tv Boom Bust RT May 21, 2019 5:30am-6:00am EDT
signs of content straight ahead so let's just get to it right now now the ever changing landscape cryptocurrency has raised a lot of questions a lot of questions about the knowledge of the not least of which is regulation of the of the crypto currency space while bitcoin the world's most popular virtual currency is viewed and legally treated as a commodity in the united states initial coin offerings or token sold during the fund raising process are regulated securities this is one reason why the us has been left out many of many of those c.e.o.'s and many people in crypto currency traders in countries like the united arab emirates are starting to support these i.c.a.o. as more and more kristie tell us why is the united states such an outlier on the restrictive and the spectrum when it comes to these icy o's. so the u.s. doesn't make these regulations for no good reason the f.c.c. who actually is there for because right now they're looking at the i see a landscape as a call back to the i.p.o.
heyday which then led to the stock one of the biggest stock market crashes in 1929 following the stock market crash in 1929 the f.c.c. was actually created in 1934 specifically for the sole purpose to prevent some sort of market manipulation like the i.p.o. crisis from ever happening again so now they're looking at crypto currency and they're saying this as a threat i suppose are going unchecked and they're raising money from a lot of investors who have no idea what they're actually invested in which is why right now the i.c.c. is actually clamping down and they're making sure that they're more transparent about fund raising they're only raising from accredited investors investors who actually know what block chain and the technology is so that a lot of people can go out there and just. do fraudulent behavior and raise money from mom and pops right now brought the rest of the world on the other hand seems to be sort of letting a letting a $1000.00 flowers bloom so to speak why is that well it's interesting is kind of the regulatory landscape that makes a deep dive for american regulators. but countries like singapore and malta they're
seen as proverbial sandboxes where anything goes and that means in a way they can give you an opportunity to do what you need to do and if you go too far they'll bring you back basically the opposite of what the us situation is now at consensus in new york city i actually caught up with polymath co-founder trevor compare co about the regulatory environment and their new platform pouty mesh which is intended to be more compliant friendly. so polish is a is the base layer you know it's a protocol and we think it's really important to get that infrastructure set 1st you know a lot of the future of security tokens are going to be applications and issuers and tokens that live on this infrastructure but we're still in that early phase of kind of rolling up our sleeves and and laying the pipes for what's going to be a really robust ecosystem and one of the big part is regulation and compliance and . we spoke about before here in the u.s. compliance the regulation is a tough one that's why you see the rest the world. have
a holding most of the i c o's and s.d.o. isn't that how it's probably much going to differ in that regard we think of compliance and even components of compliance like identity as a core native feature of poly mesh it's not a secondary thought you know a lot of a lot of the top public chains today you know the top 20 you know projects they don't really think of identity as something that's important to do natively and what i mean by that is it's kind of an afterthought so it's like a wallet address and a human person and that's kind of not a super strong connection and what we're saying is let's let's rethink about. how we think about identity let's let's take that into the core architecture and when that happens we can really innovate around things like k.y. c.m.l. across your 6 fictional trading so you can have different jurisdictions with different securities laws still function with each other and interface with each other and we're excited about that and when we see like a full rollout of polymath you know right now we still have our. our main. player
too so so that's polymath and that is still functional if you want to do a security token when you're in a keep that in we're doubling down on that we have $120.00 security tokens out of watch on our platform and we're really excited about that that growth has been 2 orders of magnitude of growth since last last year on stage when we announce polymath and now with poly mesh what we're doing is ripping out our current infrastructure which is a theory and replacing it with a brand new purposeful architecture and for timelines right now we don't have a specific date but i'm we're very excited to to move as quickly as we can get analogy i like to use is as phone lines that's what the internet lived in the early days and why why phone lines well it was really one reason it was convenient it was built so it worked and when users got more demanding and performance demands you know went up it was time to rip out those phone lines and replace it with fiber which is a purpose built custom solution for the net so we say the exact same thing happening
in security falcon's where we have this theory and base protocol which is great because it's right in front of us that work is convenient and now that our industry is maturing just like the internet did it's time to use a new infrastructure that's appalling and so to clarify just so i understand a theory and was there and it was purpose built for its own purpose and people started to use it to branch out on it and build out on it and now you're saying well now we can build our own we don't need it i mean not that we don't need a theory and because the theory of is the baseline structure but that's how we get to work a huge area. fans and that's exactly right we think that. when it comes to to the base layer of security to openness everyone is going to experience right now the main reason is because that's what everyone is doing it's convenient but it's not i think it's time for an upgrade it's our users it's our regulator partners it's our issuers they're coming to us saying it's not going to work we're not comfortable launching on these like giant global permission with law changes we need something new that's built for us and that. views gratian behind
point and going back to the regulatory consumers who just matched it there i mean how how do you make how do we make a block chain that is regulatory and why it's friendly versus what we already have out there we're big believers that we don't need new rules for crypto we just got to fit into the existing framework that is exist today securities laws are actually pretty clear there's lots of case law and precedent so what we've done with poly mesh is say how can we give a tool box to all of our issuers all of our partners to help them be compliant and what does it look like it looks like transfer restrictions so only authorized token holders that are accredited for example or certain maximum amount of investors can hold the token at one time and we do that all programatic lee already and what we're doing is bringing that down to the base layer with the polling and we do fear though that that's what's going to happen i mean like here in the u.s. i. actually just had a week or 2 ago that they were talking about how it's time for clearing houses in the crypto game i mean does that become a problem you know at 1st glance i think that's
a little bit redundant in that defeats the purpose of the block a bit i have to look at that announcement but i think you know we have to we have to reimagine. point doesn't really crypto doesn't really help if we're just doing like linear improvements it's a completely architecture of wall street a lot of the infrastructure itself in the eighty's and now it's time for something new that's that's a purpose built for transactions and that's that's where i think the blocking has. shanghai based neo an open source nonprofit block chain project announced a new york watching week the creation of neo 3.0 a new version of their block chain that will provide better infrastructure for the mass adoption of the platform meanwhile the company has made big strides as they opened a new office in seattle in april but sat down with neil co-founder and c.e.o. say about the expansion of their company. it's the 1st originated from china. but today it's it's already been
a very international we have developers communities all around the world and it's known as the chinese that theory of how do you feel about that we don't like i don't like particularly like. the idea of saying we are the chinese the syrians but we are little we're similar we have small contract you can run your own you computer or software based on you block chair but we're very different design philosophy new and other blocks very different our design philosophy is what i call the pragmatic idealism we share the same ideology we block supporters but we are more practical we want to be compatible with. conventional mainstream society the legal system and the financial system if we take out all the other uses a block. for just a moment you kind of see that the user some of the early adopters those who were
interested in the investment angle of it the early adopters were interested in the fact that it was a currency that it wasn't mainstream that was different i mean is that a concern when you're trying to bring this mainstream i think is there not because of it's our total tive so they invest in this assets i think they are seeing the potential of this our tentative vehicle investment vehicle and i do believe that. will probably change the. paradigm of the internet so we are seeing the internet server client based centralized we are moving to a decentralized internet that controls their own data. that all the protocols all the data silos will be inter operable with each other so we are in a shift of paradigm and we've heard this conversation about the search. for a decade probably longer than that. in the mainstream we've heard about it for
a decade. i mean how far away are we from an actual actual implementation of any sort of decentralized they were a list 5 years away list the reason that we be talking decentralized internet for a long time but the reason we didn't see it is because we don't have the proper tools. the proper technology tool and also the into institutional to attribute it decentralized to internet you know you guys are opening an office. here in the u.s. in seattle i mean how big of a move is that for you. to the west coast of the united states i think that's the trend of lot of chinese originated business they're not just doing their business in chinese they're not competing with chinese competitors they're competing in the international stage so that's the same with us we started as a very small group of geek. there are 4 or 5 of us and now we
have about 15 ploy. but the more important part is we have hundreds maybe thousands of developers from all over the work that are contributing to this new protocol contribution to the new ecosystem they're building the protocol they're also putting those decentralized implications on top of. for more we turn to our own christiane kristie joining us from los angeles kristie heard a lot there about the future of crypto crypto is increasingly viewed as a treated as separate asset class and is portfolios it's getting that standing now when only a couple years ago it was regarded almost as a worthless bad how and why is this shift happening. why i think it's really hard to classify something as a fad when he has surpassed $200000000000.00 in market cap but it's actually really difficult to pinpoint exactly when the sun. shift happened i think for most
investors it actually happened when they started viewing cryptocurrency as a separate asset class and of itself because it's really actually hard to classify it has the upside profile of an equity it's not exactly a commodity even though it does have aspects of value storage it's not exactly a currency but it does have traits of f.x. in the fact that it is a hedge against currency inflation so they have like different profiles within all that spectrum so it's really difficult to label so now investors are increasing viewing this as a separate asset class that it's necessary to be part of a balanced portfolio because of the fact that the risk profile is so different and so right now the correlation again something like gold is actually quite high it's actually point 7 on the our scale if you look at the correlation between gold in low volatility times in the market however equity it's actually a very negative correlation and so this is actually very good head for most investors trading in the either the us equity or the asian equity markets the fact
that crypto currency can be used during very volatile times in the stock market is actually a good way of balancing out the portfolio and so you can see in 2017 that there was actually a tremendous outflow from the u.s. equity markets into the cryptocurrency market because people saw this huge potential and then subsequently in 2018 we had one the 1st down years in the u.s. in over a decade so that's when you saw tremendous outflows of u.s. equity markets flow into the cryptocurrency market and you see that entire segment start getting built out you know turkey is still in the midst of a currency crisis and citizens soon to be tell you things about their own. about that. so right now turkey is still in crisis the lira is still falling it has fall into a 6 month low against the u.s. dollar and right now it has sustained a 10 percent drop this year year to date in addition to the 28 percent that is sell against the u.s. dollar in $28.00 team so given this the citizens are looking at their feet our currency and they look at her. hey this actually might be worth less tomorrow so
they're putting more faith in something like choir which actually hold its value as a trade primarily against the u.s. dollar a much more stable our currency. the great will fascinating insight there brant what's your take on well i mean it's great i mean we've seen it like it like christie has mentioned too as we've seen it in africa where it's been big because the currency and banking systems and some of these nations are are so in such disarray that we kind of need to move forward and digital currency that is worldwide really helps things out yeah i was a minister a lot of examples turkey is just probably the biggest now but we're probably going to see more of this time now for a quick break while we hang here because one returns one of the great if you could get the best price possible when buying cryptocurrency we catch up with rocky miller busy c.e.o. a bit see on to discuss their purchasing aggregator what they say can help you be sure you buy at the right price plus we often focus on the aspects of watching
technology but the test itself has myriad applications are cheaper and divorce. then to talk about the new frontier of personalized artificial intelligence on the block chain stay right there because we'll be back in a flash. all of the years i've talked to you about the inside. of the economy where humans are becoming like the colony of insects. and that's all enabled by this 5 be enabled surveillance pretty cool right. the tense situation in venezuela is still a little over the news the problem in venezuela is not that socialism has been poorly implemented but that socialism has been only implement from the inside when this. things are different we're going to announce sanctions against petroleum to
venezuela so as you. famously have a son of the moment is. that outputs and that sort of data to see on the people of the moment the focus of the who story isn't new makes him cold in henry kissinger to tell him that it would not be tolerated in latin america. an alternative economic and social system could take hold and therefore the policy would be to make the chilean economy scream so wants now making the economy of venezuela screed. you should. put themselves on the line. they did accept the reject. so when you want to express. some want. to do it.
this is what. you get. interested. in. welcome back to our special deep cryptocurrency show we are joined here by boom bust christiane brown job or one of the biggest detriments to getting into the crypto game right now is actually being the cryptocurrency users different types of digital wallets software downloads and even numerous exchanges and all the choices can be extremely daunting so kristie right now can you just give us the $1.00 to $1.00 how do people start trading cryptocurrency is. well there are actually 2 ways of trading cryptocurrency is primarily the entire markets actually dominated by crypto to crypto transaction so this automatically assumes that you have
a digital wanted to have some semblance of crypto currency that you can bank income or into a different form of credit card they are all twined if you well so right now the main problem and the main headwind is actually getting the fee out currency to convert into kept on the 1st place so these data while they have massive k y c m l in order to make sure that their clients are legitimate people and that there is no money of laundering which i think is one of the main detriments and one of the main things that regulators are looking at because crypto currency could be used for money laundering and in fact and that's why this is actually one of the main problem that the entire industry is tackling the fear to cryptocurrency transaction and is it getting any easier to get started the group those. absolutely there are a lot of companies that are. taking this process more seamless coin this is one of the biggest ones and they are now in over a loving countries globally and they're making the super easy for consumers because they actually partner with a lot of credit cards and now you're actually able to start by buying cut their currencies using a credit card or pay pal so in that respect they're actually. mobilizing like
a lot of people to actually get started right now u.s. dollar is the primary currency trade against something like the coin but the korean one is right on its heels. right and there are a lot of new players joining the cryptocurrency market during confesses i was lucky enough to sit down with bit since the co-founder and c.e.o. rocky miller to talk about their new smart order rotman platform aims to give you the best price win by any number of kryptos. in the liquidity aggregator what that means is if you think about the crypto ecosystem there's over $200.00 exchanges and we aggregate the best of those exchanges and so our clients can come on our platform and whatever it is that they want to trade they want to buy because they want to buy a dogecoin car danno we will provide them the best pricing also any coin that they want to purchase the way that we're doing it is you know we've been doing a few interviews now and it's been called the kayak i was going to say it's like
your video dot com. exactly so you go in we give you with full transparency print before you actually hit the buy button we'll tell you what will it cost you all in with fees on any one of those exchanges that we connect to you can choose which exchange you want to express your trade but if you want to trust some of our algos which are designed to find you the best execution you can use one of our elders. algorithms are understand no that's ok we're currently in beta we started a year ago i myself and my my co-founder steve were from traditional finance we both were at morgan stanley goldman sachs working on equities derivatives and so i our kind of jump into the rabbit hole of blocks in crystal currency started a little over a year ago. so we started c.n.n. and we're trying to bring things that we've learned in our careers over the last 20 years into into this i mean how much of a difference are we seeing between those exchanges that makes that's a great question so when we're doing some analysis i mean at the peak of it you
know there were like $800.00 difference so you know exchange in korea versus 9 versus an exchange. or an exchange here in the u.s. like like one base so this is the spreads between the prices across the ecosystem could be very very wide whereas you know in the traditional markets people are used spreads and even now if you go into individual markets and you look at their order books you'll find that the spreads are are there they're not crossing each other but when you look across them you'll find that there's a lot of opportunities and definitely opportunities to find where you actually want to purchase or are selling you know your your assets and how do you feel like you know this is something that i've always very interested in how do you feel the transition from the traditional investment world. going into the crypto world how has that transition i think its interests which is great i think for the crypto community it's a great validation you know when someone like j.p.
morgan fidelity. you know their trade comes in and says well we're going to look at the space and not just look at it for r. and d. project but actually you know do something with that it's great invalidates the entire ecosystem personally i think the adoption will be slower because banks have with their whole infrastructure that they have you know spend in some cases you know 5060 years building and it's hard to take you know it's like think of it as moving from cables to fiber it takes a while to some of these infrastructure and put it into the well and if you you know you look at the traditional banking you have a lot of these companies that have hundreds of thousands of employees nationwide. and so educating completely on what is going on in the corporate world which is a very complicated space at least right now but it. started by so but i don't know that it's that much. more difficult to understand traditional stock market or
securities or i don't think so i mean coming from that side of it it's some more difficult i think there's whether people have the motivation appetite to learn and i think initially maybe people dismissed it as a hobbyist you know type of ecosystem but it's you know it's gaining traction every time there's any strife now globally people are looking at. you know digital gold is a phrase that you hear a lot and you know i think as the world gets more and more global this idea of a digital currency that is borderless you know starts to get a lot of a lot of eyeballs and a lot of use and you know capital markets will go where capitalism this is if this is a growing ecosystem you know people are sitting within these banks and looking at their growth strategies and i think at this point they would be a little amiss if they did not have a strategy on what they're doing with crypto what they're doing the block chain you know even at the strategic level and in a lot of organizations so this is this is
a start it takes it takes a while for people to get there but some great opportunities for techs like us coming in that are you know kind of pushing the. you know we hope in a couple years they'll be more and more people in this race. while crypto currencies are the are the most frequently discussed application of block chain the technology itself has many more uses that are just beginning to be developed spoke of consensus with. jane to talk about their breakthroughs and what this could mean for many aspects of your life. story is the. i have young kids at home and whenever i travel which is a lot i realize that they missed me a lot so i thought what if i had a copy back home a copy that looks like me it talks in my wise and my kids can interact with it anytime they want on demand so which is the inspiration of the company and now we
have the technology which you can use to make your own avatar which looks like you have talks in your voice is a digital impersonation and it's all made by ai and how so how does that work how much information do i have to provide to get to talk like me to answer like me and to make those moves in an ai version of bread the 1st thing you do is to make an avatar which looks like you take a selfie in about 2 seconds from your mobile phone. android your visual avatar is ready to go and then make your avatar speak in your war yes you can give it some data for example you can speak a few sentences anywhere from like a couple of sentences to up to about 10 and your avatar is not cocking in your voice it can be one scene in your voice as well and you can all start using it so we just announced a new app called high news news in which we actually made an avatar.
virtual push. that is reading news on demand through its audience so the users in this case the viewers are now interacting with the avatar and the news is being read to them and in the future they can ask the avatar questions such as we'd meet this kind of news and the avatar would read back to them so that's the most fundamental engagement between consumers and ai that we have enabled for the world's 1st time so are you trying to tell me that you try to put me out of business because now you don't need me just have a i have a can can read the news this is actually 2 different ways of looking at it and one of the 1st ways that it's a very synergistic thing content is always needed a 2nd is that if we have. avatar and we have some content then hopefully you can utilize that avatar to actually make money if you're not working. that's it for this time we'd like to thank both bridgeboro and chrissy i join us from l.a.
you can catch us on a boom bust on you tube dot com slash start to see next time. the lakes is empty of forms part of a high altitude nature reserve. it's one of the famous chito room internees years principle which a way starts its journey. but it can be summed up. to the time i got to step up. it runs 300 kilometers from source to mouth and there are over $200.00 industrial facilities ranged along its bank. i'm out on your muscle.
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