it sees the cryptocurrency market as an area for growth.nvestors agree, leading the stock to jump more than 80% this year. for more on that and the crypto market, we are joined by bloomberg's caroline hyde in london. so, caroline lots of difficult , headlines for crypto investors to digest, not the least of which the bank of international settlements saying bitcoin may never be ready for prime time. this is basically the central bank of central banks. what has happened over the last three days and what is going , through investors' minds? caroline: amazing stuff. it was a tough start to the week when you have the central bank of central banks, as you said, saying that crypto is going to break the internet eventually. if you eventually have crypto have been, or bitcoin, the blockchain bitcoin has built upon, helping with all retail transactions, it would basically overwhelm the internet, they say. but they also say the main issues are instability of crypto is a key concern. they also worry about the consumption of electricity, saying it is a

i learned a lot about cryptocurrency. see if i can put it into action but t purpose of this hearing today is to look at the problem the country faces in terms of how a shell corporation could be exploited by foreign entity, how easy it would be to create a corporation in america and funnel foreign money through it to affect our democracy and how these virtual currencies, bitcoin and others, how they can be manipulated by foreign powers or other groups to influence our democracy. so what i would like to do is introduce our panel and turn it over to senator whitehouse who will lay out the case better than i as to why we're doing it, i will say this, you got chairman grassley here, appreciate his attendance, we're not talking enough about this problem. it's going to happen probably already has happened and the good news is, there's legislation that we can enact pretty quickly if we chose to that would make it easier to stop this and senator grassley's been terrific on the subject matter and i appreciate that, but i'll turn i

. >>> coming up, bitcoin or bust the cryptocurrency dropping big over the last couple of months, why?it going? we'll talk about it. >>> red, white and trump, why today's rbi has to do with the presidenant d flags, but not in the way you think. and packages. and it's also a story about people. people who rely on us every day to deliver their dreams they're handing us more than mail they're handing us their business and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you ♪ ♪ tired of wrestling with seemingly impossible cleaning tasks? using wipes in the kitchen, and sprays in the bathroom can be ineffective. try mr. clean magic eraser with durafoam. simply add water, and use in your kitchen for burnt on food, in your bathroom to remove soap scum, and on walls to remove scuffs and marks. it erases 4x more permanent marker per swipe. for tough kitchen and bath messes, use mr. clean magic eraser with durafoam. brand power. helping you buy better. >>> let's ta

emily: and yet there are big banks experimenting with cryptocurrencies.re than experimenting. do you see this becoming a legitimate currency that is backed by a global financial system, if some of these hiccups and issues are worked out? joe: it is possible, but something that i think is really important is that the hiccups that you mentioned and that jordan described are both the vulnerability of cryptocurrencies but also arguably, the selling point because if you think about it, what is the case to use a cryptocurrency as opposed to traditional currency for transactions? it is the implicit promise nobody can seize it from you, or nobody can tell you who you can spend it with, and nobody can tell you, that you cannot move it from one country to another, circumventing capital controls. these are all of the things that are theoretically what make bitcoin, or make other cryptocurrencies, appealing to be some measure of -- appealing to people, and so the flipside has to be some measure of irreversibility. because you could not have a system where you could h

i learned a lot about cryptocurrency. let's see if i can put it into action but the purpose of this hearing is to look at the problem the country faces in terms of how a shell corporation could be exploited by foreign entity and how easy it would be to create a corporation and funnel money through that and affect our democracy. and how these virtual currencies , but quite another's can be manipulated by groups to influence our democracy. so what i would like to do is introduce our penal. -- panel. i will say this. i have chairman grassley here. i appreciate his attendance. we are not talking enough about this problem. is going to happen and probably already has happened. and the good news is there is the legislation that we can enact to quickly if we chose to that would make it easier to stop this and senator grassley has been terrific on the subject matter. but i will trade over to senator whitehouse. >> thank you very much, senator graham. this is one of a series of firsts that we've accomplished in the subcommittee und

i find it and was a fascinating of what a cryptocurrency is. file you are given, and if you give it to an exchange, and that exchange is then hacked, that money is gone for good. you see people running away from the market because of that security risk. emily: i want to put this into context. emily: take a look at this chart and my library that shows the slump and cryptocurrencies over the last six months. joe, how much of this is due to this particular hack? is it due to lingering concerns of crackdowns in china, or pessimism from folks like yourself? >> it is a combination of a lot of different things. look, the simplest answer is this is the backside of the euphoria that we saw in q3 and q4 in 2017 when people were throwing out enormous expectations with the price was going, and everybody was talking about it. celebrities were talking about it. and the interesting thing is if you look from a fundamental standpoint in 2018 and saw ongoing moves whether it's legacy financial companies expanding into the space, upstarts getting more institution

and cryptocurrency is absolutely taken on. off over the past year but they have actually lost a little steam as of late over the past year the price of bitcoin of many of us know when as high as twenty thousand dollars but now it stands at just more than seven thousand dollars while this dip is definitely huge krypto still remain popular among retail investors and others but how long will they stay that way some skeptics see the fed fading and some critics even see it going extinct completely yale economist robert shiller yesterday claimed cryptocurrency is will go completely extinct the way of the dinosaurs and even said that he regards crip those as a failed experiment in the field of currencies mr shiller recently wrote an opinion piece on the subject calling kryptos quote the old allure of new money and quote in which he compares krypto and other schemes that have arisen over the past few decades while still yet to be seen of crypto currency is another block chain type currencies will prevail and play a key role in the fut

. ♪ emily: cryptocurrency is all the ♪ emily: cryptocurrency is all the rage now.e initially accepted bitcoin, but recently stopped. are you at all concerned that stripe will be on the wrong side of history but that decision? >> we are open to revisiting this. at the time we made the decision, it was trending toward that way. i think that is a valuable thing to have existed in the world. i genuinely wish them the very best. it works less well for our case. this is one thing that where we are looking at the data. it was declining rapidly in uses of payment method. if it starts increasing again as a payment method, then sure, we will go back. emily: bitcoin, cryptocurrency, is it hyped? reality, a bubble? >> our determination was that bitcoin was not a good payment method. which is a very different discussion, with cryptocurrencies generally. emily: because the value was shifting dramatically? >> and the speed of those transactions was the main thing. we remain fascinated by cryptocurrencies from a technology point of view and the general speed of execution of the sp

it's produced in to be quite another cryptocurrency these it can go anywhere in the world and it can be traded for anything and so really what china did is they allowed the industry that really was the thing that was disrupting some of their capital controls and then they shut down the exchanges and when they shut down the exchanges what they did is they gave all the data all the money laundering data all the idea of verification all the policies away from china said that they couldn't control that data and gave it essentially to japan and korea because japan is embrace in the industry and what japan said is it hold a job zahira for the growth this is then we better get control of the injury put put together some regulatory structure and actually then we can tax it then we can control the data we can regulate the exchanges we can find out what people are doing with the money because all the problems happen in this intersection between traditional see it money and create and so you've got those two extreme examples china realize all the innovation all the data went to japan japan's be

she's no less are the stuff the friction is always in the fia money and the cryptocurrency money what teather actually does is it produces a valuable service whereby money can flow into without volatility from exchange to exchange from jurisdiction to jurisdiction the challenge is is using the legacy traditional financial system and therefore you need to rely on trust audit accounting and the trust of the council polity and so you know that has its own complications and so it's not really a krypto problem is that silly problem and that is highlighting why people over time while people do need the you know everyone needs the ability to have valid you know have less volatility and when they're paying the rent or buying houses and that's where these stable points come in and if you don't like the way the cynics are doing it then another startup will come up with another model or another country will come up with another credit risk model and they can all compete and people can choose what type of dollar they want in the future how they want to trends at and then ultimately what it does i

and block china, everyone that has a problem believing in cryptocurrencies wants to believe in black the problem is it's the same chart as bitcoin and the other currencies and i think people have to look at it as a blockchain company or ico company versus bitcoin company. >>> coming up, deal talk giving consumer staple stocks a boost in today's down market but can mergers beat the sector? >>> plus guy adami made his way over to the plaza and he's getting ready to pitch one high flying stock he says is headed higher much more "fast money" after isth ed making wine in 1948... [sfx: bottle sounds on conveyor] one bottle at a time. today, we produce nearly 20 million cases a year. chubb has helped us grow for the past 30 years... they helped us prevent equipment problems during harvest and provided guidance when we started exporting internationally. now we're working with them on cybersecurity. my grandfather taught me to make a wine that over delivers. chubb, over delivers. >>> welcome back to "fast money. we have a news alert the president just tweeting about harley-davidson. >> the pr

next, cryptocurrency trading.talking about that with a platform that promises the world's best fraud prevention and anti-money laundering measures. this is bloomberg. ♪ >> the regulators had to get involved. they are doing what thesupposede the t thing, let's go after fraud and market manipulation. those of the first two things. it is a good thing. >> i believe the blockchain will ultimately create new business models. i think it will be helpful in the developing world where registries are not as established as they are here in more developed economi. ramy: just some of the voices from our bloomberg and fast conference in new york today talking about cryptocurrencies as well as blockchain. for more on blockchain, let's bring in a special guest on this. over to you. >> we saw optimism from the conference. australia in particular, given the royal commission going through here, the scandal surrounding cba, therewhether tn technology is a value with a renewed look. from bring in blockbid australia, one of the first to

is and how from one thousand to twenty thousand whether that was a bad thing for queen cryptocurrency alice get into it and the question of course is why am i wearing a hole why a leg so i work a coin base and hopefully many people particle look ourselves the easiest on ramp into the cryptocurrency space so if you're looking to buy five dollars or five thousand dollars of because many people download our app to do that obviously we saw a wave of retail capital enter the space through twenty seventeen the market cap of all crypto currencies ballooned you know anywhere between ten x. and fifty x. and we saw at the greatest amount about eight hundred billion dollars of market cap of all crypto currencies with because being that the majority of that net that we think there was a positive thing because with it comes new capital to the ecosystem but also comes with it the attention and awareness of a larger public and it comes with it to probably most importantly developer interest so i think what most people fail to realize is that right now we're in the what we call investment phase of cr

bitcoin tumbled and takes other cryptocurrencies down with it. we will tell you why.his makes significant the losses we have seen your two dates in bitcoin assets. we will tell you why this is happening. what does this have to do with the korean peninsula as well? that's coming up after the break. this is bloomberg. ♪ >> its 1:30 here in singapore, six: 30 in london. let's do a market check with nejra cehic. >> thanks so much, haslinda. offti in asia shrugging any geopolitical risks that might be coming after the g7 has .rapped up overall, this is a picture across the region. trading markets close today, but overall, we are seeing some .ains also, if we switch the chart, you will see not much risk preston at the moment. near abond risk hovering decade low. b.n.p. paribas asset management saying this is a really good hedge because cds is likely to rise no matter the outcome of the trump-kim summit. if you see a good outcome, there could be concerns around south korea's fiscal finances and a bad outcome will weigh on investor sentiment, so you might think about hedging

the world blocked chain and cryptocurrency summit has been held in moscow bring people from all over the globe to discuss the future of the industry r.t. is my girlfriend to santiago was there for us. what the world watching you have to hear is the summit here in russia and as always this place brings together some of the top minds from the world of crypto under one roof and that's exciting as russia is proposing to take a leading role in the development of watching around the world and perhaps it already is let's take a look. at. the world watching and cryptocurrency summit is an initiative of really countries organized by the international essential allies association of cryptocurrency and watch the board members from russia happens to be herman can make up the former and by his or to the russian president who has been taking an active role watching the developments in russia the last couple of consumers we always had quite a strong school of cryptography and a lot of us business lays the foundation to many key technologies in the book chain for example vitaly group theory and with

cryptocurrency exchanges allow people to trade cryptocurrencies and in this case they are a relativelynge but over the weekend they said there was something called a cyber intrusion, which is a hack. at the moment we know 70% of the cryptocurrencies under their control art in what is called a theywallet, which means have been taken on to a storage that is not connected to the internet, which means they are safe from a further hacking. the other 30% is the coins that were affected, and of those about two thirds are frozen or recovered. the remaining third are what we are most interested in. those tokens are being investigated. we do not have any details on what the dollar value is of those tokens. or the manner in which their system was hacked or compromised. .t is still a developing story we are awaiting further updates. francine: thank you so much. bloomberg's eric lam from hong kong. bloomberg users can also interact with the charts on g tv . i had a good chart looking at risk. tom has a 30 year bull market. which one is best? log on to vote. this is bloomberg. ♪ francine: this i

cryptocurrency is not ready for primetime yet.t's according to the swiss bank for international settlements which warns the cryptocurrency suffered a range of short come -- shortcomings and could break the internet. when you sifted through the 24-page article, did you expect theociationmunication volumes could bring the internet to a halt, talking there about the software underpinning bitcoin? that's a big statement? >> yes, it really jumped out. one of several statements in this report that jumped out as being particularly poignant. usually, these reports that the b.i.s. puts out are arcane and technical. really, they were trying to make a sense this could influence and shap the debate around cryptocurrency. mark: yeah. bitcoin miners, using the same as switzerland. the sort of images that we can all get our head around. what's the general take on the b.i.s. and what it said? are many people supporting it? are there many people laughing? >> pro-crypto,ro-bitcoin, those building exchanges, all look at this report and say, what do

a drop of dawn and grease is gone. >>> welcome back to the show cryptocurrencies are useless, unsafend dirty that is according to the latest report by the bank of international settlements. i spoke with the chief cars sons and asked about the dangers of cryptocurrencies. >> they're portraying themselves as being an international currency and they need to have to correct to work it has to be a good unique account, a medium change and good positive value. cryptocurrencies do not fulfill any of those characteristics, therefore, what we do there is just to warn people that, you know, cryptocurrencies are not currencies they're assets >> with that he's warning that cryptocurrencies are not assets. >>> elsewhere, saudi women have taken to the road for the first time after the kingdom lifted a long standing driving ban. saudi arabia had been the only country in the world where women can't drive. hadley joins us from a hot saudi. >> hot and windy. >> it's not just about the driving. this is also about opening up the economy. it's about creating opportunities within the work force. are we lik

. ♪ >> cryptocurrency is all the rage right now.ipe initially accepted bitcoin but recently stopped. i you at all concerned that it will be on the wrong side of history? >> we are absolutely open to revisiting this. i think it is a valuable thing to have exist in the world. i generally wish them the best. this was not so much a decision where we wanted to be the outlier, we were just looking at data. it was declining rapidly. if it starts increasing again, sure, we will go back and add it. >> is it hype, is it reality? that itetermination was was not a good payment method. which is a different discretion than cryptocurrencies generally. >> because value shifting so dramay. >> the speed and cost of posting production was the main thing. we remained fascinated by cryptocurrencies from a technology point of view and just the general speed of execution. gettington of companies distracted by then it he projects of putting this database on the blockchain because people are not really wetted in the technical details necessary. >> there's a

lae cryptocurrencies and we show that the price of all of those cryptocurrencies was affected >> theremany reports, amin, about the so-called bitcoin whales out there i'm wondering if that's an area where you thiney either could have played a role in this tether related manipulation of bitcoin prices or if, perhaps, they were in cahoots with the guys that were manipulating tether and therefore bitcoin >> it could be, but we didn't specifically focus on that so this is a market that's supposed to extract -- supposed to be decentralized but we see that prices could be hugely y thesg players in the market the kind of questions, the philosophy of the markets. >> all right amin, we're going to leave it there. thank you so much for your time. >> thank you. >> fascinating study university of te it's a big study certainly the bottom line here is the fear of increased regulation when it comes to cryptocurrencies i think that was sort of the shudder felt by all of the investors today. >> listen, we say it again and again. there are a lot of investors in it for the long haul they like to see the

we'd seen the rise and fall of a number of cryptocurrencies.lity is due to regulatory uncertainty. however, initial coin offerings have raised more money in 2018 than last year, and we are not even halfway through the year. we are joined by the coinlist ceo andy bromberg. prior to this, andy was c.e.o. of sidewire. also, joe weisenthal is joining us. ♪ >> we're seeing two things happen here. the first is a bifurcation between low quality and high quality projects. last year, investors were not yet sophisticated. they were figuring out the market. anyone could raise. now we're seeing the high quality ones raise large amounts of money. the low quality once not as much. this raises interest from investors all across the world whether you're at the eiffel tower or golden gate bridge. you see them talking about ico's all the time. that increases interest. it will drive the industry forward in the next couple months. emily: a similar question to you. is this the start of the boom or beginning of a bust? joe: i do not know the answer. i wish i did kno

but when it comes to the hack for cryptocurrencies, it underscores the notion that perhaps not all oftructures the infrastructure build around cryptocurrencies have been secure because we're dealing with the security issue on exchanges, right? blockchain is incorruptible, but the security around these exchanges, it's not infallible so, i mean, don't we need to see big strides in terms of the progress of the securities of these exchanges to really overcome that particular fear? >> we do and we're kind of very early in crypto kind of time frame. so right now the exchanges are learning to better protect their customer funds i think we're getting better taen better at it, but we still have a lot to improve. and this is like a paradigm shift for personal finances. with bitcoin, litecoin, you have control of your own finances you're responsible for your own money. if you put your coins in exchange, you have to trust the exchange to kind of hold your money and protect it for you so it's kind of a mental shift and people have to get used to that they really need to protect their coins much mo

because some of these cryptocurrencies, some of these i ceos have value. you just have to expand. have to show scale. bitcoin being hampered by the scalability problem. that is being tackled, research is being put into it. a lot of them will have you eventually, but about 80% have been deemed scams so far. emily: bloomberg's caroline hyde life for us in london. coming up, foxconn is breaking ground on a $10 million plant in the u.s. heartland, all in the backdrop of rising tensions within washington and beijing. this is bloomberg. ♪ emily: this is bloomberg technology. president trump traveled to wisconsin to attend a groundbreaking of foxconn's $10 billion plant on thursday. the administration sees us as a big win that will bring jobs to the region, but there has been criticism of the tax break incentives that foxconn received. and trade tensions within the u.s. and china has not ceased. company's it was the biggest challenge. alibaba is scaling back its investments in the u.s. ande joined by selina wang garrett. talk to us about the economic and political irony, given that foxco

we have seen the rise and fall of a number of cryptocurrencies.n.ripple, a lot of the volatility is due to regulatory uncertainty. however, initial coin offerings have raised more money in 2018 than last year, and we are not even halfway through the year. to discuss, we caught up with the coinlist ceo andy bromberg. coin list is where investors discover high-quality projects. prior to coin list andy was ceo , of sidewire. our bloomberg executive editor and host of what you miss joe weisenthal is joining us. >> we are really seeing two things happen here. the first is a bifurcation between the high-quality projects and the low-quality last year, investors were not ones. yet sophisticated. they were figuring out the market. anyone could raise. now we're seeing the high quality ones being able to raise large amounts of money. the low quality once not as much. the second is just increasing interest from investors all across the world whether you're at the eiffel tower or the pyramid of giza or golden gate bridge. you see them talking about ico's all t

while there always be sudden movement in cryptocurrencies?when the big news events was there was a hack, a relatively minor exchange. there are two things that is was to underpin bitcoin. it's thty and scalability. and neither of these things have worked out. the hacks continue and the scalability has not continued. it $60 per transaction, it doesn't seem like it scale. vonnie: what happens next? clearly it's the cryptocurrency to watch but there are all these others out there, what is the next step? >> i think that's a big deal in this drop. the sec is a looking at whether these other things are securities or currencies. cftc chairman said maybe i'm being too much of a grandpa about this, let the kids want bitcoin, let's give them that. news thatthere was there now getting nervous, let's go ahead with the bitcoin. , bishop are nervous getting a mark dayton from these . this investigation whether there's been manipulation on price trading of cryptocurrencies. that's another thing. that's affecting prices as well. when ives bogen to joe, it is

moving on now to cryptocurrency meltdown. that continues.tal coins tracked on finder.com have declined in the past week with an average drop of 19%. however, if not all bad news. facebook is loosening a ban on bans that- advertise for crypto currency. sarah frier is in san francisco for us. good to see you. why do you think these types of ads were banned in the first place from facebook? theh: facebook said that in course of trying to clean up advertising on its platform, overall, they were trying to get rid of these ads they saw as riches,promising people promising people say they could get in on a great trade on their platform. an bitcoin is really just not a very regulated market, and so, facebook just all-out band those ads. -- banned those ads. a few months later, facebook has started its own crypto division, so it's hypocritical to not allow people to advertise the thing they want to do. they have to make sure they have this process where they make sure that the businesses that to get advertised are legitimate businesses, that they ope

o all of this talking. >> cryptocurrencies. blast into spacex good morning let's talk about the u.s. economy. we read the headlines. trade turmoil, fighting with canada, fighting with asia is nafta going to be reworked. the atlanta fed is predicting nearly 5% gdp growth can you square these two things for us please? >> just remember, first, watkins took a big hit back in march on trade fears. we are in a recovery from worrying about endless rises 3.5%, 4, we were going there a good deal to worry about we had a great deal of trade the fact that there's some carry through, what has the economy done we've seen a powerful, powerful pickup in earnings it is not simply going to end here with the first quarter. earnings will keep riding. -- rising >> is it really? >> i think outside the you states we let a significant growth scare -- look at europe economic surprises in the eurozone are the weakest compared to the united states since 2009, but the absolute data, the absolute pace of economic growth has differed by a trivial amount the

the area i am focusing on is specifically the cryptocurrency stage. here i was more broadly blockchain. focusing on cryptocurrency area, it is on two sides. the startups. institutional. on the other side, institutions saying a new class. how can i do that in the least risky way? joe: i am sad to say that my inbox is not become any less bombarded with companies and their press releases about some new blockchain anchored i'm hoping for that to quiet down. is anything real happening right now or is it still just press releases and experiments? >> no question there is a lot of hype. things going some live. but there is the ratio of these. certainly a lot of headlines. and recommend our clients their. joe: thank you very much. scarlet: coming up, and internal harvard review suggests that be admittedan would more if it was just based on academic performance. this is bloomberg. ♪ julia: it's time for the bloomberg business flash. a snapshot of some of the biggest stories in the news today. weigh murdoch will comcast's $65 billion bid on wednesday. the board

we'd seen the rise and fall of a number of cryptocurrencies.ot of the volatility is due to regulatory uncertainty. however, initial coin offerings have raised more money in 2018 than last year, and we are not even halfway through the year. we are joined by the coinlist ceo andy bromberg. prior to this, andy was c.e.o. of sidewire. also, joe weisenthal is joining us. >> we're seeing two things happen here. last year investors were not yet sophisticated. they were figuring out the market. ow anyone can raise. emily: a similar question to you. is this the start of the boom or beginning of a bust? >> i don't know the answer. i wish i did know the answer to hat but i do find it to be pretty striking the way in which we see this relentless decline. obviously, you mentioned bitcoin, but pretty much all of them all at the same time, despite the fact that we get a pretty steady drip of news coming out about infrastructure being built out, institutional interests being developed, partnerships between startups in the area and legacy companies doing tradin

jeremy calls himself a venture capitalist and cryptocurrency evangelist. how about bedrooms?s a three bedroom but we've made some extra space. and so we just constantly have people coming in and out that are kind of transi don't want. crypto nomads. >> crypto nomads stay in this space? for the people who live with you what do they pay? >> sub $1,600. >> reporter: every time you use your bitcoin, that transaction is recorded in a public digital ledger called the blockchain. >> the blockchain office is a revolutionary approach to security that's been all but unhackable. >> reporter: it's become a part of college curriculums. this class at new york university. >> we started with about 30 students in 2014. now 235 this term. >> let's make all the blocks 2 megabytes -- >> there's no question cryptocurrency has crossed over into the mainstream. >> reporter: a far cry from its dark past. bitcoin, wums the preferred currency to buy drugs and black market items on silk road. the fbi shutting down silk road, seizing 173,000 bitcoins which would be worth over $1.5 billion today. >> we'r

so, in the pure cryptocurrency space, the examples that people cite are bitcoin or ethereum. that's not in our direct jurisdiction, although i have -- there are issues with those crypto assets, including in the trading and what people use, you know. i want to be clear, to the extent that somebody is bringing those assets to a regulated entity of ours, that regulated entity needs to go through the same kycayl procedures. in the same sort of token space, we're raising -- i mean, i think we've raised the consciousness for people to understand that these are securities and they need to follow our rules. i do think this technology has a lot of promise and it can eliminate costs. i would focus on that. i'm sorry. >> thank you. i'm sorry, my time's expired. >> the time is expired. recognize the chairman from minnesota, mr. ellison. >> thank you for joining us today, mr. chairman. appreciate it. last year, we passed a -- congress passed a multitrillion dollar tax cut for, as you're well aware, and i think the theory behind it is as reported in the press and by some of my colleagues w

bank of international settlements has blasted cryptocurrencies, saying they may never become part ofeam finance. in an economic report, it says bitcoin and its siblings are too unstable, who seem to much electricity -- consume too much electricity. it said they could break the internet because blockchain requires too much processing power. we have seen more big shots for the top nations at the fifo world cup -- fifa world cup. by switzerland. germany's defense of its world title is off to a rocky start, crashing to a 1-0 defeat against mexico. they called the performance have hazard and negligent. global news, 24 hours a day on air and at talk on twitter, powered by more -- at tictoc on twitter. i am paul allen. this is bloomberg. rishaad: iran says it venezuela iraq willnezuela and join it. question wanting to pump additional barrels per day. output targets in opec members requires an unanimous backing. our guest is in turkey. how significant is this friday opec meeting? is definitely one of the most important dutie meetings we have seen in recent years. opec decided to cut producti

. >>> plus crypto's kryptonite, its size what imes r t anfothe cryptocurrency market.lunch" is back in two [thoughtful sigh] still nervous about buying a house? a little. thought i could de-stress with some zen gardening. at least we don't have to worry about homeowners insurance. just call geico. geico helps with homeowners insurance? good to know. been doing it for years. that's really good to know. i should clean this up. i'll get the dustpan. behind the golf clubs. get to know geico. and see how easy homeowners and renters insurance can be. >>> welcome back to "power lunch. the backlash over breaking up families trying to cross the border and getting caught while doing it is growing. what it could mean for the president's agenda and the midterm elections. to discuss that and more, let's bring in bill kristol, it toedir at large for the weekly standard the president suggests, i would say, i mean, apart from blaming the democrats for what is going on down in some of the border states, blames the democrats but says this is a matter of law others say that the enforceme

cryptocurrency, does it become a real issue or not? do you worry about that?e you put your toe in the >> people, you know, it would be painful for somebody who put their entire net worth into cryptocurrency, but it's not a systemic issue at this point. people are passionate for it, passionate against it. i remember when it came out first with -- when they came out with cell phones, i remember thinking -- god, who the hell is going to lug this around. besides there's 10 phone booths on any -- on every corner. this is a fad, no one will carry a cell phone. i passed on the whole thing. turns out to have worked. [laughter] so, now they have cryptocurrency and i/o is thought -- i can't say why it should work, but if it did work i would be able to explain it in hindsight. well, it did. >> has that been your secret to success? you have a look at things from both sides. sometimes i say -- will this happen? what are the chances this happens? thinking about something, let me postulate. this happened, tell me why it did. it's an easy way of seeing it and a look at the ev

between bitcoins and koetter, a cryptocurrency under investigation by the ftc.as been a lot of talk for a long time about this controversial cryptocurrency called tether, which is called tether because it is priced at to one to the dollar. in never deviates from a dollar and used as a quasi-dollar like currency on exchanges. what do they claim of the mechanism is? >> professors looked at trading data about the bitcoin. as soon as it hits certain thresholds, round numbers, $500 increments -- as soon as it reached a certain level below that, they saw tether flood the market and then be converted to bitcoin and then push bitcoin and other cryptocurrencies. arehey say all tethers backed and it is a representation of a dollar being held in a bank. are they alleging there is an artificial creation of new thers that flood into the markets when bitcoin needs the big run-up? >> i think both. they are looking at how the creation of tether is a backstop to bitcoin. in that run-up, and a time its starts to falter, it would start pushing a backup. they do not see it reverse.

it's mining for other cryptocurrencies. and this machine? >> this here is an actual st-te- -art bitcoin machine. >> reporter: the energy use of all these machines is immense. >> this miner here will use as h much power as se does in a month. >> reporter: 19-year-old plattsburgh native ryan brienza deferred college to run zafra out of the defunct imperial wallpaper mill. he hosts 200 machines from clients all over the country. >> it's going to cost you more to plug it in incaew york city, fornia, or boston, than to host with us. >> reporter: just to plug it in. >> what you're ping for power there is more expensive than what our hosting rate is. >> reporter: moreover, brienza's clients don't have to copeith the machine noise and the heat. that's about as long as i can hold my hand there. and then it starts to burn. >> sometimes when i wash my nds, sometimes i use tha dry them off. >> reporter: brienza's operation is a drain on plattsburgh's cheap energy. but it's dwarfed by coinmint, a puerto-rico-based operation, which first set up shop aroun