dollars and euros in australian dollars and bitcoin so if you want to get some bitcoins and you have currency that's one way that you can get them is through this exchange the feds came in and they basically shut it down because they said they were not registered as a money transfer agent. the president filled out the little forms for wells fargo in north carolina just didn't check the books that bodes for the rest of the community is if you're not properly registered you're just not going to be able to operate your similar exchange and there are several other computer competing exchanges are and let's talk about this divide within the bit quiet community that i. had mentioned earlier can you set up the two sides for me well i don't know if it's so much of a divide but there are the early adopters who are very enthusiastic about bitcoins in now that it's gained popularity you have people coming in private equity groups venture capitalists and there's a lot of money to be made and so that sometimes it's a little bit suspicious when somebody comes in perhaps and with a ten million doll

to cross-talk bitcoins i'm joined by mere talkee in london he is a bit coin developer and owner of the british bit coin exchange interest sango in atlanta we have daniel castro he is a senior analyst with the information technology and innovation foundation and in dallas we cross to edward house he is the founder of chop wood finance dot com and an internationally recognized expert in wealth management or a gentleman crosstalk rules in effect that means you can jump in anytime you want i mean if i can go to you first what is the value of bitcoins in a few sentences. it's a type of currency which can be sent anywhere in the world like instantaneously and you can't have any kind of government or central power mandate that you how you use your money so you can center who have you want whenever you want wherever you want and there's a big problem right now in the financial industry where we have a global financial system where a lot of people are not allowed to participate so it's not it's if you want to do business in the world you need to go and register a corporation need to open a bank

hello and welcome to crossfire for all things are considered i'm peter lavelle bitcoins revolutionizing banking and finance or a nice political protest movement take your pick however there is no doubt this virtual currency is being given a careful look on the back of the global financial crisis and the stranglehold big finance has over the economy having an alternative currency appears to fit what is called the new economy. to cross talk bitcoins i'm joined by mere talking in london he is a bit coin developer and owner of the british bit coin exchange interest sango in atlanta we have daniel castro he is a senior analyst with the information technology and innovation foundation and in dallas we cross to edward house he is the founder of chop wood finance dot com and an internationally recognized expert in wealth management or a gentleman cross-talk rules in effect that means you can jump in anytime you want i mean if i can go to you first what is the value of bitcoins in a few sentences. it's a type of currency which can be sent anywhere in the world like instantaneously and you can't

to showcase at atm for bitcoin. "there are really exciting businesses based on this. 'coinbase' conducts 15 million dollars' worth of transactions a month. it used to do a million a month. that gives you an idea of the growth of bitcoin." however, regulatory agencies appear to be closing in. in march, the treasury department concluded all firms that exchange or transfer virtual currency must report to the government and have policies to prevent money laundering. "the same people who want a decentralized internet currency now want a regulated, centralized currency. ultimately, that will be bitcoin's downfall, because you cannot have a decentralized, legal system of currency." as with many things in the virtual world, hacking into accounts is a concern, largely because the value of bitcoin has gone up exponentially. traded in 2010 at 3/10 of a cent, a single bitcoin is now valued at more than a hundred dollars. details about job cuts could be revealed in bmc software's earnings report after the close. bmc was just acq

i mean if i go to you first what is the value of bitcoins in a few sentences. it's a type of currency which can be sent anywhere in the world like instantaneously and you can't have any kind of government or central power mandate that you how you use your money so you can center who have you want whenever you want wherever you want and there's a big problem right now in the financial industry where we have a global financial system where a lot of people are not allowed to participate so it's not it's if you want to do business in the world you need to go and register a corporation need to open a bank account and this option is not open to a lot of people it's the financial system is used as a tool of censorship so political organizations like wiki leaks had their payment option shut down by the department of justice after they put pressure on their buying so and these are a master card and paper to write odious thought that used to censor speech and yet at the same time no nazi websites in the k.k.k. is still allowed to be were still being served by these compa

bitcoin, and the u.s. government is considering to regulate. we're talking to the man who will lead the effort. how to work and play like a millionaire. believe it or not, there are apps for that. we'll show you what the jet set crowd can't live without, and "countdown to the closing bell" starts right now. ♪ cheryl: i'm cheryl casone in for liz claman, the last hour of trading, another day, another spool of record, or at least the markets hold where they are at now, the fourth consecutive record close for s&p and 10th so far this year. there's the techs as you see, at 1625. some of the stocks behind the rally hitting all-time highs, names like directtv, starbucks, kraft, and black rock. intra-day highs, and the dow is higher, 82 points, 15,051. we are, at this point, half percent higher. nice change for the dow. the russell higher by six points at 965.93. the small caps with the love, a broad based rally starting in asia, in europe, and closing out in the good old us of a. let's get to the floor show. we have those waiting for us on the floor

rupe commercial bank i will bitcoin the virtual money whose u.s. dollar value collapsed by forty six percent to twenty four hours last month the head of new zealand's banking lobby said today so you see the propaganda bedded in there saying it dropped by forty six percent in that brief little flash crash flash rise and then flash crash but here you're seeing the banks themselves are saying well we want to create our own one because of course of the efficiency of transmitting in a very genuine globalized currency why not leapfrog ahead of everybody else scotland by having this genuine globalized currency where you can make transactions globally instantly no four x. exchange no three day wait instantly and think with complete trust that it's a genuine transaction a genuine cash the big queen cash are being handed out as a virgin currency that will remain forever virginal the bank of england's pound sterling is an old hag that will remain all was and forever worthless nonsensical. and they're not going to compete with bitcoin these banks will not comp

absolutely bitcoin is the t.c.p. ip of payment systems or of currencies and you really have to understand that bitcoin is not a currency or it rather it's not just the currency it's an application programming interface it's a protocol and the current c. and just like t.c.p. ip what it allows is applications that can be built on top of it is a foundational network in itself is neutral and you troll doesn't mean a lack of principles neutrality is itself a principle and in fact is the most powerful principle of bitcoin because it's neutral both to senders and recipients their size doesn't matter i could do a transaction just like wells fargo could do a transaction that neutrality plus the neutrality to the amounts really makes this network completely neutral to payment systems and gives it all its power what we've seen. a rise in the u.s. with various internet regulation bills that have tried to create a multi-tiered internet kind of take out the stupid the stupid part in the middle and make it more of a centralized pro

bitcoin business. one of the things about it is that it's free of politics is free of in the sense of obligation to society indeed any connection with society it's indeed been described as being we know about facebook being a social networking system as as an anti social networking system it's highly individualistic and the concern is that while it's pretty soon the. drug dealing or money laundering a whatever there is also this inclination towards a highly individualistic society in which we can operate anonymously when nothing is traceable we avoid paying taxes we afford to exchange rates we avoid a lot of the things that minds us together was a society well you know again i had to play the i invented the virtual specials card again on the show but us pat number five nine five zero one seven six the virtual specialist technology from one thousand nine hundred six is the precursor to this exchange problem as it relates to virtual currencies as relates to bitcoin and that it is talking and the fact is

and let's now take america bitcoins beyond ground to see why the u.s. government is so boring about being dependent cars say the concept was fast floated in two thousand and eight the idea was for us to avoid banks when transferring countered by connecting directly with each other customers worldwide and spend bitcoins to buy things without having to pay the normal high fees. no wonder it's becoming so popular the currency's value reached a record high in april and its subsequent decline is partly being put down to the pressure of red tape and joining us now live from bratislava political activist and blogger mike. michael ware welcome to the program why do you think the u.s. government has targeted this exchange company. well to a certain degree i mean there's there's two ways to approach this one is that everything is fine there are in fact real dangers from terrorists and money launderers getting into the financial system and doing the ferias things i think that's somewhat misguided with respect to bitcoin but the justification for this is really not

the cyber currency bitcoin has suffered another setback after u.s. authorities seized the accounts of its a major operator that's hampering the process of exchanging bitcoins which right now are worth around one hundred twenty dollars per unit so why is the u.s. government so worried about the currency and is the bitcoin able to beat traditional currencies to take part users must first download a virtual wallet onto a computer or mobile device they will then get an address for this wallet and can transfer bitcoins to the wallet of another user for a small charge and without banking mediators from a distance it may resemble web money or the pay pal system but a key difference is anonymity all transactions are encrypted and untraceable this is the feature that's ringing alarm bells creating a space where arms and drugs can be bought and sold alongside more innocent goods this isn't putting off some big name investors though and this week alone a bit coin related start up one five million dollars and backing bitcoin software developer a mere talkie says

the cyber currency bitcoin has suffered another setback after u.s. authorities seized the accounts of its major operator that's hampering the process of exchanging big coins which right now are worth around one hundred twenty dollars per unit so why is the u.s. government so worried about the currency and is the bitcoin able to beat traditional currencies to take part users must first download a virtual wallet onto a computer or mobile device they will then get an address for this wallet and can transfer bitcoins to the wallet of another user for a small charge and without banking it mediators from a distance it may resemble web money or the pay pal system but a key difference is anonymity all transaction transactions are encrypted and untraceable it is this feature that's ringing alarm bells creating a space where arms and even possibly drugs can be bought and sold alongside more innocent goods this isn't putting off some big name investors though and this week alone bitcoin a related start up one five million dollars in banking bitcoin software dev

headline for most a welcome bug the independent online currency bitcoin has had a serious snog to us his blogs that count of divola a business that allows users to convert. us dollars into bitcoin and back again the department of homeland security says the peer to peer currency runs roughshod over new laws that require a light transfer systems to identify its uses. in a partner reports now the move is a warning shot for the fledgling currency the u.s. government has made no secret of the fact that it is keeping a close eye on the point but now it appears that the close eye includes a crackdown on the decentralized digital currency the department of homeland security sees the company known as to wallop which allows customers to transfer their u.s. dollars into the points on tuesday washington shut down while his ability to process point payments now the u.s. warrant alleges that my o.b.'s company was operating as an on the license money transmitting business because to wallow wasn't registered with the with the department of treasury is financial crimes enforcement network now some ec

i see it, bitcoin was worth $266 for one bitcoin, $266 and then it was 50 bitcoin, $1-- 50 for one bitcoin. how do you conduct business with that kind of volatility? >> we're not going anywhere and we're going to be there for a long time and i think, you know, the eco system matures, the ups and downs are going to smooth out. and they obviously, when the price is up, people will be looking to spend their bit coins and the price is down and sell hers are going to look to sell their items and so, you know, over time, it will smooth out and it will be more stable currency, that it will be, you know, better for the transactions. >> and mr. silver, that's an interesting position you've taken there, because you're the man in the middle and you're opening up a new marketplace, very interesting. alan, bitpremier. >> thanks for having me. stuart: and microsoft, yes, has sold 100 million windows 8 licenses since it was launched. it is making some changes to its new software, going to try to make it easier to navigate it. nicole, everybody knows i own some microsoft and i see it down. nicole: it's im

a final few green here think the american government genuinely wants to stamp out bitcoin facilitated crime. dot com and have your say. as europe's economic troubles deepen people from germany to greece are looking for scapegoats joining the ranks of the far right anti immigration groups. also ahead monopolizing drugstores find out how local pharmacies in the u.s. are being pushed off the market by giant chains stories and more after a short break right here on our team. in the. world with. technology innovation all the developments from around russia. download the official application to yourself choose your language stream quality and enjoy your favorite. if you're away from your television or it just doesn't matter now with your mobile device you can watch on t.v. anytime anywhere. and a welcome back you're watching our team dozens of neo nazi activists have rallied in berlin with extra police drafted in it to cope with situation the growing popularity of a far right movement is it raising concerns across the european union or trees peter oliver investigates what feeling it from br

regulating bitcoin as simple currency.ess from you, here is bitcoin kind of thing. don't worry, i don't wear dresses that is an example. we're not talking about that yet. that is already regulated. i will tell you in a minute why. then there is derivatives. the stuff that helped lead us to the financial collapse in 2008. nobody is leveraging or selling derivatives based on bitcoin assets, yet. two web sites are about to launch doing that. in fact coin starter was here on the 3:00 p.m. hour with cheryl casone talking about this there is one online as well. cracken.com. they're getting ready to do this. so the cftc is saying we want a role in this. bart chilton was on with cheryl casone and here is what he said about it. >> they're not just trading air and that is why i think it makes sense for us to give this a really good look-see and maybe get into regulating it. >> so as these sites, these exchanges begin to trade in the derivatives you can bet the cftc bart chilton will want to regular late. we spoke with the bitcoin op

and we've been talking a lot about bitcoins recently i wanted to take a step back and break that down because for those who aren't familiar now cryptography has a long storied history although accounts of the first use are varied the ancient greeks and spartans were said to use a simple scroll like cipher to send and receive messages during military campaigns more than a thousand years later an arab mathematician made considerable advances which would not be fundamentally surpass until world war two twelve hundred years later now with the rise of the internet cryptography made its way into everything from bank account transactions to security e-mail but it wasn't until recently that cryptography would make its way into what we know as money now enter into the world of equations in two thousand and eight the tashi nakamoto an anonymous person or possibly persons first described a peer to peer electronic cash system and this became the basis of big coins which are a decentralized digital currency that enables payments without the need for central authorities and issuers beautiful right

you can earn a newly minted coins this is done according to a complex algorithm that verifies bitcoin transactions called. hackers can attempt to overrun the resulting transaction but as long as there are enough honest users in the system the big currency remains sound now the computation becomes more and more difficult over time so the rate of which the number of big coins are issued slows down eventually they'll be twenty one million that computed into existence today there's only about eleven point five that have already been mined. but you don't have to mind koans to get them you can convert dollars euros and even gold into big coins via the exchanges now this is been a source of recent controversy as the largest exchange mt gox one of his major bank accounts frozen by the partment of homeland security it was alleged that the exchange are not properly registered as a money transfer agent however there are other exchanges that are biting by federal rules and guidelines this is just a really costly process now the remaining risk of big coins is price volatility here we see a char a

government so worried about the currency and is the bitcoin able to beat the traditional currencies to take apart users must first download a virtual wallet onto a computer or onto a mobile device they will then get an address a for this wallet and then can transfer bitcoins to the wallet of another user for a small charge and without banking mediators now from a distance it may resemble web money or the pay pal system but a key difference is anonymity which all transactions are encrypted and untraceable is this feature that is ringing alarm bells creating a space where arms and drugs can be bought and sold alongside more innocent goods this isn't putting off twenty five million dollars in backing bitcoin software developer says the lack of middlemen is what makes the use of digital currency so appealing to the public. it's the big system i think is really simple system because it's based of this concept of open source so i can download the source code for bitcoin a new can read for it and you know like how someone can speak french or spanish or english i can read source code and i can

bitcoin is something to watch. u.s.says there would be more actions to come with a liberty reserve case so we may see more breaking news coming out of that, and whether or not the u.s. government moves against other, you know, wire transfer -- digital transfer companies remains to be seen. tell you something, this is something that's capturing headlines around the globe, not just in the united states, but the long arm of the law is moving quickly into cyber finance. i'll send it back to you, liz. liz: crime doesn't pay, not even in virtual dollars. thank you very much. charlie said here on fox business, that bitcoin is rat poisen. i'm not agreeing with that because there are legitimate people making a business out of it, but watch out, folks. got to be careful with emerging technologies because you get the maggots cometting in to skim off the top. it's dangerous sometimes. closing bell ringing in 37 minutes. it's the taco bell proposal. we know you might love taco bell , but will they generate buzz with faux proposals a

s and sponsors for the first major bitcoin conference we have several interviews from millionaires investors and developers that will be sharing over the next few weeks today we're going to feature the c.e.o. of instant charlie will explain just how do you view it is to buy it quickly moving on those who are facing foreclosure by wells fargo and citi group might be able to breathe a little sigh of relief the two big giants have halted most of their foreclosure sales and several states this is after the federal reserve and the office of the comptroller of the currency issue new guidelines will this joint jam the housing inventory pipeline once again we're going to discuss this and more with michael richards and he's a contributor to the motley fool and tomorrow's the big day at j.p. morgan that will decide whether or not jamie diamond will be stripped of his chairmanship but some shareholders are crying foul and have called on the security and exchange commission to enter green this is after a company called broadridge which is supposed to provide updates on shareholder votes suddenly stopped

now the booming a digital currency the bitcoin that may be disqualified from the financial race before it even starts running u.s. authorities of seize the account of the operator that allows users to convert us dollars into bit coin and back again let's take a look at how bit coins differ from the cash we're used to the bitcoin system is developed unknown program back in two thousand and nine but ballooned only recently following the banking crisis in cyprus now users must first download the virtual world it onto a computer or mobile device they don't get an address for their wallets and can transfer bit coins to the wallet over another user for a small charge and without banking mediators the whole transfer process is encrypted to prevent the money from being stolen the currency can only exchange for hard cash or used in a growing number of stores that accept them to buy goods and services and the time bit coin software developer says the digital currency gives you total control of your assets as there are new middlemen involved. the big system i think is really simple system because

i do have some troubling news for fans of the government has seized cash assets from the largest bitcoin exchange mt kopp god's homeland security claims to have probable cause they were transmitting money without a life and now we have here a copy of. the actual caesar warrants bob was there with and detail what did you find that was of interest to you well unfortunately the achilles heel of bitcoins is that most people need to transfer money to be able to get them you have u.s. dollars you won't because you have to go to mt gox or one of the other providers and so this is like a bottleneck and what mt gox had done is open up a bank account at wells fargo and unfortunately they check some boxes know that they probably should have checked yes and we have this michael mcfarland special agent of homeland homeland security services who filed an affidavit and said that he wants to investigate them and seize the money the point is is that part of this he interestedly defines the currency as something that refers to any money that a government has declared to be legal tender and i mean does thi

first, the maximum number of bitcoins that can ever exist on the planet is 21 million bitcoins.whole thing is done to the extent that viewers don't understand this. i had to look it up to understand this. i asked paul volcker what he thought of bitcoins and he said he didn't even know what a bitcoin was. nobody even really knows who create today bitcoin. it's one of those things, it's almost like napster in that it seems to me like one of those interesting that can't be regulated. you can want to regulate it all you want, but i'm a little worried that virtual currencies isn't something that from a practical sense you'll be able to. >> well, first of all, and great interview, by the way, i look forward to seeing more of it with chairman volcker. yakomoto spoefly introduced the bitcoin. they're traded all over the world. it's a cyber currency, so how do we get to it? and the answer, if we wanted to -- and the answer is that if it is traded in u.s. commerce, if it's traded on our computers, we could potentially oversee it. now, again, we have to look at the facts and circumstances,

rivals says new zealand bank group commercial banks may create a digital currency is to rival bitcoin the virtual money whose u.s. dollar value collapsed by forty six percent to twenty four hours last month the head of new zealand's banking lobby said today so you see the propaganda bedded in there saying it dropped by forty six percent in that brief little flash crash flash rise and then flash crash but here you're seeing the banks themselves are saying well we want to create our own one because of course of the efficiency of transmitting in a very genuine globalised currency why not leapfrog ahead of everybody else scotland by having this genuine globalized currency where you can make transactions globally instantly no four x. exchange no three day wait instantly and think with complete trust that it's a genuine transaction a genuine cash the big queen cash are being handed out is a virgin currency that will remain forever virginal the bank of england's pound sterling is.

as we've been talking a lot about bitcoins recently i wanted to take a step back and break it down because for those who aren't familiar now cryptography has a long storied history although accounts of the first use are varied the ancient greeks and spartans were said to use a simple scroll like cipher to send and receive messages during military campaigns more than a thousand years later an arab mathematician made considerable advances which would not be fundamentally surpass until world war two twelve hundred years later now with the rise of the internet cryptography made its way into everything from bank account transactions to security e-mail but it wasn't until recently that cryptography would make its way into what we know as money now enter into the world of declines in two thousand and eight the tashi nakamoto an anonymous person or possibly persons first described a peer to peer electronic cash system and this became the basis of big coins which are a decentralized digital currency that enables payments without the need for central authorities and issuers beautiful right most curr

the independent online currency bitcoin has hit a serious snag after u.s. authorities blocked the account of dollar and that's a business that allows users to convert u.s. dollars into bitcoin and then back again the department of homeland security says the peer to peer currency runs roughshod over new laws that require online transfer systems to identify and says well for more on the online currency i'm joined by economics professor richard wolfe he is live there in london now what the u.s. government is blocking businesses that are using big coin why what are they wired abouts. i actually don't think they're much worried about big coroneted at its current level they're worried about out things like that coin becoming more and more important in the months and years ahead big coin has grown pretty quickly and the problem there is it is a way of developing and using money that is outside the conventional controls of institutions set up to control the money system for example the federal reserve in the united states is though concerned about security because

what we announced yesterday that we're going to attend the bitcoin conference this weekend in san jose california so anyone has anything us to report on while we're there to submit your comments on you tube and facebook and we'll get you up but i do have some troubling news for fans the government has seized cash assets from the largest bitcoin exchange mt cop got homeland security claims to have probable cause because they were transmitting money without a life and now we have here a copy of the actual caesar warrants bob when there were in detail what did you find that was of interest to you know well unfortunately the kill the seal a big coins is that most people need to transfer money to be able to get them you have u.s. dollars you want because you have to go to mt gox or one of the other providers and so this is like a bottleneck and what mt gox had done is open up a bank account at wells fargo and unfortunately they check some boxes know that they probably should have checked yes and we have this michael mcfarland special agent of homeland homeland security services who filed an

and other more authoritarian areas bitcoin will end up being a lot of variant of pay pal it's still a good thing if people use it if people want to use it if it prospers in the market that means it's serving a purpose i don't care what the treasury says or the fed or fin sin or the rest of these tyrannical agencies in washington which you know want to sell just a service on their plantation. now we want to find out what do you think is behind america's attempts to clamp down on the digital currency let's take a look at what you've been saying so far overhauls of you say the federal reserve is trying to exert as much control as it can over the finances now more than a third now believe that the u.s. wants to retain control over people's freedoms and this our six seven almost entirely there but at seven percent do you think that the american government generally want to stamp out big quote facilitated crime and at six percent you say you suspect it's washington's attempt to make a few to make bitcoin user pay and pay taxes and the final few this hour think that the government general wa