tv Best of Bloomberg Technology Bloomberg July 1, 2017 11:00am-12:01pm EDT
♪ emily: this is the best of "bloomberg technology." we bring you all of our top interviews from the week in tech. coming up another cyber attack , cripples companies. russia to weston europe and the u.s.. mcafee ceo chris young joins us with his take on the latest ransomware and how to contain the threat. plus, google search for answers and an appropriate response after being slapped with a record antitrust fine in eu history. we discussed the next step for
the search giant. the iphone turns 10. how the device changed the world as we know it. first, to our lead. a cyber attack similar to wannacry spread around the globe this week infecting , computers in dozens of countries. companies like wpp and mercy were all victims. it's been carried out by a virus called petya. it locks into systems and demands $300 and bitcoin to regain access. we talked about the severity of the attack and what can be done to prevent future breaches. chris: the real story here is the evolution of ransomware. if we did see a global -- we did see a global ransomware attack, but the way we have seen this attack work, it's gone from single instances where you users would get phished to wear now you have hybrid attacks. this ransomware attack used an
exploit that we saw a few weeks ago, but it's now using different types of exploits to go after user credentials and attack machines that aren't necessarily unpatched. that was the case in want to cry -- wannacry. we are now seeing the evolution of ransomware where they are trying to move from individuals to trying to infect entire networks. that's what we started to see and now we see the next step of the evolution here with this. momentso in this very what should companies be doing , to protect themselves? chris: the number one thing they can do is make sure they are patching their vulnerabilities that they have been alerted to in their environments. the second thing is make sure they are updating all of their cybersecurity defenses. make sure that get the latest versions of the site or security -- cybersecurity software working, make sure they've got adequate monitoring. make sure they've got users on the alert for these kinds of
attacks as well. users can be an important source of intelligence when these kinds of attacks happen. emily: why are ransomware attacks becoming so popular among hackers? chris: we believe a few reasons. number one, there is an opportunity in this case for the ransomware attack to monetize the attack in different ways. they used to just go after stealing sensitive information. in this case they don't have to , steal anything. they can propagate their malware and look to receive payment in order to allow a user to move forward and using their machine. we also believe that what we are starting to see here with petya is a move to see what is possible. perhaps they are looking for a bigger prize down the line by infecting entire organizations whose operations can be disrupted by these attacks. we don't think we've seen the
end of the movie here we are , seeing the beginning chapters of the movie. emily: goodness, how does the movie progress and how does it and? chris: i never like to predict the ending of the movie. i can tell you this -- we do expect to see more attacks like this. we do expect the ransomware will be using other forms of propagation, using other forms of stealing credentials, which is what we're starting to see here. we expect they are going to test different methodologies and see which combinations work best for them. ultimately, they will seek to monetize themselves. in this particular case, many of the bitcoin wallets were hardcoded into the software itself. we've only seen small amounts, less than $50,000 worth of payment going to those accounts so far. we expect to see this continue to evolve. again, we believe this is
something that is just beginning. we've got a lot more of these kinds of attacks that we will experience over the coming months and into the next two years even. emily: what do you think is driving these cybersecurity stocks down? chris: i have the luxury of teen being -- being a privately held company. i'm not focused on stock price. what i think we are seeing here is a call to action for the industry. those who are cybersecurity practitioners, you've got to move to the next generation capability of cybersecurity products out there. a lot of our newer technology was at the front and center of being able to detect and stop these attacks. patching continues to be a very , very important part of not only good i.t. hygiene, it's good cybersecurity hygiene. as i mentioned a little bit earlier users are important. , users tend to see these things early and they can be an
important source of early warning when your organization may be vulnerable. a holistic cybersecurity program, working closely with vendors and employees really drives the approach to what is important for anyone who is responsible for protecting their organization. ♪ emily: a record antitrust fine by the european union as it issues the first penalty in its seven-year investigation of google's dominance in shopping search advertising. the eu slapped google with a $2.7 billion fine for abusing comparative search shopping results. google has three months to stop favoring its own service. or they will face more sanction. the regulator spoke to bloomberg television and laid out the evidence against the company. >> what we have found with 5.2 terabytes of data is there is a
very close relationship tween -- between this ability and traffic, and traffic and revenue. what you see is that google has taken advantage for its own shopping comparison on the cost of its rival. being able to do so by misusing the dominant position in general search, which is a key of the case. we have found google to be dominant and with dominance comes special responsibility to compete on it merit. -- the merits. emily: caroline hyde set down with richard stables, the ceo of alcou, one off -- c the first companies to sue google on these grounds. >> it grew up to be the most leading site in europe. it was the dominant. we were in seven out of 10 countries we were the leading , cost comparison site. we are well-known in the u.k.
then google basically decided around 2005, 2006, that suddenly these vertical search players, these price comparison sites were a threat. they started to systematically figure out how they could take us down. what they decided to do was they were going to go to merchants and say to them give us your fee, we will send you traffic for free. at first we weren't worried. and then as soon as the algorithms hit in 2011, our traffic literally fell off a cliff. emily: -- carolyn: how much? >> we have lost 95% of traffic that came from google. we are not the only ones. i don't know of a single price comparison site that has been smashed to at least 60% or 70%. -- sometimes to the tune of 90%, 95%. there are bodies all over the place, and they are not just
talking about european price comparison sites, we are talking about american companies. caroline: e.u. is being too tough on the u.s. giants, what the you say? richard: i think she got the decision absolutely right here . i think google will make this out as usa versus europe, they will say a big bad commission. that is absolute rubbish. it's about google hurting consumers. the commissioner has done a fantastic job. carolyn: how that they that have a hurt consumers? richard: by removing competition in the marketplace. you are raising prices because merchants have nowhere else to get traffic from. the only place they can go to now is google. the price goes up you've got no , competition or innovation. back to your question about why this is not a u.s. versus europe thing, there are ceos who came out yesterday saying they support the commissioner. we are talking about oracle, getty images, news corp., there
are lots of companies in america being impacted by google and i am happy to see this decision today. caroline: what can google do to rectify the situation? richard: google has been given 90 days to come up with a proper fix for this. they will come back within 60 days. i think th\e right thing to do -- the right thing to do is say if we are preference in our own system, we've got to give some of that real estate to the other players. that is one of the things. google is facing bigger implications. this is a watershed moment. this is the first time somebody , a big authority has come out and said google, you have broken the law your core values are not , what you hold them up to be. the do no evil, the sanctity of your search is in question. totally in question. you put profit ahead of what
is good for consumers. frankly, they are going to have to change their business, not just in shopping, but in things like travel, news, maps. this is a decision that can impact right across the eu and also in the wider world. caroline: what about your own lawsuit? when youit, 2015, first came and said google, you us.s -- owe are you likely to get money back now? are you going to move forward now that the commission has ruled? richard: i can't talk specifically about the case. it is a case and we will he thatfinitely be pursuing with a vengeance now that the decision has come through. we went to google and said look, you've done wrong. this is the evidence, and certainly we will have our time
in court. we are not the only ones. there will be a lot of players who will go after google. a lot. emily: coming up, our exclusive conversation with kirstin green. her outlook on e-commerce. consolidation grips the sector. and more partnerships as self driving tech keeps up. avis is signing a deal with the withat self driving car -- alphabets's self driving car, weymo.
she invested in a couple of unicorns, including dollar shave club and jet.com. she founded the venture capital ventures, andr enjoy this in the studio. -- joins us in the studio. i asked her why she decided to bet big on e-commerce. -- kirsten: the path to purchase is being reimagined. it it's generated by digital attributes and technology that everyone is adopting. i think that is shaking up the landscape. emily: you invested in jet which sold to walmart for $3 billion, dollar shave, which sold to unilever. why did you invest in them early on? kirsten: there is a root business in selling discretionary items. a lot of the path to purchase around discretionary spending has to do with engagement, experience, bringing something to life.
there is some element or entertainment are connecting personally to a customer. in each of those instances i , think we felt like the founding team had a unique take on the consumer and how things were shifting in the ecosystem and how they can use tech -- technology to give a better experience and that her business -- that was their business model. the background behind the companies were how they were building off and how they were creating a better experience in business model. emily: we've seen spectacular successes in e-commerce and spectacular failures. what will we see more of? kirsten: e-commerce is a hard category. i think there are success stories and failures. i guess if i had to try to understand some of the core differences between the companies that fall into those buckets, i would lean on the fact of experience, how close in touch are they to the consumer?
for much of the core offering and core service proposition are supporting the products they are eventually selling? or the consumer that they are addressing? emily: amazon is making a big bet on whole foods. surprising a lot of people. they are getting into clothing. how do you know what amazon is or isn't going to do? you do not necessarily want amazon is your competitor? kirsten: we just operate in a that as your competitor. -- as your competitor. kirsten: we just operate in a world where amazon is a competitor. we assume they are thinking about how to address the consumer holistically from every angle. we try to understand other opportunities to playoff that strength that they have they are -- they have. they are an aggregator. is there an opportunity for a company to use that as much, not just be a competitor, but given that they can play in that ecosystem as well. emily: you have amazon moving into brick-and-mortar. bonobos, warby parker why is , that? kirsten: we ahad a conversation about omni channel.
it's not about having having an online site and a couple of stores, but thinking about the customer's path to purchase and how he or she might expect to interact with your brand or product you are offering. the reality is the consumer is everywhere and the consumer wants what they want when they want it. to build a big business and meet that demand, you have to think about how you meet the consumer in all of those different places. sometimes that means you do transactions online and experience off-line, and sometimes it's the reverse. emily: what the next big thing? and everything in between. where are you looking for the next wave? kirsten: we are grounded in the idea of who is told in a better that's building a better model for bringing these businesses to life? so much of the consumer ecosystem has changed. that has impacted the power of the products the brand. , it's gotten a lot more complicated. it is no longer -- we think about having a great product and having a value proposition that
is table safe. to get that win is to have a great service, which is to help them filter through the clutter, be convenient being , personalized. many businesses are on stages of meeting those demands. but there is still a lot of opportunity in eco. emily: that was kirsten green. space shares of , rental car company avis jumped as much as 21% after reaching a deal with alphabets self driving car unit. avis will service and manage the as part of the partnership fleet , of 600 cars in phoenix. hours after the announcement, we learned that apple is working with hurts -- hertz to test self driving technology. we asked if more partnerships are expected. >> in phoenix, there are these 600 autonomous vans.
waymo has those and they are testing them out with volunteers. when the cars are finished or something breaks, avis will be responsible for that type of thing, making sure they are clean, stuff like that. emily: and apple? >> apple has some very highly paid engineers. the last thing they want those guys doing is looking after the mechanics of those cars. they released -- least those hertz, who is responsible for that. emily: how ideal are these partnerships? >> if you look at some of the really important financials in the space, the big risk for people is when you buy a car from one day to the next, it drops $10,000 in value. if someone else owns the car, that gives the potential that that source of -- sort of depreciation is on someone else's balance sheet and not your own. that can keep your net margin high. of course alphabet owns these , cars, but it hints at a larger
agreement with this car, the unit of avis and that may be keeping people optimistic from the google site. emily: what do we know about exclusivity? >> these are not exclusive google does these deals where , they are not tied down like that. the point of view from avis, it's very interesting. they have cars that do millions millions -- millions and millions of miles every year the , way they eat that data, it could work quite well. any risk is in the transaction. i think that is very good for avis. emily: will we see more partnerships in this area? uber has been a bit distracted, but what could we see when it comes to the other players? >> we have seen some of this other stuff already. diamond did a $1 billion euro deal last year, and they have done a very similar deal in space.
there are a lot of tier one automotive suppliers. they are trying to build up their market business. a car might do a lot more miles in any given year. the replacement business were clutches, nitty-gritty components will be replaced a lot more frequently. that's a huge opportunity for people who maintained vehicles. emily: coming up blue apron , makes it public debut. we will talk about the challenges ahead. and nasa recordholder peggy whitson joins us from the international space station to break down the new race to orbit new worlds. this is bloomberg. ♪
trading day about their challenges ahead. alex: it was actually unchanged. it closed at $10 a share. that was below the ipo price. it seems like there is a bit more investor concern baked in. the initial valuation they went out at, a 3.2 billion dollar market value, that was the high and when they launched the ipo. that did not come to fruition. they are looking at a $1.9 billion market valuation. and looking atck this company if i am an investor, and say where is the growth? how are you going to afford? when i look at this cash position, it seems like they actually might need some money soon. some that could be playing into this downward or flat pressure. should investors be concerned about it because of amazon and whole foods?
or because of all these other things? david: if i were any food related delivery service, i would be watching amazon with incredible care. the fact that they bought whole foods, which surprised most of us, just goes to show the that they view food as part of their conquer the world strategy. i do think so. i think they should worry. seriously. emily: should there be any more scrutiny on how this is handled? not knowing that amazon/whole foods was coming? alex: it seemed like they did what they had to. i talked to people around the deal, not around the deal who are in the industry. if they launched the deal after the amazon announcement or if they waited until after labor day, this idea was still going to be there. the valuation they went out at is very strong. as we talked about, it was valued more richly than most e-commerce companies out there. the valuation made some people
point scratch their heads. it seemed like they did what they needed to do to get the deal done. franklin, blue apron -- frankly, blue apron needs cash. if you look at their first quarter cash situation, they had $61 million on hand. they spent -- the have a cash flow deficit of 74 million in that quarter, and they told investors look we have cash and , borrowing to get us to at least 12 months of runway. that is not a lot of time. this is a company that has to out market its competitors now. amazon, whole foods, and others, and are trying to continue to build out the logistics network and its fulfillment center. they needed the money. whether you wait a few months or you go out now, it's going to be a question of valuation to get the deal done. emily: coming up apple , celebrates the 10 year anniversary of the iphone. but will it continue to be the company's moneymaker? we will hear from one analyst
♪ emily: welcome to the best of bloomberg technology. i'm emily chang. this week marks the 10th anniversary of the iphone. while it wasn't the world's first smartphone, it jumped far beyond the competition and propelled the mobile revolution. the device spurred rapid changes in industries of all kinds, and society as a whole. here is a look back at the decade of the iphone. steve jobs: today, apple is going to reinvent the phone. emily: on june 29, 2007, consumers got their hands on the very first iphone. a decade later, the smartphone has proven to be the undisputed king of apple's products and in turn, revolutionized an
entire ecosystem. destroying heavyweights of the day and spurring new arrivals across the globe. the iphone also open doors to us what has become a large chunk of the company's revenue, apps. app sales are generated roughly $100 billion for apple, with more than 16 million developers worldwide producing apps ranging from uber to snapchat. the launch of the iphone didn't just change the way people work ed and socialized, it transformed the company itself. apple grew by every dimension, going from a company with a staff of around 18,000 to a work force of 116,000 in 2016. sales for apple went from $19 billion in 2006 to over $215 billion a decade later. it does not stop there. since its launch, apple has sold about 1.3 billion iphones, generating more than $800 billion in revenue.
that blows other iconic devices out of the water, including the nintendo game boy that sold over 118 million units in its lifetime, and the sony walkman , which sold a little over 200 million in 38 years. with that astronomical growth rate comes heavy dependence. the iphone makes up 62% of revenue for apple, making it the company's most crucial product. some tech heavyweights are sounding the alarm about the future of smartphones, with longtime silicon valley investor peter thiel saying he does not think there will be any more innovation here. it is clear tim cook sees it differently. tim cook: i think we're just getting started. i am incredibly excited, and clearly there is nothing i think virtually anybody would say is going to replace the smartphone anytime soon. emily: as apple looks towards the next decade and the competition stays red hot a major question remains, how long can the iphone for me at apple's
-- how long can the iphone remain at apple's core? what is the outlook for the iphone? former apple analyst gene munster believes sales will peak in 2019 and will be replaced by an entirely new product. he joins us with the bloomberg consumer tech reporter mark gurman. >> what we do know is they have launched a.r. kit. we know the next iphone will have a 3-d mapping chip that will be especially geared for premium a.r. experience. and we know apple has done acquisitions. when you think about those three together and the most logical use case for a.r. is a formal of a wearable, it seems logical. the three-year is a best guess. we feel confident apple will have a new product category, but the timing is a guess. emily: you have done some reporting on this. google glass not a success.
snapchat spectacles not a success. how would this be different? >> i think the wearables in term of using a.r. on google glass, it is apple's next big product category, and how they differentiate, well, apple comes with a unique position with bringing the hardware expertise for making small devices. they also have the software. google did not have an operating system that it could apply to a device. android was in its infancy when google glass came out. apple has a robust ios platform port to different devices. emily: is this something that gamers would wear or something you think is more mainstream? >> i would point viewers to a story from "computer world" where they map out 12 use cases for augmented reality. it is much more than just gaming. it could be anything from a
remote assistant to architecture and being able to see buildings before they are designed. you can do art, medical emergency services. 19 love -- one i love is turning humans and robots. there is a company called stream a.r. that allows them to do estimates remotely. they do not have to get in their cars and drive around. what is important here is they have an army of developers and we are just scratching the surface a few weeks into this. i think basic developers will come up with ideas beyond what we are talking about today. emily: is this something people actually want to wear? >> that's a good question. i don't know if i would wear them. what is interesting is i remember tim cook a few years watch camethe apple out and he was asked about wearables. he hinted their first wearable will be a watch. he said he wears glasses because he has to, because he can't see without them. when these things that the streets, there will be a lot of people pulling up that comment from cook saying he would never wear them and now you see him wearing them on stage. it is sort of ironic.
i think there will be a market for it. it is going to eventually replace the iphone. you can make phone calls, get maps, applications. to answer your earlier question about gaming, i think gaming is going to be one component of it, but gaming is tuned to v.r. experiences being fully enclosed. something apple is talking about is the mac. i don't think gaming will be the big focus. i think it is going to be more n driving information to your eyes, glancing, getting directions. emily: you guys are very bullish on this. gene, what about the iphone? i know you think it will peak in 2019. >> this next year, the next iphone cycle will be wonderful for the iphone. 12% to 15%its of after being flat for the last year. i think that is probably the last big cycle. when we start passporting to a couple of years from now, they will have difficult comps. that naturally gets us to
talking about fiscal 2019, something that is more or less flat year-over-year. then you start getting into 2020 wearableswhere some come out. i think the number of units they will sell in 2020 is very small, 3 million. it will not quite so at the road of the iphone, but i think as the utility of these wearables becomes more clear to can consumers, it will start to chip away at the iphone experience. they will both be around in 10 years, but the iphone will be of much, much smaller business. emily: what do we know in terms of how we expect the iphone to be this next time around? >> it will be a bigger update. one of the bigger updates. they will be doing three new phones. they have the 7 and the 7 plus. they will update those with faster processors, maybe better cameras. they will be a new model people are excited about. the iphone 8, apps, stainless
steel frame, glass on the front and back, curved edges on both sides and the heart of it will be this screen. deeper blacks and deeper whites. this screen will look clearer, be bigger.d it will all fit in the iphone 7 size. emily: i'm curious for your thoughts about apple in cars. we got comments from tim cook where he acknowledge apple's ambitions. we now know apple had a deal test selfz to driving technology. what do you expect to see from apple when it comes to cars? >> a lot of my expectations are based on work they have done around this. one route is to build a car entirely themselves. the second is to do software. the third is probably some sort of fleet opportunity. have had a bad prediction with
apple on the tv that they will have a car, but i think it is clear it's a big market. 90 million cars sold. apple wants to have a place in this. i don't think they have their plan in place as far as how they will address that market. our expectations over the next five years do not include any revenue from apple cars. emily: how about air pods? are they a closet hit? >> they definitely are. i think this is going to be the sneaky product of the next five years. i think it will become much more of an augmented hearing product. we call it a hearable. you will be able to zero on a friend's conversation, to have tune out noise around you. other biofeedback they can get, and we think they will be bigger than the apple watch in the next five years. emily: i do a double take when i see someone wearing them.
they are not necessarily stylish yet. >> writes. i wear them. i don't love wearing them. [laughter] sometimes i will go out in public and i will say i'm just going to put in the lightning headphones for a jog or something. the utility is very strong. there is a lot they can do on the software side to improve. i saw people talking about augmented hearing concept. i think we are still early there. i think if they would have thought big in the hearing space, they would have talked about it with the home pod. it would. emily: as competition heats up in the cloud, microsoft and box are spending the partnership. this is bloomberg. ♪
it will allow for future integration with box's cloud content management platform. i spoke with aaron levie about what kind of customer demand he is expecting from the new deal. aaron: if you look at our customer rates, about 74,000. globally, 64% of the fortune 500, microsoft with their cloud services in about 90% of the fortune 500 or more. there is already a lot of significant overlap between our customer base and their customer base in the cloud. we are hearing from more customers they want to be able to leverage some of the more advanced capabilities that azure is building and have things like their data stored in more locations around the world. thatis there technology lets customers do that. emily: you may consider using microsoft a.i. services. how will that work? aaron: if you think about all the content and information we have in box, there are billions of files. in every one of those files,
there is different insights and different knowledge and information. the only way to extract that knowledge or information is by using some amount of advanced technology, whether that is artificial intelligence or machine learning capabilities. things like being able to upload a video of this conversation and make it fully searchable and the have different tags and content discussed, upload audio and make that can fully searchable, able to summarize documents, be able to translate documents and text. all those kind of capabilities are becoming more readily available via microsoft and others. we went to ensure those capabilities are plugged into box so our customers can of the -- can manage and share and organize their content. emily: there is a lot of activity happening in crypto currencies. crypto currency believers believe the block chain a will one-day make cloud providers obsolete and the cloud will be peer-to-peer.
how do you think about this? aaron: that would be bad news for us if that happens. we are more in favor of the cloud model. re-think peer-to-peer has been tried a number of times in different capacities. obviously, i think from an academic standpoint it's incredibly exciting possibility you can have a completely distributed network of systems and computers that could power all the various services we use. there also practical limitations between security, reliability, that the cloud is awfully good at that at this point. emily: what reasons do you expect box to expand using azure? aaron: right now it is in eight regions globally and some key markets where we have a lot of customer demand. our current customer demand in terms of where box is used certainly exceed the region we are in right now. i think you can imagine us in places like south america where we see more and more traction
over time and more locations in canada. the ability to spread throughout europe. and broadly in asia. long-term, we are excited about the possibility of venturing into china and some of the growth prospects there. a bunch of new markets over the coming years that we are paying attention to and lead to have infrastructure in those locations. are strong preference is we don't build it ourselves, the -- but we can leverage partnerships like with amazon and microsoft and others to be able to deliver that technology to our customers. emily: how do you intend to navigate regulatory issues in china? aaron: we think there are different entry strategies that company seven successful with. joint ventures on the ground, being able to have isolated versions of your product. we are fortunate where the type of content that goes into box is not the same kind of content you generally see from a facebook or a google as having issues
globally with. it is much more corporate information. we have a lot of customers that use box globally, including china for global manufacturing processes and distribution networks. our job is to make sure our customers can use a secure, highly private version of box in any country they use, including china. we would only enter the market when we felt comfortable we can provide the kind of service. emily: that was box ceo aaron levie. bitcoin's top competitor had a hard start to the week. the cryptic currency plunged more than 20% in monday trading. the drop coming on the heels of last week's crash from the digital currency tumbled from over $300 to $.10 and a matter of minutes. i sat down with the founder and ceo of poly team capital. i asked about the flash crash that caught traders by surprise.
>> last week on a private exchange, my former employer, on the order book there was effectively a massive market sell, followed by a series of margin calls which closed up margin conditions and forced people to sell. it was a cascade of sell orders that actually ate through the entire buy side of the order book and pushed it down to about $.10. this is only in the one order book on the word exchange, so pretty quickly the price kind of reached back to where it is trading on other exchanges, but there was a flash crash. emily: we are seeing more volatility continuing. why is that? >> it is important to paint the backdrop of how this volatility is occurring. bitcoin was trading for around $1000 in the beginning of this year. now, it is trading for about $2400. although we have seen a short-term pullback on those prices, i do think the long-term
trend is very strong and very clearly up and to the right. emily: that said, union square ventures says my gut says we are headed for a selloff in the crypto sector, but honestly i don't really care. i will keep buying into this correction or rally because the more important question is where these acids -- these assets will be in five or 10 years. >> i would fully agree with fred. when you think about this as a technologist, we are really seeing the early innings of a -- early beginnings of a massive breakthrough technology that is far from mainstream right now. i do think there is massive opportunity despite short-term volatility. emily: it is pretty scary the value could go to zero in a matter of minutes. >> like i said, that was really the mechanics of one exchange and it can rebound very quickly. emily: how are these exchanges regulated compared to
traditional stock exchanges? >> in the united states they are regulated. a lot of the trading happens on non-u.s. based exchanges. when they are based in united states, the only difference is they are not really trading securities. they are trading crypto currencies. otherwise they are often federally regulated. or on a state level. emily: does this dampen speculation that it could overtake bitcoin? >> i came on here about a week ago and said i gave it until the end of 2018, and i would probably stick with that. while i think there is definitely a pullback in the short-term, i remain a long-term optimistic around the opportunity built on top of ethereum. emily: what are analysts speculating of prices going forward? >> people remain long-term optimistic, although there was is always short-term volatility.
i and others have been in this for a very long time and there is been volatility the entire way. the long-term trend has been substantial growth. emily: one of the things we have discussed is that a lot of the traders of these crypto currencies are amateurish. tell us about that and how it affects the way this plays out. >> i think something interesting about crypto currency is that most of the investors had most -- are not from wall street and not from sandhill road. that is to say they are not traders in public markets, nor venture capitalists in private markets. they're computer scientists and other types of early adopters on the platforms. the value is going to a completely new group of people. it is very atypical for investments you might see in private companies or public companies. emily: should anyone be betting ?heir kids' education n >> i think the asset class
remains risky and not more than you are willing to lose. i think it offers an amazing diversification away from traditional assets. emily: 10 years from now, what does the sector look like? >> i think 10 years from now , the market cap is clearly into the trillions. i think these technologies will have fundamentally transformed major sectors of our economy. emily: this is bigger than apple? >> this is much bigger than any specific company. this is as big as the internet. emily: coming up, and interview -- an interview from space, literally. we will hear from a nasa astronaut, the first female commander of the international space station. that is next. if you like bloomberg news, check us out on the radio. this is bloomberg. ♪
origin. are they competitors or partners in the race to test beyond the bounds of the earth? nasa astronaut peggy whitson, holder of the record for the longest time spent in space, joined the bloomberg americas daybreak team and discussed how public and private space programs have evolved. peggy: the place we are right now, the government can do more. for instance, we are seeing some of the seed money for some of the commercial providers, spacex and orbital atk are providing cargo to the space station. hopefully in the next year or so , we will get crude supplied by spacex or boeing. i think the government commercialization is transitioning right now and it is fantastic to see the cargo coming up in all these different vehicles. i really do think it is the future because just like
aviation, it has to expand in order to be really prolific. having these programs in place now is definitely a step in -- stepping stone for further development. that allows the government to spend more money on going and exploring beyond low orbit, which is what the current limitations are for some of the commercial providers. we do hope to encourage them to continue on into further deep space as well. david: let's go way beyond low earth orbit. a lot of talk right now about colonizing mars, actually living there. you have been living in space -- ar amount severe life fair amount of your life for the last 15 years. is that a realistic goal to set , to actually have a colony on mars? peggy: i do think it's a fantastic goal to have. we should of colonies on mars and the moon. we should be expanding and exploring even further.
yes, i think it will take some technology development and we are using the international space station here to perfect some of those technologies. for instance, if we go on a multiyear mission to mars, we need to be able to have a closed life support system, which means we need to be able to process our urine and make it into drinking water. we do that here on board the space station, and we are about 85% of what we call closing the loop of life-support systems, at least in the water balance system. it is very exciting to be a part of those investigations of testing, engineering that is going on up your right now. emily: that was peggy whitson speaking from the international space station. that does it for this edition of the best of bloomberg technology. we will bring you the latest in tech throughout the week.
♪ scarlet: coming up on "bloomberg best," the stories that shaped the week in business around the world. another global cyber attack causes havoc. most u.s. banks ace the fed's stress test. the gop postpones a vote on health reform. european markets try to stay in sync with central banks. >> the euro and markets have reacted very strongly to a speech by draghi. >> comments in sintra suggest that august 3 is going to be quite a tricky meeting. scarlet: italy commits billions to save two banks. the country's finance minister explains the deal in an exclusive conversation. >> it is not a bailout. everything was done by the rules. scarlet: china preaches openness