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00:00HERE TO EXPLAIN IT, WHAT IS ABOUT TO HAPPEN IN BIT COIN WORLD THAT HAS EVERYONE SO INTRIGUED AND CONTRIBUTING TO THIS RECENT SURGE? >> THE LEVEL OF ISSUANCE WAS DETERMINED BY THE SOFTWARE AND 2009 AT A DECREASING RATE OVER THE SUBSEQUENT HUNDRED OR SO YEARS, AND SO TO THINK ABOUT TODAY, 3600 BITCOIN ARE ISSUED EVERY DAY. NEXT MONTH, IT WILL BE 1800 A DAY, SO THE FACT THAT THERE WILL BE LESS ISSUANCE MEANS LESS SUPPLY WILL HIT THE MARKET, AND THAT COULD POSSIBLY HAVE A POSITIVE EFFECT ON THE PRICE OF THAT COIN. JOE: PEOPLE HAVE KNOWN ABOUT THE SCHEDULE FOR EVER. HOW MUCH OF THE RECENT SURGE WOULD YOU ATTRIBUTE TO THIS? >> I THINK THIS IS A RELATIVELY SMALL PART. IF YOU THINK ABOUT THE IMPACT ON SUPPLY, IT IS LESS THAN 10% OF THE DAILY SUPPLY OF BITCOIN COMING FROM THE ACTUAL ISSUANCE. THE OTHER FACTORS LIKE CAPITAL FLIGHT FROM CHINA COMES SPECULATION IN CHINA, PEOPLE SEEING BITCOIN AS AN ALTERNATIVE SAFE HAVEN ASSET, I WOULD SAY THOSE ARE IMPACTING THE PRICE MORE. JOE: WE HAVE THIS CHART HERE. I DON'T KNOW WHETHER IT IS MEANINGFUL. IT SHOWS BITCOIN SURGING AT THE SAME TIME THE CHINESE CURRENCY IS WEAKENING. HOW MUCH ACTIVITY IS COMING OUT OF CHINA RIGHT NOW? >> A LOT OF THE BITCOIN TRANSACTIONS ARE PROCESSED IN CHINA. A LOT OF THE ACTIVITY HAPPENS IN CHINESE EXCHANGES. I WOULD SAY A MAJORITY OF THE TRANSACTIONS HAPPEN THERE. MOST OF THE SPECULATION HAPPENS INSIDE CHINA, SO THERE IS A CONNECTION THERE. JOE: YOU SAID SPECULATION. IS THAT A DISTINGUISHED BETWEEN USING BITCOIN AS A WAY OF GETTING AROUND CAPITAL CONTROL? >> BOTH OF THEM ARE IMPORTANT FACTORS IN CHINA. BITCOIN IS A CONVENIENT WAY TO GET MONEY OUT OF CHINA. YOU BY BITCOIN

Bitcoin Soars as Supply Reduction Looms

Gil Luria, technology analyst at Wedbush Securities, discusses the surge in the price of bitcoin. He speaks to Bloomberg's Joe Weisenthal on "What'd You Miss?" (Source: Bloomberg)

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