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FRANCISCO. LET'S START WITH THIS DRAMATIC PERFORMANCE, INCREASE. WHAT ACCOUNTS FOR IT? CORY: PROBABLY NOT THE SAME THING THAT ACCOUNTS FOR THE SOMALI SCHILLING RISE. THE ANONYMITY REALLY KEEPS US FROM KNOWING WHAT WAS DRIVING IT. I WILL SAY, I WAS GETTING A LOT OF CALLS FROM PEOPLE IN THE BITCOIN WORLD, E-MAILS, WHEN THE RISE STARTED IN OCTOBER -- IT WAS REALLY ME YOUR WRECK AFTER A PRETTY DIFFICULT TIME. THEY SUGGESTED IT HAD SOMETHING TO DO WITH MAYBE A DEVALUATION OF THE RMB, MAYBE PEOPLE IN CHINA LOOKING AT A PLACE TO GET THEIR MONEY OUT. ALTHOUGH THE VOLUMES DO NOT SUPPORT THAT ARGUMENT. I STILL THINK THE MOST IMPORTANT THING ABOUT BITCOIN IS NOT THE CURRENCY OR THE VALUE AT ALL, BUT THE BLOCK CHAIN TECHNOLOGY THAT SUPPORTS THE BITCOIN AND MAKE THIS MORE THAN JUST ANOTHER CURRENCY, DIFFERENTIATES IT FROM THE DOLLAR, EURO, AND THE SOMALI SCHILLING. DAVID: ARE THERE OTHER COMPANIES LOOKING AT THAT TECHNOLOGY AND THINKING ABOUT HOW IT MAY FIND ITS WAY INTO TRADITIONAL BANKING? CORY: IT IS ARGUABLY THE HOTTEST AREA FOR VENTURE CAPITAL WRIT LARGE. LOOKING AT IDEAS ON HOW TO USE THAT BLOCK CHAIN TECHNOLOGY. UNDERSTAND, I WILL OVER SUPPLY WHAT IT IS, BUT IT ALLOWS THE CURRENCY ITSELF TO RECORD EVERY TRANSACTION THAT IT IS INVOLVED IN. AS A RESULT, -- YOU THINK OF ALL THE FUNCTIONS THAT HAPPEN IN WALL STREET. ALL OF THE PAPERWORK, ALL THE TRACKING, THE HISTORY OF THOSE TRADES THAT GO BEYOND THAT, THE MACHINERY OF WALL STREET, BECOMES UNNECESSARY WITH SOMETHING LIKE THE BLOCK CHAIN TECHNOLOGY. THERE ARE LITERALLY HUNDREDS OF COMPANIES LOOKING AT WAYS TO USE THAT TECHNOLOGY, WHETHER IT IS WITH BITCOIN OR WITH AN ALTERNATIVE CURRENCY, TO FIND WAYS TO SOLVE A LOT OF PROBLEMS IN BUSINESS. THE PEOPLE WHO DIG INTO THIS HAVE THIS GALVANIZED, EVANGELICAL LOOK TO THEIR EYES WHEN THEY DISCUSS BITCOIN, BECAUSE THEY FUNDAMENTALLY SEE THE FUTURE OF BUSINESS IN A DIFFERENT LIGHT, OFTEN COMPARING IT TO THE REVOLUTION THAT WAS IP TECHNOLOGY AND INTERNET ITSELF. DAVID: SHORTLY AFTER THE ADVENT OF BITCOIN, PEOPLE WERE WORRIED ABOUT HOW TO HARNESS IT, THE VOLATILITY ASSOCIATED WITH IT. AS THE PUBLIC PERCEPTION OF THE CHANGED? CORY: FRANKLY, I THINK IT IS A FAILURE OF JOURNALISTS, WE HAVE BEEN UNIMAGINATIVE IN THE WAY WE COVERED THE STORY. SO OFTEN WE PUT IT IN THE PARADIGM OF THE OLD WORLD THAT WE UNDERSTAND, AS OPPOSED TO THIS NEW THING WHICH BITCOIN ACTUALLY IS. THE COIN ASPECT OF IT IS MORE IMPORTANT THAN THE BIT ASPECT, BUT THAT IS WHAT HAS VENTURE CAPITALISTS AND STARTUPS AND SOME OF VETERAN BANKERS AND TECHNOLOGY PEOPLE PUTTING ALL OF THEIR CARDS INTO THAT HAND. DAVID: I REMEMBER WHENCAPITALISTS AND STARTUPS I FIRST HEARD A LOT ABOUT IT, A FEW YEARS BACK, AT A CONFERENCE HERE IN NEW YORK. THE WINKLE LOST TWINS WERE THERE. CORY: THEY HAVE NOT HELPED THE SERIOUSNESS OF THE CONVERSATION, UNFORTUNATELY. DAVID: THEY WERE TALKING ABOUT THE NEED FOR AN EXCHANGE. TALKING ABOUT DEVELOPING IT. HOW FAR DO WE STILL HAVE TO GO ON THAT FRONT? CORY: AS IS OFTEN THE CASE, WE HAVE FOUND A FEW EXCHANGES WHERE THE TRADES HAVE SURROUNDED AROUND. THE MOST INTERESTING THING WE WILL SEE IS THE COMPANIES USING THESE TECHNOLOGIES TO SOLVE THEIR BUSINESS PROBLEMS, AND WHETHER THAT IS TRANSFERRING MONEY FROM ONE COUNTRY TO THE NEXT WITHOUT HUGE FEES, OR ELIMINATING THE RECORDING OF TRANSACTIONS WHICH IS SO MUCH A PART OF BUSINESS. THAT IS WHERE WE WILL SEE THE REAL INNOVATION. SOME OF THE GREATEST MINDS IN VENTURE CAPITAL DEVOTING THEIR TIME AND RESOURCES TO THIS. I THINK WE WILL START TO SEE THESE COMPANIES EMERGE IN THE NEXT TWO YEARS BECAUSE THEY ARE