Is Bitcoin a Joke or the Real Deal?

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Dec. 3 (Bloomberg) –- Business Insider Executive Editor Joe Weisenthal and Pension Partners' Michael Gayed discuss Bitcoin’s volatile climb towards legitimacy. They speak with Adam Johnson and Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Wiesenthal and are closer.

Always a pleasure to see you.

What made you change your mind?

It's not like him some raising bitcoin bowl.

I'm starting to think about it more with some of the objections i had.

I could not defend them.

What were your some of the objections and how have they changed?

I thought that the apparent volatility of it was going to make it unsuitable for any real commerce.

The more i've thought about it, if you think about it as a payment platform, i have to pay you $1000 to buy something, i don't really care that it's been volatile as long as i can transfer.

And that volatility could always change assuming more people, to the market.

The price keeps going up and then people will never spend it but i also think that is as much of a problem as i thought.

Again, you have to use bitcoin to transfer money to someone and you don't really care whether it's going up as long as it serves a purpose for you.

There is some chatter right now that servers like paypal may accept something like bitcoin.

A lot of the bitcoin advocates sound like gold people in a talk about the frailties of the dollar and i do not find those arguments persuasive.

We will talk about it as some sort of alternative to traditional payment systems or payment startups as well -- it preserves anonymity.

And to skirt regulations, for better or worse will always be a thing.

Quick supporters of bitcoin are hard-core.

They do not mess around.

A kind of took aim at you for some of your posts earlier.

They created a meme.

Do we have a picture?

Here we go.

[laughter] he called a joke at $300 and i'm laughing all the way to the bank.

Educate me for a second.

Her c is based on full faith and credit so what is bitcoin based off of?

It's not a substitute for a currency and i do not think it will displace currency but i do think it's interesting as a technical solution to creating cash online.

Doing transactions online that would otherwise be difficult and you don't have to take an extreme example of doing something illegal will even transferring a lot of money to someone in another country is not a trivial exercise.

It's cumbersome.

Banks are archaic.

I remember we talked about this, someone very involved in the bitcoin community and we asked about western union and he had had conversations.

These transfer services have to be interested because this could be a way to do it much more efficiently.

Or it could be disruptive.

Ultimately, they would say that this is a payment system and it's already very seamless.

I think you could be an opportunity for existing payment companies.

There are other currencies out there.

How do they deal with these rivalries and will it be the one to succeed in the end?

Maybe the crypto-currency will be a thing for a while but maybe bit coin is like a napster in which case it's kind of like a forerunner to ahead of the curve as to how we share the internet, peer to peer, but ultimately, it goes down before the vision is reached.

One advantage they have is network effects.

There are hundreds of bitcoin clones that could theoretically accomplish the same technical solutions.

Provides a means of exchange without identifying the person.

Do you think without edwards known and we would be trading at $1000? the mythology is very much of the moment with the nsa, paranoia, stuff like that.

I don't know the effect it has on price but it's part of the story.

And then still growth of the cores.

Exactly.

This text has been automatically generated. It may not be 100% accurate.

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