to properly regulate the crypto currency market as crypto currency best crypto investors and boom busters no regulators have wrestled with how exactly to define crypto zone long existing categories of currency securities commodities or whether to create a new category. what better way to kick off a crypto currency special than by analyzing the top crypto bitcoin and with a bit coin want to one for those of us who still aren't quite sure how it works and there are quite a few we're going to hand you over to our g. correspondent trinity child is. one of the biggest financial stories of the past year has been the incredible rise and pullback of big corn but although many refer to it as a new type of asset or currency it's actually been around for the last decade and we're going to break down this crypto currency is history crypto currency is like bitcoin our currency is that allow people to paid their without involving financial institutions they are sometimes called digital currencies or virtual currencies but we tend to call them crypto currencies and although bitcoin was the first establi

michelle, we touched on the threat of crypto currency. can you tell us about your, in current and the digital currency initiative. >> go to that slide first. as matt discussed -- that's really loud -- crypto currency is a really important part this, trying no attack this problem with all vectors and thank the prosecutors in the field work neglect u.s. attorney offers and the criminal addition attorneys and the investigators in federal law enforcement agencies, they know how to conduct financial investigations. ultimately what we're looking at is crypto currency as a way of following the money and try to exploit the various pieces of evidence that crypto currency transactions can lead us to. as far as the aggressive training and trying to give the resources to the field they need, we have this digital currency initiative at money laundering section and we have been doing training across the country, all the way from regulatory agencies, things -- u.s. attorneys offices and their prosecutors, task forces and meetings, and even in regional a

there is a good reason that crypto is as unloved.ave you ever loved anything that is unloved as a macro trader? >> you get paid lots of money to love the loved. if you look at the financial crisis, i earned my stripes in the financial crisis in the late 90's. up, in 98 alows blows up worse. a 20,000, angs pick year later it was 10,000. when things really blow up and there is blood on the streets, and there is blood on the streets right now, there is often opportunity. you know there are people who are skeptical, cynical, highly doubtful not just the crypto as an asset class, but even your intentions. who think this is an is -- an elaborate scheme to create tax laws carry forward that you could use to offset the money you have made on the way up. >> i wish i was that smart >>. -- smart. enough people -- business to keep everyone you hire gainfully employed? >> i hope so. otc trading business, an advisory business, which is as busy as can be. the trading business is doing more bates every day. every day.des the asset management busines

market in toto was maybe five million dollars that was it that was a total market cap of all crypto it was fifty million dollars actually when we first talked about it march two thousand and eleven because there was a comment in that you tube which says this is a scam who stole fifty million dollars ok so the. fact that we're now talking hundreds of billions and at one point last year it was threatening the trillion dollar market cap you know shows you that this thing is moving ahead i mean bass is very aware of all the risks here they're trying to mitigate the risk but they're also trying to scale their business when you're trying to scale a business while owning and transmitting and being part of the monetary system usually in the software business you don't have that risk is just software you make a mistake and you have to rewrite the software to millions of people don't don't have money at risk so this is a new paradigm and the folks are going based so far you know they're doing an ok job i mean i think they've got a lot of problems over there as well but they are nevertheless o

interesting story that happened right before christmas just in coin base moved five billion dollars in crypto as part of an upgrade it was worried would take a toll on the market quote the five billion dollar number represents five percent of all decline eight percent of the total supply of ether and twenty five percent of all like coin so coin base didn't announce this before they did it partly because they were afraid hackers weren't trying to somehow get inside it and steal that but also they were afraid that it was going to cause. the market to crash that somehow they people would be able to see their wallet because it is open it's an open ledger so people could see these huge movements of coins. it only cost like a dollar to move that five billion dollars in big coin but the interesting thing is that jackson palmer who does this excellent series of you know crypto analysis on his you tube channel he looked at this and pointed out something that's really important to look at and think about what is coin and why you should hold it he said for those wondering so what about this five billion

. >> has anyone in the room but any crypto? >> okay. as an investor i can tell you to go by crypto but i will tell you, to echo what you said, as we are forming, whether it's the technology or the infrastructure for some of tomorrow's business, i think the issue around a comfort level , confidence in education, the stumbling block we face erroneously for women in finance , it's key and so for the exercise of going through it, for anybody and by the way, my millionaire clients are doing it , large endowments and foundations are trying to get comfortable so, i think the excitement is, let's enhance the chain, let's get everybody into it so that by the time it's developed it's a democratic way as it was initially. the way you establish this comfort level that allows you as a woman especially tough to get this baselevel sense of confidence that then forces you into or allows you to be more involved and confident and you have a circular thing that happens that allows you to be more invested and in control . >> one of the things we t

is that suited for today's economic realities professor richard joins us plus there's a pretty key crypto news out including how the price plummet is resulting in job layoffs kristie i have counterparts as is back with us to discuss and later the us mexico border is back in the news as president trump says he please please if the government shutdown doesn't get border wall funding john cavil which will help us understand the policy and politics all that directly ahead you're ready to go. trans-pacific trade politics leads our globe report today as china makes what some see as a key concession to the united states the shift was affectively disclosed by the omission of the made in china policy for official guidance to local governments from china's state council which were then covered in the state media china's new policy which will pursue similar goals but emphasise a role for foreign companies will be unveiled in early of next year for more on the trade china dispute civically trade tensions we head to canada and our teams alex mahela bitch alex it seems that the u.s. and chinese officia

so, is crypto currency the answer? now, that's one of those, i'm glad you asked that question, questions. as politicians running for office always say, what they mean is i have no idea what the answer is. and as a libertarian, i want a medium of exchange, a kind of money, that adheres to libertarian principles. actually, money that adheres to just one libertarian principle would suffice as far as i'm concerned and this is the privacy principle. what i do does not physically harm anyone else, is none of anyone else's business, period. now, business is conducted with money, crypto currency would seem to be the private kind of money, libertarians want. it's private in the two most important senses of privacy. first crypto currency is not public and, therefore, not subject to government public policy. in government public policy with money is to issue as much as the government feels like issuing. government treats money like a stalker treats posting things on your facebook page. a couple of clicks of the federal reserve ke

we have the crypto -currency. bitcoin is the most popular. there are a few others. crypto-currency. bitcoin cash, there are a few others, right. and a lot of the speculation has been with the crypto-currency. i am actually a big fan of both. i think they accelerate -- if it had not been the crazy rise of bitcoin price wise, you would not see the attention and money that went into it. and really what we need to focus on, forget the currency trend now, is the chain. the fundamentals were explained. what we are excited is how it is used, right. and i will give you a very, very quick and simple example that will resonate with you. one of the lowest hanging fruit. providence. how do you know you are you. how do you know the property you have is yours. how do you know the transactions you made around that are valid and stay. about six months ago, i was with one of the largest refugee agencies. red cross is a larger agency. this is from a refugee perspective. 4.5 million refugees. streaming into the camps that they have. guess what, the biggest need is right now? the general consensus when

we've got a book review. >> first up, our coverage story on crypto currencies.on it earlier but there is more to say. chafkin oversees our feature, he was in charge and we got his perspective on crypto's rise and fall. max: i will take you back to when the price of the coin hit $20,000 in 2017. for everyone, that was a crazy moment because it is this asset that does not really mean anything, is not worth anything, that was suddenly bought not just by institutions, but regular people. people were getting their jobs -- people i knew were quitting their jobs and doing things in crypto. the price has come way down and we wanted to take a minute after the crash and assess what happened, and basically commission some stories that tried to make sense of both the bubble up but also the busting of the crypto bubble. >> to be fair, it was a crash, but the folks that went in a couple years ago still made a ton of money. max: the current price of bitcoin, around $3300, that is still a lot of money. way more than two years ago. it still has been pretty bad when you look at a

yes things have definitely slowed down in the crypto currency landscape especially now at the depress prices of klein in addition to consensus very renowned firm steam at virginia base block chain social network start up they have announced that they're going to be cutting staffing by seventy percent and this is all due to all of the i see on money raise last year all of the money was raised and quiet and was kept in reserve and big quiet and because of these depress prices all of these firms are forced to lay off staff and go lean in order to survive this very long winter i want to ask you about a couple of exchanges that were in the news today kristie one is crack and that's that u.s. crypto exchange they're considering a private offering to high net worth investors or maybe that's the way to go but they have had some legal issues dealing with those bitcoin cash forks you told us about before now is your call they refused to provide some information to the new york state regulatory authorities not too long ago not a way to do business in my book but you think kracker will be success

nejra: that said, the sec has cracked down on the crypto space.or example, it fined two companies not too long ago who hadn't registered their ico's as securities. also, the sec had recently said there was a concern over a lack of investor protections, and it makes it unlikely that the agency will approve a bitcoin etf anytime soon. that is something that bitcoin bulls have been wanting all year. what are your thoughts on the sec holding back a little on a bitcoin etf? matthew: i think that what the commissioner and the rest of the regulatory bodies are signaling is that they expect these assets to behave the same way that other security assets behave, that they fit into the current regulatory framework. if you are issuing something that looks and smells like a security, something that in the u.s., we talk about the how we test, a test to decide if an asset is a security. if this asset is a security, it should behave like other securities. you should register with the sec, and if you're going to trade it, you should be a broker dealer. if you're g

i venezuela which is reeling under crippling hyper inflation has pegged its hopes of recovery on crypto currencies many businesses there are adopting technology to accept payments in crypto but does not all running smoothly on his main financial reports now from caracas. behind me as one of caracas is famous for the ballad kind of trademark of venezuela's capital no one can say how many people living days lives. some studies estimate that more than eighty percent of been israel has thirty million population leaving dire poverty once relatively well off the country's own dependent economy simply collapsed when prices slumped fuel is fast becoming one of the few things anyone can afford in venezuela according to today's rate for just one u.s. dollar i can get attention eleven thousand tons of fuel sounds absurd right with hyperinflation here in the country a week later for the same amount i would be able to get it wouldn't more than that annual inflation has topped one million percent and in attempts to curb it five zeroes have been knocked off the currencies value it actually gasoline is

. >> has anybody in the room bought any crypto? i see five. awesome. >> as an investment adviser i cannot tell you to go by crypto. but what i will tell you is, is to echo what you said, is that as we are forming whether it's the technology, whether it's the infrastructure first for some of tomorrow's business, i think this issue around comfort level and confidence in education which is a stumbling block we face quite a legacy for women in finance is key. and so the exercise of going through it for anybody, and by the way, my millionaire clients are doing it, large endowments and foundations are trying to get comfortable in the area of crypto and blockchain by doing that. the excitement is, like let's enhance the broaching, let's get everybody into it. let's have a developed in a way that is democratic as it is supposed to be initially. naturally the way i think you establish his comfort level that allows you a special as a woman to get this baselevel sense of confidence that been forces you into allows you, that's not the right wo

for crypto, is it over or is there more to come in 2019?i think there's a lot of exciting things the crypto echo system is looking for. in 2018, i expect more, in different ways. other companies may partner with another ledger and others may didto invest like goldman with cisco. this is very good because it will bring expertise to the center, which is something the crypto industry needs, especially at a time like today. had aen: all right, we story on bloomberg about how goldman and others say they are ready to launch, but the time has not been right. that's a fairly optimistic view that the toddlers are growing up, but the toddler has not been ready to take a step. why will 2019 be different? a lot of things are changing at the global level. if you look at 29th team, there are a lot of jurisdictions with 2019,tory authority -- there are a lot of jurisdictions with regulatory authority. that will give more comfort to institutional investors and institutional players as well. there are the traditional less areas. this can make the u.s. more

crypto. just crypto but that we do have security companies one is flashpoint dealing with cybersecurity with those dark sources around the world trying to evade everybody for the first time last week i actually was hacked myself so now i have the experience of what it is like. for me it's everything you've got and you never know how it got there. maria: a lot of new names coming in as well. i am expected to have a bigger bite in the small early-stage companies as well? . >> the acorns that we invested in one year ago that started out at ground zero, now skyrocketing dealing with the millennial generation in terms of using phantom money it is an interesting concept to go into starbucks if you have the acorn account if you buy something for $22.12 then 88 cents is put into your acorn account then that is invested in the stock market so the idea is to educate young people. maria: ultimately how many go public how many are your exit strategy and ipo? . >> you ask me the questions i like to answer

people i knew were quitting their jobs and doing things in crypto.s come away want to take a minute after the crash and assess what happened. commissioned some stories the tried to make sense of both the bubble up but also the busting of the bubble. carol: to be fair, it was a crash, those folks went in a couple years ago made a ton of money. say that thed current price of bitcoin around 3300 bucks, that's still a lot of money, way more than two years ago. it has been pretty bad when you look at a lot of the activity that is happened. we've got a great peace in the issue about ico's, initial coin offerings, all the rage a year ago. had one of the crypto reporters here at bloomberg do an analysis of all of the biggest ico's of the last two years, and it is ugly. if you bought into any of these, you are losing money. have,f these companies let's say, colorful problems. talks aracy alloway little bit in her overview about the characters who have come in and out of this. there are some dodgy corners of this. max: absolutely. journalistscky as to have bit

dealing in crypto currencies meanwhile in japan the financial services agency has said they intend to regulate additional coin offerings and will impose limits upon the amount of individuals that they may invest in eyes seo companies wishing to offer i.c.'s will be required to register ahead of time and explain the practical use of the crypto currency interestingly the f.s.a. is also begun referring to digital tokens as encrypted assets as opposed to virtual digital or crypto currencies. the electric vehicle sector has weathered some bad news in recent months as tesla has notably floundered general motors recently discontinued the plug in hybrid chevy volt and loyal prices have renewed demand for gas guzzling and climate killing trucks and s.u.v.s but upscale german automaker audi eiji is committing more resources to move away from diesel a lingering german attachment and regular gasoline with an investment of forty billion euros that's about fifteen point eight billion dollars in corporate priorities of. electorate more specifically audi plans to market quote approximately twenty ele

on the idea of opportunity, this was an issue that we pivoted to look at crypto and bitcoin.his was one year ago, bitcoin was flirting with 20,000. there was a lot of hype, a lot of wall street got interested in it. and it feels like that tide has retreated. this week, the prices were close to $3300. not exactly the same as $20,000. carol: can i say, you had fun with the cover as well. jason: don't overthink it, and the cue is the color. joel: exactly. carol: what i love about the magazine, and we will hear from our futures editor about the coverage this week, but you guys continue to undercover stories that we did not know about. i did not know about the one with btm. jason: undercover? uncover. [laughter] jason: uncovering undercover stories. joel: what we wanted to look at was all the different ways that crypto, that we can look at it as a topic. there is a story you will learn about about btm's, which is a form of atm's, but for bitcoin that has been involved in money laundering. that is a story i don't think anybody knew. jason: later in the show, we will dive deeper int

large endowments and foundations are trying to get comfortable in the area of crypto and block chain. the idea is let's enhance the chain, let's get everybody into it. let's have it developed in a way that is democratic, as it was supposed to be initially. and naturally, the way i think you establish this comfort level that allows you, especially as a woman, to get this base level sense of confidence that then forces you into or allows you, that's not the right word, to be more involved and more confident, and you sort of have this circular thing that happens that allows you to be more invested and more in control. >> one of the things we talked about in the last hour, backstage, just women's propensity to take risks when investing. we all know women tend to save more than men. save more on a percentage basis in terms of paychecks but we're not necessarily taking the risks we should be diversifying in the way we should be. could you speak to that a little bit? and the ways in which women should be thinking about investing early rather than waiting. and maybe some of the factors that a

actively used of the crypto currency interestingly the f.s.a. is also begun referring to digital tokens as encrypted assets as opposed to virtual digital or crypto currencies. the electric vehicle sector has weathered some bad news in recent months as tesla has notably floundered general motors recently discontinued the plug in hybrid chevy volt and loyal prices have renewed demand for gas guzzling and climate killing trucks and s.u.v.s but upscale german automaker audi a.g.'s committing more resources to move away from diesel a lingering german attachment and regular gasoline with an investment of fourteen billion euros that's about fifteen point eight billion dollars in corporate priorities of quote electric mobility digitalisation and autonomous driving by the end of two thousand and twenty three more specifically audi plans to market quote approximately twenty electrified models about half of which will have all of that trick drive systems by twenty twenty five. and legacy u.s. automaker ford motor company is expecting to soon announce major

>> with crypto, we can look at it as a topic.here a story you will learn about about btm's, a form of atm's for bitcoins that turned out to be involved in money laundering. that is a story that i do not think anyone knew. it is an incredible story. >> thank you, so much. we will dive deeper into the crash of cryptocurrencies with the editor and reporter matt robinson. everything you wanted to know about bitcoin but were afraid to ask. >> what is going on in the trade between china and the u.s.? every day it seems like a different signal and a whole lot of noise. >> this is bloomberg businessweek. ♪ carol: welcome back to "bloomberg businessweek." jason: join carol and me for "bloomberg businessweek" everyday on the radio from 2:00 to 5:00 p.m. wall street time. catch up on our daily show by catching up on our podcast. get that at itunes, soundcloud, and bloomberg.com. carol: and you can find us online at businessweek.com, and on our mobile app. jason: the u.s.-china trade dispute maybe cooling, at least a little bit. the two side

about up, still crazy crypto.will hear from the founder he stillbout why supports a virtual currencies as they come on a bit of a comeback today. this is bloomberg. ♪ caroline: an update the activity of steve mnuchin. theas been calling banks in weekend so we understand the six biggest lenders in the u.s.. we understand from a government official that he calls for liquidity was made part of his job. he did not clear the call with bankers, with trump, president trump. maybe a little bit of apportioning blame and decision-making to treasury secretary steve mnuchin when it comes to the team. -- liquidity. another asset class entirety. the enthusiasm, of course, but pulled up around the currency last year. there has been a sudden rally in the last few days showing that there might still be some hope. -- spoke exclusively with galaxy digital founder and ceo earlier this month to discuss why he still strongly supports crypto. had a bubble, it popped. we have had a monster correction be a monster correction. all coins ar

continues to diversify itself from its energy resources still to come on counting the cost tales from the crypto why digital currencies like bitcoin and ripple out of favor in two thousand and eighteen. back in november iran was effectively shut out from the dollar dominated financial system when the trumpet ministration decided to re-impose sanctions the measures are aimed right at the heart of the slammin republic's economy oil eight countries received a six month waiver but this still puts enormous pressure on to her on the smokes and side of a surety frezza didn't solve s.d.b. energy international explained wants next for iran and the oil prices there is a expectation in the market that in the next six months i mean two thousand one thousand the market is going to face over and over supply due today higher expert capacity from the u.s. and also lower demand so the market moretti at that time for any pressures on iran isn't the only countries that are importing oil from you i'm not there are going to be any types of back to iran and iran can only import and humanitarian goods or this is very

what do you think's going on with these crypto prices well right now we're in an extended bear market but analysts are pointing out that this really isn't anything we should be worried about just quite yet as this is actually very reminiscent of what we seen coin doing back in two thousand and fourteen or because it was in an extended bear market and dropped over eighty percent in the worst crash ever within a span of four hundred trading days so given that given this and the fact the history likes to repeat itself we believe that the bear market is almost over but we do see another leg down however however on our o.t.c. desk we do see a lot of the smart money come and smart money such as fidelity and why a c. hall b. do and as well as sequoia ventures these are the smart money institutional that are actually stepping in and buying heavily as this is near the bottom however we still believe that there is a lot of there is another leg down left as we do not see enough strength or support at this level and we think that quite has the potential to reach the low three thousand and potenti

continues to diversify itself from its energy resources still to come on counting the cost tales from the crypto why digital currencies like bitcoin and ripple out of favor in two thousand and one thousand. back in november iran was effectively shut out from the dollar dominated financial system when the trumpet ministration decided to re-impose sanctions the measures are aimed right at the heart of the slamming republic's economy oil eight countries received a six month waiver but this still puts enormous pressure on to her on the smoke too solid of a surety frezza didn't solve s.d.b. energy international who explained what's next for iran and oil prices there is that expectation in the market that in the next six months i mean two thousand one thousand the market is going to face over and over supply due today higher expert capacity from the u.s. and also lower demand so the market will be more ready if that time for any pressures on iran is in the all of these eight countries that are importing oil from iran that there are going to be any types of currency back to iran and iran can only impor

not too little something strong and not too brittle regs that don't love but don't hate could make crypto markets really great so let's find the middle ground the so-called goldilocks solution one that's just right that will take those crypto markets to extraordinary heights all right all right. and that's it for this time you can catch boom bust on you tube dot com slash boom bust r.t. so long for now see you next time. what is the pin that's going to pop the global bubble back in two thousand and eight it was a two thousand and eight subprime crisis. today i think we can safely say that the bubble will be popped but the collapse of deutsche bank. my seven years doing drugs my nephews was still in drugs my sister just with doing drugs it was like an epidemic of drug abuse america's public enemy number one in the united states is drug abuse we started going after the users in the prison population sewer we started treating sick people people who are addicted to these drugs like criminals while i was on the hill i increasingly became convinced that the war on drugs was a mistake there are