Topic: Bitpay

The "Bitcoin Bowl" in Florida, sponsored by BitPay, signaled a push for cryptocurrency adoption, with over 100 businesses in St. Petersburg now accepting Bitcoin. In financial news, the RSX ETF is highlighted as a way to track the Russian economy, which has seen significant volatility as the ruble remains oversold.

Bitcoin's price volatility is discussed following congressional hearings on virtual currencies. The hosts argue that the extreme price swings prevent it from being a stable currency. They also debunk the idea that the Silk Road offered "cheap" drugs, claiming that the escrow and Bitcoin conversion costs made illicit purchases significantly more expensive than street prices.

Senator Chuck Schumer's comments during Bitcoin hearings are analyzed, specifically his focus on "near anonymity" and criminal use. BitPay CEO Tony Gallippi testified about "Know Your Customer" (KYC) policies to separate legitimate users from illicit actors. The hosts express concern that such regulations will eventually be used to de-platform alternative media and "unapproved" actors.

BitPay allows merchants to accept Bitcoin by converting it to local currency for a 1% fee, though the timing of these transfers creates risk during rapid price fluctuations. A hypothetical scenario explores how a merchant might lose money if the exchange rate drops between the time of a sale and the daily bank transfer. The discussion questions the long-term viability of such services in a "whipsaw" market.

The hosts review the current price of Bitcoin, which has reached $94, and discuss the process of selling through BitPay. The conversation shifts to a hypothetical earthquake in California, specifically targeting the new Bay Bridge. Concerns are raised about the use of Chinese steel in the bridge's construction and the potential for a catastrophic failure.