So, a lot of people find that too inconvenient, which's why the people 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 needed to go through a procedure which simply takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we like your concepts, but gosh, setting up a crypto account is so tough." What I tell them is I state, "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 actually really earning money a huge amount of money to go through perhaps, you understand, 20 minutes of a discomfort in the neck.
So you can't buy Bitcoin yet through their trading platform, however it is just a concern of time, Ryan, before you'll be able to purchase cryptocurrencies directly through your trading software application. And can you envision what will occur to this whole market when buying Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the procedure that people go through, and one thing I desire to expose too that you didn't discuss, however I know a great deal of folks who deal with this too, is oh, and by the way, you can just buy $1,000 a week. Or you can only purchase $500 a week.
As challenging as possible, right, like Coinbase. It 'd take me permanently prior to I could begin purchasing in size on Coinbase. They're like, well, we'll let you buy $500 a week, Teeka. I mean, it's if you keep in mind the early days of the Internet, when we were getting on the Internet, we were doing it with 56k modems, right? I indicate it would take 20 minutes to fill 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're in the early days of that technology, but much like during that amount 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 business, they made an outright fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, since I'm constantly curious to speak with individuals who are, especially someone like yourself, who's devoted 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 person? That's a fantastic 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 alternative to cash. So Bitcoin would be a cryptocurrency. Therefore what provides it worth is that it is, there's only going to be a restricted quantity. There'll never be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, people continuously try to hack it. However due to the fact that of the nature of the network, today it's been unhackable. And really, with existing technology, the Bitcoin network is so huge right now, you can't co-opt it, you can't take it over.
And so when individuals 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 saying, "We do not rely on paper currency, you can print an unrestricted amount of it. It's truly not protect, and the federal government can take it far from you." - Whereas with Bitcoin, best , go ahead.
Yeah. Or individuals that remained in Cypress, or just people who have suffered through either hyperinflation, or there's a high demand for, in Argentina for example, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a catalyst for more adoption, since they already do not think in their own currency? Yeah, and I think we've currently seen that.
So yes, and this is a thing that a lot of American or Western investors have a hard time getting their head around. They resemble, "Well I do not need Bitcoin, I have cash." Well yeah, you're right, you've got a steady currency, right? You don't require Bitcoin. But there are billions of individuals on the planet that don't have steady currencies.
Yeah. And so there's this entire burgeoning worldwide need for cryptocurrencies. So anyhow, that's one coin, cryptocurrencies, and there's a whole 'nother coin called utility coins. And utility coins are basically utilized, let's say Ethereum, which a great deal of individuals learn about Ethereum. Ethereum is basically a global computer that you can write computer programs for and run computer system programs on a globally decentralized computer program.
So we consider something like Ether an energy token, due to the fact that you're essentially buying 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 offer individuals an idea, like a very basic one that I would imagine you 'd called an energy token, is like FileCoin.
Where the idea 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 example, since it's on numerous various locations and. I don't understand the ins and outs of it, however as an example for someone who might just be extremely standard in their understanding of this, there are numerous various types of utilities that are offered.
And you sort 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 energy based, remedy? Mm-hmm (affirmative). Many of the coins that I recommend and look at are utility-based. We have a couple of cryptocurrencies, however I believe the real chance lies in the energy coin area.
There's all of these ICOs that were happening, those slowed down a bit with some changes to a few things that was going on, but people are going to come out of the woodwork and begin to create utility coins- Correct, yeah. And people require to understand that not all energy coins are created equal.
So you have the benefit of devoting your occupation to this, so you can go out there and do the reconnaissance, you can fulfill the creators, 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 a great concern. I will say that 95% of ICOs are either deceitful or just bad concepts. Okay. Right? There's nothing even worse than somebody that's young, earnest, with an awful idea, that someone provides $40 million to. Right? Yeah, absolutely. So yeah, so I do not truly take part in numerous ICOs, and I advise you probably side step that market, unless you have actually got a special relationship, and you can participate the pre-ICO, and after that blow it out when it trades.
'Cause generally it'll crash 80% or two. And that's when we truly begin taking a look at the concept in more information. So here are some quick and unclean things that you should look at, right? So, one is, are they solving a problem that needs to be resolved? One of the huge disadvantages with very clever, technical people, is that they like to solve problems that no one cares about resolving.
Does the team have experience of executing in an effective way in another location of their life? And it does not even need to be directly associated to cryptocurrency, it doesn't have to be even straight associated to software, right? So, however I want 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 truly excellent advisors behind them, I'm most likely not going to provide any cash.
Yeah. I think that in marketing in basic, my world of business, we constantly search for issues and how we can resolve them. Now, are the issues things that people are attempting to fix a part of the Blockchain normally? Or would you state it's much better if they're resolving kind 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 solutions that, so I'll give you an example.
And the reason that we bought it is due to the fact that they discovered a way to make files tamper-proof, and it's 99% cheaper than current 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 developing computer system programs that entire states run their whole operations on, right? So you've got alright, the smart person has developed substantial computer programs, great group, resolving a massive problem that is going to cut substantial costs.
I indicate, it doesn't get any simpler than that in terms of choosing who to put money behind. And a great deal of this prevails sense, and a great deal of folks will try to make things more complex than it is. And I have a truly simple rule, Ryan. If I do not comprehend something, I set up my hand, and I say, "I didn't comprehend what you just said." Mm-hmm (affirmative).
And after that if the person that you're talking to can't dumb it down enough where you comprehend it, then it's most likely not a good idea. Right, right. It's going to be simple to understand. And do you feel that you have years of experience evaluating business and taking a look at much, much bigger business.
Ryan: So you've looked at companies that are huge business, you've assessed much bigger marketcap type scenarios. Do you feel that that experience has helped you? Or are we in such, type of the infancy, that as you discussed, it is nearly simply good sense. You just need to kind of take a look at it and believe rationally about what's going on, and pull the emotion out? You have to pull the emotion out, and there are no conventional metrics that you can take a look at.
Okay. What I can use that I gained from dealing with Wall Street throughout three years, is how to read people. I've met 10s of countless people throughout my career. I have actually fulfilled experts; I've fulfilled fund managers, I've fulfilled stock promoters, I've met all these different types of characters along the method.
So I believe that's most likely one of my very powers, if you will. And if you've got a great BS detector, you must listen to it. Okay. You should definitely listen to it. If I'm sitting down and I'm talking with someone, and they have actually got all the bonifides, but you know, there's just; it's not agreeing with me, there's something about them that's not sitting well with me.
There are numerous other deals out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of chance, you know, you type of discussed at the beginning, Bitcoin and Ethereum, the majority of people have become aware of these 2, especially Bitcoin, since it appears like it's in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading almost upwards of $6,000 recently; it's come up from say $3,000 not too long ago, it's quite unpredictable. Do they kind of await a pullback, or do they just say, "Okay, I'm going to buy some Ethereum, I'm going to purchase some Bitcoin, see you in ten years." You understand? Yeah that's a fantastic concern.
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