they're big cheerleaders for it david wu f.x. and rates strategist at bank of america merrill lynch said we believe bitcoin can become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money transfer providers as a medium of exchange between has clear potential for growth and our view and with that he provides this chart which compares it to western union as you see blue is the western union and red is big and if you notice western union income was down twenty percent in the third quarter this year when they had to reduce their rate their transfer fees well david. a maryland bank of america clearly copying my work i mean is almost quoting me verbatim he's making a reference to silver which i done already and his price target is thirteen hundred dollars for a bit coin that's my price target was recently raised to fifteen and then seven hundred dollars based on ron paul's endorsement bitcoin so merrill lynch is trying to get into the max kaiser business why don't i don't be smirched him f

first talking about it for two years but let's look at exactly what he says what the quote is from david wu regarding what the valuation of bequia why he thinks it should be worth thirteen hundred dollars and why it could be worth more in the future and this is where if you references something that you've brought up here on the kaiser report quite a while ago our fair value analysis suggests that to justify the current bitcoin valuation it will need to want to account least for at. ten percent of all global commerce b. to c. transactions business to consumers to become one of the top three players in the money transfer industry and three acquire a store of value reputation close to silver so this is where you come in max this is what you were comparing it to silver right now to ten billion dollar value ation silver is at about twenty billion now you know it's a straight rip off of everything i've said everything we've said on the show and the wall street game is to come up with a target thirteen hundred dollars in this case for merrill lynch bank of america they then will raise that target

david wu did not say it was a medium of exchange.et, i'm going to start with , socialt's fare media and twitter. they changed their blocking policy so i could mute stephanie is set up blocker and vice versa. later, dick costolo and twitter said we don't want to help blocking because we want to have those advertisers. they're forgetting the fact without blocking people are allowed to terrorize one another. that just shouldn't be the case. this becomes a bigger issue for young people. you can't block anyone. right? i don't want them seen people attack me all day long. >> tom, you need to head off to the radio studio. here on their your own this morning. we will look at the markets. the indonesian rupia is getting weaker. bank of japan was big news in the "financial times." steve mollenkopf name the ceo of qualcomm. microsoft had been supposedly eyeing him as a potential ceo. it is a defensive move, stephanie, it sounds like to keep microsoft from poaching him. in that mobile unit and that mobile part of the world. >> the fact that you

because today there was a common from a fellow named david wu, who is a strategist at banc of americathat bitcoin has their potential for growth. if he were on? >> he is either wrong or off on one that will happen. when he is doing is taking something like a western union type of model in making this essentially like a western union and seeing what it can be worked out at fair value. and they're about 21 million bitcoin at this point and this includes what he thinks it will be work. i think the bubble is about to pop. gerri: there's a bubble with everything. take a look at this list of bubbles. housing bubble, 2007, the question is, are you just not pro-because you think the prices are too high? or are you not pro-because you think there is no real value there? >> it's a little bit of both. >> they crashed hard, they leave a lot of her people along the way. but the second one is -- right now can be regulated or really track that well. and so a lot of money laundering can happen and not the government's biggest fear. if they were to allow it to get too widespread. the governments won't

david wu. >> thank you. i think it is fair to say that bitcoin is something totally new. basically give it a evaluation based on traditional metrics. this is like a three-headed animal. let's take it apart and assign a value to each of the three pieces where we think bitcoin has a future. the first piece is a means of payment on eerks commerce. let's assume that 10% of global ee commerce transactions go through bitcoin. we think that would be worth $5 billion. the second major role that bitcoin can play is as a basic means of transfer. >> so like a western union? >> yes. what i did was take an average market cap of western union, money graham and euro nex. i said what if bitcoin becomes a major player. that gives me another $5 billion. >> theoretically that is something we should see happen. it is very expensive to send money and there is a lot of time and process involved. here you can transfer money on line to a relative in another country seamlessly. >> exactly. say if you are a mexican construction worker in this country, and you want to send money home. you want to s

okay. >> david wu, first assessment of bitcoin. i'm sure there will be more to follow.u. >>> in the meantime, tech giant apple and china mobile have reportedly signed a deal to launch the iphone 5s on the world's largest network. the announcement is expected december 18th, alongside an unveiling of a 4g network. let's talk to jon fortt about the news that people have been waiting for, if it's true. >> yeah, we're still waiting. china mobile denying to cnbc that the deal is signed, apple not commenting. maybe china mobile waiting until you said until the 18th. but it's interesting. gene munster is out with a note early this morning saying he expects the china mobile deal to add around 17 million units to the iphone. in 2014. that's a bump of about 5%. it would be nearly 10% of china mobile's 3g subscriber base. they have around 176 million 3g subscribers, which is a staggering number. compare that to the size of the u.s. population. it could be a nice big bump if apple gets good penetration among that group. >> right. any worry about margins here, if -- i mean, we don't

david wu writing this up and giving it great legitimacy.f legitimacy to a digital trading mechanism? >> no, i consider this a phenomenon, not a currency or commodity. that doesn't mean there won't be lots of activity and it won't run up in value and decline in value, but it -- i forget what the name of those things were, but the beanie babies we had 20, 30 years ago. >> i have only spent bitcoin for the last week. >> well, i'll tell you something, at some point beanie babies were going up and up in value and 70 realized they were just a pile of fur and what are ashes somebody realized they were just a pile of -- somebody realized that they were just a pile of fur and whatever else they were good as long as some takes it,- some fool you will be living off that. >> when you see that chart of price, matt, to be fair, 100 - 1000? does that screams you of a traditional bubble and hysteria? >> well, let me ask matt a question. would you take your way -- would you take your bimonthly paycheck in bitcoin? >> i'm not quite there yet. there are certa

david said. we're happy to support the bayview program and the san francisco conditional >> jonathan wu (calling names). >> good afternoon and thank you. i'm peggy. thank you for that attempt. i'm an environmental science and instructor at the city college of san francisco. i'm also a second generation resident where i continue to reside with my husband and children. i've had the honor of working with the colleagues from city college and bay natives but nothing short of amazing. my snow students the monitoring and the programming at the eco center. as a representative of conditional it's one of the anticipated first hires i spornl support in for the sturdyship. should our proposal be accepted i look forward to working with the colleagues at both institutions but most important to make sure they have access and a pleas is and i'd like to take a moment to acknowledging our statements with the nelson mandela it's our violation for the stewardship we don't see two proposals but the eco center belongs to everyone. so i thank you. i see that the bay institute has the expertise and the administrative c

david chu and other agencies that have worked hard. john said something earlier about the subway and this project. there's much more and i think that ms. wu understand how we have to plan important the city. transportation and housing go together and they miss go together in the future. we've been taught for many, many years you can no longer build housing in areas where it's not connected to great transportation systems payroll so we took this opportunity when we understood when the embark did care highway was going down we were sad and i know we were there struggling for the survival of the chinese community which this freeway went down. but we take opportunities to have confidence with people about what we we need to continue doing. this is why cdc forces those conversations to have to happen. this is just the beginning. 45 units of affordable housing but 18 of those are going to be dedicated to the formerly homeless. those individuals need to be helped in the city. we're building a lot of housing and as norman referenced that might not be assessable to our community so we're creativity we're going getting that innovation going. i'd li

wu. there are times when you want a bunch of superheroes to come to the rescue. those heroes might be there already in the sewer. i don't know what this is all about. david with today's global outlook. not foru grow up -- long ago, you will probably recognize these guys. because of these four turtles and the rat, you are probably also well-versed in some famous renaissance art. the teenageng about mutant ninja turtles. next question, who will win a fight between turtles, transformers and barbie? you probably know where i'm going with this. the turtles come out on top. sorry, barbie. at least you are pretty. we are talking about tv ratings. this television revival of this cartoon went nuts. it was the third highest rated cartoon in the u.s. last month. 1.6 million viewers per episode. second, we are talking about kids. were -- there was an explosion in demand for sales and toys. jumped sixfold in the first 11 months of this year. this is where it gets fun as an investor. the stock price of playmate, a 600%see has shot up over for the summer of 2012. it easily beat its rivals, the makers of transformers. theasily outperformed bloomberg toys and games gauge