gox. within the bitcoin community, the diehard believers have serious problem with the mt. gox exchange. it is not the people who are wanting to take on the point and use it as a currency. it is more of a bitcoin way of thinking. it is traders were trying to make money. they are using it as a commodity. >> jared, you run your own bitcoin exchange. you suspended training once upon a time. what is going on? >> there is a huge price disparity. mt. gox is bringing in hundreds of dollars more. that was exclusively due to the fact that you could not withdraw dollars over time. people would buy bitcoin. now the bitcoin sales are slowing down the stop. it has almost been a year since people stopped using mt. gox for the actual price. they use a service called bitstamp now. it is important to separate bitcoin from mt. gox. if you cannot get your dollars at wells fargo, you do not blame your dollars. >> there's no regulation yet. that continues to be a problem. >> there's definitely regulation. ther

people are falling into the world really the world poll so the headline reads bitcoin exchange mt gox faces whirlpool of death as prices drop to lowest point in six months and the latest chapter in the continuing story of mt cox the troubled bit quinn exchanges further spiral down the plughole as it released another statement today citing security issues at its tokyo office as the reason withdrawal capability hasn't been returned so you know when they announced us this headline is a few days old the price at mt gox went to below one hundred dollars now many people on you tube are surely king. as well of course on the other exchanges it was always above six hundred around six hundred dollars so you can either look at it as a shriek that big queen itself is crashing or as this tweet from jim rickards who is an expert in markets and finance and debt and debt restructuring and bankruptcies if big coin two hundred dollars at mt gox and five hundred eighty dollars that coin desk it's not too different prices market saying sixty five percent chance gox fails well of course going down is not

the world pool so they have to exchange mt gox faces whirlpool of death as prices drop to lowest point in six months and the latest chapter in the continuing story of mt cox the troubled bitcoin exchanges further spiral down the plughole as it released another statement today citing security issues at its tokyo office as the reason withdrawal capability hasn't been returned so you know when they announce this headline is a few days old the price at mt gox went to below one hundred dollars now many people on you tube were surely king. as well of course on the other exchanges it was always above six hundred around six hundred dollars so you can either look at it as a shriek that big queen itself is crashing or as this tweet from jim rickards who is an expert in markets and finance and debt and debt restructuring and bankruptcies if big coin two hundred dollars at mt gox and five hundred eighty dollars at queen desk it's not two different prices market saying sixty five percent chance gox fails well of course going down is not an exchange that's an index of different prices on different e

gox. within the bitcoin community, the diehard believers have serious problem with the mt. gox exchange. it is not the people who are wanting to take on the point and use it as a currency. way ofore of a bitcoin thinking. it is traders were trying to make money. they are using it as a commodity. >> jared, you run your own bitcoin exchange. you suspended training once upon a time. what is going on? >> there is a huge price disparity. mt. gox is bringing in hundreds of dollars more. that was exclusively due to the fact that you could not withdraw dollars over time. people would buy bitcoin. now the bitcoin sales are slowing down the stop. it has almost been a year since people stopped using mt. gox for the actual price. they use a service called bitstamp now. it is important to separate big from mt. gox. if you cannot get your dollars at wells fargo, you do not linger dollars. -- blame your dollars. >> there's no regulation yet. that continues to be a problem. >> there's definitely regulatio

dollar market cap in the in the short term so the price fell down to below one hundred dollars at mt gox went back up to three hundred dollars three hundred forty dollars then fell back to two hundred dollars now during that whole time mostly here a lot of shriekers and it's also good to remember that this is what regulators this is what central bankers this is what politicians are hearing they mostly hear the streakers because they shriek louder than most than normal people who are understanding like jim rickards can look at it and say well the market is just pricing in a sixty five percent chance that mt gox will collapse just like argentina for example their bonds on the face of it will say one hundred u.s. dollars but you can buy them for fifteen dollars that doesn't mean that the u.s. dollar went to fifteen dollars that means that people are thinking that argentina is has an eighty five percent chance that they're going to go bankrupt it's so locked of reporting on financial news we see it in the gold market the physical gold price is a lot higher than the paper price of a very sixt

going down is not an exchange that's an index of different prices on different exchanges and the mt gox price is an indication of the faulty mechanism that they've used for price discovery that we've covered on the show many times we've talked about it not up to the task and so they finally were overwhelmed and they're probably going to go completely out of the picture and other exchanges will take their place and the bitcoin price is google recover because general technology of big coin the cryptology is not being questioned here of course it's not as strong as macs going cryptology which has a superior cryptology in a faster rate this is why a lot of people are now moving into macs coin because they realize it's a period to bitcoin in many ways big coin however does have a first mover advantage and it is widely adopted and there's a lot of services and goods plugged into it but i wouldn't be surprised to see max going to twenty thirty forty million dollar market cap in the in the short term so the price fell down to below one hundred dollars at mt gox went back up to three hundred dol

dollar market cap in the in the short term so the price fell down to below one hundred dollars at mt gox went back up to three hundred dollars three hundred forty dollars then fell back to two hundred dollars now during that whole time mostly here a lot of shriekers and it's also good to remember that this is what regulators this is what central bankers this is what politicians are hearing they mostly hear the streakers because they shriek louder than most than normal people who are understanding like jim rickards could look at it and say well the market is just pricing in a sixty five percent chance that mt gox will collapse just like argentina for example their bonds on the face of it will say one hundred us dollars but you can buy them for fifteen dollars that doesn't mean that the u.s. dollar went to fifteen dollars that means that people are thinking that argentina has an eighty five percent chance that they're going to go bankrupt well it's so locked of reporting on financial news we see it in the gold market the physical gold price is a lot higher than the paper price on very sixt

but no much more you're not going to find much more there now this isn't the first time that mt gox has faced problems on february seventh it stopped withdrawals from its trading accounts and a document that's now floating around the internet says that the company has lost upwards of seven hundred forty four thousand big clients given the number they're turning out maybe that's just seventy seven hundred forty four thousand nothing and now this is all due to theft is what that document floating around online says however this hasn't been confirmed by cox this does not bode well for the world you know big corn or crypto currencies for that matter can you tell me what's happening right now at mt gox what's going on no one knows what's going on there. originally speaking there was some sort of attack you know that i could deny services. and people were talking about affecting everyone about. you know for a long time the word allow people to withdraw their money from their that wallets and so basically what happened is this time went on everyone else came back to normal and. just sittin

gox. but it's suddenly become the subject of international interest and its recent turn of fortune is prompting many questions about the future of the virtual currency, bitcoin. hari sreenivasan has the story. >> sreenivasan: mount gox c.e.o. mark karpeles issued his "mea culpa" before news cameras in tokyo today. >> there was a weak area in the system and as a result we lost bitcoins. i am deeply sorry that i have caused trouble to everyone. >> sreenivasan: his website had been one of the largest on-line exchanges for the digital crypto-currency known as bitcoins. bitcoins are generated, or mined, by computers, solving math problems that become ever more complex and time-consuming. the site, that acted as an exchange, went off-line tuesday, amid allegations of major theft, and karpeles acknowledged today he can't account for 850,000 bitcoins, that almost 4% of all the bitcoins available today, valued at about $425 million. the catastrophic losses prompted picketing this week outside the c

gox. the $90 million argan, facebook's -- the $90 million million-- the $19 bargain, facebook's latest acquisition. good morning to our viewers in europe, good evening to those in asia, and a very warm welcome to those just waking up in the u.s. i am guy johnson, francine lacqua is off today. this is "the pulse," live from bloomberg's european headquarters here in london. a busy show for you today. talking about privacy. world'stest out the most secure smartphone. can the nsa hack this phone? we will find out later. let's get to our top story, a key vote to form a new government might be delayed until thursday and ukraine according to the acting president. the former president, yanukovych remains on the run. there is a warrant for his arrest. ryan chilcote has the latest. a lot of moving parts and focus this morning. the situation inside ukraine -- what is happening with russia. walk us through the story inside. >> starting with you ternium withics -- starting ukrainian politics. the parli

tokyo based mt gox was once the largest because an exchange in the world now it appears to be bust the question today however is whether the whole propos currency movement has been dealt a fatal blow max kaiser the dynamic of the report here on our t.v. is a crypto currency even jealous and he thinks the mt gox episode is good for crypto currency is because it strengthens the community by a living in exchange with poor systems in controls max has his own crypto currency coin so i began by asking him to give us the full deep read on max going take a look. is next generation cryptocurrency cryptology is stronger it's faster. there's a lot of money moving into alternative currencies like max coyle this is one of the fallout from the bitcoin situation with mt gox people realize that they need to diversify into other coins other crypto coins and max coin is immediately one of the most popular alter currencies as they're called are crypto currencies in the market and we've got some surprises coming from max cohen some enhanced minutes through the cryptology that will place it probably the ab

but no much more you're not going to find much more there now this isn't the first time that mt gox has faced problems on february seventh it stopped withdrawals from its trading accounts and a document that's now floating around the internet says that the company has lost upwards of seven hundred forty four thousand big clients given the number they're turning out maybe that's just seventy seven hundred forty four thousand nothing now this is all due to theft is what that document floating around online says however this hasn't been confirmed by a buyout mt gox and this does not bode well for the world you know big corn or crypto currencies for that matter can you tell me what's happening right now at mt gox what's going on no one knows what's going on there. originally speaking there was some sort of attack you know that i could deny services. and people were talking about affecting everyone about. you know for a long time the word allow people to withdraw their money from their bit wallets and so basically what happened is this time went on everyone else came back to normal and i

but no much more you're not going to find much more there now this isn't the first time that mt gox has faced problems on february seventh it stopped withdrawals from its trading accounts and a document that's now floating around the internet says that the company has lost upwards of seven hundred forty four thousand big clients given the number they're turning out maybe that's just seventy seven hundred forty four thousand nothing now this is all due to theft is what that document floating around online says however this hasn't been confirmed by cox this does not bode well for the world you know big court or crypto currencies for that matter can you tell me what's happening right now at mt gox what's going on no one knows what's going on there. originally speaking there was some sort of attack you know it was like a denial of service attack. people were talking about affecting everyone. you know for a long time they weren't allowing people to withdraw their money from there that wallets and so basically what happened is this time went on everyone else came back to normal and it's j

address on monday however it added that if transaction to any mt gox there quite a trust and currency withdrawals and yann euro etc would not be affected by this issue what does this mean for between holders are they going to get their money back or no you know it's not free functioning currency you know we've talked about bitcoin before we're talking about you know transactions that are free flowing and so forth these people basically have their money tied up in they can't get it out so the negatives of this particular thing it's not ready for prime time you know no mean stream person wants to go through what these people are going through right now i certainly don't thank you as always that's all for now but you can see all segments. richard in today's show on youtube about youtube dot com slash boom bust r.t. we also love hearing from you so please check out our facebook page at facebook dot com slash boom bust our two you can also tweet us at our aid at edward and it's from all of us here at boom bust thanks for watching we'll see you next time i'm like. there's a saying you know

right up and finally edward harrison joins me in today's big deal to discuss the long believe of mt gox and what it means for the future of bitcoin now let's get the show on the road. with. j.p. morgan the largest bank in the u.s. by assets is reducing both its headcount and its target profitability for twenty fourteen now j.p. morgan said it expects its total headcount to fall by five thousand to two hundred sixty thousand people the bank announced the changes saying that creating a business model which can deal with new regulations is cutting into the firm's profits however j.p.n. is confident that it can win in this new environment and is up to nearly profit target from twenty four to twenty seven billion with a b billion dollars now mariana lake explained that the bank would achieve these targets by optimizing its retail banks in other words subtracting the number of humans and adding to the number of machines now check out these before and after slides are kind of interesting now the one on the left that picture that's of a traditional bank branch and the one of the. right is a bra

gox? i would say they're interrelated. if somebody told me my bank value just went down 40% because a bank across the country just collapsed, i would say i would be really concerned about that. so i think there has got to be -- melissa: is it regulation? is it do you not want bitcoin around at all? >> no. at this point i think we have to look at what this is. it is not suitable at this point for retail investors or those who think this is a safe investment or somehow, that this is the same as a dollar bill. it's not. melissa: i'm not sure anyone thinks that. i think people that are investing in it think it is not the same as a dollar bill and that's why they're interested in it. they have don't trust government currency and they don't trust regulation. they seem like they know what they're getting into. let them lose their money if they want to. >> when you look at what government is supposed to do, it is supposed to have a fair playing fieed. that means you need to know what the risks are

it wasn't the case and what we have learned over time is the something specific to mt gox in terms of its controls it's technology things that it's been doing and potentially that there's fraud or theft . you know could potentially be bankrupt and you know they've lost tons of money for the people who entrusted their money to mt gox now do you think the fraud or theft is on in the hands of mt gox or they've been hacked what do you think it sounds like they've been hacked basically you know that they're now we're just running away with. poor systems someone got into the system and they were able to make off with that money and you know mt gox basically is. a big problem and you know people they want their money back i mean for me basically what it boils down to is it's kind of like you know this is what happens when you have a new technology you know before everything gets sorted out there's some messy situations that think back to the internet bubble days the internet is here to stay as we know now it's much bigger everything is happening over the internet we've been getting t.v. over

tokyo based mt gox was once the largest because an exchange in the world now it appears to be bust the question today however is whether the whole propos currency movement has been dealt a fatal blow max kaiser the dynamic of the kaiser report here on our t.v. is a crypto currency evangelist and he thinks the mt gox episode is good for crypto currency is because it strengthens the community by a limiting exchange with poor systems and controls max has his own crypto currency max coin so i began by asking him to give us the full deep read on max going take a look. is next generation cryptocurrency cryptology is stronger it's faster there's a lot of money moving into alternative currencies like. this is one of the fallout from the bitcoin situation with mt gox people realize that they need to diversify into other coins other crypto coins and max coy is immediately one of the most popular alter currencies as they're called are crypto currencies in the market and we've got some surprises coming from. friends to the cryptology that will place it probably the salute cutting edge of crypto cu

coming right up and finally edward harrison joins me in today's big deal to discuss the rumblings of mt gox and what it means for the future of bitcoin now let's get the show on the road. with. j.p. morgan the largest bank in the u.s. by assets is reducing both its headcount and its target profitability for twenty fourteen now j.p. morgan said it expects its total headcount to fall by five thousand to two hundred sixty thousand people the bank announced the changes saying that creating a business model which can deal with new regulations is cutting into the firm's profits however j.p.n. is confident that it can win in this new environment and is up to nearly profit target from twenty four to twenty seven billion with a b billion dollars now marion the way you explain that the bank would achieve these targets by optimizing its retail banks in other words subtracting the number of humans and adding to the number of machines now check out these before and after slides are kind of interesting now the one on the left that picture that's of a traditional bank branch and the one of the. right is a

tokyo based mt gox was once the largest because an exchange in the world now it appears to be bust the question today however is whether the whole propos currency movement has been dealt a fatal blow max kaiser the dynamic. the kaiser report here on r t is a crypto currency evangelist and he thinks the mt gox episode is good for crypto currencies because it strengthens the community by a limited exchange with poor systems and controls max has his own crypto currency max coins so i began by asking him to give us the full deep read on max going take a look. max cause is the next generation crypto currency cryptology a stronger it's faster there's a lot of money moving into alternative currencies like max. this is one of the fallout from the bitcoin situation with mt gox people realize that they need to diversify into other coins other crypto coins and max coy is immediately one of the most popular alter currencies as they're called are crypto currencies in the market and we've got some surprises coming from. enhanced runs through the cryptology that will place of probably the absolute cu

tokyo based mt gox was once the largest because an exchange in the world now it appears to be bust the question today however is whether the whole propos currency movement has been dealt a fatal blow now if skies are the dynamic to report here on r t is a crypto currency evangelist and he thinks the mt gox episode is good for crypto currencies because it strengthens the community by a limiting exchange with poor systems in controls max has his own crypto currency max coins so i began by asking him to give us the full deep read on max going take a look. is next generation cryptocurrency cryptology is stronger it's faster there's a lot of money moving into alternative currencies like. this is one of the fallout from the bitcoin situation with mt gox people realize that they need to diversify into other coins other crypto coins and max coy is immediately one of the most popular all to currencies as they're called are crypto currencies in the market and we've got some surprises coming from and some enhanced runs through the cryptology that will place a probably the salute cutting edge of c

tokyo based mt gox was once the largest big corn exchange in the world now it appears to be bust the question today however is whether the whole propos currency movement has been dealt a fatal blow max kaiser the dynamic of the kaiser report here on r t is a crypto currency evangelist and he thinks the mt gox episode is good for crypto currency is because it strengthens the community by a limited exchange with poor systems and controls max has his own crypto currency max coin so i began by asking him to give us the full deep read on max going take a look. is next generation cryptocurrency cryptology is stronger it's faster there's a lot of money moving into alternative currencies like max. this is one of the fallout from the bitcoin situation with mt gox people realize that they need to diversify into other coins other crypto coins and max coin is immediately one of the most popular all to currencies as they're called are crypto currencies in the market and we've got some surprises coming from. friends to the cryptology that will place it probably the salute cutting edge of crypto cu

tokyo based mt gox was once the largest because an exchange in the world now it appears to be bust the question today however is whether the whole propos currency movement has been dealt a fatal blow max kaiser the dynamic of the report here on our two is a crypto currency even jealous and he thinks the mt gox episode is good for crypto currency is because it strengthens the community by a limiting the exchange with poor systems and controls max has his own crypto currency going so i began by asking him to give us the full deep on going take a look. max ca is the next generation crypto currency cryptology a stronger it's faster there's a lot of money moving into alternative currencies like max guy this is one of the fallout from the bitcoin situation with mt gox people realize that they need to diversify into other coins other crypto coins and max coin is immediately one of the most popular alter currencies as they're called are crypto currencies in the market and we've got some surprises coming from max coin some enhanced lens to the cryptology that will place it probably the absolute

the world pool so they have boundaries between exchange mt gox faces whirlpool of death as prices drop to lowest point in six months and the latest chapter in the continuing story mount cox troubled big quinn exchanges further spiral down the plughole as it released another statement today citing security issues at its tokyo office as the reason withdrawal capability hasn't been returned so you know when they announce this headline is a few days old the price at mt gox went to below one hundred dollars now many people on you tube were surely king. as well of course on the other exchanges it was always above six hundred around six hundred dollars so you can either look at it as a shriek that big queen itself is crashing or as this tweet from jim rickards who is an expert in markets and finance and debt and debt restructuring and bankruptcies if big coin two hundred dollars at mt gox and five hundred eighty dollars at coin desk it's not two different prices market saying sixty five percent chance gox fails well of course going down is not an exchange that's an index of different prices o

to trust on monday however it added that if they acquired transaction to any mt gox decline address and currency withdrawals and yann euro etc would not be affected by this issue what does this mean for between holders are they going to get their money back or not you know it's not a free. currency you know when we talk about bitcoin before we're talking about you know transactions that are free flowing and so forth these people basically have their money tied up in they can't get it out so the negatives of this particular thing it's not ready for prime time you know no mean stream person wants to go through what these people are going through right now and i certainly don't thank you as always that's all for now but you can see all segments for. richard in today's show on youtube about youtube dot com slash boom bust r.t. we also love hearing from you so please check out our facebook page at facebook dot com slash boom bust our two you can also tweet us at our aid at edward and it's from all of us here at boom bust thanks for watching we'll see you next time i'm like. there's a say

money on coins and they're saying that you know what i can accept as a result loses its value now mt gox is the third biggest current exchange in the world and represents around fourteen percent of the total decline traded just last week alone now mt gox said customers would still not be able to transfer declines from a mt gox while the turn external declined address on monday however it added that if transaction to any mt gox decline of trust and currency withdrawals and yann euro etc would not be affected by this issue what does this mean for between holders are they going to get their money back or not you know it's not a free functioning currency and you know when we talk about bitcoin before we're talking about you know transactions that are free flowing and so forth these people basically have their money tied up in they can't get it out so the negatives of this particular thing it's not ready for prime time you know no mean stream person wants to go through what these people are going through right now and i certainly don't thank you as always that's all for now but you can see al

gox for years. you can use a product like piper wallet and store the bitcoins on paper so they can't be hacked. only trust someone with your keys and money as much as you have to. >> where do you see bitcoin going? >> this will bring more adoption. >> why would it bring more adoption? >> this is bringing awareness to more people, more serious players into it. people are seeing this as a business opportunity. >> do you see this as a business opportunity? are you going to jump back in? >> i may. i'm going to wait longer. i'm going to see how these other guys do. >> what's the best opportunity? >> anything. this is like the early days of the internet. anything you threw on the internet stuck back then. the field is wide open. >> jered kenna, we will be watching to see if you're right. thanks for joining us. another day, another nsa scandal. this time they are spying on you through your webcam. why yahoo! is outraged. ♪ >> welcome back to "bloomberg west." i'm emily chang. a new neighborhood is poppin

gox. >> how the responder that? you spoke about regulation in the rep -- in the letter you wrote yesterday, saying we should not actually to these to goms and allow bitcoin regulated like all the other currencies. remember it was also the data -- it is not just a coincidence. i lost a lot of money, but i'm not clamoring for the state to come bail me out. no one should bail out mt. gox. there were losses and that is gone now. personal responsibility is important in a free-market. >> it sounds like even if it itself wreck -- to bring back tomorrow, he would not go in. >> personal responsibility is important in the free-market. it is the kind of thing you do not hear. i'm glad he said it requested stuff. thank you. coming up next, the retail sectors that with the best performers in 2013, may be stuck in the mud. we will get insight and action from adam on how you can find your best bet in retail right now. ♪ >> welcome back. there are a few bumps in the road when it comes to our consumer. questec couple of speed bump

gox. ceo telling reuters the exchange is at a turning point of the question as you said, what happens next? earlier today the exchange issued a brief statement saying quote, decision was taken to close all transactions for the time-being in order to protect the site and your users. we will be closely monitoring the situation and will react accordingly. that is from mt. gox. we reached out to them but no response on exactly what the team is trying to protect its users from. this morning after the site appeared to be dark, coin desk, which puts out the bitcoin price index, they found a line of source code embedded in front page of the mt. gox webb sight, put announcement for mt. gox, acquisition here. this has twitter aflutter and bitcoin investors discussing who might actually be interested in acquiring something that is had such a run south or perhaps maybe this is about the departure of the ceo and handing over of the exchange. this is all conjecture. meanwhile six other top exchanges try

gox for years. you can use a product like piper wallet and store the bitcoins on paper so they can't be hacked. only trust someone with your keys and money as much as you have to. >> where do you see bitcoin going? >> this will bring more adoption. >> why would it bring more adoption? awareness toinging more people, more serious players into it. people are seeing this as a business opportunity. do you see this as a business opportunity? are you going to jump back in? >> i may. i'm going to wait longer. i'm going to see how these other guys do. >> what's the best opportunity? >> anything. this is like the early days of the internet. anything you threw on the internet stuck back then. the field is wide open. >> jered kenna, we will be watching to see if you're right. thanks for joining us. another nsa scandal. this time they are spying on you through your webcam. why yahoo! is outraged. ♪ >> welcome back to "bloomberg west." i'm emily chang. a new neighborhood is popping up in new york city. the dev

gox gone bankruptcy? >> cisco prices $8 billion bond offering, largest since september of last year. bankers received $20 billion to investors for a company that doesn't sell them often. cisco's last sale was in 2011. the high grade companies have sold about $163 billion worth of debt in the u.s. this year, down from $175 billion at the same point last year. cisco shares under a little bit of pressure in the german market. >>> bitcoin, which is struggling to gain some level of acceptance among consumers, investors and regulators may have suffered a major setback. morgan brennen is at cnbc hq with the latest. morgan, tell us more. >> hi, jewel where a. yes, the website of the bitcoin's industry's major exchange mt. gox has gone off-line today amid growing speculation it's on the verge of bankruptcy. pushing the price of the currency down 20%. the site is blank and trading on the exchange has been halted. and the pr representative for mt. gox says it's no longer in charge of the pr for the exchange. earlier

address on monday however it added that if transactions any mt gox address and currency withdrawals and yann euro etc would not be affected by this issue what does this mean for between holders are they going to get their money back or no you know it's now three functioning currency you know we've talked about bitcoin before we're talking about you know transactions that are free flowing and so forth these people basically have their money tied up in they can't get it out so the negatives of this particular thing it's not ready for prime time you know no mean stream person wants to go through what these people are going through right now and i certainly don't thank you as always that's all for now but you can see all segments. richard in today's show on youtube about youtube dot com slash boom bust r.t. we also love hearing from you so please check out our facebook page at facebook dot com slash boom bust our two you can also tweet us at our aid at edward n.h. from all of us here at boom bust thanks for watching we'll see you next time i'm mike. it was a. very hard to take a. look.

address on monday however it added that a transaction to any mt gox address and currency withdrawals and yann euro etc would not be affected by this issue what does this mean for between holders are they going to get their money back or no you know it's now three functioning currency you know we've talked about bitcoin before we're talking about you know transactions that are free flowing and so forth these people basically have their money tied up in they can't get it out so the negatives of this particular thing it's not ready for prime time you know no mean stream person wants to go through what these people are going through right now and i certainly don't thank you as always that's all for now but you can see all segments for. in today's show on youtube about youtube dot com slash boom bust r.t. we also love hearing from you so please check out our facebook page at facebook dot com slash boom bust our two you can also tweet us out and made at edward n.h. from all of us here at boom bust thanks for watching we'll see you next time i'm mike. is obviously more for the ladies becaus

gox did not pull that off. the emerging best practice in the industry, to the extent that we can speak of in this small industry, is that you keep something on the order of 95%, 98% of the coin in a cold wallets or keep it safe. >> -- of bitcoin in a cold wallets to keep it safe. >> i spoke to a guy the other day who lost $300,000 on mt. gox . and there was a part of him that said, you know, i probably should have seen this one coming. he did not fully track the exchange overall. there were a lot of people in that -- where there a lot of people in that camp? one would think you would be outraged. was there some skepticism about mt. gox to begin with? >> there is no shortage of outrage among no question about that. the social media channels, the e-mail absolutely exploding this morning as news of the final bankruptcy came. on the other hand, there are , one example of a business not doing business with mt. gox since last year. their phrase was, "since they became a roach motel coco -- a roach motel." they had tr

people are falling into the world really the world pool so they haven't read bitcoin exchange mt gox faces whirlpool of death as prices drop to lowest point in six months and the latest chapter in the continuing story of mt cox the troubled between exchanges further spiral down the plughole as it released another statement today citing security issues at its tokyo office as the reason withdrawal capability hasn't been returned so you know when they announced us this headline is a few days old the big price at mt gox went to below one hundred dollars now many people on you tube were surely king. as well of course on the other exchanges it was always above six hundred around six hundred dollars so you can either look at it as a shriek that big itself is crashing or as this tweet from jim rickards who is an expert in markets and finance and debt and debt restructuring and bankruptcy's if big coin two hundred dollars at mt gox and five hundred eighty dollars that coin desk it's not too different prices market saying sixty five percent chance gox fails well of course going down is not an

gox. this is how the site looked on tuesday. the message reads: in light of recent news reports and the potential repercussions on mtgox's operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. leaving investors scratching their heads and wondering-- hey-- where did my virtual currency go.. as bit coin prices fell to $135 on the mt gox index. the only one who knows what mt gox is doing with their money is mt. gox and the problem is they are being extremely unprofessional about this. they just shut down their site, they're not explaining what's going on and they've got thousands of clients with millions of dollars in this exchange and they're giving no explanations. bit coin trading continues on other exchanges.. however we learned from the better business bureau, bitcoins have spawned a new scams... i think a lot of consumers don't understand it but a lot of the bitcoins are being used for scams. so if you really get a question, or someone tells yo

as you look at the mount gox situation and this guy who was running it, he's gone dark. mount gox has gone down and $400 million is missing from people, and that leads others who were maybe even considering buying a bitcoin or two to say, whoa, forget it. how do you view the mount gox situation? >> you're talking about 6% of the entire ecosystem. liz: that's a lot. >> no, it's not. i don't speak for bitcoin any more than mark does. i don't know where he is, but he's completely irrelevant. (áur(h to get in the space. liz: you think this situation is totally relevant, but the actual price has wavered because people, i guess in a way, matthew, are just concerned about the reliability of it. what does bitcoin need to move forward? of course, we should mention that a whole bunch of groups in the bitcoin ecosphere got together and put out a statement. we can she you some of it where they said: in a way, it certainly hurts the reputation of what's going on. >> no. i mean, it doesn't. liz: this is the mount gox web site message. in light of recent news reports, we're shutting d

we have new twists in the meltdown at mount gox today. sources are saying mount gox has now indeed received a subpoena from federal prosecutors in new york. turned up here. mount gox is based in japan, one guy with a bunch of servers. in the meantime the derivatives market for bitcoin has suspended trading. it is getting worse. what is going on? >> it is having a fallout effect. the bitcoin derivatives market suspended trading after a key exchange parter mount gox went dark. they are integrating other exchanges and hope to be back up by next week. meanwhile ceo came forward with a public statement on the web site saying i would like to use this opportunity to reassure everyone that i am still in japan and working very hard with the support of different parties to find a solution to our recent issues and according to fox business.com's catherine , the ceo declared to a consultant in an internet chat that he has not given up yet and is seeking legal assistance. he says he himself stands to lose money if mount gox fails but technically speak

gox. the company did not say anything about those bitcoins in particular when they might be released or whether or not they are actually still available. >> here's the thing. we were getting into this. >> don't sugar coat it. you are screaming at each other before the show began. >> when you have one of the major exchanges go down like this in this massive technological problem, it really does raise into question the viability of bitcoin, the enthusiasts will tell you this is just part of the process. >> that's what enthusiasts do. they are enthusiastic. >> because the idea behind it is still there. >> what's the idea? digital currency? what's wrong with money? works fine for me. >> mary has a good quote on this. >> couple things. first of all, yes, they say this is just weeding out the bad actors, it's part of a process of any kind of nascent technology or product, et cetera, and as you can imagine, the bitcoin advocates were out in force. i want to pull up something written by eric voorh

. 750,000 bitcoins were stolen but we learned about $63.6 million in outstanding debt is what mount gox is dealing with. we are dealing with the digital currency you can buy and trade in a variety of nonregulated independent legal exchanges around world and here are three things you need to know about that mount gox bank to. how big is it? some college of lehman knowledge of digital currency. major loss for investors who have been calling in mount gox but as of last summer looking at the broader scale longer the biggest exchange. bitcoin community tried to rally and say this is a digital darwinism and bitcoin is still healthy. officials weeding out so to speak. second, how will this damage of rice? prices have been falling since bitcoin hit $1,,00 in december, then hit $418 on tuesday when mount gox was taken down and cover around $500 this week and third but not least, will this mean more regulation for bitcoin? there are arguments on both sides. some say of the bitcoin community can absorb the loss of mount gox may be the decentralized system could work out but with retailers like ove

address on monday however it added that if they acquired transaction any mt gox address and currency withdrawals and yann euro etc would not be affected by this issue what does this mean for between holders are they going to get their money back or no you know it's no three functioning currency you know when we talk about bitcoin before we're talking about you know transactions that are free flowing and so forth these people basically have their money tied up in they can't get it out so i mean the negatives of this particular thing it's not ready for prime time you know no mean stream person wants to go through what these people are going through right now and i certainly don't thank you as always that's all for now but you can see all segments. in today's show on youtube out youtube dot com slash boom bust archie we also love hearing from you simply check out our facebook page at facebook dot com slash boom bust our two you can also tweet us at our aid at edward n.h. from all of us here at boom bust thanks for watching we'll see you next time i like . the show and scar source. for t

gox. >> we have to wrap, but very quickly, how many customers do you have and what is your business model? >> our model has not launched yet. we're preparing to launch at beginning of march. the best way to describe our company to relate t to something most people can understand. you take an investment company that currently exist that is invests in physical gold on behalf of their clients of the we do that but we're the.0%. so we take an asset difficult to acquire and difficult to occur and acquire and secure it for accredited investors. david: all right. well, listen we wish you the very best. stay in touch with us, bret. we want to know what happens with your company. liz, again, the problem unlike gold this stuff doesn't exist. bitcoin might actually have had all the duplicate transactions through mt. gox. we're never sure because there are not all the investigators honing in on these companies whether they have what they say they have. liz: a company that will insurance it is intrigui

gox, e-mail us about how many bitcoins they lost. i have to say so far those e-mails have not added up to the 744,000 bitcoin that were pilfered from the website. challenge.a real there was a teaser on their website, which was taken down this morning, that mentioned plans for an acquisition. their intentions at this point. as for bitcoin, i did hear an interesting observation on this works at george mason university. said that while this is very bad for bitcoin in the short is what may be this closes the door is on the sort of amateur finance types, technology types are tending to be finance types running amateur setups for bitcoin. quickly, does this create more opportunities for the other exchanges out there? it creates opportunity for people that do not exist yet. i got off the phone with barry silver this morning. he is putting $20 million in cash and bitcoin into an operation that will be's runoff of second market. -- be spun off of second market. >> we have to leave it there. more "bloomberg west" after this break. ♪ >> now i

a drox share a box is that-- mount gox? >> it's an acronym mtgox. magic gathering on-line exchange t started as a place for people to trade magic cards. (laughter) wait, wait, wait. a place to trade magic cards, so did my basement. does that mean my base suspect now a currency exchange? how did this happen? it's not like money that doesn't really exist can just disappear, right. >> we think they've been fooled here. >> i think there is a pretty strong likelihood of that i think a lot of us suspected that for quite some time. the fact that they're not talking very openly about what is going on, they dleeted all their tweets from their twitter account. >> jon: they deleted the tweets, that will solve it i think anthony weiner tried that route as well. good luck with that strategy. i bet the money resurfaces somewhere under the name carlos denairo. listen bitcoin exchange, you have a lot to learn. you can't do braz enfraud in one fell swoop. >> the institutionalized and normalize systemic fraud which brings to us our new segme

people are falling into the world who really the world pole so they haven't read the exchange mt gox faces whirlpool of death as prices drop to lowest point in six months and the latest chapter in the continuing story of mt cox the troubled between exchanges further spiral down the plughole as it released another statement today citing security issues at its tokyo office as the reason withdrawal capability hasn't been returned so you know when they announce this headline is a few days old the big price at mt gox went to below one hundred dollars now many people on you tube were surely king. as well of course on the other exchanges it was always above six hundred around six hundred dollars so you can either look at it as a shriek that big queen itself is crashing or as this tweet from jim rickards who is an expert in markets and finance and debt and debt restructuring and bankruptcies if big coin two hundred dollars at mt gox and five hundred eighty dollars at coin desk it's not two different prices market saying sixty five percent chance gox fails well of course going down is not an

gox. not just for mt. gox, but what is the next move in the bitcoin world as a result of all of this? do we see more regulation attempted in some places? we have already seen the prices fall. what is the next thing? >> the next thing is already underway, a massive effort at damage control and proving that other bitcoin companies do not suffer from the same problems that mt. gox did. that will include things like security aduits, where companies make them public. they will attempt to cauterize the damage. it is safe to say that this is the end of the kind of amateur hour of a couple of guys working on computer code, pulling a few all nighters and setting up an exchange. >> at the end of the day, it is a currency. a currency needs to be regulated because people need to know if they can trust it. yesterdayr yellen say that she did not think it needs to be regulated -- >> they were looking into it. >> doesn't need to happen, carter? and thereds to happen is no regulator who does not think that consumer protect

it is a problem with one individual company, mount gox -- mount gox in japan. was a shady company that was not very trustworthy. they had problems for years and ultimately i got burned because i had fun there. cheryl: they're looking into mount gox to see if there is attribution, but you have a full defense of bit:in general and you say when it comes to regulators, quote, they are focused on amplifying and in cities destruction. this happened in the u.s. the federal reserve, they would have your back, you would get your $300,000 back. at this point you have got nothing so why blame regulators who could have stopped this and could have saved you? for what happened to mount gox but you can't regulate await incompetence and failure. that is what people try to do in the u.s. financial system and we're left with these too big to fail companies that posed systemic risks to the entire system. at bitcoin we don't have that and it is healthier. cheryl: supporters, even tech conference fors, zero financial experience. how can they be trusted to regulate something like bi

the crypto currency immunity is watching the drama unravel with mounted gox. -- mt. gox. there are now being sued by one of the customers for misappropriation of user property. the class action case was found yesterday and seeks to represent all u.s. users who lost money. can this lawsuit hold any weight? cory johnson is back with us as well. are they ever going to get their money back? >> where do the coins go? participated? can it be proven? >> the money disappeared. there is no regulation. is there real recourse? the owners ofine bitcoin he says hold the money for us and the guy holding the money said it just disappeared. that is the issue. one of the big issues will the what happens going forward with an covering this and any lawsuits. we are joined by mark williams. a former regulator, in particular, i am wondering what you make of the role of a trading operation like mt. gox in bitcoin? trading not even operation. no controls. it is a mess. clearly what this represents to the market is that there are other exchanges out there in the bitcoin world which are run this