>> we are live from los angeles. >> we are still here at the academy museum of motion pictures. >> i am taylor riggs in new york. >> meanwhile, we have been at the academy museum of motion pictures with guests. we will dig deeper and continue the conversation and talk about the future of content and investing in los angeles.

our guest is here to discuss the future bitcoin. we will be talking nft and how one pays for content that way, so we will be digging in on the day where we look at filmmaking, the future of music content. a lot of that being built in a world that involves crypto. romaine: yeah, crypto, inflection point for awareness of these things, alternatives, and even adoption. taylor: yeah, adoption, ipo, bitcoin futures etf, and another one, another one, another futures bitcoin etf that launched as well. look at what that meant for the roller coaster ride that was bitcoin this week.

some of these etf's, huge run-up, $67,000, unwinding today. holding on to thousand dollars. it is like rolling before you learn -- crawling before you learn to walk. this is something that is bigger than bitcoin. romaine: let's get some insight that someone that knows more about this. she is the founding managing partner at bitcoin focused venture capital firm, still marked. great to see you. >> wonderful to be here. great to see you. romaine: taylor was talking about near record levels for bitcoin, the launch of these futures etf's, and the overall adoption we are starting to see, something that may be when you started was still something. >> it was. i started in bitcoin and 2013, and the company was launched in

2019. what we have seen recently is bitcoin hitting an all-time high in terms of the pace of adoption , so we started this year with bitcoin at 130 million users, like internet 1997. we are on track to hit one billion users over the next four years, which is like internet 2005, so bitcoin is advancing in terms of adoption, even faster than the pace of the early internet, and we know bitcoins adoption is linked to the price, so we believe those are correlated. caroline: educate our audience as to how much this is still seen as a risk asset, something to speculate on, or whether it be el salvador or other nations, and actual use case. what will bitcoin be when we get to with the internet is now? alyse: it is the future of finance. we are seeing bitcoin's adoption

makes sense when you understand bitcoin as an infrastructure, so bitcoin offers a platform for people across the world to be able to store value. the network in its mature state shows bitcoin as a payment network that allows el salvador to come on, so to run through a few interesting figures. through a lightning network, there are over 3 million salvadoreans that now use bitcoin. caroline: what does lightning network mean? . it is -- alyse: it is bitcoin's network. it is nearly free global payments. that means this, that, or this. romaine: with adoption beyond el salvador in more developed markets in the u.s., we have not quite seen as a payment mechanism caps on quite as fast. what gets us there?

alyse: this need space. in el salvador, you go back a moment, the population 70% is under banked, so it makes sense people would come online as global systems to bitcoin, lightning networks, and three made people on lightning networks means more people to serve our lightning networks announce our the door than the local banks. there are more people bank by lightning than the local bank. in developed markets, there is less of an acute need for financial rails, so what we are seeing is people start to use it to play around with, but also to earn, and so we are seeing bitcoin earnings the rewards, people to be opt in to be paid their salaries in bitcoin, and this would drive bitcoins adoption. caroline: you need less volatility for that. alyse: in emerging markets, you do. we are seeing people adopt in emerging markets, but have to

acknowledge there is less ability to tolerate volatility. just around the corner in november, we will have the introduction of stable channels on lightning, and all that means is you can use lightning network is rails to trade something that is stable to your local fiat currency, versus needing to trade bitcoin and accept its volatility. romaine: talk about investment opportunities, not so much the people speculating, but who want to make about on the underlying technology it i know you don't like that phrase. the longevity, the idea it is here to stay in some form or another, whether trading bitcoin 50 years, who knows, but a lot of people seem to believe in the underlying tech knology and the overall ethos that got us where we are today. what is the investable opportunity? alyse: with the introduction of the etf, people were asked if they want exposure to bitcoin and how, so the etf allows that.

you can hold bitcoin directly or through a custodian. so what we are looking at is the innovation, and that is exploding. it has been over the course of my time in the space, but the last couple of years, what we have seen is lightning that works work to catalyze entrepreneurial curiosity and we are seeing incredibly strong team started to build on these infrastructures. caroline: it can be a divisive space. whether you are a maximalist or you think bitcoin is the only way or there can be rivals, whether you look at other coins, does it have to be mutually exclusive, or can you bet on the whole ecosystem gathering steam? alyse: we would consider bitcoin different than other cryptocurrencies. that is the case. bitcoin is knowable in terms of supply, the rate of issuance.

we know how many exist today and how many will exist in five years or a decade. that is different from other cryptocurrencies, and that matters when you're storing wealth. we also know the rate of issuance. bitcoin alone is really a nation-grade money, and bitcoin is the infrastructure where you can transact. it is a nation-grade financial platform. i think we will see that soon. we are starting to see that in small ways. people understand the modern banking system. that is where lightning comes in. caroline: really good to meet you in person. alyse: likewise. caroline: thank you for taking time. taylor: stay with us. coming up, more. we will hear from the ceo of one company behind the likes of

crypto kitties. this is bloomberg. ♪

caroline: we are wrapping up our week here. it went by in a flash. we have to talk to top voices. romaine: not only did you get a perspective about asset management, but equality and inclusion. caroline: we had an incredible conversation about supply chain issues. here, such wonderful conversation. listen to the highlights.

>> the fed used to define what they think of as an acceptable employment level or they will stay to lose for too long. >> i would be pulling back on the taper. i would have started it already. >> the question is whether the economy in the west can function without the bank. we don't know. >> we have the lowest interest rates in history. if something grows faster than the discount rate, then in theory, it is worth infinity, so it is hard to operate in a world where things are worth infinity. >> we want our clients to be exposed to the next companies like that, and tesla is becoming that. >> if you want to be long cryptocurrency, probably now is not a bad time to get long. >> we have seen an increase month after month after month and demand for goods driven by e-commerce. >> it is a market in flux.

unlike the reception -- recession, bankruptcies, it is different because it is a supply issue. >> costs have gone up 30% to 40%, and volume is running 20% or more. >> i have never experienced were going through now. the restaurants we have, staff, too many people, we train, open up, bustling, and we are full of staff, and we are struggling. we don't have enough staff to open all our venues for seven days a week. >> income earners are like, well, here are my expenses. this is what i want to do. we will see what happens. it is the difference between wealth and freedom, and that rat race of spending and earning. caroline: money managers, truck drivers, parcel companies the restaurant tours, and everyone

with the same concerns, supply chain issues, labor costs. romaine: i think we got a cross-section of our economy and where we stand right now. caroline: it is good to get out of new york. romaine: are you going back? caroline: meanwhile, a deep dive into the future of crypto and nft. stick with those. this is bloomberg. ♪

caroline: remember this guy? jaws. the last remaining one. he is the biggest problem. 25 feet long. five feet wide.

his nickname is bruce. steven spielberg called that after his lawyer. meanwhile, i was taking a tour. taylor: i am taylor riggs. you don't get to have all the fun. you are standing next to a sharp. i am playing this videogame calm crypto kitties. people spend millions of dollars playing it. my producer says no, taylor, it is nba top shot. this game allows you to buy basketball's greatest moments. 10 million transactions have taken place. 700 million dollars in total sales. nba or crypto kitty? caroline: may be both.

we will talk to the man behind both. he is with us. he is the ceo of the company behind it. we want to take away the sensationalism around nft's. talk to us about it. has it taken you by surprise? roham: it is still super early days. the space is still a few hundred thousand people. collectively, they have spent almost $1 billion, but it is still early days. the headline sales are great and dollar numbers are impressive, but it is about accessibility. both collecting economies within top shot and collectibles have become more transparent.

you see artists, individual creators connecting from anywhere in the world in creating a community that can be as small or as large as it needs to be, and engaging with fans in a new way. romaine: talk to us about the artist. some artists embrace this because it gives them more control over what they create, sell, and who they sell to. roham: it is the first time a digital creator has been able to make something and sell it directly to a fan who can take it anywhere in the world, a new game, meta-verse experience, social network, or other marketplace to sell to another fan. for digital art, the mental model is like supporting a new up-and-coming artists, and if they do well, you get a share in their success. with things like topshop, it becomes a new way for a sports

fan to engage with the team, the athlete, and that is like social media, but instead of your instagram profile, it is your blockchain wallet, and the things you choose to own and how you represent yourself in this new world and where you choose to store your wealth, u.s. dollars, bitcoin, top shots, and it is part of your online identity, and actions speak louder than words and their blockchain wallet represents their decisions, their skin in the game. caroline: where are you looking up for the next area of creativity, the next company to be partnering with, brands? roham: we see ourselves as a platform company. we have top shot, a sport studio that is taking the platform to the nfl and other sports leagues

we will be announcing soon, but we consider ourselves as a platform company. we'd like to share the data we are seeing come the tools we built, the open source technology, decentralized blockchain. other folks are building new products to engage with their communities, but we have one million users we can share and bring new products and services to those users. for brands, it is such an interesting psychology, because for two decades on the web and social media, they have been disaggregated, separated from their fans and forced to work through social networks or whatnot, but this let's them create an economy around their brand.

they can find that micro-community and be able to engage with them through the internet. romaine: how will you scale out this business to something broader? how do you get there? roham: that is the thing you go to sleep thinking about, putting a blockchain wallet in every pocket. that is a level of empowerment greater than apc on every desktop. apc on every desktop gave people a chance to become creators, blockchain wallet gives him the ability to transact. romaine: has it gotten easier? it can still be complicated, particular for people not as well versed in crypto. roham: if you go on any other blockchain, it is complicated, but everybody watching the segment can go online with a

credit card, and for nine dollars, get three nft's. the word nft does not show up. it's only after you get it that you start learning about the technology. you look into the transparency of the marketplace when you want to sell something. wait a second? ebay does not have this. i can't look at every trading card or work of art and see who owns it, how many times it was traded, how much it was bought for, sold for, and who is interested in it, but all of that is transparent on the blockchain, so that is when people start learning about, oh wait, that is what blockchain's. that is how it should be. the technology should be in the background, not in people's faces. caroline: interesting. we only have one minute or so left. demographics, however using that expand? you hear the ultra-wealthy, art collectors, but is the younger

generation educating themselves? what financial literacy around nft is growing? roham: the younger generation thinks that volatility and investing in a different way. gamestop and amc are evidence of that. it is almost a social movement. not just an analysis of spreadsheets and whatnot. so the younger generation sees it as a way to get closer to basketball and away way they never could before, but you see older folks that may be collected cards when they were young. now they have kids. the lack of transparency is too much to keep up with. top shot is easier. you show up, by from the source. you don't have to pay scalpers. if you don't like what you got, you can sell it instantly. you have both sides of the market. it is male-dominated for sure. lots of sports technology is. we are just, one of our partners

launched a dr. seuss app, and that is more families, moms and dads playing with kids, daughters getting into it, so it is about different communities bringing different demographics in. they are all tradable, shareable, and open. romaine: fascinating. great to see you in person, thanks for being here. roham: thanks for having me. romaine: the founder of dapper labs. that will wrap up our coverage. a long week in los angeles. now here we are atop the academy museum of motion pictures. caroline: i felt like we got to grips from understanding the nuances of the supply chain. great to speak to some of the biggest investor months at milken. -- minds at milton. -- milken. taylor: everyone in los angeles

wells -- wear sunglasses inside. romaine: that's what i'm told. caroline: we miss you, taylor. ♪

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announcer: from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. ♪ emily: coming up, can snap snap back? plunging in its biggest one-they drop on record, after worried