So, a great deal of people discover that too inconvenient, which's why individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: individuals that are ready to put in maybe the 20 minutes required to go through a procedure which just takes five minutes if you wish to set up a brokerage account.
" Oh Teeka, we like your ideas, however gosh, establishing a crypto account is so difficult." 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 bigger. So you're in fact truly getting paid a huge amount of money to go through perhaps, you understand, 20 minutes of a headache.
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 purchase cryptocurrencies straight through your trading software application. And can you envision what will take place to this whole market when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that individuals go through, and one thing I desire to bring to light too that you didn't discuss, but I know a lot of folks who have problem with this too, is oh, and by the method, you can just 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 before I might begin buying in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I indicate, it's if you remember 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 indicate, we're in the early days of that technology, however much like during that amount 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 absolute fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm always curious to talk to people who are, especially somebody like yourself, who's devoted the last, you know, the lion's share of the last few years to actually go both feet in on this. How do you describe cryptocurrency to like a typical person? That's a terrific concern.
They're 2 absolutely different 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. Therefore what provides 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, verifying the deals on the Bitcoin network. Therefore if you look at that Bitcoin network, individuals constantly try 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 individuals put, you've got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet because they're saying, "We do not rely on paper currency, you can print an endless amount of it. It's really not protect, and the federal government can take it away from you." - Whereas with Bitcoin, best , proceed.
Yeah. Or people that remained in Cypress, or simply individuals who have 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 possibly be a driver for more adoption, due to the fact that they currently don't believe in their own currency? Yeah, and I believe we've currently seen that.
So yes, and this is a thing that a great deal of American or Western financiers have a bumpy ride getting their head around. They're like, "Well I do not require Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You do not need Bitcoin. However there are billions of individuals in the world that don't have stable currencies.
Yeah. And so there's this entire growing international need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And energy coins are generally utilized, let's say Ethereum, which a lot of individuals understand about Ethereum. Ethereum is essentially an international computer that you can write computer system programs for and run computer programs on a worldwide decentralized computer system program.
So we think about something like Ether an energy token, due to the fact that you're basically buying programming power. So I would not truly consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer people an idea, like a very basic one that I would imagine you 'd called an utility token, resembles FileCoin.
Where the concept is that generally you're hosting files through a peer-based network, and there's kind of this exact same kind of network result that you have with Bitcoin, where it resembles unstoppable kind of thing, due to the fact that it's on numerous various locations and. I don't know the ins and outs of it, but as an example for someone who might simply be very basic in their understanding of this, there are many various kinds of utilities that are available.
And you type of mentioned having this boots on the ground experience. Now, since we're taking a look at the bulk of these are probably energy based, correct? Mm-hmm (affirmative). Many of the coins that I advise and look at are utility-based. We have a couple of cryptocurrencies, but I believe the genuine opportunity lies in the energy coin area.
There's all of these ICOs that were occurring, those decreased 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 produce utility coins- Correct, yeah. And individuals need to comprehend that not all energy coins are developed equivalent.
So you have the advantage of devoting your profession to this, so you can go out there and do the reconnaissance, you can meet the founders, you can check the code, and so on. But for a typical individual, there's now what, over 1,000 different types of coins readily available, practically 1,200 I believe.
How do they do that? That's a great concern. I will state that 95% of ICOs are either deceitful or simply bad concepts. Okay. Right? There's nothing even worse than somebody that's young, earnest, with a horrible idea, that someone offers $40 million to. Right? Yeah, absolutely. So yeah, so I do not actually take part in lots of ICOs, and I suggest you probably 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 usually it'll crash 80% approximately. And that's when we actually start taking a look at the concept in more information. So here are some fast and filthy things that you should take a look at, right? So, one is, are they fixing an issue that needs to be resolved? Among the big downsides with extremely wise, technical individuals, is that they like to fix problems that no one cares about resolving.
Does the team have experience of performing in an effective manner in another area of their life? And it does not even need to be directly related to cryptocurrency, it doesn't need to be even straight related to software, right? So, but I wish to see a performance history of success in something, right? If it's four people in a room that are simply out of college, unless they've got some really good 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 business, we continuously try to find problems and how we can solve them. Now, are the issues things that individuals are attempting to resolve a part of the Blockchain normally? Or would you state it's better if they're fixing 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 generally trying to find options that, so I'll give you an example.
And the factor that we bought it is because they discovered a method 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 then 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 all right, the wise person has actually built big computer programs, terrific group, solving an enormous issue that is going to cut huge costs.
I mean, it does not get any easier than that in regards to choosing who to put cash behind. And a great deal of this prevails sense, and a lot of folks will try to make things more complex than it is. And I have an actually basic guideline, Ryan. If I do not comprehend something, I installed my hand, and I state, "I didn't comprehend what you just stated." Mm-hmm (affirmative).
And then if the person that you're talking with can't dumb it down enough where you comprehend it, then it's most likely not a great idea. Right, right. It's going to be easy to comprehend. And do you feel that you have years of experience assessing business and looking at much, much larger companies.
Ryan: So you've looked at companies that are big companies, you have actually evaluated 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 almost just sound judgment. You just need to sort of take a look at it and think reasonably about what's going on, and pull the feeling out? You need to pull the emotion out, and there are no standard metrics that you can take a look at.
Okay. What I can use that I gained from working on Wall Street throughout 3 years, is how to check out individuals. I have actually met tens of thousands of individuals throughout my career. I've fulfilled experts; I've fulfilled fund managers, I've satisfied stock promoters, I've fulfilled all these different kinds of characters along the method.
So I believe that's most likely one of my incredibly powers, if you will. And if you have actually got a good BS detector, you should listen to it. Okay. You ought to 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 a lot of other offers out there to look at. Yeah, there's too much chance. Yeah. And speaking of chance, you understand, you sort of pointed out at the start, Bitcoin and Ethereum, many people have actually become aware of these 2, 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 almost 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 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 a fantastic question.
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