. >> that is douglas preston and hugh howey. he just won an auction for bitcoin.does he have planned for all of the virtual currency? he joins us next. ♪ >> welcome back to "best of west." venture capitalist tim draper was the highest bidder off the auction of bitcoins. draper beat out 44 other bidders for the bitcoin worth about $19 million at the time of auction and he said he will use it to grow his start up which enables companies to store bitcoins on behalf of customers. i spoke with tim draper and asked why he bid so high. >> it is an exciting technology and can transform our entire economic system. and over a long period of time. it was a long term purchase for me. i am very excited of what it can do and where governments are merging and they have bad currencies. i am excited about what it can do for the u.s. a transfer is a lot cheaper than one using credit cards. i am exciting about what it can do about the speed of money moving across all borders and around the world. it is really exciting and i think everyone should be trying it. everybody should buy a

thank you so much, author hugh howey, mark coker, and cory johnson. could snapchat really be worth as much as $10 billion? alibaba could be ready to invest some serious cash in the photo disappearing app. that is next, right here on "bloomberg west." ♪ >> i'm emily chang. this is "bloomberg west." snapchat is in talks with ali baba group for a financing round that could value the photo messaging company at $10 billion. people with knowledge of the situation tell bloomberg the talks are ongoing. the terms of the funding could change, but if it is completed snapchat would join companies like dropbox, airbnb, uber with valuations more than $10 billion. alibaba group is gearing up for a u.s. ipo and has invested in a number of u.s. companies recently, including shop runner. joining us to discuss from new york is the ceo of tbg digital, and our editor-at-large, cory johnson. simon, i will start with you. snapchat has no significant revenue that we know of. $10 billion? is that fair? >> it is when you look at valuation approaching 200 billion dollars. it sn