So, a lot of individuals discover that too bothersome, which's why the people that are actually making the most amount of cash right now in cryptocurrencies are the early adopters: people that are willing to put in perhaps the 20 minutes required to go through a procedure which simply takes 5 minutes if you wish to establish a brokerage account.
" Oh Teeka, we love your concepts, however gosh, setting up a crypto account is so hard." What I inform them is I state, "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 earning money an enormous quantity of cash to go through possibly, you understand, 20 minutes of a discomfort in the neck.
So you can't buy Bitcoin yet through their trading platform, however it is simply a question of time, Ryan, before you'll have the ability to purchase cryptocurrencies straight through your trading software application. And can you picture what will occur to this entire marketplace when purchasing Bitcoin or any cryptocurrency is as easy as firing up your e-trade, or fidelity tradings platform.
Right now you mentioned the procedure that individuals go through, and something I desire to bring to light too that you didn't discuss, but I know a great deal of folks who battle with this too, is oh, and by the method, you can just buy $1,000 a week. Or you can just purchase $500 a week.
As hard as possible, ideal, like Coinbase. It 'd take me permanently before I might begin buying in size on Coinbase. They resemble, well, we'll let you buy $500 a week, Teeka. I imply, 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 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 mean, we're in the early days of that technology, but just 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 absolute fortune.
Mm-hmm (affirmative). And let's take an action back for a 2nd, because I'm constantly curious to talk to individuals who are, especially someone like yourself, who's committed 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 explain cryptocurrency to like an average person? That's a great question.
They're two completely different things, however 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 gives it worth is that it is, there's just going to be a limited quantity. There'll never ever be more than 21 million Bitcoin.
There are billions of dollars worth of computers, verifying the deals on the Bitcoin network. And so if you look at that Bitcoin network, people constantly attempt to hack it. However because of the nature of the network, today it's been unhackable. And actually, with current technology, the Bitcoin network is so big today, you can't co-opt it, you can't take it over.
And so when individuals put, you've got individuals who have actually own billions of dollars worth of Bitcoin. And they're making that bet since they're saying, "We don't rely on fiat money, you can print a limitless amount of it. It's truly not secure, and the government can take it away from you." - Whereas with Bitcoin, ideal , go on.
Yeah. Or people that remained in Cypress, or simply individuals who have actually suffered through either hyperinflation, or there's a high need for, in Argentina for instance, high need for a black market of U.S. dollars. Correct. Are those countries that could possibly be a driver for more adoption, because they currently do not believe 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 difficult time getting their head around. They resemble, "Well I don't need Bitcoin, I have money." Well yeah, you're right, you've got a steady currency, right? You don't need Bitcoin. But there are billions of people on the planet that do not have steady currencies.
Yeah. Therefore there's this entire blossoming worldwide demand for cryptocurrencies. So anyway, that's one coin, cryptocurrencies, and there's a whole 'nother coin called energy coins. And utility coins are generally utilized, let's state Ethereum, which a lot of individuals learn about Ethereum. Ethereum is basically a global computer system that you can compose computer programs for and run computer system programs on an internationally decentralized computer system program.
So we think about something like Ether an energy token, since you're basically purchasing shows power. So I would not really consider Ether a cryptocurrency, I would call them an energy coin. Okay. And there are other ones out there, to offer individuals a concept, like a really simple one that I would envision you 'd called an energy token, resembles FileCoin.
Where the idea is that essentially you're hosting files through a peer-based network, and there's type of this same type of network impact that you have with Bitcoin, where it's like unstoppable example, because it's on many different areas and. I do not understand the ins and outs of it, however as an example for someone who might simply be really basic in their understanding of this, there are a lot of different kinds of utilities that are available.
And you kind of discussed having this boots on the ground experience. Now, because we're taking a look at the bulk of these are probably energy based, fix? Mm-hmm (affirmative). The majority of the coins that I suggest and look at are utility-based. We have a couple of cryptocurrencies, however I believe the genuine 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 few things that was going on, however people are going to come out of the woodwork and start to develop energy coins- Correct, yeah. And individuals require to understand that not all utility coins are produced equal.
So you have the benefit of committing your profession to this, so you can go out there and do the recon, you can fulfill the creators, you can examine the code, and so on. But for a typical individual, there's now what, over 1,000 different kinds of coins readily available, almost 1,200 I think.
How do they do that? That's a great question. 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 somebody gives $40 million to. Right? Yeah, totally. So yeah, so I do not really take part in many ICOs, and I advise you probably side action 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 begin looking at the concept in more information. So here are some fast and unclean things that you should take a look at, right? So, one is, are they resolving an issue that needs to be solved? One of the huge downsides with very clever, technical people, is that they like to solve issues that no one appreciates fixing.
Does the team have experience of carrying out in a successful way 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 directly associated to software, right? So, but I desire to see a track record of success in something, right? If it's four guys in a space that are just out of college, unless they have actually got some really excellent 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 try to find problems and how we can fix them. Now, are the issues things that people are attempting to solve a part of the Blockchain normally? Or would you state it's much better if they're fixing 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 give you an example.
And the factor that we purchased it is due to the fact that they found a method to make files tamper-proof, and it's 99% less expensive than existing innovation, right? So that's yeah, it's a no-brainer, right? Right. And after that on top of that, the guy that began it has a track record of creating computer system programs that entire states run their entire operations on, right? So you've got okay, the smart guy has constructed substantial computer programs, terrific team, fixing an enormous issue that is going to cut huge expenses.
I mean, it doesn't get any easier than that in regards to deciding who to put money behind. And a great deal of this prevails sense, and a great deal of folks will attempt to make things more complex than it is. And I have a really simple guideline, Ryan. If I don't comprehend something, I set up my hand, and I state, "I didn't understand what you just said." Mm-hmm (affirmative).
And then if the individual that you're talking to can't dumb it down enough where you understand it, then it's probably not a great idea. Right, right. It's going to be simple to comprehend. And do you feel that you have years of experience evaluating companies and taking a look at much, much bigger companies.
Ryan: So you've taken a look at business that are big business, you've assessed much bigger marketcap type scenarios. Do you feel that that experience has assisted you? Or are we in such, type of the infancy, that as you discussed, it is almost simply good sense. You simply have to type of take a look at it and believe rationally about what's going on, and pull the emotion out? You have to pull the feeling out, and there are no traditional metrics that you can take a look at.
Okay. What I can utilize that I gained from dealing with Wall Street across 3 decades, is how to check out individuals. I have actually satisfied tens of countless people throughout my profession. I have actually fulfilled insiders; I've fulfilled fund managers, I've met stock promoters, I've met all these different types of characters along the method.
So I think that's probably one of my extremely powers, if you will. And if you've got a good BS detector, you need to listen to it. Okay. You need to definitely listen to it. If I'm sitting down and I'm talking with somebody, and they've got all the bonifides, but you know, 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 deals out there to take a look at. Yeah, there's too much chance. Yeah. And speaking of opportunity, you understand, you kind of mentioned at the start, Bitcoin and Ethereum, many people have become aware of these two, especially Bitcoin, due to the fact that it appears like it remains in the news all the time, something or the other.
Have they failed on Bitcoin? Bitcoin is trading nearly upwards of $6,000 recently; it's shown up from say $3,000 not too long earlier, it's rather volatile. Do they kind of wait on a pullback, or do they simply state, "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 terrific concern.
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