The full MGT Capital Investments CEO John McAfee interview with CNBC


our next guest doesn’t believe that
bitcoin is a bubble in fact he says a
cryptocurrency could soar to get this
$500,000 in three years be always
controversial John McAfee joins us now
John great to speak with you the great
to speak with you thanks for having me
out how do you how do you get to
$500,000 in three years well let’s not
worry about that let’s let’s worry about
falling going on line on that yes I do a
people are calling Bitcoin a bubble
that’s bursting they keep in mind that
two months ago bitcoins to $2,900 and
people were saying it’s never going to
hit three while I hit four and it hit
five if you look at the long-term trend
of Bitcoin it has been consistently up I
mean who cares that it dropped a
thousand dollars from 5,000 after it
went from the 2900 to 5,000 in two
months it’s still ahead from what it was
two months ago you know I might my
company is one of the largest miners in
America and one of the nice thing about
mining is it doesn’t matter what the
price of Bitcoin is we still make money
as the price goes down there are fewer
competitors for mining and the the
difficulty rate decreases and we simply
mine more coins so I know as well as
anybody what the price of Bitcoin is and
it is consistently increasing I was
first I go ahead you know Jamie Dimon
was very clear yesterday that he’s a big
fan of the blockchain technology and
most people actually who who even you
know call Bitcoin overvalued or what
have you they are believers as well in
the blockchain technology these are two
separate issues so why is that Bitcoin
necessarily has to rise to these Heights
because you’re a believer in blockchain
as you do as you well know I don’t think
I don’t think the the part that the
Bitcoin rise has anything to do with the
belief in the blockchain it simply has
to do with the belief in in crypto
currencies I mean once you start using
crypto currencies whether there’s a
Bitcoin on there
or like pointing it doesn’t really
matter you see the facility you see the
ease-of-use you see that without a
central bank control the value of that
currency depends upon the users of that
currency and why is Bitcoin growing so
fast because it’s getting more users
more people are believing if I do a
transaction with a credit card I have to
put it in my name my address my credit
card number the code on the back my
billing address well that takes five or
ten minutes for especially for someone
my age but with Bitcoin it’s 15 seconds
to give me wallet address here is the
amount done once you see the facility of
crypto currencies once you see how fast
they are transacted then suddenly fiat
currencies credit cards central bank
maybe it’s too easy though John I mean
how do you I’m sure the government would
like to track where this bitcoin is
going they would love to tax people on
this and so if you use Bitcoin you may
not have that sort of paper trail so to
speak to where people are making
revenues or or earning money so are you
concerned that government intervention
in some way could actually slow this
down well it can’t slow it down but
there will be government intervention
why because as people start using more
and more crypto currencies things like
Manero which cannot be tracked at all
when they start using these things
suddenly governments are gonna start
losing income tax revenues and they’re
going to panic and they’re going to say
this is against the law but how do you
stop something that cannot be stopped I
mean this is not something unique to
America where you can just shut it down
I mean I can use the tor browser or the
onion browser and access Bitcoin wallets
all over the world and no one will ever
know the government does not have enough
enforcement personnel to ever stop
Bitcoin Manero litecoin and all of the
others so they’re going to have to face
reality find some other way to raise
revenues this is a fact so John I got
asked because most people know you as a
cybersecurity pioneer they know the firm
that is named after you in between that
time and now you had a very interesting
life and naturally
reports say that you know it was it’s
the insane life john mcafee that you
once lived in Belize which is true
allegedly got caught up with drugs and
other illegal activities Bitcoin has a
bad rap of being used in the underground
that’s why people want to use it because
they want to conceal nefarious activity
do you see that potential do you are you
concerned about that as attracting
government regulation no not at all I
mean I’m still a security specialist and
I keep track of the dark Reb Bitcoin is
very seldom used anymore on the dark web
it has been replaced by Manero as the
currency of choice because monera is
absolutely anonymous cannot be tracked
either sender or receiver of any
transaction they’re literally invisible
so it’s not Bitcoin itself but crypto
currencies as a general group of things
that are being used on the dark river
and that will always be the case Bitcoin
used to be the one because that was the
only one available but not anymore so so
Bitcoin is sort of out of the dark web
and into the light and then 99.99% of
its use is legitimate so you know John I
don’t know if you know about this but
you know Jamie Dimon watches the show
pretty frequently he’s probably
listening to you right now we do you
have any words for him as to why he he’s
got it wrong I mean would you want to
place that same bet that you made on the
Internet
no I would like to say this mr. diamond
I did I respect you sir for your
position you know people who rise to
your position are not idiots however sir
what is you you called Bitcoin a fraud
I’m a Bitcoin miner we create the
bitcoins it costs over $1,000 per coin
to create a Bitcoin what does it cost to
create a US dollar which one is the
fraud because it costs whatever the
paper costs but it costs me and other
miners over a thousand dollars per coin
is called proof of work we have put
massive amounts of supercomputer
computing power and electricity and
creating these coins shortly there’s
some value in that work that we did to
create
the coin and the fact that Bitcoin is
consistently growing in its use and in
its in its value has to say something
you know sure it will rise and fall and
it is highly volatile as all new
technologies are right and at the same
time it is certainly not a fraud so
you’re pretty sure that you’re not gonna
lose this bet that you have on Twitter
no I don’t ever lose bets John McAfee
great to speak with you thank you
you

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