>>> WELCOME BACK TO "SQUAWK BOX." TAKE A LOOK AT BITCOIN PRICES THIS MORNING. WE'RE JUST HOVERING UNDER $70,000 RIGHT ABOUT NOW. THIS MONTH EXPECTED TO BRING THE NEXT BITCOIN HAVING IN WHICH THE REWARD FOR MINING CRYPTOCURRENCY DROPS BY HALF. JOINING US RIGHT NOW ON ALL THINGS CRYPTO, ANTHONY POM POMPLIANO. ON ONE END IT'S LIKE A RISK ON SITUATION. ON THE OTHER IT'S ARGUABLY SUPPOSED TO BE A HEDGE. IT'S VERY HARD FOR ME TO GET AROUND THE IDEA THAT IT'S BOTH. THEN THERE'S THE HAVING THAT'S COMING. THAT'S SORT OF AN IDIOSYNCRATIC ONE PIECE OF THE PUZZLE, NOT SOMETHING THAT'S AN ONGOING PIECE. THEN YOU HAVE THE ETF WHICH IS ALSO AN IDIOSYNCRATIC MOMENT IN TIME. PUT THAT PUZZLE TOGETHER FOR US. >> BITCOIN IS THE MOST KMIETING ASSET IN FINANCIAL MARKETS BECAUSE OF WHAT YOU DESCRIBED. IT'S THIS HIGHLY COMPLEX THING EVERYBODY'S TRYING TO FIGURE OUT. FOR SOME PEOPLE IT IS A RISK ON ASSET. >> CAN IT BE BOTH? >> IT CAN BE DIFFERENT THINGS TO DIFFERENT PEOPLE. RIGHT NOW I THINK ONE OF THE MOST INTERESTING PARTS ABOUT THIS, IF YOU TALK WITH SOMEONE ON WALL STREET, WHY ARE THEY BUYING IT? THEY'RE BUYING IT BECAUSE THEY WANT THE PRICE EXPOSURE VIA THE ETFs. IF YOU GO AND YOU TALK TO SOMEONE MAYBE IN A COUNTRY WHERE THEY ACTUALLY ARE WORRIED ABOUT SOMEBODY SEIZING THEIR ASSETS, THEY'RE BUYING BITCOIN BECAUSE THEY WANT TO MAKE SURE THEY CAN HOLD ONTO THE ECONOMIC VALUE. YOU HAVE AN ASSET, THIS IS NOT UNIQUE TO BITCOIN IN THAT SOME ASSETS SERVE DIFFERENT PURPOSES FOR DIFFERENT PEOPLE. BECAUSE OF THE GLOBAL NATURE, BECAUSE OF THE DECENTRALIZATION AND BECAUSE IT WAS ADOPTED BY INDIVIDUALS BEFORE THE INSTITUTIONS, WE'RE SEEING IT KIND OF EXAGGERATED AS WE WATCH THE ASSET BECOME ADOPTED. WE JUST HIT A REALLY IMPORTANT MILESTONE BEFORE THE HAVING. WE JUST HAD THE HIGHEST WEEKLY, MONTHLY AND QUARTERLY CLOSE FOR BITCOIN. SO THE LAST FOUR TIMES THAT'S THAT'S HAPPENED, BITCOIN HAS APPRECIATED AT LEAST 300% THROUGH THE REST OF THE BULL MARKET. DOESN'T MEAN IT'S GOING TO HAPPEN AGAIN, BUT TO HAVE THAT HAPPEN BEFORE THE HAVING, IT'S KIND OF LIKE THE DEMAND SHOCK HAPPENED, NOW WE'RE GOING TO HAVE THE SUPPLY SHOCK. AND SO IT'S HARD JUST TO SEE HOW THE PRICES CONTINUE TO GO UP. >> I WANT TO ASK YOU THIS QUESTION. IT GOES TO THE RISK ON VERSUS THE INFLATION HEDGE. I JUST GOT BACK FROM SOUTH AFRICA AND I LITERALLY ASKED ANYBODY WHO WAS AROUND WHEN I WAS IN ZIMBABWE, ZAMBIA. THE RAND HAS DONE TERRIBLY OF COURSE. INFLATED AWAY. HORRIFIC SITUATION, AND I WOULD ASK ANYBODY WHO WAS AROUND VERY WEALTHY PEOPLE, FOLKS WHO ARE MIDDLE CLASS, FOLKS WHO WERE AT THE BOTTOM, AND I SAID DO YOU OWN ANY BITCOIN? ALMOST TO A T THEY SAID NO, THAT IT ACTUALLY WAS NOT A THING. AND THIS WAS -- BY WAIT, I MEAN, IT WASN'T A SCIENTIFIC STUDY, BUT A LOT OF PEOPLE I ASKED ABOUT BITCOIN BECAUSE I THOUGHT THAT THE CONVERSATION WE HAVE AROUND THIS TABLE IS THAT SOMEHOW THE UNBANKED AND EVERYBODY WHO'S IN THESE COUNTRIES THAT IS STRUGGLING WITH INFLATION IS BUYING BITCOIN. AT LEAST FROM WHAT I SAW, THEY'RE NOT -- AND THEN I WENT TO LOOK AT THE FLOWS, AND IT ALSO IS TRUE THAT THEY'RE NOT. THE MATH DOES NOT SUGGEST THAT THE HEDGE ARGUMENT ON INFLATION IS ACTUALLY A REAL ONE, AND I JUST WONDER WHETHER IT'S SORT OF USED TO SORT OF SPRINKLE FAIRY DUST TO OTHER PEOPLE WHO THEN ARE SPECULATING. I THINK THERE'S A LOT OF PEOPLE OUT THERE WHO ARE SPECULATING AND WANT IT TO GO HIGHER AND IT'S A RISK ON ASSET. THAT'S MY TAKE ON IT AT THE MOMENT. >> I THINK IT DEPENDS ON WHAT COUNTRY YOU LOOK AT. I'LL GIVE YOU TWO EXAMPLES F. YOU GO TO NIGERIA, IT'S DEFINITELY TRUE THAT PEOPLE ARE BUYING BITCOIN. I DON'T KNOW WHY IT'S HAPPENING IN NIGERIA AND NOT IN SOUTH FR AFRICA. IN ARGENTINA SOME PEOPLE ARE BUYING BITCOIN BUT THERE ARE A LOT OF PEOPLE WHO WANT DOLLAR BACKED STABLECOINS. I THINK COUNTRY BY COUNTRY YOU'RE GOING TO SEE DIFFERENT ADOPTION OF THESE TECHNOLOGIES. WHAT I WILL SAY IS YOU DON'T HAVE TO GO TO EMERGING MARKETS TO FIND A REASON PEOPLE WANT TO BUY THIS, RIGHT? IF YOU LOOK AT THE UNITED STATES DOLLAR IT'S LOST 25% OF ITS PURCHASING POWER SINCE 2020. BITCOIN IS UP 800% DURING THAT SAME TIME PERIOD. PAUL TUDOR JONES, THESE PEOPLE CAME SOUT AND SAID LOOK, I THINK IT'S AN INFLATION HEDGE. HEDGES ARE ALWAYS THIS WEIRD THING WHERE PEOPLE EXPECT YOU BUY IT AND INFLATION EXPLODES THE NEXT DAY. INSTEAD WHAT WE'VE SEEN IS THAT BITCOIN IS A FREE MARKET ASSET THAT TRADES FORWARD LOOKING, AND SO BITCOIN'S RISE, WE HAVE SEVEN STRAIGHT MONTHS OF BITCOIN IN THE GREEN UP UNTIL THIS PAST MONTH SKAND SO WHY IS IT GOING ? >> AND INFLATION IS COMING DOWN. >> INFLATION IS COMING DOWN YEAR-OVER-YEAR, BUT INFLATION IS ACTUALLY GOING UP MONTH OVER MONTH. >> IT'S ANTICIPATING THE NEXT EASING CYCLE. >> SO YOU COULD ARGUE, ONE, IT IS ANTICIPATING THE NEXT EASING CYCLE. YOU COULD ALSO ARGUE THE ALARM BELL IS GOING OFF. PEOPLE E SEE THAT AND THEY'RE BUYING BITCOIN AND BITCOIN GOING UP IS TELLING US, WAIT A SECOND, INFLATION IS A BIGGER PROBLEM THAN WE ACTUALLY THOUGHT. >> A HIKING CYCLE THAT WENT FROM 65,000 DOWN TO 17,000. >> CORRECT. >> YOU DON'T THINK THE MAJORITY OF PEOPLE THAT ARE BUYING THE ETF TODAY OR BUYING UNDERLYING BITCOIN ARE DOING IT BECAUSE THEY THINK THE TRAIN IS LEAVING THE STATION AND THEY WANT TO BE ON THE TRAIN. THAT'S WHAT THIS IS ABOUT. >> WHY WOULD THEY HAVE THOUGHT THE TRAIN'S LEAVING THE STATION AT 25,000. >> I THINK UNFORTUNATELY WHAT HAPPENS IS YOU KNOW PEOPLE LIKE TO GET ON THE TRAIN ONCE THE TRAIN HAS PRACTICALLY LEFT THE STATION. >> IT WENT TO 17,000, WHY WOULD PEOPLE -- WHEN IT'S DROPPED FROM 65, WHEN YOU WERE LOOKING AT IT FROM -- >> RIGHT. >> AND LIKE WHY WOULD ANYONE BUY THIS AFTER -- >> I THINK THERE'S A LOT OF PEOPLE WHO WERE VERY NERVOUS ABOUT IT AFTER FTX. >> WHAT DO YOU MEAN THEY'RE GETTING ON THE TRAIN, WHEN THE TRAIN IS TURNED AROUND AND GONE INTO THE TOILET. >> WHAT I'M SAYING, NOW THEY SEE THE ETF, THEY SEE IT MOVING BACK. >> 25 TO 40 I THINK SPECULATION ON THE ETF WAS GOING TO GET APPROVED. I THINK AGAIN GOING BACK TO THE CONVERSATION, THIS IS A HIGHLY COMPLEX RETIREMENT WHERE BITCOIN IS SERVING DIFFERENT PURPOSES TO DIFFERENT PEOPLE, AND ONE THAT MAKES IT ATTRACTIVE TO A LOT OF FOLKS. >> I GUESS WHAT I'M SAYING, IT MAY SERVE DIFFERENT PURPOSES, DIFFERENT PEOPLE. IF YOU TOLD ME THAT 90% OF THE PEOPLE WERE -- IN MY MIND, THIS IS MY OWN THESIS. I THINK 80 TO 90% OF THE FOLKS WHO ARE BUYING THIS THING ARE BUYING IT BECAUSE IT'S A RISK ON, THE TRAIN IS LEAVING, I THINK THE TRAIN'S LEAVING, AND I WANT TO GET IN ON THE ACTION. THERE'S ANOTHER 10 OR MAYBE 20%, MAYBE, WHO OF THIS SORT OF INFLATION HEDGE IDEA AROUND THEIR OWN POEEXPOSURE TO THEIR CURRENCY. >> I DON'T THINK IT'S A 50/50 THING. DO YOU SEE WHAT I'M SAYING? >> WE'VE BECOME A SOCIETY OF GAMBLERS. IF YOU THINK ABOUT WE HAVE ZERO DAY OPTIONS. WE HAVE SPORTS BETTING, MEMES COIN TRADING. 1980s BOILER ROOM, PENNY STOCKS. THIS IS ALL HAPPENING. AGAIN, WHY IS THAT OCCURRING? THE DOLLAR HAS LOST 25% OF ITS PURCHASING POWER IN FOUR YEARS. WE HAVE $1.1 TRILLION IN CREDIT CARD DEBT. WE HAVE 43 MILLION AMERICANS THAT HAVE FEDERAL STUDENT DEBT. THE AVERAGE BALANCE IS $30,000. PEOPLE HAVE LOST HOPE, THEY DO NOT HAVE HOPE. HOW ARE YOU SUPPOSED TO LIVE IN A COUNTRY WHERE IT IS CHEAPER TO RENT OR BUY A HOME IN 50 MAJOR METROS. YOU DON'T HAVE HOPE. WHAT DO YOU DO? >> YOU THINK THIS IS A LOTTERY TICKET. THIS IS A GAMBLE. >> IF YOU GO AND BUY A LOTTERY TICKET, IT'S 300 MILLION TO 1 ODDS. A MEME COIN HAS BETTER ODDS THAN A LOTTERY TICKET. >> PICK YOUR ASSETS FOR THE GREATER FULL THEORY. IS IT NVIDIA? TRAIN'S LEAVING THE STATION. THEY GOT TO GET ON IT. TAKE YOUR MEME STOCK, PICK YOUR -- YOU KNOW, YOUR COMMODITY. PICK WHATEVER YOU WANT. THERE'S NO DOUBT THAT WHEN THERE'S LIQUIDITY EVERYWHERE THAT IT'S GOING TO CHASE ASSETS AND THINGS -- BUT I DON'T THINK THAT BECAUSE THAT'S ONE OF THE REASONS IT GOES HIGHER DOESN'T UNDERCUT THE FUNDAMENTAL CASE FOR THAT ASSET. ON A CASE BY CASE BASIS -- >> THAT IS THE FUNDAMENTAL QUESTION, AND ONLY, YOU KNOW, 5, 10, 0 YEARS FROM NOW WE'LL KNOW THE ANSWER. >> I THINK THERE ARE PEOPLE THAT DO UNDERSTAND IT THAT DON'T HAVE THAT QUESTION ABOUT THE FUNDAMENTAL UNDERLYING -- >> THERE ARE PEOPLE WHO HAVE CERTAINTY, AND WHETHER THEY SHOULD OR NOT IS THE QUESTION. >> ANOTHER KEY PIECE IS BITCOIN IS A DECENTRALIZED ORGANIZATION THAT HAS NO MARKETING TEAM, RIGHT? SO PRICE IS THE MARKETING OF BITCOIN. WHEN THE PRICE GOES UP, SPECULATORS COME IN, BUT WHAT ENDS UP HAPPENING IS WHEN WE GET THOSE DRAWDOWNS SOME OF THEM STICK AROUND AND BECOME KIND OF BITCOIN BELIEVERS. SOME OF THEM DO LEAVE. >> NETFLIX IS A GREA
