Bloq chairman Matthew Roszak discusses volatility in bitcoin

us now is matthew rozak he's co-founder and chairman of block was an early investor in coinbase and a lot of other crypto uh companies matthew thank you for joining us first of all very dramatic what happened this weekend exactly well thanks for having me and um yeah we saw a lot of drama in bitcoin over the weekend uh having its price drop from 60 000 to 51 000 and in bitcoin and crypto when bitcoin catches a cold uh the the rest of the market reacts and and certainly it sneezed the rest of the crypto market caught a cold and everything went down 15 20 uh has recovered to about 55 000 but in terms of what happened there was a few dynamics over the weekend whether it was uh the chinese mining uh uh fear uncertainty a doubt on twitter some profit taking it was a constellation of lots of events uh that really drove the price down and it's recovered about halfway it's a reminder that it can still be risky and rocky for individual investors how much do you see retail as as driving the bus here on some of these prices of cryptocurrencies like a bitcoin or even a dogecoin or a coinbase stock yeah i mean if you if you look at the broader market you see um people's uh getting more and more access to bitcoin coinbase is the largest um crypto market place in the u.s and that provides more access for people to uh to get bitcoin and it is volatile uh it's it's gone over 670 percent over the last year its average irr last 10 years since inception is about 200 percent uh but it's been a volatile uh uh path to get there and so uh it's different now because you have other participants uh playing into bitcoin so there's a there's an underpin of institutional interest and you see this in the treasury of microstrategy and tesla square paypal and others and then you have uh wall street uh uh players like goldman sachs fidelity j.p morgan uh providing research and access to bitcoin so it's it's the underpin uh for bitcoin is a lot different than it was certainly a year or three years ago when we saw much more volatile swings matthew clearly uh bitcoin's performance has been very strong overall and and the volatility remains significant but when you also throw in the likes of dogecoin and its extraordinary rise last week even when it's on the up are you looking at it thinking gosh i wish it would just calm down a little bit because this doesn't help the long-term argument for these cryptos as being a genuine store of value it's a it's a great point uh you look at dogecoin which was originally made as a copy of bitcoin and it was kind of a meme-led uh community and and you take a giant step back uh despite having a 400 percent uh spike over the last week and it's now valued at about 50 billion the the giant step back is you look at elements that are absolutely new they're happening in real time look at wall street bets and gamestop uh this is cooperative capital these are uh people that have access to trading they have access to information the way they communicate and collaborate between reddit or twitter or discord are all new avenues for figuring out alpha or uh thinking through what the next investment is uh so it's less about dogecoin for me and more about there's a new community that is altruistic uh uh wants to make money uh and wants to have some fun along the way and so so with that you're gonna see uh things like gamestop get rescued you're gonna see other uh corporate uh uh citizens that aren't doing well on either a carbon footprint or some kind of a human rights dynamic to to have an effect on that and so uh these folks are voting with their wallets and are a new player in financial services so part of the part of the problem this weekend or part of what caused the price track drop matthew were rumors about regulation potentially from the u.s treasury around money laundering what what if we actually start to see some real regulation here after cryptocurrency and and it's really could come from all sides governments central banks around the world i mean bitcoin is one of the most regulated uh assets in the world it's it's got very uh uh good clarity from the irs from treasury from the cftc sec and there's a whole bunch of other cryptocurrencies that need more definition so i think as as a country if you think about how we approach the internet the early internet and became a market leader in that this government uh and this country has a real opportunity to be a thought leader and and using this technology and these new rails for money uh to its advantage and and i i view this as almost a uh a an imperative for america to get behind this uh talk to their regulators uh members of congress etc and i've been trying to educate uh dc and and other um regulators about uh the benefits of crypto and blockchain technology for for over a half a decade it's a slow process nothing moves fast in uh in dc technology far outpaces the ability for regulators to uh get their arms around this but engagement and proper discussions is the time is now to do that shepard smith here thanks for watching cnbc on youtube

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