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breaking news moment-by-moment folks we are hitting new session lows I need you to look at the S&P 500 when we start at the program 28 minutes ago we were down about 50 points and now we're down 60 so we're watching this very closely there's an acceleration to the downside at the moment who knows exactly which piece of the very ugly puzzle today is affecting but their concerns about trade that's kind of taken actually a back seat big concerns about the Federal Reserve on Wednesday what about a government shutdown and of course health care is tanking on the news that a Texas Court had said that the Affordable Care Act is unconstitutional so right now the Dow is down 539 points and to this exactly one year ago today Bitcoin the world's most valuable cryptocurrency reached a record high of 19 thousand seven hundred and eighty three dollars per coin fast forward to this afternoon and it stands at just 1/7 of that it is up three hundred twenty-five bucks though to three thousand five hundred and thirty-five having lost more than 16,000 of its lofty value but wait the White House has just tapped a probe Bitcoin acting chief of staff yes Mick Mulvaney has long praised the decentralized nature of Bitcoin saying it's good because he says it can't be manipulated by any government well tell that to the Securities and Exchange Commission who's been disinclined to approve Bitcoin funds and ETFs until the digital currency is proven totally secure so we said time for a bull bear debate on this anniversary our bull is coin list co-founder and president Andy Bromberg and our Bitcoin bear author of the real crash euro pacific capital CEO peter schiff Andy to you first why when attempts to make crypto mainstream through the creation of funds are swatted down every day by regulators and there's even a DOJ criminal probe into price manipulation why do you still see the bright side of Bitcoin that's a great question Liz I think what we have to remember here is that this is an incredibly young industry Bitcoin was created only 10 years ago and if you compare that to traditional markets that have been around for centuries there's a lot of work we have to do to regulate these markets the sec has said that the markets are not developed enough not regulated enough there's not enough transparency and that is some of the top companies are working on but we're just not there yet and so we're excited because the fundamentals are still there the technology that has been created this blockchain that enables a distributed set of people to create consensus and power a new generation of financial instruments that's still there so you're not concerned about it having been at nineteen thousand and in just a year it's now at three thousand it's easy to find digs at technologies that are new but what we're seeing is that in these past 10 years there been four or five times when bitcoins retraced eighty or ninety percent of its value and that's the nature of a cyclical early-stage market we expect that to even out as time continues but for the time being we have to expect big booms and big busts in such an early industry Peter Schiff you've been a pretty much a bear and I hate her on bitcoins since it was I don't know 100 bucks why are you still at that point when it's certainly well above that original price well you know bubbles can get very large as a lot of people are about to find out you know that's one thing that stock market investors have in common with Bitcoin ha dollars as they refuse to admit that the bull market is overlooked Bitcoin may be young but it's going to have a very short life because the problem is the underlying premise is flawed Bitcoin will never be money it doesn't have the characteristics that would qualify it as money it's just a speculative asset that has no real underlying value it will never be a store of value because it has no value to store and you know sure it went up to 20,000 you know in fact it's up about 10% today maybe some people are celebrating the one-year anniversary of the high by thinking it's also gonna be the low but premise here I think that we we don't say those of us the industry a lot of us do not say Bitcoin is money Bitcoin is a store value actually a lot like gold I don't think you should muffins or bananas or anything like that Bitcoin is meant to be a store of value there are other assets in the cryptocurrency space that can be means of exchange but that is not what Bitcoin is built for what value does Bitcoin have why is it worth 20 thousand dollars a coin or two thousand dollars a coin or two dollars a coin I think Martin can I do mod ''tis and and same as gold Gold's value does not come from it being used in practical applications Gold's value comes from where the market values it again as a store of value and Bitcoin is the exact same thing what are the next ten years of Bitcoin to look like since we've got the last ten years in the rearview i doubt it has another ten years I mean ie no one's going to talk about a ten years from now but I think over the next year a lot more air is going to come out of the bubble because this is just nonsense to say that commodities have no value they have a use there are things that you can do that's why commodities have value because they deliver an underlying use Gold has used oil has used wheat has used Bitcoin has no use it's purely a speculative asset the people that are holding on are completely delusional this thing is going a lot lower Andy last next ten years of Bitcoin I think in the next ten years of Bitcoin and more broadly the next 10 years the cryptocurrency space will involve finding those use cases the space professionalizing and consumer izing us seeing institutional capital institutional users entering into the space at the same time the consumers start to be able to use these again it's an early product there's a long way to go but there are a lot of smart people working very hard in this industry Peter Andy let's come back I want to come back maybe halfway through next year hopefully before then and we can see the path and the trajectory of this thanks so much Peter ship and Andy Bromberg all right your portfolio matters we understand that right now so we're bringing in Kevin Miller evaluators chief investment officer and he wouldn't get out of the chair so we said let's bring Peter Schiff back he is here once again for this massive well massive it's a two and a quarter percent market sell-off but in the aggregate we are looking at this very moment at multiple days Kevin of significant losses what as an investor should people be doing right now well obviously the first thing you have to acknowledge is how long is your time horizon till you've got to need your money and if you are going to be spending money within the next two to three months obviously you shouldn't have been in the stock market with that money in the first place I think now you just have to write this out we have things coming up that have a definitive timeline that will that could abruptly change the direction of this market and change it significantly which would be the Fed what they're going to do this week and then in the upcoming first half of next year then obviously the China trade agreement Peter does the Fed blink in light of everything that's happening one day and we are off the lows of the session but yet Liz I think regardless of what the Fed does on Wednesday after that is go yeah I am I regardless of what they do the next thing they're gonna do is cut race they're going back down to zero but it's not going to stop the bear market and it's not going to stop the recession it will probably kick-start inflation into a higher gear but you know Charlie before I came on Charlie was saying there's a lot of fear out there there's not there's an absence of fear there's a lot of complacency out there people should be afraid more so about what's gonna happen the economy there is going to be another financial crisis the next recession is going to be much worse than the last one that is the problem you know whether or not the Fed is gonna let the cat out of the bag tomorrow whether they're gonna take a punt and not raise interest rates but regardless of what they do this is the last rate hike and the mistake that the Fed rate made though was not raising rates the mistake was cutting them in the first place they never should have went to zero they never should have left them there that long the minute they did that they doomed the economy and now we're gonna have to reap the whirlwind of what they sowed Kevin we've got 30 seconds left can you tell me what you advise our clients to buy in this atmosphere where there are some definitive moments as you put it coming up on the calendar well I'd tell them to definitely stay out of indexing and go with something on a more active basis I do believe that I disagree with Peter I don't believe we're going to go into a recession in the near term I believe that we're going to be fine with regard to where this market can recover it is painful but I do think that the long term is positive for us
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