Skip to main content

tv   Best of Bloomberg Technology  Bloomberg  July 4, 2017 5:00pm-6:01pm EDT

5:00 pm
♪ >> i emily chang. this is the best of bloomberg technology where we bring our top interviews from the week in tech. another cyber attack cripples countries. chris young joins us with his take on the latest ransomware and how to contain the spread. . my local search for answers and an appropriate response after getting slapped with a record antitrust fine in eu history.
5:01 pm
the iphone turns 10. we take a look back at how the device changed the world as we know it. first to our lead. a cyber attack spread around the globe this week, infecting computers in dozens of countries. for operators in new york and rotterdam and companies like allma giant victims. the attack is being carried out by a virus. the ransomware locks infected computer systems and demands users to pay $300 in bitcoin to regain access. we spoke to chris young about the severity of the attack and what can be done to prevent future breaches. >> the real story here is the evolution of ransomware. we saw a global ransomware attack, but the way we have seen this attack work as we have gone from single instances where fishedwould get
5:02 pm
to hybrid attacks where uses and attack that uses different exploits to go after user credentials and attack machines that are not necessarily inatched, which is the case one. we are seeing the evolution in rando ransomware to attack entire networks. we are seeing the next of the evolution here. >> so in this very moment, what should companies be doing to protect themselves? >> the number one thing they can do is make sure they are patching the vulnerabilities they have been alerted to in their environment. second thing they need to be doing is make sure they are updating all of their cybersecurity defenses so major they have the latest versions of adequateare working monitoring programs and have
5:03 pm
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 aren't ransomware attacks becoming so popular among hackers? chris: we believe it is a few reasons. number one, there is opportunity in this case for the ransomware attackers to monetize the attack in different ways than we have traditionally seen when the used to just go after stealing sensitive information. in this case, they do not have to steal any information. they can sit we propagate their malware and look to receive payment in order to allow a user to move forward in using their machine.we also believe what we are starting to see here is a move to try to test what is possible. perhaps they are looking for a bigger prize down the line by affecting entire organizations whose operations can be disrupted by these kinds of
5:04 pm
attacks. we do not think we have seen the end of the movie here. just the beginning chapters of the movie. emily: how does the movie progressed and end? chris: i never like to try to predict the ending of a movie, but we 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, seeks 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.
5:05 pm
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 a privately held company. i'm not focused on stock price. what i think we are really 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 products out cybersecurity products that are out there. a lot of our newer technology were at the front and center of being able to detect and stop these attacks. patching continues to be a 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
5:06 pm
early, and they can be an really important source of early morning 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 in shopping search advertising. the eu slapped with a with a 2.7 billion fine for using search results. google has three months to stop favoring its own service or face more sanctions. 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
5:07 pm
very close relationship tween between the 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. and they have been able to do so by misusing the dominant position in general search. that is a key of the case. we have found google to be dominant and with dominance of course comes special responsibility to compete on it merits. emily: caroline hyde set down with the ceo of one of the first companies to sue google on these grounds. >> it basically started in 1999 and grew up to be the most leading site in europe. it was the dominant. we were in 10 countries. -- we were in seven out of 10 countries. we were the leading cost comparison site.
5:08 pm
we are well-known in the u.k. then, google basically decided around 2005 that these vertical search players, these rice comparison sites were a threat. they started to figure out how they were going to take us on. 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. as soon as algorithms hit in 2011, our traffic fell off a cliff. >> by how much? >> since we have lost 95% of 2011, 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 the tune of 90% or 95% or at least 60% or 70%.
5:09 pm
they are not just talking about european price comparison sites . we are talking about american companies. caroline: when you hear the allegation that the e.u. is being too tough on the u.s. giants, what the you say? richard: absolutely rubbish. i think she got the decision absolutely right here in i think and i think google will make this out as usa versus europe, they will say a big bad commission. it's about google hurting consumers. the commissioner has done a fantastic job. >caroline: how? richard: you are raising prices because merchants have nowhere else to get traffic. the only place they can go to 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 ceos of oracle, getty images, news
5:10 pm
corp., there are lots of companies in america impacted by google and are 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. the right thing to do is say if we are preferencing 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 said it google has 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.
5:11 pm
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 potential decision that can impact right across the eu and the wider world. caroline: what about your own lawsuit? what was it, 2015 when you first s?id google, you owe u are you likely to get money back now? richard: i can't talk specifically about the case. i will say it is a case following the decision and we , will definitely be pursuing that with a vengeance now that the decision has come through. we went to google and said look, you've done wrong. this is some of the evidence,
5:12 pm
and certainly the eu case is part of that. 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 conversation with kirstin green. her outlook on e-commerce. consolidation grips the sector. more partnerships. avis is signing a deal with the google self driving car. hertz is teaming up with apple. what do the deals mean for the future of autonomous driving? that is next. this is bloomberg. ♪
5:13 pm
5:14 pm
emily: online retail will grow is expected to grow 12% this year. that's up to three times higher than the growth of retail overall. one person knows about the a thing or two about the sector is kirsten green. she invested in a couple of unicorns, including jet.com.
5:15 pm
she founded the venture capital firm. she 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. a lot of that is being driven by digital attributes and technologies that everyone is adopting. i think that is shaking up the landscape. emily: you invested in jet which sold to walmart for $3 billion. shave 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 has to do with engagement, experience, bringing something to life.
5:16 pm
it has some element of entertainment or connecting personally to the customers. 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 the ecosystem and how they can use tech knowledge technology to give a better experience and that her business business model. the backbone behind the companies were the 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 but also spectacular failures. what will we see more of? kirsten: e-commerce is a hard category. like many areas of business are. 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 are they to the consumer? how much of it is supporting the
5:17 pm
-- how much of the core offering and service propositioning is the product they are selling or the consumer 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 as a competitor. kirsten: we just operate in a world where amazon is a competitor. we assume they are thinking about how to address the consumer very holistically from every angle. we try to understand other opportunities to playoff that off of that strength that they have they are in aggregator. is there an opportunity for a company to use that as much, not just be a competitor, but given is there any way they can play in that ecosystem, too? emily: you have amazon moving into brick-and-mortar. why is that?
5:18 pm
had an: we have conversation about on the channel. it's not about having having an online site, but thinking about the customers 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 it when they wanted. -- want it. to meet that demand, you have to think about how you meet the consumer and all of those different places. sometimes that means you do transactions online and experience off-line. sometimes it's the reverse. emily: what the next big thing? where are you looking for the next wave? kirsten: we are grounded in the idea of who is building a better model for bringing these businesses to life? so much of the consumer ecosystem and how they make decisions have changed. that has impacted the power of the product, the power of the brand. it's gotten a lot more complicated. we think about having a great product and having a value
5:19 pm
proposition that is safe. to get the win is to have that plus a great service, and i love that has to do it being convenient, being personalized. many businesses are on stages of meeting those demands. there is a lot of opportunity in eco. emily: that was kirsten green. in the auto space shares of , rental car company avis jumped after reaching a deal with alphabets self driving car unit. avis will service and manage the fleet of 600 cars in phoenix. just hours after the announcement, apple is working with hertz to test self driving technology in lexus suvs. we asked alastair bar and alex went if more partnerships are expected. >> phoenix has these 600 autonomous vans.
5:20 pm
they are testing them out with volunteers. basically, when the cars are finished or something breaks, avis will be responsible for that type of thing,. . >> and apple? >> apple has some very highly paid engineers. the last thing they want to be doing is having those guys looking after doing mechanics for those cars. hertz is responsible for that. >> how ideals are these partnerships? >> what is really just thing about it is if you look at some of the really important financials in this whole space, the big risk is when you buy a car from went into the net, the value falls by $10,000. if you are not owning the cars and someone else owns them, that can keep your net margin high. of course alphabet owns these , cars, but it hints at a larger
5:21 pm
broader agreement with a unit of avis and that may be keeping people optimistic from the google site. emily: what do we know about exclusivity? >> they are not exclusives. google does these deals where they do not like to be tied down like that. for avis, it's very interesting. they have cars that do millions of miles every year. data,needs that kind of so it could work quite well. any risk avis is involved in, that transaction, that is very good. emily: are we expecting to see more partnerships in this area? what could we see when it comes to the other players? >> in some ways, we have seen this stuff already. a $1 billion year last year. they have done a very similar deal in space. the other element is to your one
5:22 pm
automotive supplies -- is tier one automotive supplies. they are trying to build up their market business. a car might do a lot more miles in a given year. the replacement business, all of these 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. inside from outer space on the new age of discovery. the nasa recordholder joins us from the international space station to break down the new race to orbit. this is bloomberg. ♪
5:23 pm
5:24 pm
emily: blue apron jumped into the public space. now trading on the nyse under aprn. we talked after they wrapped up their first day trading.
5:25 pm
we talked about the ipo's journey and challenges ahead. looking at the trading today it , was actually unchained. it closed at $10 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 was on the high end. that is what they were trying to get when they launched it did the ipo. it did not come to fruition. they are looking at a $1.9 billion market valuation. if i am an investor, i am lookin sitting back and looking at this company area where is the growth? -- this company. where is the growth? how are you going to afford it? when i look at this cash position, it seems like they might need some money soon. some that could be playing into this downward or flat pressure. emily: should investors be concerned because of amazon and whole foods?
5:26 pm
or because of all of these other things alex has mentioned? 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, goes to show the seriousness with which they view food as part of their conquer the world strategy. yes i do think so. , i think they should worry. seriously. emily: should there be any more scrutiny on how this is handled? ipo?w bankers handle this not knowing that this 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 at amazon announcement or if they waited until after labor day, this idea was still going to be there. the valuation they went out at was very strong. it was valued at most e-commerce companies.
5:27 pm
the valuation made some people point scratch their heads. it seemed like they did what they needed to do to get the deal done. frankly, blue apron needs cash. if you look at their first quarter cash situation, they had $61 million on hand. the have a cash flow deficit. $74 million in that quarter. they told investors we have cash and borrowing to get us to at least 12 months of runway. that is not a ton of time. this is a company that has to market its competitors now. and it is continuing to try 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: apple celebrates the 10 year anniversary of the iphone. will it continue to be the company's moneymaker?
5:28 pm
we will hear from one analyst who thinks another device could take its place. a reminder, all episodes of "bloomberg technology" are live streaming on twitter. this is bloomberg. ♪
5:29 pm
5:30 pm
emily: welcome to the best of bloomberg technology. i'm emily chang. this week marks the 10th anniversary of the iphone. it jumped far beyond the competition and propelled the mobile revolution. rapid changes in industries of all kinds, and society as a whole. let's look back at the decade of the iphone. steve jobs: today, apple is going to reinvent the phone. emily: on june 29, 2007, consumers other hands on the very first iphone. a decade later, the smartphone has proven to be the undisputed king of apple's products and revolutionized an entire system.
5:31 pm
destroying heavyweights of the day and spurring new arrivals across the globe. the iphone also open doors to us become a large chunk of the company's revenue, apps. sales are generated roughly $100 billion for apple, with more than 16 million developers worldwide producing apps ranging from uber the snapchat. the launch of the iphone didn't just change the way people work in 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. apple has sold about 1.3 billion iphones, generating with an $800 billion in revenue. that was other iconic devices out of the water, including the
5:32 pm
nintendo game boy that sold over 118 million units in its lifetime, and the sony walkman with a little over 200 million in 38 years. but that brings heavy dependence. it's 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 it 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 in the competition stays red hot a major question remains, how long can the iphone for me at apple's
5:33 pm
core? what is the outlook for the iphone? former apple analyst gene munster believes sales will peak in 2019 and 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. the next will have a 3-d mapping chip that will be especially geared for premium a.r. experience. when you think about those three together in about the most logical use case for a.r. is a formal wearable, it seems logical. the three-year is a best guess. weasel confident apple will have a new product category, but the timing is a guess. emily: you have done some
5:34 pm
reporting on this. google glass not a success. snapchat spectacles not a success. >> it's apple's next big product category. how do they differentiate? 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 blast came out. apple has a robust ios platform that they ported to different devices. emily: is this something that you think is more mainstream? >> i would point viewers to a story from "computer world" where they met about 12 use cases for augmented reality. it is much more than just gaming. anything from a remote assistant to architecture and being able to see buildings before they are
5:35 pm
designed. you can do art, medical emergency services. when i love is turning humans and robots. there is a company called stream a.r. that allows them to do diagnoses remotely. they have an army of developers and we are just scratching the surface a few weeks into this. i think that based of 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. tim cook a few years ago for the apple watch 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 saying he would never wear them and now you see him wearing them on stage. it is sort of ironic.
5:36 pm
i think there will be a market for it. they will eventually replace the iphone. you can make phone calls, get maps, applications. 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 with the mac. i don't think gaming will be the big focus. i think it is driving information to your eyes, glancing, getting directions. emily: gene, what about the iphone? i know you think it will peak in 2019. >> this next year, the next cycle will be wonderful for the iphone. probably units of 12% to 50% after being flat for the last year. i think that is probably the last big cycle. well we started forwarding to a couple of years from now, they will have difficult comps. that gets us to talking about
5:37 pm
fiscal 2019, something that is more or less flat year-over-year. then you start getting into 2020 and 2021 when the wearables cannot. i think the number of units they will sell in 2020 is very small, 3 million. it will not quite the road at the iphone, but i think as the utility of these wearables becomes more clear to can tumors, double 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 -- up this next time around? >> one of the bigger updates. they will be doing three new phones. they have the 7 and the 7 plus. they will be a new model people are excited about. the iphone 8, apps, stainless
5:38 pm
steel frame, class on the front and back, curved edges on both sides, in the heart of it will be this screen. deeper blacks and deeper whites. the screen will be bigger. 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 radiate knowledge apple's ambitions. we now know apple had a deal with hertz the test cell technology. what do you expect to see from apple and comes to cars? >> a lot of my expectations are based on work they have done around this. around this. one route is to build a car entirely themselves. the second is to do software. third is probably some sort of fleet opportunity. i had a bad prediction run apple on the tv that they will have a
5:39 pm
car, but i think it is clear it's a big market. 90 million cars sold. apple wants to have a place in it. i don't think they have their planet places 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 it will become much more of an augmented here in product -- hearing product. you will be able to zero on a friend's conversation, to have noise around you. other biofeedback they can get, to have a lot of patents around the year canal. we think air pods will be bigger than apple watch in five years. emily: i do a double take when i see someone wearing them. they are not necessarily stylish
5:40 pm
yet. >> i wear them. i don't love wearing them. sometimes i will go out in public and i will say i'm just going to put in the lightning headphones for a job 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. they would've talked about with the home pod. it would. the happening of the future emily: as competition heats up in the cloud, microsoft and box are spending the partnership. this is bloomberg. ♪
5:41 pm
5:42 pm
emily: microsoft and box expanded their deal with a file sharing and storage service. they can serve their data in microsoft's azure cloud. with box's cloud content
5:43 pm
management platform. i spoke with aaron levie about what kind of customer demand he is affecting from the new deal. aaron: when 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 was already a lot of significant overlap between our customer base and their customer base in the cloud. we are cheering for 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. that is our technology to let's customers do that. emily: you may consider using microsoft a.i. services. aaron: if you think about all the content and information we have in box, there are billions
5:44 pm
of files. and everyone has 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 a fully searchable and the able to have tags a different 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 want to make sure those are plugged into box so our customers can of the most intelligent way to organize the content. emily: there is a lot of activity happening in crypto currencies. crypto currency believers believe the block chain a one-day make cloud providers obsolete and the cloud will be peer-to-peer. how you think about this? aaron: that would be bad news
5:45 pm
for us of that happens. we are more in favor of the cloud model. peer-to-peer has been tried a number of times in different capacities. obviously i think from a negative neck standpoint it's incredibly exciting possibility you can have a completely distributed network of systems and computers back in power all the various services we use. weather is a lot of practical limitations between security, reliability, that the cloud is awfully good at at this point. emily: what reasons do you expect box to expect using azure? aaron: right now it is in eight regions globally and some key markets will be a customer demand. our current customer demand in terms of where box is used certainly exceed the region we are in right now.
5:46 pm
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 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
5:47 pm
globally with. it is much more corporate information. we have a lot of customers that use box globally, including china for the networks. our job with them is to make sure customers can use a secure, highly private version of box any country they use, including china. we would only enter the market when we felt comfortable we can provide the kind of service. emily: bitcoin's top competitor had a hard start to the week. the cryptic currency plunged more than 20% in monday trading. that on the heels of last week's crash from the digital currency tumbled from over $300 to $.10 and a matter of minutes. i asked about the flash crash that caught traders by surprise. >> last week on it exchange, my former employer, on the order book there was effectively a massive market sell followed by
5:48 pm
a series of margin calls which >> last week on it 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. 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 happy volatility is occurring. bitcoin was trading for around $1000. now it's about $2400. we have seen a short-term pullback on those prices.
5:49 pm
i do think the long-term trend is very strong and very clearly up and to the right. emily: 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 direction or rally because the more important question is where they will be in five or 10 years. >> i would fully agree with fred. we are really seeing the early innings of a massive break through 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 to go to zero in a matter of minutes. >> that was the mechanics of one exchange and can rebound very quickly. emily: how a regulated compared to traditional stock exchanges? >> in the united states they are regulated.
5:50 pm
a lot of the trading happens on non-us-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. emily: does this dampen speculation that it could overtake bitcoin? >> 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 optimist around the opportunity built on top of ethereum. emily: what is the speculation of prices going forward? >> people remain long-term optimistic, although there was always short-term volatility. i and others have been in this
5:51 pm
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 cryptic currency is that most of the investors had most of the participants are not from wall street and not from sandhill road. 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 the kids education? >> i think the asset class remains risky and not more than you are willing to lose. i think it offers an amazing
5:52 pm
diversification away from traditional assets. emily: 10 years from now, what does the sector look like? >> i think 10 years from now 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 from space, literally. we will hear from a nasa astronaut, the first female commander of the international space station. check us out on the radio. this is bloomberg. ♪
5:53 pm
5:54 pm
emily: back in the day nasa was the only game in town when he came to u.s. space expiration. now there is spacex and blue origin.
5:55 pm
are they competitors or partners to test beyond the bounds of the earth? astronaut peggy whitson, holder of the record for the longest time spent in space, joined us from the international space station 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. hopefully in the next year or so we will get crews provided 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.
5:56 pm
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 stone for further development. that allows the government to spend more money on going and exploring beyond low orbit, which is with 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. >> 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 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.
5:57 pm
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 of mars, we need to be able to have a closed life support system, which means we need to build the process our urine and make it into drinking water. we do that here in for 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 going on at the 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.
5:58 pm
we will bring you the latest in tech throughout the week. tune in each day at 5:00 p.m. in new york. all episodes of bloomberg technology are livestreaming on twitter. that is all for now. this is bloomberg. ♪
5:59 pm
6:00 pm
♪ >> russia and china say they will work together on north korea and say the u.s. should start holding her games with the south. scarlet: pyongyang claiming its latest rocket launch was an icbm. hot povertynd's market begins to cool with prices rising last month. the heatijing turns up on mobile gaming,

19 Views

info Stream Only

Uploaded by TV Archive on