LIZ: BREAKING NEWS.
MOMENT BY MOMENT, FOLKS, WE ARE
HITTING NEW SESSION LOWS.
I NEED YOU TO LOOK AT THE S&P
500.
WHEN WE STARTED THE PROGRAM 28
MINUTES AGO, WE WERE DOWN ABOUT
50 POINTS AND NOW WE'RE DOWN 60.
SO WE'RE WATCHING THIS VERY
CLOSELY.
THERE'S AN ACCELERATION TO THE
DOWN SIDE AT THE MOMENT.
WHO KNOWS EXACTLY WHICH PIECE OF
THE VERY UGLY PUZZLE TODAY IS
AFFECTING BUT THERE ARE CONCERNS
ABOUT TRADE THAT'S KIND OF TAKEN
ACTUALLY A BACK SEAT.
BIG CONCERNS ABOUT THE FEDERAL
RESERVE ON WEDNESDAY.
WHAT ABOUT A GOVERNMENT SHUTDOWN
AND OF COURSE, HEALTH CARE IS
TANKING ON THE NEWS THAT A TEXAS
COURT HAS SAID THAT THE
AFFORDABLE CARE ACT IS
UNCONSTITUTIONAL.
RIGHT NOW, THE DOW IS DOWN 539
POINTS.
>>> AND TO THIS.
EXACTLY ONE YEAR AGO TODAY,
BITCOIN, THE WORLD'S MOST
VALUABLE CRYPTO CURRENCY,
REACHED A RECORD HIGH OF $19,783
PER COIN.
FAST FORWARD TO THIS AFTERNOON,
AND IT STANDS AT JUST A SEVENTH
OF THAT.
IT IS UP $325, THOUGH.
$3,535, HAVING LOST MORE THAN
$16,000 OF ITS LOFTY VALUE.
BUT WAIT.
THE WHITE HOUSE HAS JUST TAPPED
A PRO-BITCOIN ACTING CHIEF OF
STAFF.
YES, MICK MULVANEY HAS LONG
PRAISED THE DECENTRALIZED NATURE
OF BITCOIN SAYING IT'S GOOD
BECAUSE HE SAYS IT CAN'T BE
MANIPULATED BY ANY GOVERNMENT.
TELL THAT TO THE SECURITIES AND
EXCHANGE COMMISSION, WHO HAS
BEEN DISINCLINED TO APPROVE
BITCOIN FUNDS AND ETFs UNTIL THE
DIGITAL CURRENCY IS PROVEN
TOTALLY SECURE.
WE SAID TIME FOR A BULL/BEAR
DEBATE ON THIS ANNIVERSARY.
OUR BULL IS COIN LIST COFOUNDER
ANDY BROMBERG AND OUR BITCOIN
BEAR, AUTHOR OF "THE REAL
CRASH," EURO PACIFIC CAPITAL
CEO, PETER SCHIFF.
ANDY, WHY WHEN ATTEMPTS TO MAKE
CRYPTO MAINSTREAM THROUGH THE
CREATION OF FUNDS ARE SWATTED
DOWN EVERY DAY BY REGULATORS AND
THERE'S EVEN A DOJ CRIMINAL
PROBE INTO PRICE MANIPULATION,
WHY DO YOU SEE THE BRIGHT SIDE
OF BITCOIN?
>> I THINK WHAT WE HAVE TO
REMEMBER IS THIS IS A YOUNG
INDUSTRY.
BITCOIN WAS CREATED ONLY TEN
YEARS AGO.
COMPARE THAT TO TRADITIONAL
MARKETS THAT HAVE BEEN AROUND
FOR CENTURIES, THERE'S A LOT OF
WORK TO DO TO REGULATE THE
MARKETS.
THE MARKETS ARE NOT DEVELOPED,
REGULATED ENOUGH, THERE'S NOT
ENOUGH TRANSPARENCY.
THAT'S SOMETHING TOP COMPANIES
ARE WORKING ON.
WE'RE JUST NOT THERE YET.
WE ARE EXCITED BECAUSE THE
FUNDAMENTALS ARE THERE, THE
TECHNOLOGY THAT HAS BEEN
CREATED, THIS BLOCK CHAIN THAT
ENABLES A DISTRIBUTED SET OF
PEOPLE TO CREATE CON SENS
PEOPLE TO CREATE CONSEENS
PEOPLE TO CREATE CONSENSS
PEOPLE TO CREATE CONSENSUS AND
POWER IN NEW GENERATION OF
INSTRUMENTS, THAT'S STILL THERE.
LISA: YOU AREN'T CONCERNED AT IT
HAVING BEEN AT $19,000 AND IN
JUST A YEAR IT'S AT $3,000?
>> IT'S EASY TO FIND DIGS AT
TECHNOLOGIES THAT ARE NEW BUT IN
THE PAST TEN YEARS THERE HAVE
BEEN FOUR OR FIVE TIMES WHEN
BITCOIN RETRACED 80% TO 90% OF
ITS VALUE.
THAT'S THE NATURE OF A CYCLICAL
EARLY STAGE MARKET.
WE EXPECT THAT TO EVEN OUT AS
TIME CONTINUES.
FOR THE TIME BEING WE HAVE TO
EXPECT BIG BOOMS AND BUSTS IN
SUCH AN EARLY INDUSTRY.
LIZ: PETER, YOU HAVE BEEN A BEAR
AND HATER ON BITCOIN SINCE IT
WAS, I DON'T KNOW, $100.
WHY ARE YOU STILL AT THAT POINT
WHEN IT'S CERTAINLY WELL ABOVE
THAT ORIGINAL PRICE?
>> WELL, BUBBLES CAN GET VERY
LARGE.
A LOT OF PEOPLE ARE ABOUT TO
FIND OUT.
THAT'S ONE THING STOCK MARKET
INVESTORS HAVE IN COMMON WITH
BITCOIN IS THEY REFUSE TO ADMIT
THE BULL MARKET IS OVER.
LOOK, BITCOIN MAY BE YOUNG BUT
IT WILL HAVE A VERY SHORT LIFE,
BECAUSE THE PROBLEM IS THE
UNDERLYING PREMISE IS FLAWED.
BITCOIN WILL NEVER BE MONEY.
IT DOESN'T HAVE THE
CHARACTERISTICS THAT WOULD
QUALIFY IT AS MONEY.
IT'S JUST A SPECULATIVE ASSET
THAT HAS NO REAL UNDERLYING
VALUE.
IT WILL NEVER BE A STORE OF
VALUE BECAUSE IT HAS NO VALUE TO
STORE.
SURE, IT WENT UP TO $20,000.
THE FACT IT'S UP ABOUT 10%
TODAY, MAYBE SOME PEOPLE ARE
CELEBRATING THE ONE-YEAR
ANNIVERSARY OR THE HIGH BY
THINKING IT'S ALSO GOING TO BE
THE LOW.
>> WE DON'T SAY THOSE OF US IN
THE INDUSTRY, WE DON'T SAY
BITCOIN IS MONEY.
IT'S A LOT LIKE GOLD.
>> WHAT VALUE DOES IT HAVE TO
STORE?
>> BITCOIN IS MEANT TO BE A
STORE OF VALUE.
THERE ARE OTHER ASSETS IN THE
CRYPTO CURRENCY SPACE THAT CAN
BE MEANS OF EXCHANGE.
THAT'S NOT WHAT BITCOIN IS BUILT
FOR.
>> WHAT VALUE DOES BITCOIN HAVE?
WHY IS IT WORTH $20,000 A COIN
OR $2,000 A COIN OR $2 A COIN?
WHAT CAN I DO WITH A BITCOIN?
>> GOLD'S VALUE DOES NOT COME
FROM IT BEING USED IN PRACTICAL
APPLICATION.
THE VALUE COMES FROM WHERE THE
MARKET VALUES IT AND BITCOIN IS
THE EXACT SAME THING.
>> NO.
THE MARKET IS WRONG.
THAT'S WRONG.
LIZ: WHAT IF THE NEXT TEN YEARS
OF BITCOIN, WHAT WILL IT LOOK
LIKE?
WE HAVE THE LAST TEN YEARS IN
THE REAR VIEW MIRROR.
>> I DOUBT IT HAS ANOTHER TEN
YEARS.
NO ONE'S GOING TO TALK ABOUT IT
TEN YEARS FROM NOW.
I THINK OVER THE NEXT YEAR, A
LOT MORE AIR WILL COME OUT OF
THE BUBBLE BECAUSE THIS IS JUST
NONSENSE TO SAY THAT COMMODITIES
HAVE NO VALUE.
THEY HAVE A USE.
THERE ARE THINGS YOU CAN DO.
THAT'S WHY COMMODITIES HAVE
VALUE.
BECAUSE THEY DELIVER AN
UNDERLYING USE.
GOLD HAS USE.
OIL HAS USE.
BITCOIN HAS NO USE.
IT'S PURELY A SPECULATIVE ASSET
THAT PEOPLE THAT ARE HOLDING ON
ARE COMPLETELY DELUSIONAL.
THIS THING IS GOING A LOT LOWER.
LIZ: ANDY, NEXT TEN YEARS OF
BITCOIN?
>> I THINK MORE BROADLY, NEXT
TEN YEARS OF CRYPTO CURRENCY
SPACE WILL INVOLVE FINDING USE
CASES, PROFESSIONALIZING AND
CONSUMERIZING, US SEEING
CONSTITUTIONAL CAPITAL AND USERS
ENTERING INTO THE SPACE AT THE
SAME TIME CONSUMERS START TO USE
THESE.
IT'S AN EARLY PRODUCT.
THERE'S A LONG WAY TO GO BUT A
LOT OF SMART PEOPLE ARE WORKING
VERY HARD IN THIS INDUSTRY.
LIZ: LET'S COME BACK, I WANT TO
COME BACK HALFWAY THROUGH NEXT