UP A BUCK 29.
>>> NOW THIS, OVERSTOCK.COM, THE
CEO THERE SAYS, HE WANTS TO GET
OUT OF THE RETAIL BUSINESS AND
GET INTO MORE FULLY THE
BLOCKCHAIN BUSINESS.
THAT'S THE UNDERLYING TECHNOLOGY
FOR CRYPTOCURRENCIES.
BUT CRYPTOS, THEY'RE PLUNGING.
THE CEO OF OVERSTOCK, JOINS US
NOW, PATRICK BYRNE IS WITH US.
PATRICK, WELCOME TO THE SHOW.
YOU WANT TO --
>> HOW ARE YOU DOING, STUART.
STUART: I WANT TO KNOW WHY
YOU'RE GOING FULL-SCALE INTO
BLOCKCHAIN TECHNOLOGY JUST AS
THE CRYPTOS COLLAPSE.
WHY ARE YOU DOING THAT?
>> LISTEN, LIKE GOING BACK TO
THE LATE '90s, PEOPLE WORRYING
ABOUT, WELL, SOME CAT FOOD, PET
FOOD STOCK WENT UP OR DOWN OR
SOMETHING THEY MISTAKE THAT FOR
THE INTERNET.
THAT IS NOT THE INTERNET.
THAT IS JUST SOME NOISE.
THE INTERNET WAS HERE TO STAY.
SIMILARLY THE POTENTIAL OF THE
BLOCKCHAIN REVOLUTION IS, IS A
BIGGER, HAS GREATER POTENTIAL
THAN ANYTHING WE'VE SEEN IN
HISTORY, BIGGER THAN THE
INTERNET REVOLUTION.
HOW IT WILL RESTRUCTURE SOCIETY.
SO THAT IS WHAT I CARE ABOUT.
WHAT COINS ARE DOING ON ANY
GIVEN DAY IS SILLY.
STUART: WAIT A MINUTE.
YOUR INVESTORS, THEY DON'T LIKE
THIS.
YOU MENTIONED THAT YOU WERE
GETTING INTO BLOCKCHAIN
TECHNOLOGY SOMETIME AGO ON THIS
PROGRAM.
AT THAT TIME YOUR STOCK WAS
LIKE, I THINK ABOUT $78 A SHARE.
NOW YOU'RE DOWN AT 17.
YOUR INVESTORS DON'T LIKE WHAT
YOU'RE DOING.
>> NO, NO.
THAT IS NOT THE WAY TO THINK
ABOUT ANYTHING.
FIRST OF ALL I ANNOUNCED I WAS
DOING THAT FOUR YEARS AGO WHEN
THE STOCK WAS AT 6.
I STARTED THIS FOUR YEARS AGO,
THIS WHOLE TRANSITION.
I THINK THAT WE GOT A LOT
FARTHER THAN PEOPLE UNDERSTOOD.
WE NOW HAVE VERY INTERESTING
POSITIONS IN 19 BLOCKCHAIN
COMPANIES THAT A LOT OF THEM,
THEY'RE STARTING TO BE ALL KINDS
OF WORK GOING ON AMONG THEM.
I THINK NEXT YEAR IS THE YEAR
YOU WILL REALLY SEE BLOCKCHAIN
START ACTUALLY COMING OUT WITH
REAL PRODUCTS IN THE WORLD.
STUART: OKAY.
LET ME ASK YOU THIS, WHAT
PRODUCT AM I GOING TO SEE NEXT
YEAR THAT USES BLOCKCHAIN
TECHNOLOGY THAT I CAN USE?
>> YOU'LL BE ABLE TO TRADE
SECURITY TOKENS.
THERE IS A WHOLE NEW CLASS OF
SECURITIES COMING INTO EXISTENCE
CALLED SECURITY TOKENS.
AND BOB GREIFELD, CHAIRMAN OF
NASDAQ, SAID LAST NOVEMBER THAT
IN FIVE YEARS, HE SAID THAT
EVERY STOCK AND BOND YOU SEE ON
WALL STREET TODAY COULD BE
TOKENNIZED.
IN FIVE YEARS EVERYONE WILL BE
TOKENNIZED.
IN OTHER WORDS, THE ARCHITECTURE
OF WALL STREET AS WE KNOW IT
WILL BE DEPRECATED OVER FIVE
YEARS AND REPLACED WITH
SOMETHING CALLED SECURITY
TOKENS.
IF THAT IS TRUE, WE BUILT THE
NASDAQ, THE DTCC, THE NEW YORK
STOCK EXCHANGE OF THAT NEW
WORLD.
WE SPENT THE LAST FOUR YEARS AT
$100 MILLION BUILDING IT.
THAT IS THE KIND OF THING WE'VE
BEEN DOING.
STUART: WHAT IS SO SUPERIOR
ABOUT A SECURITIES TOKEN AS
OPPOSED TO ME BUYING A STOCK?
>> THREE THINGS.
0% LOWER FRICTION COSTS,
COMPLETE TRANSPARENCY FROM
REGULATORS THEY DON'T HAVE NOW,
AND IMMUNITY FROM MANIPULATION.
ALL THAT WHAT IS GOING ON
WALL STREET CANNOT GO ON IN A
BLOCKCHAIN VERSION OF
WALL STREET.
THAT WILL MAKE A A SOME PEOPLE
HAPPY PANNED A LOT OF PEOPLE
ANGRY.
STUART: I'M TOLD CRYPTO MINING
USES ENORMOUS AMOUNT OF ENERGY,
IS THAT ACCURATE?
>> IT IS DOES.
BITCOIN MINING DOES.
THAT IS ONE OF THE DRAWBACKS.
WE'RE INVOLVED IN A PROJECT
CALLED RAVEN COIN THAT HAS MUCH
DIFFERENT ENERGY PROFILE.
IT USES SOME TYPE OF MINING USE
A LOT OF ENERGY.
RAVEN COIN IS SPECIAL BECAUSE
IT, IT DOESN'T GIVE YOU ANY
ADVANTAGE TO HAVE THOSE GREAT
BIG WAREHOUSES OF FULL OF
SERVERS IN CHINA.
BUT IT DOES USE A LOT OF ENERGY.
STUART: PATRICK, YOU'RE QUITE A
REVOLUTIONARY TO DO THIS I
ADMIRE THAT.
I'M NOT QUITE SURE I UNDERSTAND
IT.
BUT COME AND TELL US AGAIN
LATER, MAYBE NEXT YEAR, TELL US
HOW IT IS GOING PLEASE, BECAUSE
WE'RE VERY INTERESTED.
>> YOU WILL SEE PRODUCTS IN Q1.
YOU WILL SEE BLOCKCHAIN PRODUCTS
IN Q1.