Digital Assets: The Boom Bust Cryptocurrency Special

this is boom-bust broadcasting around the world and covering the world of business and finance and impact upon us all I'm Daniel Brito in Washington DC welcome to our theme show on one of our favorite subjects crypto currency the hybrid offspring of tech and finance that is moving markets will have the co-founder of counterpart X Christie I here to analyze kryptos and how to get started in the market plus RT correspondent Trinity Chavez breaks down the ABCs of Bitcoin and the many crypto hacks we've seen in the past few years and later we'll be joined by NRI arsalan yang the FinTech and crypto leader for PwC and Asia to talk about stability and volatility and cryptos we've got a lot to cover today for both newcomers and virtual currency veterans so let's get right to it the crypto currency market is on the verge of one more step toward normalization and regulation this time in the United Kingdom the UK's financial conduct authority or FCA will table the question of crypto regulation early next year according to a top aide to the UK Treasury Minister economic secretary John Glenn has reportedly responded to a September call for crypto regulation from Parliament's Treasury committee mr. Glenn wrote to MPs quote the government will consult early next year to explore whether crypto assets that have comparable features to specified investments but that fall outside the current perimeter should be captured in regulation mr. Glen did signal that legislation would be required to implement the likely result of that consultation to ensure that all necessary legal authority for FCA to properly regulate the cryptocurrency market as cryptocurrency vestan crypto investors and boom Buster's no regulators have wrestled with how exactly to define cryptos along existing categories of currency securities commodities or whether to create a new category what better way to kick off a cryptocurrency special than by analyzing the top crypto Bitcoin and with a Bitcoin 101 for those of us who still aren't quite sure how it works and there are quite a few we're going to hand you over to Archy correspondent Trinity Chavez one of the biggest financial stories of the past year has been the incredible rise and pulled back a Bitcoin but although many refer to it as a new type of asset or currency it's actually been around for the last decade and we're going to break down this crypto currencies history crypto currencies like Bitcoin our currencies that allow people to pay each other without involving financial institutions they are sometimes called digital currencies or virtual currencies but we tend to call them crypto currencies and although bitcoin was the first established crypto currency there were previous attempts at creating other online currencies with Ledger's secured by encryption like be money and BIC gold but neither of the two were ever fully developed but for Bitcoin it all started in 2008 when this paper was posted to a mailing list discussion on cryptography by someone or some group who goes by the name known as Satoshi Nakamoto whose real identity is still a mystery meanwhile in 2009 Bitcoin begins this is the year the software became available to the public for the very first time and mining starts later that year the new Liberty standard published the first Bitcoin exchange rate deeming one dollar to be worth more than one thousand three hundred and nine bitcoins now with the exchange rate established it was only a matter of time before someone would try to make an actual purchase and that happened in 2010 when someone swapped ten thousand of their bitcoins for two pizzas but a few months later Bitcoin broke the penny threshold and at today's prices 10,000 bitcoins would be worth more than 65 million dollars and in 2011 and 2012 the Silk Road was created by Ross Albright who was known under the pseudonym as Dread Pirate Roberts the website was designed to use for Tor and Bitcoin and allowed people to buy and sell whatever they wanted as long as they weren't hurting anyone else the widespread adoption of Bitcoin and the invisibility of the dark web allowed Silk Road to quickly become the world's drug market place and Dread Pirate Roberts to become one of the world's biggest drug kingpins in 2013 he was arrested he is currently serving a double life sentence plus 40 years without the possibility of parole meanwhile during that same time after steadily making gains but Quinn was worth $1 for the first time in 2011 by June that year Bitcoin was worth over $30 but then it took a hit and drop back down to $10 and that wouldn't be the last time Bitcoin prices took a hit over the next few years Bitcoin increases in popularity and after hitting the thousand dollar price value for the first time in 2013 it quickly begins to decline and it would be around two years before the currency reaches $1,000 again Bitcoin then stalled for a while and in January 2014 and once again fell below $1,000 and struggled to rise for a few years during this time the world's biggest Bitcoin exchange Mount Cox and Japan announced that around 850,000 bitcoins valued at nearly 500 million dollars belonging to customers and the company had been stolen the company suspended trading and shut down however Bitcoin would have its comeback in 2017 this was the biggest and busiest year for the currency after spending 2016 trying to make a comeback Bitcoin finally reached and passed its 1000 dollar mark and by June it was worth over three thousand dollars October six thousand dollars November nearly ten thousand dollars and by the end of December Bitcoin was worth nearly $20,000 but 2018 has been a rough year for Bitcoin the price has steadily dropped for much of the year and has been trading around the seven thousand dollar mark which is about a sixty five percent drop in value reporting in New York Trinity Chavez RT and now after that 101 breakdown you may be wondering how to get started in cryptocurrency investing well now we will break down how to get a jump start in the market with Christy I the co-founder of counterpart X so it might be hard for folks to believe but there are more than 1600 crypto currencies out there some of them with crazy nutty names a lot of them with crazy nutty names but the question really comes to how do people actually invest how do they get into crypto currencies you've got a few ways explain it for us alright so before investors actually try to invest in one of the 1600 altcoins they first need establish their base currencies now base currencies are currencies like such as Bitcoin etherium litecoin and Bitcoin cash all the names we've all heard exactly those base coins can be purchased with fiat currency regular money like US Dollars altcoins the 1600s cannot so they first need a buy one of these base coins from a centralized exchange centralized exchanges are some name very familiar names such as coinbase Kraken Fit Phenix I think we've got a chart here these are these are exchanges that are located all over the world is a little complicated here but primarily where they base Kristi yes so as you can see the in the yellow majority of these exchanges are actually based in Japan Japan and US Dollars are the most frequently traded currencies right now in crypto currencies and as you can see coin check bit flyer bit stamp and coin base those are the dominant players within the exchange space you see like you say that the large amount of different currencies that are going into cryptos here we have Japan so that's taking up the lion's share this is the US and the light blue here and then that's Europe you know so even if you take and then there's try and China here so even if you take these together we're talking a lot of interest in Asia then the US and then of course in the EU so once you get one of these regular base coins like Bitcoin or aetherium then you can buy one of these others 1600 all coins but that's going through one of these exchanges but there's a hook to exchanges right you don't actually own the bitcoins or whatever it is explained that you don't technically own it it's very similar to keeping your money at a bank yes you own an account with the bank but the bank holds your money so if anything were to happen to the bank such as the bank got robbed or there's a run on the bank your money is at stake and same with these cryptocurrencies these exchanges hold your cryptocurrencies so they own and a hold your wallet you don't actually own it so if it were to say get hacked then your cryptocurrencies will all get lost so that's why security is a very major factor when deciding which exchange to participant to own yourself we've got to go back to the other chart we've got other ways you can do it and that involves a digital digital wallet right I will get the other chart back here that the second way to do it and that's where you can actually have it and you own it yourself right explain that exactly so a digital wallet whether it be a software or Hardware wallet you own your own wallet which means you have to keep track of a passcode and you actually hold and own your Bitcoin and eat and litecoin coins so with that you have to first fill it with coins once you create a digital wallet there are many ways to do that you can actually withdraw money from the exchange and put it into your digital wallet directly or other ways you can do it is a peer-to-peer transfer you find someone who has a Bitcoin you pay them money such as yourself and you will send me bitcoins into my digital wallet another way is via a Bitcoin ATM this is very popular and there's over 2,000 ATMs in the US over 3,000 worldwide and it's very easy to find a Bitcoin ATM as the maps are very readily available online so you can go to a site and get a digital wallet so if you just Yahoo or Google digital wallets ether wallet is the most common the wallet is a place people go and that'll take you through the steps and then you can give me your bank account information so be careful guys and you can actually then get crypto so that's the way you actually get it and then the last area explained ico as we talked about those all the time on the program explain additional coin offerings how you can get crypto out of those so initial coins offerings are very interesting if you wanted to invest in one of these it's very similar to an IPO IPO coin I our stocks that aren't listed in exchange yet similarly these coins are not listed on any exchange yet so if you are interested in a project and I Co for an investment purpose then you would have to submit your face currencies that you previously bought in your crypto exchanges or your peer-to-peer transfers and send it to these ICO offerings for an investment and one thing I always tell people for my formal regulatory hat on here be careful what are the main things people need to be careful of and watch out for Kristy many things the ICO coin offerings as we know there are many icos there on the market and people have to do their research and be careful that it's a real company and not a fraudulent company people really need to protect their passwords and passcodes because that's the only barrier stopping them from potentially being hacked and also for peer-to-peer transfers you really need to be aware of your counterparty and have trust in whoever has that Bitcoin really is going to send it to you because there's no escrow service there's no repercussions in case you send them six thousand dollars and they don't send you a Bitcoin so until that problem gets solved people really need to be careful about who they trust and who they decide to engage in business with and just the last thing for our viewers we're not telling you to get into Bitcoin always be careful of where you put your hard-earned money but if you want to do it this is how Christia has been grated explain it Thank You Christy thank you time for a quick break but hang here because when we return on our er slot arsalan Yan joins us to talk more about this the future and stability of cryptocurrencies and as we go to break here are the numbers at the closing bell I'm Mike Papantonio host of America's lawyer when white-collar criminals pile sky-high profits and sneer at the pain of those they rip off and ruin so that's where I come in question more it's called the feeling of freedom everyone in the world should experience freedom and you get it on the open road world according to Jessie welcome to my world come along for the ride do you know what you've got in your hand you might think it's a phone but in the news we see it as TV with Pluto TV the free and unlimited TV app you can get TV everywhere for free and since TV is everywhere so is RT streaming out all your favorite devices outdoors are inside any time of day or night catch all of our award-winning shows news and cutting-edge analysis everywhere you look and wherever you go question more arty America brings you stories of the worldwide significance news of corporate media refuses to show you from social movements to civil wars to tech breakthroughs to epidemics because our journalists and audience alike dare to question more dear viewer thank you for finally changing of the channel I understand you're tired of networks that blurred news with views you're tired of commentary presented as not to say no matter what what you think you know me I'm famous for my views and you'll get them and the news hand me yours truly Scottie Nell Hughes troubled social media giant Facebook is looking into creating a so-called stable coin in partnership with messaging service whatsapp according to a report from Bloomberg the report cites unnamed sources who say the virtual currency will roll out in India and will first be used in money transfers and remittances within whatsapp which reportedly has 200 million Indian users a Facebook spoke the spokesperson would only confirm to Bloomberg that the company is quote exploring ways to leverage the power of blockchain technology effectively restating a may announcement that Facebook formed a blockchain applications team headed by former coinbase board member David Marcus the project will still take some time to develop and the report noted a number of failed attempts at stable coin launches in 2018 and controversy around tether one of the more prominent survivors stable coins are an attempt to reduce the volatility which has plagued more conventional Kryptos by linking the currency's value to a commodity or currency reportedly in this case the US dollar and an unfortunate reality of cryptocurrency like any new tech field is the ever-present threat of hacks crypto exchanges are often at risk of cyber hacks that could rob investors on their assets to analyze the history of crypto hacks artis Trinity Chavez is back to break it down there have been many hacks in the crypto world over the past few years where in many cases expert hackers took advantage of the weaknesses in the exchanges security structure leading to billions and lost funds in fact nearly a billion crypto was stolen this year alone so we're taking a trip down memory lane breaking down some of the biggest crypto hacks in history and the metal for possibly the largest cryptocurrency hack in his goes to Japanese crypto currency exchange coin check were approximately 530 million worth of nem coins was stolen back in January according to Fortune the currency was stolen from a hot wallet basically a wallet connected to the internet which allowed hackers to dream them coins into a separate account the exchange admitted that it's own sloppy security practices were to blame the incident led to its acquisition by Mon X Inc a Japanese financial group in April 2018 it took ten months for the dust to settle but then in November the exchange announced that it would resume trading services and then how could we forget about mount yes the debacle that happened in 2014 arguably the highest profile hack of all time but what's important about the mount Dawgs hack was that it wasn't just a single instance that happened in just a few hours or even days according to documents released in 2014 hackers had been skimming Bitcoin from the company for years mount GOx launched its Bitcoin exchange in 2010 and in just four years the exchange grew to process more than 70% of the world's Bitcoin trades but then in 2014 it went offline after hackers stole an estimated 850,000 bitcoins the company blamed hackers and a security flaw for the loss but the company did however find 200,000 of those bitcoins a few weeks later then there was what some would call the biggest attack on aetherium to date in 2016 funds were noticed to be leaving the decentralized autonomous organization and around 3.6 million ether that was worth around 70 million dollars was stolen by a hacker in just hours the Dow is still considered to be the biggest step of aetherium of all time meanwhile in February this year the Italian crypto currency exchange bik Rail announced it had been hacked losing around 195 million worth of nano the currency formerly known as rail blocks today Nano is considered to be one of the most disappointing crypto currencies of all time since it had decreased in value so much as of December 14 the stock price stood at only around 77 cents last year crypto exchange is recorded around 266 million dollars in losses from security breaches and heists and the first half of this year around 731 million dollars was reported stolen from crypto exchanges while there isn't just one clear answer on to prevent crypto hacks altogether investors in the crypto space are raising concerns regarding the standard of security measures that should be implemented by crypto trading platforms reporting in New York Trinity Chavez Artie and as markets continue to dramatically rise and fall could cryptocurrency be the proverbial island of stability in the world of finance for Mora Bart Chilton sat down with on Rio slum young PwC is FinTech encrypt a leader in Asia to analyze the stability and future of Kryptos on ryu you speak with a lot of the same folks that i speak with and and I've heard this analogy between crypto currencies which clearly had a bubblicious year last year with Bitcoin rising at 20k and the dot-com boom of the 90s do you see a comparison there absolutely I think there's a lot of similarities you know when you look at the dot-com boom that took place obviously a lot of companies went bust but then you had some of the large technology players and the big success stories that came out and frankly really transformed the way we live today and I really expect the same to take place in the crypto space for example when it comes to the I SEOs today you know I think it's very normal that the majority of these IPOs may fail but however there will be some winners out of this group and these companies may change the way the world in ways that we can't even anticipate today you know on re there are a lot of icy OS and I speak with these folks all the time not not just on the air on boom-bust here but some of them that we're thinking about trying to rush things out last year and do an ICO are actually pretty pleased they didn't they think that maybe you know some regulators would have their eye on them if they had raised all this money without potentially doing all their dood diligence that said some of the money may have dried up this year what are your thoughts about whether or not last year was the year to go ICO or it's better to have waited now obviously it was you know it's very interesting Bart if you look at the data obviously last year was a record year for ICO was actually this year as well when it comes to utility tokenize Hills in total the amounts raised are higher than last year that being said we're singly the market trend towards something we call security tokens there s Tio's security token offerings which fall within the regulatory the existing regulatory framework in many jurisdictions around yeah well I want to talk a little bit about that about regulation you know you and I are sort of in the same place on on cryptocurrency regulations that we you know like we've talked about it much more before on read that we think some appropriate rules are needed but for the record and I know there are people out there probably screaming at their televisions and computers now so I'm crypto enthusiast disagree with that they hate it they hate folks like us who even suggest government needs to be involved and I understand their view I just don't agree with it but you are the chair of the FinTech Association in Hong Kong and I know you've been working and involved in helping the good folks over there that I spoke with last year at the Hong Kong Monetary Authority to come up with some basic rules and they actually release some recently tell us about those absolutely a part I mean not a week goes by without any new regulatory changes I mean only if you look at the last week you know the PBOC in China announced that they maintained their bad and I cos you had Mauritius they came out with consultation on custody rules for crypto you know and you had Thailand for example they announced that they're going to come up with their new rules for their approve their first ICO portal but when it comes to Hong Kong that's probably where we had some of the most exciting developments for example with the the Hong Kong regulator issued a new framework not only for crypto exchanges but also crypto funds and just to give you an example under the new framework any license fund manager in Hong Kong and there's more than 2000 of them can hold up to 10% of its portfolio in crypto assets without any additional licensing requirement and if it wishes to go over to 10% or actually make a dedicated crypto fund it may do so but obviously there are certain restrictions with regard the type of investors they can have and/or capital requirement or the type of policies on the risk and valuation they must they need to have but it's obviously a very interesting development when it comes to crypto funds and this could continue to position Hong Kong as a leading asset management Center not only for traditional asset management but definitely for crypto asset management as well but on rhe how do you how do you sort of you know split the baby as it were between too much and not enough regulation you know I probably I know that there are people that you and I both know in Gibraltar example you know have a fairly low bar and then the u.s. of course a pretty high bar you know how do you try to get that middle ground between not enough and too much regulation it's an excellent question Vardhan it's actually very difficult for regulators to find the right level of regulation for the crypto space not only because it's complicated but also the industry moves so fast but frankly I don't think the regulator's get the credit they deserve I can tell it from my own personal experience the average regulator that I speak with is way more knowledgeable on crypto than the average senior banker for example and in many jurisdictions around the world we're seeing regulators take the initiative to come up with appropriate policies I mean in Europe you mentioned Gibraltar there's Malta France recently is coming up with very interesting regulations in Asia we have countries like Thailand like Hong Kong and I expect many other jurisdictions to follow suit over the coming months and this is exactly what the crypto ecosystem wants they want a probe more clarity when it comes to the crypto ecosystem and this is actually generally positive for the industry it reminds me when you say that they want more clarity right after the financial crash when I was at you know the Commission a financial regulator after a while what the market participants said is just give us the darn rules I mean just tell us what the rules are we don't like them probably whatever they are but we just want to know what they are so we can abide by them under EAJA ask you one thing this may be an unfair question but you know we talked about crypto prices in the past where do you see them going perhaps in the next six months or maybe even through you know the first half of next year you know I always say whoever could believe is they can predict the price of Bitcoin must have a great sense of humor frankly the way I look at a crypto crisis I think it's more of a distraction than anything else with a number that I really look at actually is a number of institutional players entering the space for example in recent weeks we had players like Goldman Sachs and Nomura on the banking side make their announcements of their plans on a crypto side even and the asset management side you had players like fidelity announced what they how they want to service institutional investors and I and on the Investor side you're also some of the endowments in the u.s. announcing their crypto investments and this is I think these are some of the developments I think are more important than frankly the price of crypto assets and on the long run will add more value to the ecosystem as we know it the broader crypto ecosystem Monreal a knee and the PWC FinTech and crypto leader for asia onry thank you so much for your time that's it for this time thanks for joining us as we broke down the crypto currency market as always you can catch us catch boom-bust on DirecTV Channel 3 21 Dish Network channel 280 or streaming 24/7 on Pluto TV the free TV app or Channel 132 or hit us up on you tube dot dot slash slash boom-bust RT we'll see you next time

14 thoughts on “Digital Assets: The Boom Bust Cryptocurrency Special”

  1. Hey Trinity! Nice looks and with a clear and firm voice! Please come back! But your Bitcoin 101 should include WHY the fluctuations of the market and the manipulations. I'm sure you know that the "hack of Mt Gox" was a bogus story and it was a fraud! It was done to MANIPULATE THE MARKET! Do some research and come back and report on the real truth instead of the soft version for newcomers!

  2. no REGULATION, crypto wants to be free. if regualtion comes, people just change to MONERO! good luck with regulating monero

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