announcer: from the heart of where innovation, money and power collide. in silicon valley and beyond, this is bloomberg technology with emily chang.

emily: i'm emily chang and this is "bloomberg technology." bitcoin hovers around $32,000, much where it started this tuesday after dipping below 28. why is this happening and how low can this go? plus, free ride. i will talk to fcc commissioner carr who says big tech has been piggybacking on infrastructure for too long. and, the vc view on diversity. silicon valley is not doing nearly enough to support diversity. but we will speak to the investor leading the charge. we look into all of that any moment. first, for just a blip in time, bitcoin turned positive after tumbling below $30,000 and erasing all of the gains it made for the year. now down nearly 50% from its mid april high of $65,000. ed ludlow is here with more. ed: you also had fed chair jay powell talking to lawmakers. that helped boost u.s. equities, rising hybrid the nasdaq come a

tech heavy index. microsoft hit a market cap of $2 trillion for the first time. bringing that index to a fresh record high. bitcoin is where the action is at. following buy as 12%. as we going to wednesday session, we up near $33,000 for bitcoin. that also had impact on the crypto index. you saw other coins falling away, including cerium down by almost 3%. there were some stock stories. we will look at the laggards among big tech, was google. a lot of antitrust scrutiny from europe and india. elsewhere, gains at 1.1 billion stocks sale. plunge surges after more than a billion dollars of telecom making gains after offering employee discounts and a new on band -- armband wearable. let's go back to cryptocurrency. it is not all about bitcoin. there are other moves as well. ethereum has done remarkably

well, been more resistant than bitcoin has. litecoin also making moves tuesday. emily: we are going to talk about this a lot more. getting to that conversation now. bloomberg cut -- caught up with the ceo of one of the world's largest crypto exchanges at the qatar economic forum. he talked about bitcoin's big drop. take a listen. >> with the price, we don't know what's causing it. there's a lot of news going on that's positive and negative. from our perspective we see the trades. if we go back to a year ago, the markets have a 10 x figure, 10 x is more active. we think they are still healthy markets. emily: i want to bring in the chief market strategist at miller taebaek, and valkyrie. which has over $200 million in assets under management. matt, i want to start with you. it seems like even the ceo of finance has no idea why this is

happening. why did they get so low today, and that they bounced back, and where does ago next? >> it's hard to know for sure. but one of the things i do worry about on an intermediate term basis, because i do love bitcoin and several other cryptocurrencies, i think it looks good here. but we do worry that part of this move, kind of a long-term bull. the part of the move is the big rally we saw them is surely -- we saw initially from march until may of this year -- sorry, march of last year until may of this year, has been pushed by excess liquidity from the federal reserve. yes, it would have gone up on its own but i question how much more it has gone in terms of this excess liquidity. and the reason why we are starting to see the fed started to talk about tapering in a more serious way. despite what the fed chairman is saying, the rest of the fed is laying the groundwork for a taper this year.

some of that fraud has to be pulled out of the cryptocurrency. this is good, these cryptocurrencies are going to change the world. we have to remember that amazon changed the world, too. it got out a little bit ahead of itself in 1999-2000, came down in a big way, and was able to rally back over a longer period of time. i think that's what we are seeing now with bitcoin and other cryptocurrencies. which means we will see more weakness before we get a chance for the longer-term bulls. emily: it seems like in the short-term we are seeing the impact of the decisions being made in china. we have the crackdown on mining, the crackdown on crypto transactions. how do you see that playing out in the short versus the long-term? is it a good thing that the center of gravity could to other countries for mining or not? >> i do think it is a good thing in the long-term. it is very dangerous to not have decentralization in a currency that is based on the principles of the centralization. i think that sentiment around

bitcoin's bearish over those worries of stemming from the dual thread coming out of china, the mining band, and crackdowns on crypto transactions. i think it is broader than that. many investors are concerned about how this will affect demand, volume, cash rates more. we are seeing a lot of selling due to that uncertainty. what you are also seeing as to your point about china, mining raids are now being relocated to the united states. the question, how will that affect price when they get turned back online? i think that will be a very positive position. emily: i am curious if you think it could go lower, how much lower in when? >> earlier today we saw a real big pickup and volume. a lot of people would say it's a washout in trade. tesla has been such a big, important driver for the cryptocurrencies. certainly the recent when you ones. get that kind of washout move,

the and impetus -- you want to say all of the sellers are done, , we will see a nice rally. a similar move on may 19. to answer your question more directly, if we do indeed roll back over, i am looking at the 27,250 level. i know that sounds a little bit specific, but right around the 27 level. that would be a 68% retracement. these fibonacci retracement levels. 68% retracement from the rally from march of 2020 to the highs we saw just recently. that would be i think a great opportunity. we would probably get that washout move on a technical basis. we would get that sentiment to move to the bearish side of the table. when that happens, there is nobody left to sell. that is the level i am thinking for people to watch. having said that, i do need to point out, watch that 200 day moving average on bitcoin.

that's a 43,000 right now. it has rallied up to that level twice and it has provided incredibly tough resistance. i guess my point is, if you see a rally above that 200 day moving average before you get the next decline don't wait for , a decline anymore. it is going to go to 50000 and a lot higher. those other two technical levels i'm watching. 27 on the downside, 4200 on the upside. emily: leah, a, would you agree, and be, what are you telling your clients to get in now or diversify crypto assets to get into ethereum, as well as what -- as well? what is the direction? leah: i think that is a great question. to address my other panelist, i don't disagree. the technicals and fundamentals are a little difficult to discern. i know that may sound like a copout. on one hand you have technicals

that are looking very scary and bearish. but also talking about a spring. you are looking at some technicals that look fairly good. from our research we are a little lower. we think support is around the $25,000 level. that's mainly because historically that's where a lot of corporations and institutions were stockpiling bitcoin. your greater question, it is interesting but a lot the investors are long-term hodlers, if you will. we have trust, for example. for our bitcoin, trust takes a different mentality for investing interest then swing trading in the market. i would actually say that we are seeing inflows during this downturn which has actually been quite interesting for us. obviously, a happy move. i would say there are a lot of investors out there. from what i was told from a partner today, microstrategy now owns one in every 200 bitcoin

that will ever be minted. you see a lot of panic selling, that's correct, narrative dripping, absolutely. -- narrative dripping -- driven, absolutely. i think that the importance of, one, going back to your original question, centralization and liquidity providers generally in the ecosystem is necessary. but i think you have different types of buyers at these levels, at 40,000, 50,000, 60,000. we are seeing a lot of inflows right now of value investors. emily: what a stat there about microstrategy. we will have to continue this conversation another time. we could talk about this for hours but we have to get away quick commercial break. matt maley, leah wald, thank you for joining us. coming up, we will hear about the rise of with alphabet ceo. the search engine giant competes

with amazon and microsoft. her view from the qatar economic forum powered by bloomberg's next. this is bloomberg. ♪

emily: alphabet cfo ruth porat says the company is excited about its investment and opportunity in google cloud. she sat down with erik schatzker to talk about how the pandemic has massively accelerated digitization that will endure for the long-term. here they are from the qatar economic forum powered by bloomberg. ruth: there has been a dramatic acceleration in the digital transformation, trends that were

playing out over a number of years have really been telescoped in. you can see it in content, entertainment, education. you can see it in telehealth. you can see it in labor. even the way we are having this conference today. we don't see the clock turn back. we do see that these trends will continue to endure. and i think it's important for each one of us to consider how we can embrace digital tools and technology to embrace those revenue opportunities and efficiencies in our own business. for example, into your question, when we look at small medium businesses, which are the backbone of the economy, what we saw during the pandemic was one and three small businesses would not have survived if they did not have digital skills. because it enabled them to immediate -- immediately pivot and find their customers where they were in the online world to get them the information they needed to talk about things like delivery and changed hours. these digital skills were imperative for survival. erik: this race to deepen

relationships with customers and consumers is a fiercely competitive one. what is google doing, strategically or tactically, perhaps, that is different from what your competitors, the microsoft's, the amazons, and the facebooks are doing that you think ultimately is going to play to your advantage? ruth: one of the main things we are focused on is how we can stay close to our users and customers and provide them with the skills and tools that they need to be more effective as the world accelerates in this digital transformation. our ability to leverage differentiated ai has been helpful for all of our customers and users. people don't often appreciate how often they are using ai and every day. for those of you who are traveling around the world and more trouble picking up, when you look at natural language translation that benefits from ai. you ask how do i get from to a

store near me, or the products i want, we benefit from ai. on the user side, it's really critical. on the enterprise side, what we are excited about are the investments and opportunities in the cloud business. our cloud business is benefiting from extraordinary analytics, the ai behind that. we brought in talent to focus on very industry specific solutions. for example in financial , services, one of the key pain points was manual intensity around risk and risk analytics. we can leverage things like know your customer or anti-money laundering with ai and data tools. those are important. we go to customers and say, here is how we can help on the revenue upside or efficiencies leveraging the tools we have. same across retailers. they are looking at how can they ensure that they've got the best supply chain management? again, the benefit of ai? -- of ai. we are looking across the board.

the other element is how can we both -- be most supportive in the communities we operate? part of that is ensuring we are working around the goal -- globe to provide digital skills training so everyone can participate in this rapid digital eyes asian. -- digitalization. emily: ruth porat, the ceo of alphabet. coming up, should big tech pay up for demands it is placing on american internet infrastructure, or should that cost fall the consumers? fcc commissioner brendan carr says the free ride needs to end. he will join us next. as we go to break, nvidia shares of 40% for the year so far. raymond james has raised its target for the chipmaker from $750 to 900, citing that the best positions for long-term growth. meanwhile, the company is pushing a chip just for crypto minors, a group that has in the past snapped up higher performing semis aimed at its gaming space. this is bloomberg. ♪

emily: it is like taxing horseshoes to build a highway. that is how fcc commissioner brendan carr currently describes the fund that taxes american phone bills to not only fund the cell phone network that also broadband. commissioner carr says the current model relies on an ever shrinking base of revenue from traditional phone lines to fund an increasing broadband. and that big tech is getting a free ride. earlier this month, i spoke with the fcc acting chairwoman jessica rosenworcel. ms. rosenworcel: it is an intriguing idea and we will need ideas because it was set up by a law from 1996 when i had a palm pilot and aol account.

it is ok to look at fresh ideas. i appreciate that my colleague is coming up with his own. in the end, those choices will be made by congress and i hope we can have a good discussion about it. emily: i want to bring in fcc commissioner brendan carr. a very diplomatic response from the acting chairwoman. what do you make of what she said and one half your other colleagues had to say about your plan? mr. carr i have been really -- mr. carr: i have been really surprised by the bipartisan support we have seen. the active chair, some of my colleagues have spoken about it, lawmakers across the political aisle have given favorable responses. most consumers do not know that right now, they pay this 40% fee right on the bill for service.

whether it is wired or wireless. then number used to be 5% or 6%, and it has recently been in a death spiral, over 30% now, this fee or charge ending up on consumers' monthly bill. putting tech to the task of paying their fair share for internet infrastructure that they benefit from to the tune of trillions of dollars. emily: to be fair, consumers benefit from the infrastructure, and they are getting a lot of these internet services for free. for example, the use facebook for free. in your plan, how much of this tax could shoot -- should consumers bear versus big tech companies. do you think big tech companies should pay the lion share? mr. carr: right now, it is 100% borne by consumers. and 0% paid into by big tech. i think we should put that around in the lion share should

be paid for by the businesses that benefit. a small portion continues under the old system, i'm not opposed, but we need to make the fundamental shift going forward. this is consistent with past president -- precedent. communications were paid for and made by the businesses that benefit. it used to be 1-800 number's, long distances, it was those benefits, those businesses that benefited from the network that paid the majority that broke down the cost for consumers. it big tech has arisen, we failed to -- these new businesses that benefit from these high-speed networks that pay a fair share towards those networks. emily: what's the response you have gotten so far from big tech? have you heard from them? mr. carr: big tech has not given a bear hug to this idea.

they put out a statement saying that we shouldn't punish innovative companies. i don't think this is a punishment to ask large corporations to live up to the same measure that everyday consumers pay for when they pay in. you look at this covid-19 pandemic. last one for internet traffic. european leaders asked netflix and other streaming providers to degrade the quality of their service because they were taking up so much bandwidth. we don't have to do that in the u.s. because our networks are robust and resilient in big tech on a fitted a lot as consumers live shifted onto the internet. one reason they performed as we have these high levels of investments. the fundamental method that we relied on to fund it is now antiquated and it cannot support the weight of the additional investment that we need to really get the job done in the additional divide perspective. not just from infrastructure, but supporting below income americans. emily: spacex has gotten permission from the fcc for lower orbit of its satellite. i believe this was a unanimous decision from all of the commissioners, saying that this would improve feed and improve performances, despite opposition from amazon, which had its own satellites that had launched to

yet any of them. what is the significance? what does this actually mean? mr. carr: we are used to competitors or potential competitors coming to the fcc with requests. star link is one that we are optimistic about. along with a bunch of other potential lower orbit satellites, including the amazon one. when you look at the cost at covering that last 1% to 2% of the country that will be hardest to serve with traditional terrestrial based services, whether spacex or amazon can get the job done for pennies on the dollar from other technologies, we want to give them a fair shot at competing and making this work, and hopefully our relief that we provided to space x helps them to continue to accelerate. emily: what are you expecting to see from amazon? will that be a significant contribution to closing that gap that you mentioned? mr. carr: it is not going to be a solution for every part of the country, but that cost is 1% to

2% to 3% of the country is where we can make progress and taxpayers can see benefits. going back to universal service and billions of dollars to bring terrestrial service, we could potentially see lower orbit satellites. i hope to see lower orbit satellites used in here. emily: one last question, the $2.3 trillion infrastructure bill includes $100 billion to invest in digital infrastructure. 30 seconds, how do you want that money to be spent? mr. carr: it has to be untapped areas. there are some proposals right now that would spend billions of dollars upgrading areas that already have high-speed service to make sure they have future proof networks, so to speak. i think that is a mistake. we need to very narrowly identify zero megabits and let's get them up to speed right now. emily: fcc commissioner brendan carr, thank you for stopping by. coming up, following the bouncing bitcoin.

the cryptocurrency going on a wild ride, falling below $30,000, then recovering. more coverage on the chaos of crypto. this is bloomberg. ♪

>> i look at bitcoin in particular as digital go. so bitcoin is a better version because it has the same macro, but it's also very early in the adoption curve. people were scared of bitcoin, they moved into the space, now hedge funds are ok with it, real money managers, insurance companies. so you are playing an adoption game and you are playing a macro game. i'm still a big fire of bitcoin. emily: galaxy digital ceo is

still convinced that bitcoin is better than gold. let's get back to the top story, crypto chaos with bloomberg's ed ludlow. you have been tracking a number of different verticals. ed: bitcoin takes all the headlines, but what about the theory him. the second largest cryptocurrency, 18%. this table tells the story. it's the best performer year to date above bitcoin, above the crypto index. it made up 40% of the bloomberg crypto index. bloomberg made up 40% and 10%. look at this chart. the story over the last couple of months is pretty incredible for ethereum. it rose 1600%. and we are down about 16% of that hi, but it is still vastly outperforming other cryptocurrencies, including bitcoin. it's hovering around 1900.

we get 1500 u.s. dollars and it might free fall. that did not happen, when bitcoin came back tuesday, so did ethereum. let's look at dogecoin. we talk about these technicals. what happens if that sees a fallen bitcoin. but it was created as a joke and it has outperformed bitcoin in an incredible way today. what are they looking at? i they looking at the fundamentals? or are they just going with the flow? that's an astonishing chart. come on, emily. emily: come on, ed. our ed ludlow, thank you for context. i want to bring in the president of cross tower, which is a u.s. in bermuda-based platform. what should we be talking about, ethereum instead of bitcoin?

is this what we should be talking about instead? >> they are both very strong. i am very bullish on bitcoin. we have seen a lot of volatility with bitcoin over the past couple of weeks. a being 29 or a little bit below back up and it's continuing to hit a range, but i think it's two fundamentally -- things happening in the bitcoin market that we have to give notice of. one is china. there continues to be estimates in china about how bitcoin should be outlawed, the occ desks, and we have seen the rate decreased related to the activity. in sentiment continues in the united states continues to be questionable. people are weary. we had elon musk come out and say bcc's carbon footprint is negative. so i'm not really sure i am

bullish as given the indicators that we are seeing on bitcoin. a ethereum is doing quite well, as you have noted with your previous guest. emily: what is this go next is the question? we had guest on earlier saying it will go lower before goes higher. like you, they are bullish over the longer-term. do you see it going lower? if so, how low? and how long does it take for a real rebound? >> china's activity in -- right now is not about a carbon footprint. it's really about cbd sees. introducing its own cryptocurrency it already has. and it's coming up right now around the chinese communist party's 100th anniversary in july. and once that happens, and

people start to look at the fundamentals of bitcoin, we are going to start to see a rally again. and what i thought was particularly interesting about what's going on in china is that , we are not talking about their concern over the carbon footprint. we are talking about their concern overall about the introduction of their of territory him -- authoritarian regime of bitcoin. the fundamental still continue to look good, see more companies adopting bitcoin, there has been a chart about the number of wallets that are happening internationally, which continues to rise, as mike novavax has pointed out. we continue to see institutional adoption of bitcoin in an unprecedented amount. they were very active as they mentioned money markets. we are seeing ria's, we are seeing insurance companies.

everybody is very interested in this asset class. we still have a ethereum, it's a -- it's on track and ethereum 2.0 is rolling out at the end of the year. in all cryptocurrencies, the activity continues to be extremely strong. i think these types of developments demonstrate the traditional as investors, and continue to be bullish in this space. emily: we still have a ethereum. what is your see fit -- what is your thesis or is it a hussle? >> does is a very -- dogecoin is very interesting. we listed cross tower on its exchange platform. there is clearly consumer sentiment about it. in elon musk narrative around it, as it potentially being the crypto for the masses. his vision is mars, and mars

might need a cryptocurrency, so i'm not really sure about that, what it is an interesting example of what's happening with meme points in general. i think with that narrative on its head from being a joke to being something that people can hold and use is quite interesting. emily: i want to talk about the infrastructure, because that is where you are building your products. and i'm so curious what this shift in gravity from china to perhaps everywhere else in mostly the united states, there is a shift in mining out of china, how does that impact the industry over the long term? >> that's a great question. i believe that there is strong sentiment in the united states where there is an environment for bitcoin. once we move away from the carbon footprint out of china and we look at the renewable options for bitcoin, whether it's north america or south

america, interestingly i think el salvador mentioned volcano heat, that there are lots of possibilities there, and that may be extremely positive for bitcoin. emily: what's going to happen tomorrow? who knows? what do you think? more choppiness ahead? >> we are in such an interesting stage this year. i think particularly -- we just published a report in conjunction with pwc, elwood and tema across our participation in that. and in that report we are talking about hedge fund adoptions of cryptocurrencies. what we are seeing is two primary reasons that traditional asset managers and hedge funds are not becoming engaged. one is the lack of information and the second is the lack of regulatory insight into this

asset class. and you are seeing it pivoting now in congress. people are talking about, what should we be doing? what is that regulatory framework look like? maybe not tomorrow, but i think this year and next year you are going to see frameworks and real discussions about what cryptocurrency should look like over the next one-five years. emily: we are all waiting for that regulatory stare from u.s. government. president of cross tower, inc. you for sharing your insights with us, i appreciate it. peloton is working on a digital heart rate armband. it is the biggest move by the company to expand beyond stationary fitness equipment and into wearables. the device is expected to pair wirelessly with peloton's and treadmills and phones and tablets mtv's. running the app, shares jumped on the news with shares a up.

and it seems like shoppers are looking for some very different bargains from this year's amazon prime day. consumers are flocking to the site to buy diapers and serial not flatscreen tv's. and in the first 32 hours of the two-day event, the average order in the u.s. was $47.14 compared to $54.64 last year. during the pandemic shoppers shifted their spending online, making it more difficult for events like prime day to stand out. coming up, a new radical move to diversify venture capital and create a new generation of black founders who could change the world. i will talk to the investor behind it, next. this is bloomberg. ♪

emily: amazon's takeover of the movie studio mgm is said to be reviewed by the federal trade commission. the fcc will oversee the antitrust condition of the geo -- deal instead of the justice department. the $8.4 billion reveal will have an early test for the agenda. the outspoken tech credit took over as chair role in -- chairwoman of the fcc last week following chair confirmation. there's a new wave of venture capitalists that called for a new diverse generation of founders. they are making real change.

joining me for more on this topic is the managing partner just recently closed a $50 million fund back start up lead exclusively by black founders. thank you so much for joining us. let's talk about your strategy here, your mission, and where will you put this money to work. click super excited about what we are doing. with our focus being on getting black innovative founders. the funding 10 years ago when i became a founder. but the way that we are doing it is a little bit different than traditional venture capitalist. the main thing that we are doing different is we are increasing the chances of founders by changing the definition. in traditional venture capitalists, you are either a unicorn or a buzz, and that just does not work, especially for communities of color where we need to expand what it means to be successful. so we created a new investment

vehicle space agreement that allows us to not only chase after the unicorns, but also have successes where companies are running companies at 10, 15, $20 million small businesses and still being able to reap the benefits of a venture capital. so basically, we are bringing together, aching sure that the founders and the funders have the same mindset and are on an equal playing field. emily: i think a lot about how different the world might be if more black founders, if more women and got a chance to start the next google, facebook, apple or amazon. how different the world might be. what do you think the answer to that question is? if we give these folks opportunities now, how does the world look different, how does tech look different in a couple of decades? >> the world is completely different. when you talk about -- i hate the word triple down but -- trickle down, but i use it to

talk about the way it looks like when someone in your community is successful, the downstream positivity that comes from that is amazing. you don't have to look any further then a my partner or amazon with three black founders. between those three they all went back and gave back to their communities. they have invested in 10 other black founders. jason went back to kansas city and did a lot of work for black founders in kansas city. dr. nationally went back to her home in jackson, mississippi and is building a tech hub in jackson, mississippi. that trickle down of what that is going to mean for the black community in the respective city is going to be an immensely positive effect. so what we are trying to do is do that 100 more times, 1000 more times and what the world looks like, particularly for the

black community is that we wake up and we have more angel investors writing checks. we have more children getting into the technology field and all these other positive things. emily: you have a $50 million fund, you are up against firms that are raising billions of dollars. are these traditional funds doing enough, and his $50 million, which is great, but it's not $1 billion, is it enough? to change the ratio, change the equation, to change how business is done and how new technology is created? >> 50 million is not enough, just to be completely straightforward. 50 million is not enough, but it is enough to prove that there are other options. and to hopefully allow other's to see our success as an opportunity for them to stop leaving communities of color out of their funding opportunities. hopefully we can be the begin in

the example that will increase this diversity. it's not just us, there are a lot of other funds that were able to get funded over the last 12 to 18 months. and hopefully we will see a change in the industry, but we won't know that for 10 years, but we are doing the work today to make sure we are planning the right seeds to make sure that change comes. emily: tell me a little bit about your lps, your investors. are they traditional university endowments, are they angel investors? i want to know about the people behind you who are really interested in putting money to work this way. >> we have a plethora of types of lps ranging from large corporations like google and amazon. excuse me, sorry. google and apple, and goldman sachs, and bank of america, and we have foundations, but all the

way down, with really important to me is that we have our peers part of the funding as well. so black founders -- i just had a brain far. like harold and other black founders that have actually joined us as lps and the firm while they are still building their companies. that is the change that we want to see down the line that these founders that we are investing in become investors in the future, but we actually started that today by allowing our firm to be more accessible to black investors as well. emily: it's live tv, as long as you keep talking, it's all good. barry givens, we will be watching to see how you put this money to work. appreciate you taking the time to share that. we do have some breaking news. morgan stanley has decided to

prevent unvaccinated people from entering their new york office. this is according to a report from the financial times, citing an internal memo that it has seen, all employees, clients and visitors will be required to be fully vaccinated to get into the morgan stanley office. that is a fairly dramatic stake in the ground by morgan stanley. coming up, youtube taking on tiktok by rolling out a brand-new short form video feature. the company has also set aside $100 million to pay its creators. we will have that story next. voters in new york city's mayoral race is testing a new ballot system called rank choice. the winner won't be clear for weeks, but it's a very crowded field of democratic candidates. it's the city's most diverse ever and could produce the first woman or asian mayor.

among the key issues for new york city, wiping out crime, education, and a post-pandemic economic recovery. there are more than one million test jobs and 5.5 thousand startups in new york according to built in nyc. this is bloomberg. ♪

emily: microsoft joined apple in the exclusive $2 trillion club today, albeit briefly, shares rising 1.2% across the threshold, but closing the day just shy of the mark. the stock up 19% outperforming both apple and amazon. microsoft has been buoyed by bets that it's dominating for an enterprise offer that will continue in a post-pandemic world. youtube is taking on tiktok. the company short feature

winning over creators as it plans to begin paying contributors based on new methods of tribute or engagements. not associated which -- typical youtube videos. joining me now on the story, his shorts really working, and is it a major threat to tiktok? >> from what we have seen, it has been a great success. bloomberg has talked about it on the shareholder. it is sort of rare. as far as the threat to tiktok, it is still growing, and i think they are competing for the same viewers, they are competing with the same creators. it will be really interesting when you to plans to start paying out its hundred million dollar fund and there will be a lot more money to throw around. but kind of late to the party. facebook put out its own tiktok copycat and now youtube is doing that too. emily: we did a whole series on tiktok and katie sweeney, a very

popular creators said specifically that tiktok wasn't necessarily super helpful as a company, but some of these other companies like instagram that have been more helpful in terms of offering support to creators directly. >> it is having this creator business sharing many with youtubers who make -- with over 13 or 14 years. it is the leader in the market, it built this greater economy. the downside is that it's so massive and it's really hard for people to break out. we have these points this morning is that it's giving away that if you are a newcomer to youtube, and you do make up tutorial, it's huge, it's really hard to break free. who knows how long it's going to last. there are a lot of creators that point out youtube is not giving them enough attention. but it's been the one place where you can earn a living.

emily: how does this fit into youtube's broader business strategy as we come out of the pandemic and people are spending less time online? >> youtube is becoming farmer critical. as well as what they are focusing on for commerce. and we really talked to some creators who are talking about using commerce, tiktok is getting into commerce. our to imagine a short video format rather than longer, if you are selling your product or good. who knows, short form video is really popular. it is like the zeitgeist right now. if google can find a way to integrate that with commerce, i think that will go a long way. emily: among folks decades younger. mark covers youtube for us. thank you so much for bringing us that story. that does it for this edition of "bloomberg technology."

join us tomorrow where we will be joined by founder and ceo of the real world. and chris best talking about going directly to your audience. you don't want to miss it. i'm emily chang in san francisco. ♪

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>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. announcer: the following is a paid presentation furnished by rare collectibles tv. ♪ our country was founded on life, liberty, and the pursuit of happiness. representing this idealism is our american eagle. the bald eagle was chosen in 1782 to represent the united states because of its long life, majestic looks, and great strength.