So, a lot of people find that too inconvenient, and that's why the individuals that are literally making the most amount of money today in cryptocurrencies are the early adopters: people that want to put in possibly the 20 minutes required to go through a procedure which just takes five minutes if you desire to establish a brokerage account.
" Oh Teeka, we love your ideas, but 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 larger. So you're in fact really getting paid a massive amount of cash 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 question of time, Ryan, prior to you'll be able to purchase cryptocurrencies straight through your trading software application. And can you picture what will occur to this whole marketplace when buying Bitcoin or any cryptocurrency is as simple as shooting up your e-trade, or fidelity tradings platform.
Today you pointed out the procedure that people go through, and one thing I wish to bring to light too that you didn't point out, however I know a great deal of folks who deal 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 hard as possible, ideal, like Coinbase. It 'd take me permanently before I could begin purchasing in size on Coinbase. They resemble, well, we'll let you purchase $500 a week, Teeka. I suggest, 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 pack 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, however much like throughout 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 outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, because I'm always curious to talk with individuals who are, specifically somebody like yourself, who's dedicated the last, you understand, the lion's share of the last couple of years to really go both feet in on this. How do you describe cryptocurrency to like a typical individual? That's a great question.
They're 2 absolutely different things, however they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is attempting to be an alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what offers it value is that it is, there's just going to be a limited amount. There'll never ever 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 take a look at that Bitcoin network, individuals continuously try to hack it. But due to the fact that 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 people put, you've got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet due to the fact that they're stating, "We do not trust fiat money, you can print an endless amount of it. It's really not secure, and the government can take it far from you." - Whereas with Bitcoin, right , go ahead.
Yeah. Or individuals that were in Cypress, or just individuals who have suffered through either devaluation, or there's a high demand for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those nations that could potentially be a driver for more adoption, due to the fact that they already don't believe in their own currency? Yeah, and I believe we've already 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're like, "Well I do not need Bitcoin, I have money." Well yeah, you're right, you've got a stable currency, right? You don't require Bitcoin. However there are billions of people on the planet that do not have steady currencies.
Yeah. And so there's this entire blossoming international demand for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's an entire 'nother coin called energy coins. And energy coins are essentially utilized, let's say Ethereum, which a great deal of individuals understand about Ethereum. Ethereum is basically a worldwide computer that you can compose computer system programs for and run computer system programs on a worldwide decentralized computer program.
So we consider something like Ether an utility token, since you're essentially purchasing programming power. So I would not really think about Ether a cryptocurrency, I would call them an utility coin. Okay. And there are other ones out there, to provide people an idea, like a very easy one that I would imagine you 'd called an energy token, is like 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 impact that you have with Bitcoin, where it's like unstoppable kind of thing, due to the fact that it's on numerous various locations and. I do not understand the ins and outs of it, however as an example for somebody who might just be extremely basic in their understanding of this, there are many various kinds of energies 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 probably utility based, correct? Mm-hmm (affirmative). Many of the coins that I recommend and look at are utility-based. We have a few cryptocurrencies, however I believe the real opportunity depends on the utility coin space.
There's all of these ICOs that were taking place, those slowed down a bit with some changes to a couple of things that was going on, however individuals are going to come out of the woodwork and start to produce utility coins- Correct, yeah. And people require to understand that not all energy coins are created equivalent.
So you have the advantage of dedicating your profession to this, so you can head out there and do the reconnaissance, you can satisfy the founders, you can examine the code, and so on. However for an average person, there's now what, over 1,000 different types of coins readily available, nearly 1,200 I think.
How do they do that? That's an excellent question. I will say that 95% of ICOs are either fraudulent or just bad ideas. Okay. Right? There's nothing even worse than somebody that's young, earnest, with an awful concept, that somebody gives $40 million to. Right? Yeah, completely. So yeah, so I do not actually participate in numerous ICOs, and I recommend you most likely side step that market, unless you've got a special 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% or so. And that's when we truly begin taking a look at the idea in more information. So here are some quick and filthy things that you should look at, right? So, one is, are they solving an issue that needs to be solved? One of the huge disadvantages 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 area of their life? And it does not even have to be directly associated to cryptocurrency, it does not have to be even straight associated to software, right? So, but I wish to see a performance history of success in something, right? If it's 4 men in a room that are simply out of college, unless they've got some actually good advisors behind them, I'm most likely not going to give them any cash.
Yeah. I believe that in marketing in basic, my world of organization, we continuously search for issues and how we can solve them. Now, are the issues things that individuals are trying to solve a part of the Blockchain usually? Or would you say it's much better if they're fixing kind 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 purchased it is due to the fact that they discovered a way to make files tamper-proof, and it's 99% more affordable 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 began it has a track record of producing computer system programs that entire states run their whole operations on, right? So you have actually got okay, the clever man has built huge computer system programs, great group, fixing an enormous issue that is going to cut big costs.
I suggest, it doesn't get any simpler than that in regards to choosing who to put cash behind. And a lot of this is typical sense, and a lot of folks will try to make things more complicated than it is. And I have a really easy rule, Ryan. If I don't comprehend something, I put up my hand, and I state, "I didn't comprehend what you simply 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 basic to comprehend. And do you feel that you have years of experience evaluating business and looking at much, much bigger business.
Ryan: So you've taken a look at business 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 typical sense. You simply have to kind of take a look at it and think logically about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no standard metrics that you can look at.
Okay. What I can utilize that I discovered from dealing with Wall Street throughout three years, is how to check out people. I have actually satisfied tens of countless people throughout my career. I have actually satisfied experts; I have actually met fund supervisors, I've satisfied stock promoters, I have actually fulfilled all these different types of characters along the method.
So I believe that's probably one of my very powers, if you will. And if you've got a good BS detector, you need to listen to it. Okay. You need 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 know, there's simply; 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 take a look at. Yeah, there's too much opportunity. Yeah. And speaking of chance, you understand, you type of pointed out at the start, Bitcoin and Ethereum, the majority of 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 failed on Bitcoin? Bitcoin is trading practically upwards of $6,000 just recently; it's turned up from say $3,000 not too long back, it's rather unpredictable. Do they type of wait for 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 fantastic concern.
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