WEBVTT - Old and New Wall Street Will Converge This Week: Basak 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.560 with essential market moving news. Find the Bloomberg Markets podcast 0:00:15.560 --> 0:00:18.479 called Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:22.520 at Bloomberg dot com slash podcast. Let's bring in Wall 0:00:22.560 --> 0:00:26.520 Street reporter Shanale bastok Now, who has taken a five 0:00:26.600 --> 0:00:32.000 day mini sabbatical to read Jamie Diamonds annual letter. Hanally, 0:00:32.680 --> 0:00:35.280 I'm just wondering, after you got through the sixties six 0:00:35.320 --> 0:00:38.159 page home, did it give us any hints as to 0:00:38.240 --> 0:00:41.639 what to expect from the earnings report coming on Wednesday. 0:00:41.800 --> 0:00:43.559 Listen the fact that he thinks that things are going 0:00:43.600 --> 0:00:47.720 to be good, Til says a lot, right, because you 0:00:47.800 --> 0:00:50.640 have volatility now down a little bit, which you know, 0:00:50.760 --> 0:00:53.600 on the face of it is fine, it's nice, it's boring. 0:00:54.080 --> 0:00:58.560 But banks make money when things get volatile. Banks don't 0:00:58.600 --> 0:01:01.920 make money when things get too rough for people to 0:01:01.960 --> 0:01:06.440 really engage in markets, right, Sonali, what's what our expectations 0:01:06.440 --> 0:01:09.360 here as would come in for these banks? Here this 0:01:09.480 --> 0:01:11.440 earnings because We're gonna have a lot of the big 0:01:11.440 --> 0:01:13.839 ones on Wednesday. Yeah, I've got to say I've moved 0:01:13.880 --> 0:01:17.080 on from Jamie Diamond, Daniel Letter all the way to 0:01:17.160 --> 0:01:21.959 the Satoshi Nakamoto white paper again because on Wednesday we 0:01:22.080 --> 0:01:26.480 have both JP Morgan reporting and coin bases direct listing. 0:01:26.880 --> 0:01:29.640 So you have Old Wall Street New Wall Street. You 0:01:29.640 --> 0:01:31.600 have a confluence of events that I think are very 0:01:31.640 --> 0:01:35.280 exciting actually, and coin base is going to be using 0:01:35.720 --> 0:01:38.800 the direct listing model, which you know, we've wondered for 0:01:38.840 --> 0:01:41.559 a long time how much that type of a model 0:01:41.680 --> 0:01:44.000 is going to eat into the traditional I p O 0:01:44.080 --> 0:01:46.680 s that make the banks owe so much money. As 0:01:46.680 --> 0:01:48.720 we know, the banks make less money and do we 0:01:48.760 --> 0:01:50.919 know how much less they do make on a direct 0:01:50.920 --> 0:01:54.000 listing versus a traditional IPO. Well, here's what's interesting. They 0:01:54.160 --> 0:01:58.080 don't make less money per bank, they're just a lot 0:01:58.200 --> 0:02:00.920 less banks working on them. So where you can have 0:02:00.960 --> 0:02:04.200 a dozen or so underwriters on a direct listing, there's 0:02:04.240 --> 0:02:07.240 really only a few that work on sorry, and on 0:02:07.320 --> 0:02:08.880 I p O there's only a few that work on 0:02:08.880 --> 0:02:12.800 a direct listing. So Goldman and Morgan Stanley are they've 0:02:12.840 --> 0:02:14.720 really gotten ahead of this. They've been able to make 0:02:14.720 --> 0:02:18.119 a business for this of themselves. Cited Al Securities, which 0:02:18.120 --> 0:02:21.120 is usually the market maker for these direct listings, they've 0:02:21.120 --> 0:02:24.120 made a big business for themselves. But on NASDAC, you 0:02:24.160 --> 0:02:27.560 don't need a market maker like sited Al Securities. NASDAC 0:02:27.720 --> 0:02:30.680 kind of does the process for you. UM. And so 0:02:30.760 --> 0:02:33.680 it's a big day for the exchange, and it's a 0:02:33.720 --> 0:02:36.640 big day for UM the you know, I like how 0:02:36.639 --> 0:02:39.840 Bloomberg Intelligence puts it. You can expect coin baseed to 0:02:40.040 --> 0:02:44.839 eventually become a bank for crypto. It's also a big 0:02:44.919 --> 0:02:48.519 day for UM, the bitcoin community or the crypto community, 0:02:48.520 --> 0:02:52.760 because this is a much more democratic way of giving 0:02:52.880 --> 0:02:55.280 investors access to your shares. Right, if you do an 0:02:55.280 --> 0:02:58.919 I P O, you need to be a buyer in that. 0:02:59.120 --> 0:03:02.239 As a retail investor UM, you need to get syndicate. 0:03:02.280 --> 0:03:05.360 That means you have to have developed a long relationship 0:03:05.400 --> 0:03:07.800 with your broker. You have to be a big play. 0:03:08.480 --> 0:03:12.600 You know. It almost seems unfair for you know, a 0:03:12.639 --> 0:03:15.680 mom and pop investor because there's no hope in heck 0:03:15.760 --> 0:03:17.840 that they can ever get any syndicate. They have to 0:03:17.880 --> 0:03:21.160 buy it after it starts trading, and typically after a pop. Right, Yeah, 0:03:21.200 --> 0:03:23.720 that's really the hope here that the direct listings can 0:03:23.800 --> 0:03:28.240 make this much more democratic. Uh, let's see how it 0:03:28.280 --> 0:03:30.720 works out at the end of the day, right, Let's 0:03:30.720 --> 0:03:32.920 see how many people actually start to buy into coin 0:03:32.960 --> 0:03:36.120 base and then you know, Matt it also it's become 0:03:36.920 --> 0:03:40.040 more than really a hundred billion dollar company in private markets. 0:03:40.680 --> 0:03:46.200 Do they keep that evaluation as they become a retail play. 0:03:46.440 --> 0:03:49.520 You can make the argument both ways, right, if bitcoin 0:03:49.560 --> 0:03:52.920 continues at its current pace, if they add more products, 0:03:53.240 --> 0:03:55.320 if you get more retail interests, and you see coin 0:03:55.320 --> 0:03:58.400 based going much higher, and it is good. But on 0:03:58.640 --> 0:04:01.520 other areas you can say maybe some of these companies 0:04:01.520 --> 0:04:04.520 have waited very late, um, and you know, do they 0:04:04.520 --> 0:04:06.880 face potential down rounds when they get into public marks. 0:04:06.920 --> 0:04:09.280 Will also be interesting to see if the price in 0:04:09.320 --> 0:04:13.040 bitcoin fades a little into this, because that's a hundred 0:04:13.080 --> 0:04:16.400 billion dollars that's essentially going to come out of crypto 0:04:16.480 --> 0:04:19.320 market cap, isn't it. Yeah, it's it's pretty incredible here. 0:04:19.440 --> 0:04:22.960 The coin based play is really looking beyond bitcoin, right 0:04:23.240 --> 0:04:28.159 and looking at them getting into other assets like areas 0:04:28.240 --> 0:04:33.920 like custody. Right, making bitcoin more easily held and tradeable 0:04:34.040 --> 0:04:39.440 for large institutional firms, because firms like JP Morgan right 0:04:40.000 --> 0:04:42.800 have been so slow to get into this kind of 0:04:42.920 --> 0:04:45.840 new new era of finance. Yeah, that's kind of where 0:04:45.839 --> 0:04:48.640 I went to go. What are the the big banks 0:04:48.800 --> 0:04:52.520 saying about crypto because it feels like the late to 0:04:52.560 --> 0:04:55.120 the game. It feels like they don't or they have 0:04:55.279 --> 0:04:59.400 not made a big commitment. How are how are investors 0:04:59.400 --> 0:05:01.760 thinking about this? Well, one thing that's pretty incredible, as 0:05:01.800 --> 0:05:04.520 we've in recent we've got news that Goldman and Morgan 0:05:04.600 --> 0:05:07.719 Stanley are taking steps to make it more available for 0:05:07.800 --> 0:05:12.760 their private wealth clients. There's a couple ramifications for that. One. 0:05:13.000 --> 0:05:16.280 Crypto was supposed to be this great equalizer, Yet at 0:05:16.320 --> 0:05:20.440 the banks it's being made available to the wealthiest clients first, 0:05:20.839 --> 0:05:24.440 So that is kind of against um the whole heart 0:05:24.560 --> 0:05:27.320 of what crypto is supposed to stand for. The other 0:05:27.400 --> 0:05:30.120 thing about it is again it's years later, right, it's 0:05:30.240 --> 0:05:33.760 a crypto, it's bitcoin above fifty dollars is when they're 0:05:33.760 --> 0:05:36.960 starting to sell it. Does that big give a big 0:05:37.000 --> 0:05:40.559 boost to the price or are they getting in late? 0:05:40.920 --> 0:05:44.279 Only time will tell that story. You know, the folks 0:05:44.279 --> 0:05:47.200 that have gotten in much earlier through other means outside 0:05:47.200 --> 0:05:50.760 of the banks are probably much happier today. Um, but 0:05:50.839 --> 0:05:53.919 you do see the banks trying to embrace it. Just 0:05:53.960 --> 0:05:56.359 got twenty two here. But you speak to the wealthiest 0:05:56.440 --> 0:06:00.839 investors on Wall Street, are you noticing an uptick in 0:06:00.839 --> 0:06:03.640 the number who are interested in bitcoin? Oh? Yeah, even 0:06:03.680 --> 0:06:06.640 traditional hedge fund managers. You know, watching Dan Loebe tweet 0:06:06.640 --> 0:06:08.800 about it over the weekend is is you know a 0:06:08.839 --> 0:06:12.840 fun change to watch. Yeah, that's interesting and I think 0:06:12.839 --> 0:06:16.839 the we are seeing that institutional uptake guys, and again 0:06:16.880 --> 0:06:20.200 even on the corporate side, with Tesla obviously putting it 0:06:20.240 --> 0:06:22.680 on its balance sheet. Shnei Bassk text so much for 0:06:22.760 --> 0:06:25.240 joining us, giving that preview of earnings and preview of 0:06:25.279 --> 0:06:29.120 coin base on Wednesday, Shanellie Basket, Wall Street reporter for 0:06:29.279 --> 0:06:31.839 a Bloomberg News where was appreciate getting the update on 0:06:32.000 --> 0:06:37.440 all things Wall Street. Now let's get straight to Duncan Aldred. 0:06:37.480 --> 0:06:40.279 He joins us from General Motors, where he's a vice 0:06:40.320 --> 0:06:44.960 president Global Buick and UH and gmc duncan. Great to 0:06:45.000 --> 0:06:48.520 have you on the program. I gotta say, ever since 0:06:48.680 --> 0:06:52.520 I was a kid, Arno Schwarzenegger started driving his mill 0:06:52.600 --> 0:06:56.800 speck h one hummer around l A I have wanted 0:06:56.800 --> 0:07:00.559 one and I still want one, preferably with a big 0:07:00.600 --> 0:07:04.800 six point seven Leader turbo diesel. But you're bringing back 0:07:04.880 --> 0:07:08.800 the Hummer in a much more eco friendly way. What 0:07:08.920 --> 0:07:14.000 kind of um demand are you seeing? Yeah, good morning, 0:07:14.080 --> 0:07:16.360 Great to be with you. Well, we're seeing it. Huge dayman. 0:07:16.440 --> 0:07:20.800 We revealed the pickup truck version of the GMC Hummer 0:07:20.840 --> 0:07:25.000 EV in October, and we've just revealed the suv version 0:07:25.040 --> 0:07:27.360 of it. About a week or so ago. We started 0:07:27.400 --> 0:07:32.160 taking reservations. It's first to say that the the reservation 0:07:32.280 --> 0:07:36.160 count is huge. We did a limited edition first edition 0:07:36.200 --> 0:07:38.280 which sold out in a matter of minutes, both for 0:07:38.360 --> 0:07:41.640 the truck originally and then more recently for the suv. 0:07:42.040 --> 0:07:44.520 And this is very different to that that vehicle that 0:07:44.560 --> 0:07:46.440 you just mentioned there as you say, this is a 0:07:46.520 --> 0:07:51.240 true zero emission all electric vehicle. But believe me, the 0:07:51.320 --> 0:07:55.200 performance and capability that this generates really does put that 0:07:55.240 --> 0:07:59.560 original Hummer into the shade. Zero to sixty in three seconds, 0:07:59.600 --> 0:08:01.640 to the truck up a little bit longer for the suv, 0:08:02.640 --> 0:08:07.200 the ability to go in the most difficult off road terrains. 0:08:07.240 --> 0:08:10.200 This is a super truck. And we coined the phrase 0:08:10.240 --> 0:08:12.760 on this because this really is the world's first super truck, 0:08:12.800 --> 0:08:16.680 whether it be in pickup truck or suv. Guys, all right, 0:08:16.720 --> 0:08:21.440 what are these super trucks gonna set me back? So 0:08:21.560 --> 0:08:24.680 they started eight dollars um and they go all the 0:08:24.720 --> 0:08:27.920 way up to a hundred thousand dollars. But before that 0:08:27.960 --> 0:08:31.840 you get in an amazing amount of capability. I mentioned 0:08:31.840 --> 0:08:36.839 there the zero to sixty type figures, but you've also 0:08:36.920 --> 0:08:39.960 got four wheel steering. So these are big vehicles, but 0:08:40.000 --> 0:08:42.640 they've got a turning circle thanks to all four wheels 0:08:42.679 --> 0:08:45.480 turning that is the same as a small car like 0:08:45.520 --> 0:08:50.280 a Chevrolet Sonic for example. That four wheel steer function 0:08:50.360 --> 0:08:52.839 also allows you to go into what we call crab walk, 0:08:53.240 --> 0:08:56.199 which means the vehicle can drive in a diagonal fashion, 0:08:56.200 --> 0:08:58.160 which you might think, why do I need that, But 0:08:58.480 --> 0:09:01.800 certainly when you get into extra him off road environments 0:09:01.800 --> 0:09:06.040 to help navigate around, it's an amazing feature. But to 0:09:06.080 --> 0:09:07.840 be honest, it just makes you smile when you do 0:09:07.880 --> 0:09:10.800 it because you see the horrid the horizon going in 0:09:10.840 --> 0:09:14.280 the wrong direction when you're driving, So that's an amazing feature. 0:09:15.600 --> 0:09:17.920 We have what's called an infinity roof, so the six 0:09:17.960 --> 0:09:20.480 panels which all come off the store in the front 0:09:20.520 --> 0:09:22.960 of the vehicle where an engine would be in a 0:09:23.000 --> 0:09:26.280 traditional vehicle. You can store the infinity panel roof and 0:09:26.400 --> 0:09:29.720 the rear drop glass actually falls down, so you basically 0:09:29.760 --> 0:09:33.320 make this vehicle are convertible. We think it's probably the 0:09:33.320 --> 0:09:37.280 first all electric convertible in the world, and of course 0:09:37.440 --> 0:09:41.000 you're getting that amazing open air experience with a near 0:09:41.120 --> 0:09:46.559 silence from the propulsion system because it's electric. Um. It's 0:09:46.600 --> 0:09:49.720 also got super Cruise, the latest generation of super cruise, 0:09:49.760 --> 0:09:51.440 and this is what a lot of people refer to 0:09:51.480 --> 0:09:54.720 as autonomous driving. We call it a driver as this feature, 0:09:54.760 --> 0:09:56.880 but it allows you to drive along the highway, take 0:09:56.920 --> 0:09:59.760 your hands off the wheel completely, and it will even 0:09:59.760 --> 0:10:03.240 do overtaking maneuvers as well. So this is a vehicle 0:10:03.360 --> 0:10:07.400 that's truly revolutionary, truly a super truck. And whilst the 0:10:08.160 --> 0:10:11.200 upper price bounds, we think it's incredible value of money. 0:10:11.400 --> 0:10:14.480 It will be amazing. I mean, I'm looking forward to 0:10:14.520 --> 0:10:16.679 the SUV version which comes out. I think what late 0:10:17.440 --> 0:10:21.600 three and I think it's gorgeous. I gotta ask, though, 0:10:21.679 --> 0:10:26.040 Duncan Um, what's your answer to the current uh, the 0:10:26.040 --> 0:10:29.760 current crop of gas powered super trucks you've got the 0:10:29.840 --> 0:10:32.480 doddre M t r X, so I think blew everybody away, 0:10:32.559 --> 0:10:34.840 and Ford plans to answer could they kind of flubbed 0:10:34.840 --> 0:10:36.360 it And now they're gonna answer next year with the 0:10:36.440 --> 0:10:39.600 Raptor are But these are you know, more than six 0:10:39.720 --> 0:10:45.319 leaders v a supercharged or turbo charged with seven hundred horsepower. 0:10:45.360 --> 0:10:49.800 Does GM have an answer to that? Yeah, we do, 0:10:49.880 --> 0:10:52.880 And again you know we were still we're still selling 0:10:52.920 --> 0:10:56.000 traditional based vehicles as well, and I love them. But 0:10:56.160 --> 0:10:58.880 if his performance that you're looking for, then quite honestly 0:10:59.280 --> 0:11:02.480 nothing and come close to um to the hummary V 0:11:02.559 --> 0:11:05.800 whether it be in truck, pickup truck or SUV. Guys, 0:11:05.800 --> 0:11:09.640 we're talking about eleven and a half thousand pounds of talk. 0:11:09.720 --> 0:11:12.240 We're talking about a thousand horsepower on the truck and 0:11:12.320 --> 0:11:15.640 about eight thirty on the SUV. And as I say there, 0:11:15.679 --> 0:11:20.679 you're talking about instant acceleration zero to sixty three seconds 0:11:20.679 --> 0:11:22.280 on the truck and about three and a half on 0:11:22.320 --> 0:11:26.560 the SUV. So this is this gives truly kind of 0:11:26.640 --> 0:11:30.280 unprecedented levels of performance. And he doesn't just do it 0:11:30.320 --> 0:11:33.000 in a in a way that he's a pure brute force. 0:11:33.080 --> 0:11:36.560 I mean, for example, when you choose to go for 0:11:36.600 --> 0:11:39.760 this great zero to sixty time. Obviously, in the safe 0:11:39.760 --> 0:11:43.640 conditions you engage what's called what's the freedom mode, and 0:11:43.640 --> 0:11:46.079 what that does. It lowers the vehicle to its lowest 0:11:46.160 --> 0:11:49.960 level because the suspension goes up and down, the seat 0:11:50.000 --> 0:11:53.440 starts vibrating. You get almost like an amusement park theater 0:11:53.840 --> 0:11:56.920 within the vehicles. All the screens begin to display things 0:11:57.040 --> 0:12:00.160 and you count down them. Boom, you you express the 0:12:00.160 --> 0:12:09.719 the gas story, you press the accelerate, the pedals pedal, Yeah, 0:12:09.760 --> 0:12:12.720 no gas pedal. Now all right, that was good car talk, guys. 0:12:12.760 --> 0:12:14.640 I'm glad we have you. Guys got the chat your 0:12:14.640 --> 0:12:18.480 little auto stuff. Duncan all Dread, vice president Global Buick 0:12:18.559 --> 0:12:23.120 and GMC talking about electric vehicles coming to the truck market. 0:12:23.160 --> 0:12:25.600 And I know one Matt Miller is a psyched, so 0:12:25.679 --> 0:12:30.680 that's good for him. This week, we're going to see 0:12:30.720 --> 0:12:32.760 a big, big I p O and it's in the 0:12:32.880 --> 0:12:36.160 crypto space coin based coming public this week via a 0:12:36.200 --> 0:12:39.840 direct listing at a staggering valuation, staggering to me at 0:12:39.880 --> 0:12:43.920 least of proximately one hundred billion dollars. Let's get the 0:12:44.000 --> 0:12:46.120 latest on this. We can do that with John Woo. 0:12:46.240 --> 0:12:50.800 He's a president of Ava Labs based in Miami. So, first, John, 0:12:51.200 --> 0:12:53.280 thanks so much for joining us here. I love for 0:12:53.320 --> 0:12:56.720 you just to simply describe what coin base is and 0:12:56.760 --> 0:13:00.600 why it is so critical to the crypto world. Okay, Paul, 0:13:00.720 --> 0:13:03.480 nice to be here. So, a coin base is a 0:13:03.559 --> 0:13:07.640 crypto exchange. They are very important to the cryptal world 0:13:07.679 --> 0:13:11.600 because they are one of the few properly regulated exchanges 0:13:12.000 --> 0:13:17.080 allows FIAT onto the cryptal world, so they provide that 0:13:17.120 --> 0:13:20.360 service in a compliant way, and that's why it's so important. 0:13:21.520 --> 0:13:23.440 You know, Before I go to bed every night, I 0:13:23.480 --> 0:13:28.360 always like to dream about, Uh, had I bought like 0:13:28.640 --> 0:13:30.840 three thousand bit coin when it was at seventy five 0:13:30.840 --> 0:13:33.520 dollars apiece, then I would have liked to sell it 0:13:33.600 --> 0:13:36.599 out around seventeen eighteen thousand at the peak and u 0:13:37.840 --> 0:13:39.600 and then and then buy back in when it dropped 0:13:39.640 --> 0:13:41.640 again and then sell it out again at like sixty tho. 0:13:41.960 --> 0:13:44.680 So I would be like a billionaire right now. Would 0:13:44.679 --> 0:13:46.440 I be able to do that on on coin based 0:13:46.600 --> 0:13:47.960 that would that be the best place for me to 0:13:47.960 --> 0:13:52.720 do it? Yes, that you are allowed to do that, 0:13:52.720 --> 0:13:56.199 That's one of the places you can do it. But um, 0:13:56.240 --> 0:13:58.680 you know I can test the fact from having been 0:13:58.679 --> 0:14:01.080 on the bi side before. It's easier to just buy 0:14:01.120 --> 0:14:03.840 and hold the concept of trying to capture a move 0:14:03.960 --> 0:14:08.600 and being able to navigate the daily trading. These are dreams, John, 0:14:08.720 --> 0:14:11.000 This is my This is my dream every night. It's 0:14:11.040 --> 0:14:12.959 nothing that I could actually have done. I think it 0:14:12.960 --> 0:14:16.080 would be ethically wrong for me. But um, is coin 0:14:16.120 --> 0:14:19.400 based then the best place to do big bitcoin trades 0:14:19.840 --> 0:14:25.920 securely for a US investor who wants an experience that's 0:14:26.000 --> 0:14:29.440 similar to what they do at the brokerage houses. The 0:14:29.480 --> 0:14:34.520 answer is yes, all right? So John, is this a 0:14:34.560 --> 0:14:37.520 way for investors if I wanted to buy into this 0:14:37.680 --> 0:14:40.640 coin based IK? What I be my major play here 0:14:40.760 --> 0:14:47.080 is Hey, this gives me exposure to the crypto world. Yes? Absolutely. 0:14:47.320 --> 0:14:49.240 I think the one thing that you would have to 0:14:49.280 --> 0:14:54.120 consider it though, is how correlated is this to just gitcoin? 0:14:54.560 --> 0:14:58.320 I think of the assets custody by these guys is 0:14:58.640 --> 0:15:02.360 just bitcoin. So if you want to get exposure to 0:15:02.720 --> 0:15:08.400 anything below the top five coins, this is okay way, 0:15:08.440 --> 0:15:11.280 but it's not probably possibly the best way to do it. 0:15:12.360 --> 0:15:15.640 So uh where else should investors look? Then? Right now? 0:15:15.840 --> 0:15:20.880 And does this crypto boom still have room to run. 0:15:22.840 --> 0:15:25.720 So in terms of I answer backwards in terms of 0:15:25.760 --> 0:15:30.040 the boom, I think you'll absolutely have room. Because the 0:15:30.120 --> 0:15:34.200 market cap in crypto has gone from about one trillion 0:15:34.400 --> 0:15:38.840 at the end of January to about two trillions. Part 0:15:38.920 --> 0:15:41.440 of that is just you know, the price of BPC 0:15:41.960 --> 0:15:44.720 going up, but if you look at what's beneed that 0:15:44.840 --> 0:15:47.360 and the faster growing parts of it, even at coin 0:15:47.400 --> 0:15:51.920 basis custody, it is etherium and some of the other alternatives. 0:15:52.320 --> 0:15:55.680 Bitcoin has proven to the world the first generation of 0:15:55.720 --> 0:15:59.600 crypto was good for a digital currency. Ethereum is now 0:15:59.640 --> 0:16:02.920 showing people that hey, there could be utility. There's this 0:16:02.960 --> 0:16:05.240 whole defined network popping up. There's these n f t 0:16:05.400 --> 0:16:07.360 s that you and I have talked about in the past. 0:16:07.640 --> 0:16:11.040 So there's starting to begin use case and what I 0:16:11.120 --> 0:16:14.520 call second generation of crypto, which is the ethereum and 0:16:14.560 --> 0:16:18.040 some of the other alternatives. Is ethereum help me out here. 0:16:18.080 --> 0:16:21.120 Is ethereum a competitor to bitcoin or is it just 0:16:21.240 --> 0:16:23.200 a use case at bitcoin? How do we think about 0:16:23.200 --> 0:16:25.480 it in the context of bitcoin, Because we are hearing 0:16:25.520 --> 0:16:27.480 more and more about ethereum as a stock price or 0:16:27.520 --> 0:16:30.840 as the price of the currency continues to rise. Sure, 0:16:31.280 --> 0:16:33.960 the easiest way to think of Ethereum is that it 0:16:34.160 --> 0:16:39.240 is showing the utility. It's kind of like iOS on Apple. 0:16:39.600 --> 0:16:43.440 It is the platform that allows applications, whether in the 0:16:43.480 --> 0:16:48.040 traditional world Facebook or clubhouse or TikTok, to build on 0:16:48.120 --> 0:16:51.280 top of that iOS because it has a platform to 0:16:51.320 --> 0:16:54.720 allow developers to come in and be creative and create 0:16:54.880 --> 0:16:58.040 use cases on top of it Um. That's the best 0:16:58.040 --> 0:17:02.280 way to think about Ethereum. Whereas Bitcoin, the best use 0:17:02.280 --> 0:17:06.880 case actually frankly is still digital goal storage of value, 0:17:07.280 --> 0:17:09.720 and that is because the call it think of it 0:17:09.760 --> 0:17:13.959 as the operating system. The mechanism on Bitcoin has certain advantages, 0:17:14.000 --> 0:17:17.960 but it doesn't have speed, it doesn't have transaction capability, 0:17:18.040 --> 0:17:20.399 doesn't have smart contracts on top of it. That's what 0:17:20.480 --> 0:17:24.760 ethereum has provided. Now there's a whole new group while 0:17:24.840 --> 0:17:28.840 called crypto free point. Oh, and that's the guys below 0:17:28.880 --> 0:17:32.560 the full and those guys are now making those transaction 0:17:32.680 --> 0:17:37.639 happen at a very very fast paced no latency and 0:17:37.800 --> 0:17:40.880 making it cheap. So you know, we've talked, we talked 0:17:40.880 --> 0:17:42.760 about n fps in the past. There are people right 0:17:42.760 --> 0:17:46.080 now who go to Etherium. They purchase a n F 0:17:46.200 --> 0:17:48.560 key somewhere, but they had to pay thirty to forty 0:17:49.560 --> 0:17:53.120 in gas prices, which is effectively transaction costs. So that's 0:17:53.160 --> 0:17:56.200 going to be prohibitive of creating a proper digital economy. 0:17:56.440 --> 0:17:59.520 So you have a whole new generation now of call 0:17:59.600 --> 0:18:03.520 it platforms that are allowing better technology, better way of 0:18:03.560 --> 0:18:07.439 setting things up, allowing people to actually transact, allowing a 0:18:07.520 --> 0:18:11.280 digital economy to really thrive. That medium exchange should not 0:18:11.320 --> 0:18:15.760 be prohibit to becoming a nice economy. So tell us 0:18:16.080 --> 0:18:20.120 quickly again what you're doing at Ava Labs, because you 0:18:20.119 --> 0:18:23.880 you know, come from a full Ivy League pedigree, NBA Harvard, 0:18:23.920 --> 0:18:27.000 you worked at Tiger Management. What what do you do 0:18:27.840 --> 0:18:31.320 and what is your platform capable of? Great so on, 0:18:31.440 --> 0:18:34.719 President of Ava Labs. Ava Labs is the team behind 0:18:34.760 --> 0:18:38.760 the protocol Avalanche. Avalanche is the next generation blockchain that 0:18:38.920 --> 0:18:43.439 is compatible with Etherium. So exactly what I said before, 0:18:43.520 --> 0:18:47.080 where I think the first generation crypto Bitcoin was digital money, 0:18:47.320 --> 0:18:52.760 second generation was applications, utility and an ecosystem. Third generation 0:18:52.880 --> 0:18:57.920 are going to be Avalanche like platforms that allow people 0:18:57.960 --> 0:19:03.080 to transact and exchange things cheaply. It's almost like my Friendster, 0:19:03.320 --> 0:19:05.879 my Space, and now we're in the world of Facebook 0:19:06.119 --> 0:19:09.199 where we're gonna about to really take off. All right, well, 0:19:09.200 --> 0:19:12.600 it's great to get your insight on all things crypto. John, 0:19:12.600 --> 0:19:14.600 thanks again for joining us. Hope to have you back 0:19:14.640 --> 0:19:18.240 again soon. John Woo, they're the president of Able Labs 0:19:18.280 --> 0:19:20.760 talking to us about the coin base. I p o 0:19:21.119 --> 0:19:24.080 this could Paul be a hundred billion dollar company. It 0:19:24.160 --> 0:19:28.240 certainly is value that way privately. And the question is, um, 0:19:28.280 --> 0:19:33.240 how will investors who have bit up crypto assets so quickly? Uh, 0:19:33.320 --> 0:19:37.879 you know, um embrace coin coin coin base absolutely, and 0:19:37.880 --> 0:19:39.600 it's gonna beet direct listing mat so it's gonna be 0:19:39.600 --> 0:19:41.320 really interesting to see how this thing trades when it 0:19:41.359 --> 0:19:44.200 does come out. Yeah, I think the direct listing aspect 0:19:44.200 --> 0:19:46.440 of it is really cool, so you could get a 0:19:46.440 --> 0:19:52.920 lot more retail. This is Bloomberg. Now we're to bring 0:19:52.920 --> 0:19:58.240 in anag Rana. He is Bloomberg Intelligence senior industry analyst. 0:19:58.440 --> 0:20:01.119 And of course the chips time it is on today. 0:20:01.160 --> 0:20:03.800 We'll get to that. But first off, this morning we 0:20:03.840 --> 0:20:07.359 saw Microsoft headlines cross they're gonna buy Nuance in a 0:20:07.400 --> 0:20:11.080 sixteen billion dollar deal that is their second largest in 0:20:11.240 --> 0:20:15.080 history and I read your b I piece and you 0:20:15.119 --> 0:20:19.439 have a really cool chart about the reach, the product 0:20:19.520 --> 0:20:22.520 penetration of Nuance. Ten tho organizations use it, but I 0:20:22.600 --> 0:20:28.880 thought it was amazing of hospitals in America use nuanced solutions. 0:20:29.640 --> 0:20:34.600 What does this company do? So in the simplest way, 0:20:34.960 --> 0:20:37.760 if I'm a doctor and I come back after visiting 0:20:37.760 --> 0:20:40.600 a patients, I need to transcribe that soft to that 0:20:40.720 --> 0:20:44.399 particular you know, dictation of the of the chart. Um. 0:20:44.640 --> 0:20:48.160 The software allows me to transcribe it as as as 0:20:48.160 --> 0:20:51.000 you and I are talking. The software transcribes and conversation 0:20:51.040 --> 0:20:53.600 in the background, and that really has been their full 0:20:53.640 --> 0:20:56.840 tape for many years. And that's really where the crux 0:20:56.920 --> 0:20:59.600 of the product is. And this is what we think 0:20:59.640 --> 0:21:03.199 Microsoft is going to scale it much bigger, all right, 0:21:03.320 --> 0:21:06.359 So I mean nineteen point seven billion dollars, that's a 0:21:06.480 --> 0:21:08.360 that's a big number to the Matt Miller's and Paul 0:21:08.400 --> 0:21:11.719 Squeeneys of the world. Um, but the Microsoft that's not 0:21:11.880 --> 0:21:14.719 so much here. So I guess they're thinking about the 0:21:14.760 --> 0:21:17.080 total addressable market. Let's just give us a sense of 0:21:17.119 --> 0:21:20.959 the strategy behind Microsoft. But what they think they can 0:21:20.960 --> 0:21:24.440 do with this asset. So think about it. It Currently 0:21:24.600 --> 0:21:28.199 healthcare accounts for close to eighteen percent of uss GDP 0:21:28.280 --> 0:21:31.159 in terms of total expenses. It's an area which is 0:21:31.160 --> 0:21:34.639 probably the biggest problem area for any corporation that's out there, 0:21:34.760 --> 0:21:37.280 is a problem for all politicians. But and we have 0:21:37.320 --> 0:21:39.960 always said for years, I everybody said it for years 0:21:39.960 --> 0:21:43.040 that only technology can solve this problem of you know, 0:21:43.119 --> 0:21:46.720 waste stage. Now the pandemic is a catalyst for people 0:21:46.760 --> 0:21:49.440 to say, can we do a lot more work digitally? 0:21:49.800 --> 0:21:52.440 And this is one of the the you could say, 0:21:52.520 --> 0:21:56.080 nuggets of where as we go more digital, you want 0:21:56.080 --> 0:21:59.879 to get more things that can transcribe using you know, voice, 0:22:00.119 --> 0:22:03.840 using AI. Yeah. I mean when you when you talk 0:22:03.880 --> 0:22:07.760 about what doctors use it for um, I'm thinking like 0:22:07.840 --> 0:22:09.920 my mechanic could use this from my bike. I got 0:22:09.960 --> 0:22:14.159 carb flow, I clutch slippage, you know, um, if you 0:22:14.160 --> 0:22:16.480 have an old bike, those things are a problem. But 0:22:16.520 --> 0:22:19.080 you could use it in so many different ways. For example, finance, 0:22:19.200 --> 0:22:22.320 the financial industry could use it in um looking at 0:22:22.560 --> 0:22:25.720 a client's portfolio. Are they gonna stick with just health 0:22:25.760 --> 0:22:28.840 care here? I don't think so. In fact, one of 0:22:28.840 --> 0:22:31.040 the things being pointed out in our written research is 0:22:31.440 --> 0:22:36.400 conversation is increasingly becoming the most important way people interact 0:22:36.400 --> 0:22:39.320 with any application. So you know, from the consumer point 0:22:39.320 --> 0:22:42.520 whether that's Alexa or City, but from you know, other 0:22:42.560 --> 0:22:45.080 areas as well, whether it's your HR software down the road, 0:22:45.520 --> 0:22:49.000 you know, whether it's any other productivity application that helps 0:22:49.040 --> 0:22:53.479 you become more um, you know productive. You will be 0:22:53.600 --> 0:22:56.800 using voice as the first way of command to you know, 0:22:56.920 --> 0:22:59.440 to interact with the person on the other side, and 0:22:59.560 --> 0:23:02.760 that's this software. You know, the guts of this software 0:23:02.800 --> 0:23:05.040 is so important because you can use it to create 0:23:05.080 --> 0:23:09.680 customer service chart pots. For example, you've covered Microsoft for 0:23:09.720 --> 0:23:13.560 a long time. They typically, uh, don't acquire a lot 0:23:13.600 --> 0:23:15.399