So, a lot of people discover that too troublesome, which's why individuals that are actually making the most amount of money right now in cryptocurrencies are the early adopters: people that are prepared to put in maybe 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 love your ideas, but gosh, establishing a crypto account is so difficult." 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 actually truly making money an enormous amount of money to go through perhaps, you know, 20 minutes of a headache.
So you can't buy Bitcoin yet through their trading platform, but it is just a concern of time, Ryan, prior to you'll have the ability to buy cryptocurrencies directly through your trading software application. And can you imagine what will happen to this whole market when purchasing Bitcoin or any cryptocurrency is as simple as firing up your e-trade, or fidelity tradings platform.
Today you mentioned the process that individuals go through, and something I wish to expose too that you didn't discuss, however I understand a lot of folks who struggle with this too, is oh, and by the method, you can only purchase $1,000 a week. Or you can just purchase $500 a week.
As tough as possible, best, like Coinbase. It 'd take me forever before I could 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 Web, we were doing it with 56k modems, right? I mean 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 imply, we remain in the early days of that innovation, however similar to during that duration of time, for the folks that had the vision to see where the future was going, and after that purchased in on a few of these young companies, they made an outright fortune.
Mm-hmm (affirmative). And let's take a step back for a 2nd, since I'm always curious to talk with people who are, specifically somebody like yourself, who's committed the last, you understand, the bulk of the last few years to truly go both feet in on this. How do you explain cryptocurrency to like a typical individual? That's a fantastic question.
They're 2 absolutely different things, but they're both called cryptocurrencies. A cryptocurrency is a cryptographic token that is trying to be an alternative to money. So Bitcoin would be a cryptocurrency. And so what offers it worth is that it is, there's only 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, verifying the transactions on the Bitcoin network. Therefore if you take a look at that Bitcoin network, individuals constantly attempt to hack it. However because of the nature of the network, today it's been unhackable. And actually, with existing innovation, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when people put, you have actually got people who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're stating, "We do not trust fiat money, you can print an unrestricted amount of it. It's actually not protect, and the federal government can take it away from you." - Whereas with Bitcoin, best , go on.
Yeah. Or individuals that remained in Cypress, or just people who have actually suffered through either run-away inflation, or there's a high need for, in Argentina for instance, high demand for a black market of U.S. dollars. Correct. Are those nations that could possibly be a catalyst for more adoption, because they already don't believe in their own currency? Yeah, and I believe we have actually currently seen that.
So yes, and this is a thing that a great deal of American or Western investors have a difficult time getting their head around. They resemble, "Well I don't require Bitcoin, I have cash." Well yeah, you're right, you've got a stable currency, right? You don't need Bitcoin. But there are billions of people worldwide that do not have stable currencies.
Yeah. And so there's this entire growing 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 basically used, let's say Ethereum, which a great deal of people know about Ethereum. Ethereum is basically a global computer system that you can write 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 shows power. So I wouldn't truly think about Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to provide people an idea, like a very basic one that I would envision you 'd called an energy token, is like FileCoin.
Where the idea is that basically you're hosting files through a peer-based network, and there's sort of this very same kind of network impact that you have with Bitcoin, where it resembles unstoppable example, due to the fact that it's on a lot of different locations and. I don't understand the ins and outs of it, however as an example for someone who might simply be extremely basic in their understanding of this, there are a lot of various types of energies that are available.
And you type of pointed out having this boots on the ground experience. Now, since we're taking a look at the bulk of these are probably energy based, remedy? Mm-hmm (affirmative). The majority of the coins that I suggest and take a look at are utility-based. We have a couple of cryptocurrencies, however I believe the real opportunity depends on the energy coin space.
There's all of these ICOs that were taking place, those decreased a bit with some modifications to a couple of things that was going on, but individuals are going to come out of the woodwork and begin to produce energy coins- Correct, yeah. And individuals need to comprehend that not all utility coins are created equivalent.
So you have the advantage of committing your profession to this, so you can head out there and do the reconnaissance, you can meet the founders, you can examine the code, and so on. However for an average person, there's now what, over 1,000 various kinds of coins offered, practically 1,200 I think.
How do they do that? That's a fantastic concern. I will say that 95% of ICOs are either deceptive or simply bad ideas. Okay. Right? There's absolutely nothing worse than someone that's young, earnest, with a dreadful idea, that somebody gives $40 million to. Right? Yeah, absolutely. So yeah, so I don't really take part in lots of ICOs, and I suggest you most likely side action that market, unless you've got a special relationship, and you can participate the pre-ICO, and then blow it out when it trades.
'Cause generally it'll crash 80% or so. Which's when we really start looking at the idea in more detail. So here are some quick and filthy things that you should look at, right? So, one is, are they solving an issue that requires to be resolved? Among the huge drawbacks with extremely wise, technical individuals, is that they like to resolve problems that nobody appreciates solving.
Does the team have experience of carrying out in a successful manner in another location of their life? And it doesn't even have to be straight related to cryptocurrency, it does not need to be even directly related to software application, right? So, but I wish to see a performance history of success in something, right? If it's 4 guys in a space that are simply out of college, unless they have actually got some really great consultants behind them, I'm probably not going to provide any money.
Yeah. I think that in marketing in basic, my world of organization, we constantly search for issues and how we can resolve them. Now, are the issues things that individuals are attempting to resolve a part of the Blockchain usually? Or would you say it's better if they're fixing 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 purchased it is since they discovered a method to make files tamper-proof, and it's 99% less expensive than present technology, right? So that's yeah, it's a no-brainer, right? Right. And then on top of that, the man that began it has a track record of developing computer programs that entire states run their whole operations on, right? So you've got fine, the clever guy has actually developed huge computer programs, excellent team, solving a massive problem that is going to cut big costs.
I imply, it doesn't get any simpler than that in terms of deciding who to put money behind. And a lot of this is common sense, and a great deal of folks will try to make things more complicated than it is. And I have a truly easy rule, Ryan. If I do not understand something, I put up my hand, and I state, "I didn't understand what you just said." Mm-hmm (affirmative).
And then if the person that you're talking with can't dumb it down enough where you understand it, then it's probably not an excellent concept. Right, right. It's going to be easy to understand. And do you feel that you have years of experience assessing companies and taking a look at much, much larger business.
Ryan: So you've taken a look at business that are huge business, you have actually evaluated much larger marketcap type situations. Do you feel that that experience has helped you? Or are we in such, kind of the infancy, that as you mentioned, it is practically simply common sense. You just have to sort of appearance 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 take a look at.
Okay. What I can utilize that I gained from working on Wall Street across 3 decades, is how to read individuals. I have actually fulfilled 10s of countless individuals throughout my profession. I have actually satisfied insiders; I have actually fulfilled fund supervisors, I've satisfied stock promoters, I have actually satisfied all these various types of characters along the method.
So I think that's most likely one of my super powers, if you will. And if you have actually got a great BS detector, you need to listen to it. Okay. You must definitely listen to it. If I'm taking a seat and I'm talking with somebody, and they've got all the bonifides, however you know, there's just; it's not sitting well with me, there's something about them that's not agreeing with me.
There are a lot of other deals out there to look at. Yeah, there's too much opportunity. Yeah. And speaking of opportunity, you know, you kind of pointed out at the start, Bitcoin and Ethereum, many individuals have actually become aware of these 2, particularly Bitcoin, because it looks 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 nearly upwards of $6,000 recently; it's come up from say $3,000 not too long ago, it's quite unpredictable. Do they type of await a pullback, or do they just state, "Okay, I'm going to purchase some Ethereum, I'm going to buy some Bitcoin, see you in ten years." You know? Yeah that's a great question.
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