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00:00EDITOR, THANK YOU VERY MUCH. CRYPTOCURRENCY, WHAT A DIFFERENCE A YEAR MAKES. BITCOIN HAVE JUST IT IS RECORD HIGH -- A YEAR AGO HAD JUST HIT ITS RECORD HIGH BUT DECEMBER THIS YEAR IT IS UNDER $4000. I SPOKE WITH THE FOUNDING PARTNER OF CRYPTO ORACLE ABOUT BITCOINS PROSPECTS FOR NEXT YEAR. ONE OF THE MOST INFLUENTIAL CRYPTO BLOGGERS, AND HE IS A BULL. > > IT IS STORED VALUE. THE MAIN VALUE IS GOLD, $8 TRILLION THING. BITCOIN IS ABOUT $60 BILLION, SO I CAN REPLACE GOLD AS THE DOMINANT STORED VALUE, AND IT CAN GO 100 FOLD FROM WHERE IT IS TODAY. EVEN IF IT BECOMES A STRONG SECOND, IT CAN BECOME -- IT IS A BETTER WAY TO STAR -- STORMIER VALUE. RAMY: WHEN PEOPLE SAY, GOSH, BITCOIN, WHAT IS THE EXPLANATION FOR THIS FALL? > > WE GOT AHEAD OF OURSELVES. I USE A WORD TO DESCRIBE THE TENDENCY, BUBBLES CRASH, BUBBLES AGAIN. CAPITALISM. THERE IS SOMETHING CALLED -- THE IMPACT OF GREAT TECHNOLOGICAL CHANGE IS OVERESTIMATED IN THE SHORT RUN AND UNDERESTIMATED IN THE LONG RUN. BITCOIN IN THE BROADER CRYPTO CATEGORY, THIS COMPETING PLATFORM OF BLOCKCHAIN, CRYPTOCURRENCY, THE DISRUPTION FROM THAT IS GOING TO BE GREATER THAN THE DISRUPTION FROM THE INTERNET. BITCOIN IS THE EARLY LEADERS LIKE YAHOO! OF ITS DAY. IT IS MASSIVE BUT NOT THE THING. RAMY: THE FALL ON THE NASDAQ WAS DOWN 78%. WE ARE SEEING A MATCH WITH BITCOIN. IF WE GOT AHEAD OF OURSELVES, WHEN DO WE UN-GET AHEAD OF OURSELVES? > > NOBODY KNOWS THE ANSWER. IF WE BELIEVE IN 20 YEARS THIS WILL CREATE TRILLIONS OF DOLLARS OF VALUE LIKE THE INTERNET, WE ARE AT THE BEGINNING TODAY, IT WILL BE HERE IN 20 YEARS -- [SPEAKING SIMULTANEOUSLY] AND THE GREAT THING ABOUT MAKING 20-YEAR FORECASTS IS YOU KNOW YOU WILL BE LONG FOR A LONG TIME. WE KNOW THE PATH TO GETTING THERE WILL BE LIKE THIS. IF YOU FOCUS ON WHERE YOU WILL BE IN 20 YEARS, KIND OF ALL OF THIS IS NOISE. RAMY: A BLOOMBERG NEWS ARTICLE SAID THE DAYS OF 20,000 FOR BITCOIN ABOUT A YEAR AGO ARE BEHIND US. WHAT DO YOU SAY? > > IF THIS BECOMES A STORED VALUE -- GOLD HAD A 5000 YEAR RUN. THIS IS A BETTER STORED VALUE. IF THE WORLD COMES AROUND TO SHARING THAT VIEW, AND WE ARE ON THAT PATH, WE ARE EASILY OVER 100,000 IN THREE OR FOUR YEARS. RAMY: INTERESTING. I WILL COME BACK TO YOU IN 20 YEARS, WHEREVER YOU ARE. WHEN YOU TALK ABOUT STORED VALUE, YOU PUSH THIS RELATIVE TO GOLD AND SILVER. > > IF YOU LOOK AT CURRENCIES OVER TIME, 100% OF THEM UNTIL 400 YEARS AGO WENT TO ZERO. THE TRUTH IS IF YOU THINK OF THE DOLLAR, IT IS A PONZI SCHEME. IT IS FINE. THIS IS HOW GOVERNMENTS WORK. NOBODY THINKS WE WILL EVER PAY BACK THE DEBT THAT WE HAVE. WE WILL NOT PAY BACK $20 TRILLION PLUS. THERE WILL BE MORE COMING. IF YOU WANT TO MAINTAIN YOUR PURCHASING POWER, THE ONLY THING THAT HAS HELD UP HAS BEEN GOLD. THAT IS HOW YOU STORE YOUR VALUE. CURRENCIES DEGRADE AND GO TO ZERO. EIGHT TRILLION DOLLARS IS STORED IN GOLD. PEOPLE SAY I DON'T WANT TO HOLD -- IT IS PART OF A DIVERSIFIED PORTFOLIO. SILVER IS THE SECOND-BIGGEST STORED VALUE AND BITCOIN. IT IS TAKING OVER SECOND-PLACE FROM SILVER AS A STORED VALUE. RAMY: SOME FOLKS SAY BITCOIN IS THE FIRST ITERATION. WHAT WOULD BE NEXT? > > BITCOIN STARTED OFF TO BE A DIGITAL CURRENCY. IT CAN POTENTIALLY BECOME ONE, BUT THE PROBLEM IS AS THE FIRST ITERATION OF THE DECENTRALIZED ENTITY THAT ACHIEVES SCALE, THERE IS NOT A FUNCTIONAL GOVERNANCE FOR BITCOIN, SO IT REALLY STRUGGLES TO EVOLVE. ALL THEY CAN REALLY BE -- IT DOESN'T NEED TO EVOLVE TO BE A STORED VALUE. IT NEEDS TO EVOLVE TO BE DIGITAL CURRENCY. WE THINK THERE WILL BE DIGITAL CURRENCIES, GOVERNMENTS WILL ISSUE THEIR OWN, BUT THEY WILL BE PEGGED TO THE REGULAR CURRENCY AND DEGRADE OVER TIME. NONGOVERNMENT DIGITAL SECURITIES WHERE YOU KNOW HOW MANY DOLLARS OR WHATEVER IT IS THEY WILL BE, NOBODY KNOWS HOW MANY DOLLARS ARE GOING TO BE OTHER THAN YOU

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Bitcoin on Path to Be Better Store of Value Than Gold, Lou Kerner Says

Lou Kerner, Crypto Oracle Strategic Advisory founding partner, discusses the year ahead for cryptocurrencies with Bloomberg's Ramy Inocencio on "Bloomberg Daybreak: Australia." (Source: Bloomberg)

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