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00:00Obviously this is a big day for cracking. What's your outlook on growth in the U.S. given the extreme and high interest in crypto right now. Obviously it's a super hot market right now and in the United States is a huge market. So we're really excited to finally offer a retail product to the market. Our pro app has been available for a while but this really completes the package for us in the United States. It allows people to buy directly from their bank account and sell directly into their bank account. So that's a huge convenience for people. It's something that people been asking for for a long time. So we think the opportunity in the United States is awesome. We've been super successful with the rest of the world. So we're just planning for four more success here. The story of the last couple of months though has been volatility. Jesse you told us Bitcoin would go to infinity a million dollars in the next decade or this was my favorite quote from you one Lambo or about two hundred thousand dollars before the end of the year. Do you think it's still going to get there. I stand by that. So look you can buy you can buy a forward delivery of a Lambo now at a discount at a cheap thirty seven thousand dollars. You know lots of people are buying the dip. Personally I'm Googling like how to sell my kidneys at this point. Turns out it's illegal. So much for my body my choice. But look like I think you know people are getting ready to go on to ramen diets to buy bitcoin at these levels. I think that you know just everything is happening in Miami right now. The excitement around the space is so hot. I think people just see this growing massively. So not worried about this little dip. You know we've seen this over and over. Crypto is a roller coaster. You got to be able to have an iron stomach to tolerate the ride. But you know the gains are massive for those who can handle it. OK but is going on a ramen diet a wise idea. I mean I thought people were only supposed to invest what they could really afford to lose. Absolutely. Don't invest anything more than you can afford to lose. Don't don't gamble your rent on Bitcoin with the prices up and down 50 percent in any given week. So you've really got to be able to think about this investment and hold for five to 10 years. You don't think about this as a week to week swing trade. You know people absolutely should not be betting any any more than they can afford to lose. It's still a very risky investment. But obviously over time if you look at the chart you know 10 years ago Bitcoin was trading at a dollar today. Thirty six thousand dollars. Still year over year it's up 200 plus percent. So long term it's an absolutely fantastic investment from my point of view. I absolutely would not put a hundred percent of my portfolio into Bitcoin or I would not for my rent money into Bitcoin. And definitely not your food money. You don't want people trying to survive on cup of noodles. OK I want to ask you about Elon Musk because because he has had some incredible influence on the ups and downs here. And I wonder how you feel about one individual having that much power. Yeah it's really interesting to see the reactions to you know one person's tweets and what that can have on the market. I mean I think it just goes to show that the power of means is real and that people are are increasingly looking toward sort of non-traditional figures to to get investment advice from. You know I think we we've realized that like we can't trust the trust the guys that are running the system now. And so who else is smart out there and as visionary and seems to have the interest of humanity at heart and those guys have proven to be more trustworthy. So you know I certainly wouldn't wouldn't be making fundamental decisions about my investments from from one person's tweets. But you know I think if you look at crypto as a whole you develop a thesis. You know you can kind of weather these market reactions to tweets and means and and even regulators saying things you know we're constantly hearing this. There's always some country in the world that's like banning Bitcoin for a few days and then banning it you know a week later. So once you have your kind of fundamental thesis I think that those things are much more subdued and you can just write it out. The people that I think don't really understand what's happening and are just kind of along for the ride are the ones that are reacting to these kinds of tweets. Curious what your fundamental thesis is given we haven't had major regulatory action in the US but that Biden's FCC has indicated some sort of regulation is coming. Look I think I think clear regulation will actually open the floodgates. I don't see it as a squashing Bitcoin by any means or the crypto crypto ecosystem broadly. I think that there are a lot of huge players waiting on the sidelines pension funds other large investors that are just waiting for that stamp of approval. That level of certainty where there's a lot of gray area now people just don't know how the regulators are going to treat this. And so they're just in this wait and see mode. And we don't have any indication that there's gonna be like a crushing blow to the ecosystem. And all of the large players are already fully regulated. So it's nothing new for us. You know I think just additional clarity would be really helpful. What are your plans at this point to go public. Do you have bankers on board. Are you thinking about a spark or a DEA or an IPO. Yeah we don't have. We're probably not gonna do it back and I think we're too large first back. We're looking at second half of next year. We're in a readiness preparation mode right now. Where we'll decide later if we really want to pull the trigger on it. Obviously. You know things have been weaker than expected for for another recent crypto company direct listing so you know whether we go the path of direct listing or an IPO I think is yet to be decided or even to stay private as an option. You know I think the markets don't really understand the value of these businesses right now and they may not understand the value until it's really too late. And we fully replace sort of the legacy systems. You're referencing obviously Coinbase is direct listing there. I mean does that make the picture murkier for you. Has that impacted CAC valuation. I think a lot of things that are are driving the price down. You know I think personally it's undervalued right now. And I think it's because it's just new. They did a direct listing so there were no lock ups. You know it's very different from an IPO process. The street still doesn't really know how to take the management's forecasts whether it whether to treat it as conservative or aggressive. There's not much analyst coverage yet. You know I think and I think a lot of people just still don't have the vision. They don't see what's coming with crypto. And I think if they did Bitcoin would already be a million dollars plus a coin. So I think it's just sort of a reflection of the overall sentiment of the space and the lack of awareness about what's coming. And you know I think it'll be just like it was with the Internet you know like there'll be people that just don't get it until until it's too late. So you know I think there a lot of things sort of at play with the price of the coin stock. And yet we look at that you know as a company we try to understand you know why is this so undervalued right now. And you know we think they're a bunch of things that go into that but it hasn't deterred us from from our our path. You know we'll make the call when we're ready to pull the trigger on the listing.

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Bitcoin Ride Only for People With an 'Iron Stomach:' Kraken CEO

Jesse Powell, co-founder and CEO at cryptocurrency exchange Kraken, discusses bringing their mobile trading platform to U.S. users after its success overseas. He also says people should not gamble with Bitcoin and they should look at the asset as a five to ten-year investment. Powell cautions people not to invest in crypto solely based on what Elon Musk says on Twitter. He speaks to Emily Chang on "Bloomberg Technology." (Source: Bloomberg)

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