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00:00PROCESSING WIRE TRANSFERS AND VERIFYING NEW CUSTOMERS. THESE ISSUES IT REIGNITE THE QUESTION, ARE WE IN A BITCOIN BUBBLE. JOINING ME FOR THE HOUR IS DAVID KIRKPATRICK. ALSO CORY JOHNSON. LET ' S DISCUSS WHAT IS GOING ON IN BITCOIN THIS WEEK. COREY: -- CORY: I AM WORKING ON A BLOOMBERG NEWS STORY COMING SOON TO A TERMINAL MAY ARGUE HERE AT CHECK THAT OUT -- A LOT OF THE POINT STOCKS. TODAY WAS WEIRD I KEPT LOOKING AT THE PRICE LOOK LIKE IT WAS GOING UP. AND SINCE THIS MORNING, SINCE THE TRADING, NOT A STOCK, BITCOIN IS UP AND IT IS UP EIGHT TODAY SINCE 9:30 THIS MORNING NEW YORK TIME. BASICALLY SINCE I ' VE BEEN AWAKE TODAY, IT HAS BEEN RALLYING AFTER A SELLOFF. I THINK IT HIGHLIGHTS THE ENORMOUS VOLATILITY THAT IS STILL EXTANT IN THE TRADE OF BITCOIN. ADD TO THAT A LOT OF THE EQUITIES THAT HAVE INFORMED AROUND THE IDEA OF BLOCKCHAIN AND BITCOIN. EMILY: YET, YOU STILL HAVE THE SKEPTICS. THE HEDGE FUND MANAGER HAD THIS TO SAY ABOUT HIS BITCOIN CHAIRS. > > THIS IS A BUBBLE AND THERE IS A LOT OF FRAUD MIXED IN. THERE IS A LOT OF FROTH AND FRAUD IN ANYTHING AS EXCITING AS THIS. > > I WANT THE RECORD TO SHOW I DIDN ' T SAY THAT. > > MOSTLY BECAUSE IT ' S SO GLOBAL. EMILY: HE ALSO SAYS HE IS SHELVING PLANS FOR A CRYPTOCURRENCY HAD ONE -- CRYPTOCURRENCY HEDGE FUND. DAVID, WHERE DO YOU FALL AFTER THIS WEEK? DAVID: MY BASIC VIEWS HAVE NOT CHANGED, BUT IT ' S VERY IMPORTANT THAT SOMEONE LIKE HIM THAT IS A WELL-RESPECTED INVESTOR AND WHO IS ENTHUSIASTIC FOR BITCOIN AND HAS BEEN USED AS A LEGITIMIZE HER THAT THIS THING COULD GO TO THE MAN IS NOW SAYING IT COULD BE THE BIGGEST BUBBLE OF HIS LIFETIME. I THINK THAT IS A HEALTHY THING, BECAUSE WHAT WE HAVE HERE IS SOMETHING THAT IS ALMOST CERTAINLY GOING TO BE WORTH A LOT AT SOME POINT, BUT THERE IS NO OBJECTIVE REASON IT TO BE WORTH ANY GIVEN AMOUNT FOR ANY GIVEN REASON. PEOPLE SAY IT COULD GO TO 400 MILLION -- PEOPLE THROW OUT CRAZY NUMBERS IN ANY ONE OF THEM IS EQUALLY VALID INCLUDING ZERO. UNTIL BITCOIN SETTLES DOWN AND IT BECOMES CLEAR WHAT IT IS USED FOR IN THE WORLD, I THINK THE VOLATILITY IS A CONSEQUENCE OF GENUINE UNCERTAINTY ABOUT WHAT PEOPLE ARE BUYING AND THAT WILL CONTINUE. EMILY: NOBODY KNOWS HOW

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Bitcoin Investors Face Reality Check

Techonomy CEO David Kirkpatrick and Bloomberg's Cory Johnson discuss bitcoin's volatility with Bloomberg's Emily Chang on "Bloomberg Technology." (Source: Bloomberg)

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