TRANSCRIPT
The Inside Story: Crypto’s Currency
Episode 56 – September 8, 2022
Show Open:
Invisible money mined out of thin air. So, what is crypto currency? And how does it work? Why has crypto’s market value been a series of peaks and valleys? Plus, environmentalists warn crypto’s creation destroys the planet. Now – The Inside Story: Crypto’s currency.
MICHELLE QUINN, VOA Silicon Valley Bureau Chief: Hi. I’m Michelle Quinn, VOA Silicon Valley Bureau Chief, here overlooking San Francisco Bay, with the Golden Gate Bridge behind me.
Across the Bay, San Francisco’s skyline is populated with the world’s technology giants.
The City that birthed tech giants like Google and Microsoft is also home to burgeoning crypto currency companies like CoinBase among others.
Like the tech giants that surround them, the crypto companies hope to change the world.
So, we’re going to take you inside cryptocurrency --- how it’s mined, how it’s used, how it gains and loses value, and the impact crypto mining is having on the environment.
Recent fluctuation in values fluctuate has raised concern among consumers about crypto’s risks. But many investors are enthusiastic about the potential digital currency offers.
MICHELLE QUINN: James Wisdom, a Chicago art instructor and tattoo artist, regularly goes to his local grocery store to buy Bitcoin, also known by its trading symbol, BTC.
James Wisdom, Bitcoin Investor: Being able to go to Coinme conveniently and to buy BTC, especially where I get my groceries is, I think, the future of capitalism.
MICHELLE QUINN: Bitcoin, Ethereum and Tether. The digital currency craze has swept the world. Countries are hitching their futures to it. Ads pitch crypto as an investment for the brave and bold.
While cryptocurrencies are not usually used to buy things that has not curtailed their appeal. For some, it taps into egalitarian ideals.
Sen. Ted Cruz, Republican: It gives access to global finances, to buying and selling to transferring value instantaneously, no matter where you are. That's remarkable. And then there is the advantage of freedom. There's nobody in charge. That terrifies government decision-makers.
MICHELLE QUINN: Crypto has inspired many first-time investors, especially those skeptical of traditional investing. Cleve Mesidor is with the Blockchain Foundation, an educational nonprofit.
Cleve Mesidor, Blockchain Foundation: For newbies, I tell them, ‘You should not speculate. You need to have skin in the game.’ Decide not to buy Starbucks for a week. Whatever that amount is, that’s what you should start your investment in. Then learn.
MICHELLE QUINN: Steve Leke told his parents to invest in crypto when he was 10 years old.
Steve Leke, Investor: Yeah, still pretty young, but I love to read about business and what's going on in the tech world.
MICHELLE QUINN: His parents didn’t take his advice. But Steve’s uncle was buying crypto, so he did too. Riding the crypto roller coaster wasn’t easy.
Steve Leke, Investor: It was super hard because every day I find myself checking it, found myself looking where I’m at. And the mental toll was a lot.
MICHELLE QUINN: Now 17 and heading to college, Leke sold his holdings before the drop that has already erased more than $700 billion in crypto values.
Steve Leke, Investor: I do think that cryptocurrency is very good because of the conversation about decentralization, and that kind of stuff has been very helpful when it comes to having a better understanding of not only the economy but also politics.
MICHELLE QUINN: Government regulators are raising alarms about scams and investors who have lost millions.
Aaron Klein, Brookings Institution: There are real reasons to be concerned that there are elements in the crypto sphere that are designed expressly to take advantage of consumers.
MICHELLE QUINN: Wisdom appreciates that the automated teller where he buys Bitcoin limits purchases to $2,900 a day.
James Wisdom, Bitcoin Investor: You could easily overdo it.
MICHELLE QUINN: He stays involved in online crypto communities that are bullish about investing.
James Wisdom, Bitcoin investor: I believe. You know what I mean? I believe. I'm going to hold on to what I have now.
MICHELLE QUINN: Only time will tell if that strategy works.
MICHELLE QUINN: For many, using digital currency represents a shift in how you think about your finances, from daily transactions to long term savings and investments.