gox. we have seen difficulties in trading at mt. gox. sometimes the prices are way out of whack with what prices are trading at elsewhere. what is it about mt. gox that tolerates these problems? >> historically mt. gox has had liquidity. a lot of times mt. gox is your only option. not easy other exchanges -- now that you see other exchanges, there are real options for people who want to buy large amounts of bitcoin. in the past, that was not there. when mt. gox originally failed, when it dropped and he drove the price down and it was hacked in 2011, when the price was $31, they had an auction. mt. gox might have died then. this may be the end for mt. gox. >> we will continue to follow the story. matt miller in new york, thanks so much. coming up, why a prominent venture capitalist lef silicon valley to head to the midwest. we will ask why, next. ♪ >> welcome back to "bloomberg west." shares of linkedin are falling. there are concerns that growth is down. shares are down nearly 10%. now they are down about 7.0%. it will mark the fifth s

gox from insolvency but there is what you would call an exchange arbitrage between the price on mt gox and other exchanges the paul singer comparison is a good one paul singer will engage in vulture capitalism as it's called picking up sovereign debt. pennies on the dollar and then sued the country for repayment and for all of that debt it's not a very. pleasant activity he's engaged with just read the reports of greg palast on this to get a fuller detail but roger varos one of the founding fathers really of the big coin movement is acting as an arbitrage or buying bitcoin cheap on mt gox and then just a patient of there being a closing of the price gap and then here we'll make some money and he's providing liquidity in this market which is very very vital also in europe comparing to another currency that people many people are screaming out of control of the euro is going to collapse jim rickards who we had on the show at this time said it's not going to collapse it's actually going to be stronger than the u.s. dollar that was back in two thousand and ten two thousand and eleven he wa

gox from insolvency but there's what you would call an exchange arbitrage between the price on mt gox and other exchanges the paul singer comparison is a going to call singer will engage in vulture capitalism as it's called picking up sovereign debt pennies on the dollar and then sued the country for repayment and fall of that debt it's not a very. pleasant activity he's engaged with just read the reports of greg palast on this to get a fuller detail but you're right. varos one of the founding fathers really of the big coin movement is acting as an arbitrage or buying. calling cheap on mt gox and then just a patient of there being a closing of the price gap and then here we'll make some money and he's providing liquidity in this market which is very very vital also in europe comparing to another currency that people many people are screaming out of control of the euro is going to collapse jim rickards who we had on the show at this time said it's not going to collapse it's actually going to be stronger than the u.s. dollar that was back in two thousand and ten two thousand and eleven

gox. we have seen difficulties in trading at mt. gox. sometimes the prices are way out of whack with what prices are trading at elsewhere. what is it about mt. gox that tolerates these problems? hadistorically mt. gox has with quiddity. -- liquidity. is your times mt. gox only time -- option. exchanges -- now that you see other exchanges, there are real options for people who want to buy large amounts of bitcoin. in the past, that was not there. failed, gox originally when it dropped and he drove the price down and it was hacked in 2011, when the price was $31, they had an auction. mt. gox might have died then. this may be the end for mt. gox. >> we will continue to follow the story. matt miller in new york, thanks so much. coming up, why a prominent venture capitalist leftist silicon valley to head to the midwest. we will ask why, next. ♪ >> welcome back to "bloomberg west." shares of linkedin are falling. there are concerns that growth is down. shares are down nearly 10%. now they are down about 7.0%. the fifth straight quarter of fa

but many are calling this the death of mt gox but the extension is yet to throw in the towel changing on the site is still active and according to marcus centaury chairman of the big quinn foundation's very glittery affairs committee there's a lot of people who think that they are getting a deal if the exchange manages to remain in business through the ordeal of resume withdrawal functionality that those people are getting a good deal buying in a low of one hundred thirty five dollars only to turn around a week later and turn it into of six hundred dollars or more is exactly. that perhaps the possibility of a quick major again is what will ultimately save mt gox from insolvency there's what you would call an exchange arbitrage between the price on mt gox and other exchanges the paul singer comparison is a good one call singer will engage in vulture capitalism as it's called picking up sovereign debt pennies on the dollar and then sued the country for repayment and for all of that debt it's not a very. pleasant activity he's engaged with just read the reports of greg palast on this to

gox from insolvency but there is what you would call an exchange arbitrage between the price on mt gox and other exchanges the paul singer comparison is a good one paul singer will. or engage in vulture capitalism as it's called picking up sovereign debt pennies on the dollar and then sued the country for repayment and for all of that debt it's not a very. pleasant activity he's engaged with just read the reports of greg palast on this to get a fuller detail but roger varos one of the founding fathers really of the bitcoin movement is acting as an arbitrage or buying bit calling cheap on mt gox and then just a patient of there being a closing of the price gap and then here we'll make some money and he's providing liquidity in this market which is very very vital also in europe comparing to another currency that people many people are screaming out of control of the euro is going to collapse to record so we had on the show at this time said it's not going to collapse it's actually going to be stronger than the u.s. dollar that was back in two thousand and ten two thousand and eleven he

gox from insolvency but there is what you would call an exchange arbitrage between the price on mt gox and other exchanges the paul singer comparison is a going to call center will engage in vulture capitalism as it's called picking up sovereign debt pennies on the dollar and then sued the country for repayment and for all of that debt it's not a very. pleasant activity he's engaged with just read the reports of greg palast on this to get a fuller detail but roger varos one of the founding fathers really of the bitcoin movement is acting as an arbitrage or buying big. going cheap on mt gox and then dissipates ssion of there being a closing of the price gap and then here we'll make some money and he's providing liquidity in this market which is very very vital also in europe comparing to another currency that people many people are screaming out of control of the euro is going to collapse two records that we had on the show at this time said it's not going to collapse it's actually going to be stronger than the u.s. dollar that was back in two thousand and ten two thousand and eleven he

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 systems 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 the internet like house of cards but in one thousand nine hundred you had companies like world com who were supposed to be the next big thing and as it turns out that was a big fraud and the guy who ran world com bernie ebbers went to jail so right and so you know you have those kinds of things but. which was a part of world

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 systems 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 the internet like house of cards but in one thousand nine hundred. companies like world com who were supposed to be the next big thing and it turns out that was a big fraud and the guy who ran world com bernie ebbers went to jail so right and so you know you have those kinds of things. bug. which was a part of world those ass

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 systems 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 happen 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 the internet like house of cards but in one thousand nine hundred. companies like world com who were supposed to be the next big thing and as it turns out that was a big fraud and the guy who ran world com bernie ebbers went to jail so the kitchen right and so you know you have those kinds of things but. which was a pa

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 are 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 the internet like house of cards but in one thousand nine hundred you had companies like world com who were supposed to be the next big thing and as it turns out that was a big fraud and the guy who ran world com bernie ebbers went to jail so rihanna did so you know you have those kinds of things but. which was a part of wor

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 systems 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 happen to think back to the internet bubble days the internet is here to stay as we know it's much bigger everything is happening over the internet we've been getting t.v. over the internet like house of cards but in one thousand nine hundred you had companies like world com who were supposed to be the next big thing and as it turns out that was a big fraud and the guy who ran world com bernie ebbers went to jail so right and so you know you have those kinds of things but. which was a part of

traded just last week or 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 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 twe

gox i think it's showing a remarkable resiliency in the face of the mt gox collapse if i remember if you look at like world com and ron lehman brothers bear stearns those are paper ponzi great empires that collapsed is zero or near zero because they were there's no intrinsic value whatsoever with crypto with going you have one of the major exchanges mt gox going through enormous difficulties but there's still a tremendous value people are buying it knowing that the long term value is very good you've got second market in new york a very sober launching more advanced trading platform to mt gox was really a toy. exchange where they were trading virtual trading cards from a few years ago they were never really in a position to be a serious trading platform so this is not a surprise really and the value of the big going to stuff is holding up very well and i expected to make new all time highs in the next six to nine months. what you say to those who say that you know for any crypto currency has no intrinsic value. well that's correct because the cryptology is extraordinarily valuable in

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 the internet like house of cards but in one thousand nine hundred you had companies like world com who were supposed to be the next big thing and as it turns out that was a big fraud and the guy who ran world com bernie ebbers went to jail so right and so you know you have those kinds of things but. which was a part of world c

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

gox i think it's showing remarkable resiliency in the face of the mt gox collapse if i remember if you look at like world com and ron lehman brothers bear stearns those are paper ponzi great empires that collapsed is zero or near zero because they were there's no intrinsic value whatsoever with crypto with bitcoin you have one of the major exchanges mt gox going through enormous difficulties but there's still tremendous value people are buying it knowing that the long term value is very good you've got second market in new york a very sober launching more advanced trading platform to mt gox was really a toy. exchange where they were trading virtual trading cards from a few years ago they were never really in a position to be a serious trading platform so this is not a surprise really and the value of the big going to stuff is holding up very well and i expected to make new all time highs in the next six to nine months max what you say to those who say that you know for any crypto currency has no intrinsic value. well that's correct because the cryptology is extraordinarily valuable int

gox i think it's showing remarkable resiliency in the face of the mt gox collapse if i remember if you look at like world com and ron lehman brothers bear stearns those are paper ponzi great empires that collapse to zero or near zero because they were there's no intrinsic value whatsoever with crypto with bitcoin you have one of the major exchanges mt gox going through enormous difficulties but there's still tremendous value people are buying it knowing that the long term value is very good you've got second market in new york a very sober launching more advanced trading platform to mt gox was really a toy. exchange where they were trading virtual trading cards from a few years ago they were never really in a position to be a serious trading platform so this is not a surprise really and the value of the big going to stuff is holding up very well and i expected to make new all time highs in the next six to nine months max what you say to those who say that you know for any crypto currency has no intrinsic value. well that's correct because the cryptology is extraordinarily valuable inte

gox i think it's showing a remarkable resiliency in the face of the mt gox collapse i remember if you look at like world com and ron lehman brothers bear stearns those are paper ponzi great empires that collapsed zero or near zero because they were there's no intrinsic value whatsoever with crypto with bitcoin you have one of the major exchanges mt gox going through enormous difficulties but there's still tremendous value people are buying it knowing that the long term value is very good you've got second market in new york a very sober launching more advanced trading platform to mt gox was really a toy. exchange where they were trading virtual trading cards from a few years ago they were never really in a position to be a serious trading platform so this is not a surprise really and the value of the big going to stuff is holding up very well and i expected to make new all time highs in the next six to nine months max what you say to those who say that you know for any crypto currency has no intrinsic value. well that's correct because the cryptology is extraordinarily valuable intern

what do you think is going on with mt. gox? >> well, i'll tell you what, i'm not too surprised about it but to me the only disappointment is, we haven't seen real good competition with our dollar. i still think gold and silver is the real competition. so i'm not surprised at all what's happening. i never predicted that this, this type of digital currency is going to be able to replace it some day, it might help. you know, substitute for it, once the fed destroys the dollar which is, which is inevitable. and then other things will come about. but i've been so much involved in hard assets and something you can hold and touch, i was -- melissa: you don't like the idea of a digital currency? >> i like the idea of competition. if somebody else can figure something out and don't commit fraud. there are a lot of questions about whether there has been any fraud. no, the concept, i want to make it legal and i want competing currencies but no fraud and, i think, i believe that a digital currency was legitimate and the government should n

gox i think it's showing remarkable resiliency in the face of the mt gox collapse if i remember if you look at like world com and ron lehman brothers bear stearns those are paper ponzi great empires that collapsed is zero or near zero because they were there's no intrinsic value whatsoever with crypto with bitcoin you have one of the major exchanges mt gox going through enormous difficulties but there's still tremendous value people are buying it knowing that the long term value is very good you've got second market in new york a very sober launching more advanced trading platform to mt gox was really a toy. exchange where they were trading virtual trading cards from a few years ago they were never really in a position to be a serious trading platform so this is not a surprise really and the value of the big going to self is holding up very well and i expected to make new all time highs in the next six to nine months max what you say to those who say that you know that sell for any crypto currency has no intrinsic value. well that's correct because the cryptology is extraordinarily val

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 saying you know when you're in the arctic you have the entire world at your

what has been happening at mt. gox? >> mt. gox has gone totally dark. if you try to load their website, you will not find anything. mt. karpeles, ceo of gox, one of the biggest exchanges. he cannot be found. he has resigned from the parent bitcoin foundation. the question is -- do people who have bitcoin in mt. gox, are they totally lost? it is estimated that 700 bitcoin -- 700,000 bitcoin have been hacked. of around 12l million. you put that in perspective, about 6% of bitcoin. the entire currency, that has gone missing. the argument for the probe to point -- the argument for the pro bitcoin crowd, once you will bet. gox, bitcoin more stable. it is bad if you had your bitcoin stored at mt. gox. >> this seems to be building. what has been the impact on valuations? >> they have plummeted. down 15% yesterday. this is what is so interesting, it is so sustainable -- it is so susceptible to an exogenous threat. december was around $1100. $464. we will see what it does as everyone wakes up and has questions about the security of their points. hackers were abl

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 all segments for. in today's show on youtube about youtube dot com slash boom bust r.t. we also love hearing from you simply check out our facebook page at facebook dot com slash boom bust our two you ca

>> well, it's certainly bad for mt. gox. but if you look at the history of bitcoin, this doesn't look so bad. it's only been down by 20% today. it's bouncing back up. and 2014 has gotten off to a rocky start for bitcoin. it's certainly not one of the worst days in the coin's history. >>. >> it's bad to use mt. gox, isn't it, if they can't get their cash out. >> it's terrible for people to use mt. gox. i think there's a real risk that some people will never see their money there. there's been troubling signs coming out of mt. gox for close to nine months. it really escalated in the last month. >> why can't this happen to any other -- i mean, everybody is going to look at this and go, if i've lost money in this bitcoin exchange, why would i put any more money into bitcoin? >> that's a very good question. a lot of people in the bitcoin community have been saying don't regulate us, keep us regulation free. now you're hearing new voices coming out saying regulation would be a good thing. and that's the positive side of regulation

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 trying to separate bitcoin overall from mt. gox saying its act trysts are a tragic violation of the trust of the users of mt. gox. this is comes as unconfirmed document continues to circulate alleging hackers stole up to 6% of all bitcoins in circulation. this caused mt. gox to halt withdrawals as of february 7th as you know. outside headquarters in tokyo a handful of prot

i had not traded on mt. 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

a mt gox while the turn external declined 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 mik

they were taken from mt. gox. and theoretically bitcoin is one huge public did -- public ledger, so if we could figure out which transactions were the fraudulent ones, fraudulent ones, the theft, we could trace the bitcoin and potentially follow it to whoever has stolen it. but there are ways within the bitcoin system to kind of confuse where bitcoin moved. but theoretically we could potentially see when the was taken and see the flow of transactions as to where it went. >> so what about the people who lost money? is there any way that they can be made whole again? there isn't an fdic or even a bank they can go complaint to. >> and for a lot of critics of bitcoin they are pointing to this as saying see, we told you so. you put all of this money into a virtual currency and now it's gone away you know, mt. gox filed for bankruptcy. they did say they have some assets but they also have a lot of debt so, right now it's looking like customers of mt. gox feel, you know, we're using mt. gox as their bitcoin bank have los

. >> is this a problem with bitcoin or just a problem with mt. gox? >> it is not a problem with bitcoin. >> it is an interesting problem. a lot of people do not know and i recently discovered mt. gox is an acronym for magic the gathering online exchange. exchange, usedis to be for trading cars and it developed into a bitcoin exchange. over in japan, and i was telling trish earlier, i spent a stack of hundred dollar bills to some dude in japan who used to trade magic cards for a living, and that i lost it. it would not be a huge shock to me. ?hy did you trust mt. gox i know a lot in the bitcoin community have not trusted them for a long time. >> i did not trust them. it was risk and i was able to do trading there. i knew the risk and got burned by it. the fault is ultimately mt. gox 's, but i should've known better. >> this is not a bitcoin problem but a problem related to mt. gox but a comes on the heels a lot of concerns regarding volatility and bitcoin prices barely side arrestedin proponent just a few weeks ago. of negativeen a lot publicity surrou

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

a mt gox wallet turn external declined 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.

his bitcoins actually are with mt. gox. he reportedly according to some twitter reports or posts on twitter, i should say, unconfirmed, has about 270,000 or so, 200,000 plus dollars with mt. gox right now. but again, a lot of people will say it's just part of it. we had benjamin lofty, head of the department of financial services in new york who basically said the same thing, unlike an alabama regulator who yesterday issued a warning to consumers saying don't invest in this. your money gets tied up, you may not be able to access your account, et cetera. it is a new technology and it is rife with problems. >> it's like the gold crew -- we got to go, i know. you can't buy anything with gold. i'm not taking -- >> you can buy with bitcoin. more retailers are accepting it. >> agreed. but alternative currencies are so subject to the fluctuations of what people want to accept. if i have something nobody will take -- >> have you ever bought anything with bitcoins? >> i have not. >> do you own bitcoin? >> i do not. but i read a lot

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 you you won something or that in order to get the prize of the offer you've got to use a bit coin, do some research because a lof of the scammers are using that right now. chuck coppola joins me now with more on bitcoin business.. angie --- despite a wild week in the headlines --- one firm is attempting to put "bitcoins" on the institutional radar. "second market" is waitng on regulatory approval that will allow it to launch it's own bitcoin exchan

i had not traded on mt. 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

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 the finish line of the marathon. on larry king and i'll meet brandy shuf

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 trouble getting bitcoin out of the exchange. there were some who stop doing business with mt. gox as much as a year ago. the problem is there was always this price discrepancy where bitcoin was worth more at mt. gox than other exchanges. people were tended to pull this arbitrage. i talked to a guy of fairly modest means trying to arbitrage the difference, and he lost them. >> what does this mean for bitcoins future? we have all of these negative headlines coming out on a weekly basis. and if there is one thing a currency needs to be a it is secure. what does news like this do to the future of bitcoin? think there's any questio

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

david: our pleasure. >> here is my stance what happened with mt. gox? the fact it was a private company that was not managed properly. and that has resulted in a great loss for the users. david: now the 750,000 bitcoins that have apparently disappeared, do you have any information about that? >> i do not and i'm, reading the same media reports you're reading from regarding that. what they're saying, there was a issue on their end which led to that. i know they're throwing around things like about it coin protocols and -- issue and things like that but there is no evidence or proof that is actually what occurred with their system. the -- systems were something they chose to take measures to ensure it would not be a problem. david: you see the pictures, on the screen, bret. we show photos of bitcoin. those pictures don't exist. there is no physical bitcoin. that leads me to the question about your business. how do you assure the existence of something that doesn't really exist? >> what we have with falcon global a agreement based with a company out of the

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

goxamount gox -- mt. exchange went dark overnight. thieves may have made off with millions. we will talk about that later. and from the nsa prison program to facebook's acquisition of story of but our lead the day, caroline hyde sat down today in chen barcelona. they talked about the value of blackberry's messaging service in light of the whatsapp acquisition. cory johnson is hereto well. one of their biggest assets. >> i was surprised when i started to do more research on whatsapp. m ist of people said bb dominant. u.s., butnot in the wherea strong service people want that business. it is an asset to blackberry. >> in general messaging is such a basic need, it's was interesting talking to allison rosenthal the acid -- allison rosenthal. in users.aw a spike people want it when they want it. >> what is going to happen, we are going to move away from the carriers for texting, whatever you want to collect, to other applications, over the top. it is very interesting but it does not mean the dollars are going to transfer. one study said $35 billion worth of text messages did not

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

. >>> mt. gox receives a subpoena from new york and japan announces they're also investigating the matter. >>> the bull's eye on target as the retailer has its earnings report since it suffered a security breach during the massive holiday season. >>> u.s. senate panel investigating tax evasion has accused credit suisse of using cloak and dagger tactics that belong in a spy novel. it alleges c.s. bankers made 150 trips to the u.s. between 2002 and 2000208 orchestrate a large scale tax evasion scheme. some of the things credit suisse is accused of operating remote controlled lifts, and bankers accused of filing false visa applications pretending they were tourists and advising clients how to dodge u.s. tax laws. the senate hearing kicks off late today, shares trading at the bottom, just down just over 3% in trading today. >>> the firm came out to say it considers its insurance policies for wealthy u.s. citizens to be tax compliant. credit suisse has been preparing for investigations into its prod

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

has been of bitcoin plummeting today after mt. gox went off-line. price index, we have the headlines. prices in 20ouse thatcan cities -- it is 13.4% annual growth, that is the best year for the housing market since 2008. it comes out or in november that was the highest 2006. in a month over month basis the s&p case shiller price index is above estimates for the month over month number, but on the yearly number it is 13.4%, the best since 2008. how futures check have been trading, remember that they were indicating a lower open. not much change your based on the numbers that olivia just went through with the home prices up about .7%. our economics editor michael mckee has more details. the markets move on these numbers sometimes, only when it is off drastic -- of the estimates. >> i was looking at the numbers just before i came on louisburg radio -- bloomberg radio, and this is a little bit better news. olivia is little miss sunshine, but i can top that comes she is giving you the 20 city number, i'm giving the national number. the increase is not as

gox paypal. >> mt. gox aside, but let's be clear, when you have that many bitcoins is beer overnight, that is a problem. has invested in bitcoin very heavily. saying that mt. gox is just mf global is not very comforting from my perspective. but it goes back to a bigger issue him a which is that mark is still at the center of silicon valley and has its tentacles in everything. that is what carl icahn is attacking, cozy silicon valley ties. whether it is really in a shoe at ebay, we are not certain, but it is clear that there is a handful of people running silicon valley these days, and they are making money. whether shareholders are or not, i'm not sure. >> cozy boardrooms are nothing new in corporate america. there have been previous generations of cozy ties. andreessen for his part says this, if i'm on a board and that public company is looking to buy company in a certain space, and one of my startups is in that space, i will not be a part of that conversation. recusing yourself from such discussions w

what we do know is that nobody can get to mount cox -- mt. gox. we are still waiting for clarity from the company. >> what does it mean to the bitcoin world if mt. gox is gone ? and furthermore, if the reason for their disappearance is this alleged, or purported loss of hundreds of billions of dollars in bitcoin? >> the bitcoin community rallied very quickly last night when reports surfaced that mt. gox was on the edge. initially, a group of companies posted a statement on the website talking about insolvency, but quickly revise that to take the word out. but they were bending over backwards saying, look, our customers are secure. we have very good consumer protections in place. the funds are safe and so forth. really trying to defend the good name of bitcoin. time will tell if they are successful. >> at this point, however many hours in we are, does bitcoin have a good name? >> that is a good question, and certainly this will be mentioned in the future in the same breath as silk road and illicit transactions and that sort of thing. it may be, as

gox by the way. this is what he said about mt. gox. he said this is a bad exchange. the comment from him this morning is mt. gox is obviously broken -- has been obviously broken and possibly outright crooked for months. he's coming out swiping at mt. gox. as seen in trading spreads, that kind of proves it. this is like mf global, not a huge breakdown of the underlying technology or exchanges. bitcoin protocol is unchanged and other bitcoin exchanges and companies are doing just fine. that doesn't give a whole lot of faith, at least at this point to the people who are looking at bitcoin that dropped from $1,000 in september to $500. >> i thought if i bought a boit coboi boitcoin that there would be an identifier. i don't think that's the case now. >> that was my understanding. maybe this is a situation where it's like buying stock in some cases. i don't quite understand the technology. we went back and forth this morning a lot of times. i've been trying to get him to come on since he was tweeting about pimco. i wanted to talk to him about carl icahn. he claimed he was

on mt. gox, you can use a wallet to store bitcoins on paper. only chess someone with your keys and your money as much as you have to. >> where do you see bitcoin going from this point? crisis will bring more adoption. class i would bring more adoption if the price is dropping. >> and will bring awareness to more people and bring serious players into it. people see it as a business opportunity. if other people were not screwing it up, you would not see guys entering the space. bitcoinbviously had a experienced before. are you going to jump back and? class i may. i will wait longer and see how these other guys do. it is a business opportunity for somebody. >> what is the best opportunity? >> anything. it is the early days of internet. anything you threw up in -- on the internet stock back then. the field is wide open. >> all right. we will watch to see if you're right. thank you for joining us. allegations uber may be keeping drivers off the road on purpose to boost search pricing. is it actually wrong what they are doing? we will take every -- a

when they heard about mt. gox, what's the reaction? did they say we don't want to get involved in this or not? >> actually i think quite the opposite. the regulators and ep the banks are saying digital currency is not going away and it's important to have a safe, secure exchange. if you believe that digital currency is here to stay, and i really do think that is the general consensus right now, there's a lot of support that we're seeing down in d.c. from the regulators as well as wall street. >> so, barry, you want to start an exchange which you say will provide price stability to bitcoin as well as transaction transparency essentially. the problem though with bitcoin continues to be safety. there are people hacking into digital wallets. there is malware out there that is stealing bitcoin. you have problems -- we really don't even know what happened with mt. gox, but there are technical problems. you might set up an exchange but that doesn't eliminate what seems to be the real problem here is that either the krip toe currency or the in