled stock promoters, I've satisfied all these different kinds of characters along the method.
So I think that's most likely among my super powers, if you will. And if you have actually got a good 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 simply; it's not sitting well with me, there's something about them that's not agreeing with me.
There are so numerous other offers out there to look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you understand, you type of mentioned at the start, Bitcoin and Ethereum, many people have heard of these 2, particularly Bitcoin, due to the fact that it seems like it remains 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 turned up from say $3,000 not too long ago, it's rather volatile. Do they type of await 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 a terrific concern.
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