Secretary rick perry. A former Texas Governor also made the trip. President trump is pledging 1 million in disaster aid for victims of the hurricane. That is according to White House Press secretary sarah sanders. Trump arrived in texas to witness the destruction and visit with victims. The pentagon has begun to deploying additional troops to afghanistan. Defense secretary jim mattis said members of congress will be briefed before details are made public. Mattis did not give exact number of the troops or say what their roles will be. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am a alisa parenti. This is bloomberg. Bloomberg technology is next. Emily i am emily chang and this is bloomberg technology. Throughout the next well do a hour deep dive into the cryptocurrency market. Bitcoin hits a new high. Whats driving this current crypto mania, and will it last. Plus, its a date. Apple officially gives a time and place for most significant Product Launch in years. Wheal discuss what apple watchers are looking for. The bar is high. And expedia cfo stepped up to the plate after Dara Khosrowshahi jumped ship to lead uber. But first, to our lead. It has a banner year in the realm of cryptocurrencies. M, bitcoin cash. Those are some of the Digital Currencies that have been on a tear this year seen value skyrocket. The market for cryptocurrencies is 170 billion and rising. Interest is at fever pitch. More bets being placed on cryptocurrencies from high profile investors like mark cuban to some of the biggest banks across the globe. We will cover some of the biggest themes and issues around the Digital Currency market over the next hour. But it is not been smooth sailing in the crypto world. Our Caroline Hyde took a look what makes this market so volatile. Caroline cryptocurrencies are in the midst of a record setting run. Names like bitcoin and ethereum have seen their values skyrocket this year. Bitcoin, which is close to a household name you can get in cryptocurrencies has shot up , over 350 so far. Jumped fromt over at the start over 4500. Year to ethereum is on the move, as well. We see Companies Across all industries looking at how to use this technology. Caroline it has not been smooth sailing for the currencies. Just look at recent 30 day snapshot in the price. You can see a rollercoaster ride. Back in august of last year bitcoin , plummeted 13 after hackers stole 65 million. Also fell ethereum upon tough times. We have to remember this technology is new. With the but even volatility inherent in currencies, there are still plenty of promising opportunities. There is a growing mainstream acceptance of the asset class. Big investors like mark cuban are throwing their weight behind new cryptocurrencies in the Block Chain Technology behind them. We are starting to see more Financial Institutions and Retail Investors embrace such currencies. If the sec approves bitcoin as an electronically traded fund it , will make it easier for the everyday investor to jump in. Perhaps tempting, given bitcoin soared past the price of gold this year. Do not forget we are four years removed from the bitcoin crash of 2013. There might be one sure bet you want to make and that is to , buckle up. Emily Caroline Hyde joins us live from london. Along with our guest host for the hour, Roger Mcnamee and media and entertainment companies. Great to have you back here on the show. Highs, lows, bitcoin are we in a bubble . Roger i think we are. It is important to distinguish between cryptocurrencies on the Block Chain Technology that comes underneath them. To make him other thing about cryptocurrencies is that they are not currencies. Likeare really commodities soybeans or pork bellies or Something Like that. What does that mean about the value . Roger it is designed to be volatile. Currencies by definition need to have stability. If you look at this it is more like trading gold futures are oil futures. Those are going to be inherently volatile. Yes, there is something very valuable underneath them. But you would not use gold futures to pay your mortgage or pay your childs college tuition. Emily if you own bitcoin now does it have longterm value . Roger it is too early to know. Structurally it looks like they cannot make the transition, but i not sure that matters to the investors. I think theyre in it for volatility and return. That may work out. But i do think were not done with the sharp drops. I do think there are enormous structural issues. There are thefts of the various cryptos here, there and everywhere. That i think is going to continue. Of concept of the role miners. The fact that these are things adopted primarily by black and gray markets. Markets suggests at least notion,ms my basic which is that i think these are far from mainstream currency options. Emily you mentioned people getting robbed. The number of complaints about coin base. The Biggest Cryptocurrency Exchange caroline were seeing went from six to almost 300 this year. So much more mainstream acceptance. Give us examples how were seeing Mainstream Investors embrace this . Caroline that is what is so fascinating. Arelikes of fidelity, they mining bitcoin and looking to get into this. We see banks as roger was distinguishing between banks want to embrace blockchain technology. Project. Joining ubs they are building their own coin that will be available in and of next year. It will make Financial Transactions that much easier. That is whether want to introduce this technology. Not perhaps as a stored value were seeing bitcoin suddenly become. Thats why we saw the split in bitcoin and bitcoin cash. What is bitcoin . Does it remain a stored value . Does it become a haven . When you see a flight to value and concerns about north korea or does it become more of a payment mechanism . Scalehe capacity have to and doing he is see improvements in the transactions . This is how much bitcoin is beating gold. Talk about the flood of investors. You are in for a roller coaster ride, whether you hold the cryptocurrency. Check out my bloomberg at the moment. , you can into g btv type in 3394. You get Bitcoin Investment trust. They do not want to buy bitcoin outright. They want exposure. On the bottom half we see the 90 day volatility of that Investment Trust is more than three times the volatility in bitcoin. Whether you want to be overall, youre in for a rough ride. Emily if you look at the run up in bitcoin, it is dwarfing the run up we saw before the tech bubble and housing bubble. Is that a concern . Roger only if youre one bitcoin. If you taken your profits, youre sitting there going not a problem at all. When you talk about 170 billion in interest in this category, that is why you see banks and others coming in. Why are we having the segment right now . There is a lot of interest. The trick here, at least for the viewers watching this, to separate the commodity of bitcoins from the notion of a cryptocurrency. A currency needs to have stable value. I just dont think youre going to get there from this. The third piece, is the underlying blockchain technology. There are a lot of reasons people would like to be able to do high volume financial and information transactions very low cost with privacy and security. Blockchain Technology Offers that promise. Everyone is excited by that. I would love to see one of these banks or Financial Institutions try to create a currency. Try to create a stable store value a would be that would rival a national currency. That is the promise land i think so many people are hoping to go to. Emily when it comes to the blockchain, it could revolutionize real estate, giant Technology Companies. Roger and sale of information. Emily where do you think the blockchain could be the most revolutionary . Or is that an exaggeration . Roger too early to tell. To me what is exciting is, it is like the internet, it is a distributive system aware scalability is not a problem. With the scale of market you have today, if you can take that off the table an issue, you can apply it to almost anything. What remains to be seen is can is which markets will find this most appealing. In its current state, we have only experiments. Consumers are not interacting with this regularly. A lot of money has been raised. Were going to run that experiment and see. I look at this, to me that part is really exciting. It makes it worth going through what i think is going to be further issues around the so called currency part of this discussion. Emily were going to continue this conversation throughout the show. Roger mcnamee of elevation partners. You are with me for the hour. Caroline hyde well see you. We will have more in cryptocurrencies throughout the show. We officially have a date from apple on its next Product Launch. The company set out an invitation that listed september 12 as the date of the event. It will be held at the new apple september 12 as the date of the event. It will be held at the new apple campus in cupertino, california and take place in a theater named after cofounder steve jobs. As we have been reporting apple , plans to introduce three new iphones and new versions of the apple tv and apple watch. Coming up, overdrive to close goes into overdrive to close the gap with uber. This is bloomberg. Emily lyft is expanding its services to 32 additional states, bringing the total to 40. The Ride Hailing Company is aggressively trying to take market share away from its rival, cooper, who controls 70 of the u. S. Right ride hailing market. It means 94 of the u. S. Population would have access to lyft. The gap has the largest do graphic footprint of any in the u. S. Ceo darawly minted a timeline fors when the company should go public. He said in 18 to 36 months. When he walks in that ubers headquarters on tuesday, First Official day as ceo, what is his top priority . Still with us Roger Mcnamee. ,what you think of this new guy in the problems he has to solve . Roger to me, anyone coming into this job is a serious problem that requires immediate attention. The first is the company bleeds , cash today. They probably got on their current course speed, two and a half and three and half years worth of cash. Worth of cash left. That is assuming no negative settlement on lawsuit litigation with google. I think they are very vulnerable. I am not a lawyer but there are been emails put out the make it look like googles case is emily you think this google strong. Suit is the biggest problem . Roger in terms of dollars, yes. Its biggest unknown for investors. If google lets put it this way. If i am the ceo one of my first priorities is making that suit go away. One of the best arguments for having a new ceo is they can come culpa, andea negotiate their way out of it. Emily what is the worstcase scenario . Roger that they oh more money to google than they can pay. They owe more money to google than they can pay. That would be a very ugly scenario. Hopefully theres some solution where uber exits as selfdriving car business. They stop trying to develop their own. They make a deal to use Waymo Technology everywhere and they pay some penalty. Somethingo settle for less than cash you have on Balance Sheet. The ceo has to go in and fix it. My understanding, they are cash positive in some markets. Aily they are negotiating new investment. We do not know if it will happen. Roger if i were the ceo, i would try to get to break even even off the , cash you have on the Balance Sheet now. They are at a scale today that if they can get to break even, their capital relative to lyft and others in the space, it will be much lower and their ability to choke off competitors will be in place. They dont need try to do it as private company. Emily what about the cultural and personal issues . Especially since the former ceo wants a seat at the table. Roger the good news is that most of the Management Team has departed. The new ceo got the opportunity to bring in his own team into the place. The challenge is that, Travis Kalanicks personality and ubers culture were one in the same. The strategy im recommending, which is get the company to breakeven as quickly as you possibly can, will require a completely different personality from the one Travis Kalanick had. Im recommending that if im the new ceo, we are trying not to have too much interference of the old into the new. Emily when it comes to the business, and working out through all these issues, do you see uber delivering on a 70 billion evaluation . Roger not any time soon. Emily or anywhere close . Roger no. I think getting to break even is going to be a challenge. I look at this and say they gotten where they are now because the Consumer Value proposition is fantastic. The problem is, to get there you had to abuse the communities you are in and the drivers of the cars. You dont own an asset. Which means its relatively low to entry and large markets. They have to solve all those problems simultaneously. Theyve got to find a way to pay the driver is better to make the deal fair for the drivers, without making the offering unattractive to consumers. I believe thats doable. I believe consumers would pay more. Lets face it, ride sharing is an amazing thing to have available. Getting that right is not going they are not going to get it right on the first shot. If the Company Needs to raise more capital before it can demonstrate profitability, i think the cost will be wildly higher than what they have paid before. If they want to be worth 70 billion any point in the future, i think getting to profitability soon will be an important step. Emily Roger Mcnamee. Roger just a point of view. Emily elevation partners, you are sticking with me for the hour. My conversation with expedias new ceo Mark Okerstrom. He talks about the departure of Dara Khosrowshahi. What it means for uber and expedias future. This is bloomberg. Emily expedia stocks soared to thursday, having the best day since november. This happened when they named the cfo Mark Okerstrom as the new ceo. Took the helmahi at uber. I spoke with okerstrom and asked him about his new role. These things you talk about them for years. Like a sports analogy, you prepare the team for the big game. You get a call on sunday night and suddenly game isnt two weeks from now. Its tomorrow. Kind of unfolded a little bit like that. We were all ready for this. Were all pretty excited around expedia. Andre very excited for dara i am excited for the people at uber. I think he will do a fantastic job there. Emily when it comes your job, they say no one else was considered. You and dara have been working together for years. What is your vision . What are some things you might do differently . Ive been very involved in the Strategic Direction of this company for a very long time. Dara and i have been lockstep in really all of the major Strategic Decisions along with our chairman barry diller. I dont have a long list of things that im dying to change. Weve got a number of priorities across the company, certainly becoming more international is one of our key priority so ill be focused on making sure we continue to expand globally. The big transition at homeaway is a huge priority. I think youre going it see a lot more of the same for us. If i do my job well, maybe go faster. Emily lets talk about that. You have some deep ties to ubers new ceo. What are new ways you can Work Together . Like perhaps, free uber ride for expedia customers. Weve talked a long time about possible ways that we could work with uber. Integrating their service into the expedia app or hotels. Com app or homeaway app. Im hopeful we got a direct connection. Emily dara is walking into challenging situation by all accounts. And ousted founder that still wants a seat at the company, lawsuits and difficult dynamics. Weve heard about you can deal with big personalities. Tell us more about why you think he has what it takes to take on these personnel challenges . Dara has one of the highest levels of Emotional Intelligence that ive ever seen. He knows people. He is humble. He listens. I think above all, dara makes the people around him better. People want to be around him. People want to think like he does. Hes a great role model. Hes a man of high integrity. He values diversity. He values gender balance. He really stands for a lot of the great things maybe lacking at uber. I have 100 confidence a uber will be a much better company. Emily the information retracted a report that you were going with dara to uber. They were wrong. Theres a point there that dara has a lot of executive positions to fill. Are you concerned a number of executives from expedia will follow him there . We feel very good about our executive team. Weve got one of the most talented executive teams out there. Weve been together for a very long time. Theyre really excited about the prospects around expedia inc. Theyre highly engaged. Theyre highly committed. Weve been working together on a strategy that were not yet done. Theres lots of work yet to do ahead of us. I think we feel pretty good. Emily my conversation earlier today with expedias new ceo Mark Okerstrom. Coming up, we continue our focus on Digital Currencies. How one company is aiming to fi