So, a lot of people find that too bothersome, and that's why individuals that are literally making the most amount of money right now in cryptocurrencies are the early adopters: people that are prepared to put in possibly the 20 minutes required to go through a process which simply takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your ideas, but gosh, setting up a crypto account is so difficult." What I tell 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 actually really getting paid a massive amount of money to go through maybe, you understand, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, before you'll be able to purchase cryptocurrencies straight through your trading software application. And can you picture what will happen to this entire marketplace when buying Bitcoin or any cryptocurrency is as easy as shooting up your e-trade, or fidelity tradings platform.
Right now you mentioned the process that people go through, and something I wish to bring to light too that you didn't mention, however I know a lot of folks who battle with this too, is oh, and by the way, you can only purchase $1,000 a week. Or you can only purchase $500 a week.
As tough as possible, best, like Coinbase. It 'd take me permanently prior to I might begin purchasing in size on Coinbase. They're like, well, we'll let you buy $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 mean it would take 20 minutes to pack a page.
Even when AOL came on board, and you 'd call AOL, and you 'd be on hold for 90 minutes. I mean, we're in the early days of that innovation, but similar to during that time period, 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 an action back for a second, due to the fact that I'm always curious to talk with individuals who are, specifically somebody like yourself, who's devoted the last, you understand, the lion's share of the last couple of years to truly go both feet in on this. How do you describe cryptocurrency to like an average person? That's an excellent concern.
They're two completely 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 offers it worth is that it is, there's only going to be a restricted amount. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. Therefore if you look at that Bitcoin network, people continuously try to hack it. But because of the nature of the network, today it's been unhackable. And actually, with present innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
Therefore when individuals put, you've 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 rely on paper money, you can print a limitless quantity of it. It's really not secure, and the government can take it far from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or people that remained in Cypress, or simply individuals 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 potentially be a catalyst for more adoption, because they currently do not believe in their own currency? Yeah, and I believe we've currently seen that.
So yes, and this is a thing that a lot of American or Western investors have a difficult time getting their head around. They resemble, "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. But there are billions of individuals worldwide that don't have stable currencies.
Yeah. Therefore there's this whole burgeoning international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And energy coins are generally used, let's state Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is essentially a global computer system that you can compose computer programs for and run computer programs on an internationally decentralized computer program.
So we consider something like Ether an energy token, due to the fact that you're basically buying shows power. So I wouldn't actually consider Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to offer individuals an idea, like a really simple one that I would picture you 'd called an energy token, resembles FileCoin.
Where the concept is that basically you're hosting files through a peer-based network, and there's type of this exact same kind of network result that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on numerous various areas and. I don't understand the ins and outs of it, but as an example for someone who may simply be extremely basic in their understanding of this, there are numerous different kinds of utilities that are available.
And you kind of mentioned having this boots on the ground experience. Now, since we're looking at the bulk of these are most likely utility based, correct? Mm-hmm (affirmative). The majority of the coins that I advise and look at are utility-based. We have a few cryptocurrencies, however I think the real chance depends on the energy coin area.
There's all of these ICOs that were occurring, those slowed down a little bit with some changes to a few things that was going on, however individuals are going to come out of the woodwork and start to develop energy coins- Correct, yeah. And people need to understand that not all utility coins are created equal.
So you have the benefit of committing your profession to this, so you can head out there and do the reconnaissance, you can fulfill the founders, you can check the code, and so on. However for a typical person, there's now what, over 1,000 various types of coins available, nearly 1,200 I think.
How do they do that? That's a great concern. I will state 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 someone gives $40 million to. Right? Yeah, completely. So yeah, so I don't truly get involved in many ICOs, and I advise 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 generally it'll crash 80% approximately. And that's when we truly start taking a look at the concept in more detail. So here are some fast and dirty things that you should take a look at, right? So, one is, are they resolving an issue that requires to be resolved? One of the big disadvantages with very smart, technical individuals, is that they like to solve problems that nobody cares about resolving.
Does the group have experience of carrying out in an effective manner in another location of their life? And it does not even have to be directly related to cryptocurrency, it doesn't have to be even straight associated to software application, right? So, however I desire to see a track record of success in something, right? If it's four men in a room that are just out of college, unless they've got some actually excellent 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 problems and how we can fix them. Now, are the problems things that individuals are attempting to solve a part of the Blockchain usually? Or would you say it's better if they're solving 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 basically looking for services that, so I'll offer you an example.
And the reason that we purchased it is since they found a way to make documents tamper-proof, and it's 99% more affordable than present innovation, 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 creating computer programs that whole states run their whole operations on, right? So you have actually got all right, the clever man has constructed substantial computer system programs, terrific team, solving an enormous issue that is going to cut huge expenses.
I imply, it doesn't get any simpler than that in terms of deciding who to put money behind. And a great deal of this is typical sense, and a lot of folks will attempt to make things more complicated than it is. And I have a truly basic guideline, Ryan. If I don't comprehend something, I set up my hand, and I say, "I didn't understand what you just stated." Mm-hmm (affirmative).
And after that if the person that you're speaking with can't dumb it down enough where you comprehend it, then it's probably not a great concept. Right, right. It's going to be easy to understand. And do you feel that you have years of experience evaluating business and looking at much, much larger companies.
Ryan: So you have actually looked at companies that are big business, you have actually examined 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 nearly simply sound judgment. You just need to kind of take a look at it and believe reasonably about what's going on, and pull the emotion out? You need to pull the emotion out, and there are no traditional metrics that you can look at.
Okay. What I can use that I gained from working on Wall Street throughout three decades, is how to read people. I have actually met 10s of countless individuals throughout my career. I've fulfilled experts; I've satisfied fund managers, I've satisfied stock promoters, I've met all these different types of characters along the way.
So I think that's most likely among my very powers, if you will. And if you have actually got a good BS detector, you need to listen to it. Okay. You ought to absolutely listen to it. If I'm sitting down and I'm talking with somebody, and they have actually got all the bonifides, however you understand, there's just; it's not sitting well with me, there's something about them that's not sitting well with me.
There are many other offers out there to look at. Yeah, there's excessive chance. Yeah. And speaking of chance, you understand, you sort of discussed at the beginning, Bitcoin and Ethereum, many people have actually become aware of these 2, particularly Bitcoin, since 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 shown up from say $3,000 not too long earlier, it's rather unstable. Do they kind of wait on a pullback, or do they simply say, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in ten years." You understand? Yeah that's a great question.
Copyright© teeka tiwari reviews All Rights Reserved Worldwide