naomi of the bitcoin center says don't blame bitcoin for what criminals do. you want bitcoin regulated so few of us will use them. >> we don't want to get rid of it. we want it to abide by the same things that cash has to. to. stossel: so you have to tell the government. >> if i show up with $5,000 in cash, they'll have to fill out paperwork filling out who i am and asking a few questions. stossel: what's wrong with that. >> it's interesting he brings up criminals. it's the us federal treasury. the medium exchange of choice, cash for criminals. we actually see these industries are still succeeding in transferring money. i would like to know why ej -- stossel: most cash money is not even in america. hundred dollar bills are overseas. >> hundred dollar bills. the treasury printed $1.2 trillion in cash. most of that is in 100-dollar bills. i don't understand why he's going off the mom and pop down the street, bitcoin which is a fraction of that amount. >> we worry it's cash on steroids. most of them are done in cash. they're small scale. hard to move large amoun

companies, network of bitcoin people.love being able to tip online. before bitcoin you are not capable of sending five cents. with bitcoin it is a frictionless system. >> do you feel the price adjustment has separated the people who work in this arena around the technologies that are so interesting from the speculators? >> yes, i am really excited because if you have been in bitcoin for the last three years you have been able to go through big rises and big falls. right now it is the true believers that are building great technology in this space. >> the more you taken itself the more interesting it is. thank you very much. time for a check of your world news headlines, kenyan marathon champion has been suspended for two years for doping. she tested positive for a band of blood boosting hormones. she won the last two consecutive boston and chicago marathons. an executive close of vladimir putin. the country is backing a startup incubator and science center run by vladimir putin's daughter. it is a $1.6 billion project in

naomi of the bitcoin center says don't blame bitcoin for what criminals do.t bitcoin regulated so few of us will use them. >> we don't want to get rid of it. we want it to abide by the same things that cash has to. to. stossel: so you have to tell the government. >> if i show up with $5,000 in cash, they'll have to fill out paperwork filling out who i am and asking a few questions. stossel: what's wrong with that. >> it's interesting he brings up criminals. it's the us federal treasury. the medium exchange of choice, cash for criminals. we actually see these industries are still succeeding in transferring money. i would like to know why ej -- stossel: most cash money is not even in america. hundred dollar bills are overseas. >> hundred dollar bills. the treasury printed $1.2 trillion in cash. most of that is in 100-dollar bills. i don't understand why he's going off the mom and pop down the street, bitcoin which is a fraction of that amount. >> we worry it's cash on steroids. most of them are done in cash. they're small scale. hard to move large amounts of ca

hackers are try to get their hands on bitcoin.ing cyber crime insurance policy like we have a coinbase is a great way to bring confidence to the ecosystem. >> do you imagine a world where we will see people at currency desks trading bitcoin the same way they are trading swiss francs? >> yes. it is already happening. we launched it yesterday. we were trading millions of dollars of bitcoin in the first day. a lot of those people were traders on wall street who spent their day at a desk and then went home at night and started trading bitcoin. nursing hedge funds -- we're seeing hedge funds trading bitcoin. >> do thinks price -- do you think price stability starts to happen right away? why is it necessary to change the dynamic of what has been a volatile market? >> getting more people into the ecosystem. it will make it less volatile if you have a larger group of people participating in the system. there were too many market ups and downs, given speculation on which provider is going to be up. now that coinbase is here, we will hopefu

on bitcoin has only just begun.t is losing its fuzzy pink mustache. we will hear about the new look for the company would we sit down with their ceo. ♪ >> you are watching "bloomberg west" where we focus on innovation, technology and the future of business. lyft is getting a new look. new momentum. the number of rides offered by the service jump fivefold last year -- that's like 500%. that's a lot. capitalizing on that momentum, they are rolling out a new advertising campaign and they are also giving the car a new look -- dropping the iconic fuzzy pink mustache for a glow stache. i am joined by the ceo and cofounder. the pink mustache had to go. >> the pink mustache was an incredible launch device stop it -- it is what made the company in a lot of ways. it was a defining symbol of the community. last summer, we brought on jesse mcmillan, who is the creative director at virgin america. he said the mustache has been around for two years, let's work on what is next. >> they get a little dirty after a while. >> it had s

matt miller, eu member 12 days a bitcoin. -- you remember 12 days a bitcoin.oint is it does not matter if bitcoin is trading well. the fact is it is a disruptor? >> you could not have bitcoin dropped to zero or imagined value is not relevant at all. >> if i bought it at a thousand dollars -- >> when you bought it for $.50. it was a thousand dollars a year ago. bitcoin was worth zero in 2009. a lot of people are multimillionaires because they got into bitcoin for the five-year period before it became worth $1000. it was only there for a few months. >> the price is a distraction. the technology behind it is critical. it is revolutionary. the idea that we can move currencies. we can use digital assets around the world with a decentralized system. we may not use it -- mom and pop may never use it for the groceries, but behind the scenes, this will work as the backbone to the financial system. at some point, the value will rise because of that. >> what do you think it coin enthusiasts need to do to get more acceptance? you cannot have -- the price has an impact. yo

when investors not giving up on bitcoin despite its losses this month.per bought about 32,000 bitcoins -- if you liked it at 600, he loves it at $200. one of the reasons for the resurgence has been the opening of the first regular did bitcoin exchange run by queen base. joining us now is the founder of coin base. i was totally dismissive -- it seemed like a smart technological mechanism to remove the money in one libertarians wallet and put it in other libertarians wallet. >> that coin is a powerful new technology. it's going to make payments more efficient, to make them fast cheap and global. the exchange we just launched yesterday as a way to bring stability to the ecosystem and help the price become less volatile and keep growing the bitcoin ecosystem. next us talk about white would make trip -- >> let's talk about why it would make transfer treiber -- transfer cheaper. >> a lot of people have not been able to transfer it in a safe manner yet. maybe they had to wire money to a foreign country and now they have somewhere in the u.s. backed by the new y

you can purchase bitcoin in argentina.ch to everyone was in my lifetime, three times the money in my bank account has gone to zero. that is a scary thing that happens to people and the rest of the world. in the united states, we don't represent that. i feel we are going through a trend where bitcoin has been speculative. wall street and all these places we're are very excited about the price going up. but it's going through a repair mode were now it's becoming useful. volume has doubled in the last year. there is a lot of very exciting things happening, and i think most of the transactions are going to be more useful for day to day. >> let's talk investment focus. your big focus is what? >> we have one bucket that is repair mode. one bucket that is like what does bitcoin do better than dollars, which is stored value. we touched on micro-transactions. we have a company called zap chain that is allowing you to tap a network of bitcoin people. people love being able to tip online. before, people were not capable of sending fi

bitcoin. that back into dollars. i think there is a lot about pr more than anything. >> so what needs to happen to save bitcoin? what event do we need to see to bring it back in the spotlight? >> it is a tricky thing. the bitcoin enthusiasts do not want to admit it, but there is a clear use case for bitcoin in illegal activities. because of the relative anonymity. it is hard for governments to block it obviously the illegal black markets are a compelling place to use bitcoin. there needs to be some application of bitcoin in the real world, where it makes sense for ever's people to say i would rather pay for this in bitcoin then with a credit card or whatever. that has not happened yet. >> it will be interesting to see how that shakes out. although they are stuck in my wallet and i cannot remember my password. joe weisenthal from bloomberg markets. thank you very much. we will take a quick rate. still ahead, the latest oil giant to announce massive layoffs. how many jobs are at stake? i will te

bitcoin is the exact inverse of that. bitcoin is truly radical.rypto currency more broadly is truly revolutionary. a fundamental breakthrough in computer science. a completely different way to do transaction processing. potentially a replacement for a very large amount of the status quo. bitcoin is by far and away the most innovative and radical thing. it will have the most impact over the next 20 years. apple pay is the thing that will have the impact in the next three years. the combination of those two will cause enormous change. >> you have been a big supporter of bitcoin. the price has plummeted. >> and come right back up. >> do you allow for the fact that you could be wrong about bitcoin? >> absolutely. look, bitcoin for us is very much -- the saving grace about the venture -- we are venture capitalists. i think like a venture capitalist. the nature of venture capitalists is we make 10 bets. we assume that five will go straight to zero. frankly, i do not think anybody knows one way or the other. but if it does work, it could be profound and

matt: bitcoin is still worth -- it is the future. i'm okay with bitcoin. i don't own any bitcoin.'m considering it. a lot of people are taking bitcoin. it's good long-term. as soon as they take it, they dump it in the market. it's taking the market down. i think it's a good investment long-term. >> it's an interesting approach. are they targeting the millennial generation that they think they'll be able to to get paid faster. >> continually is surprising they're taking that approach. there has to be more to it. charles: i've been intrigued with bitcoin. i love no government controls it. i don't trust that it's foolproof, but libertarians love this. a lot of people like the idea of having a currency they can transfer money without any federal -- without any government putting their paws on it. >> i think the ecosystem is important. it is here to stay. the bitcoin, new york shouldn't take it. far too volatile. the speculators are dominating the market. i'm okay with the 600 million coming in. it's the tourists. and the city can use the money. >> i don't know about that. >> i don't k

who is that entity for bitcoin. >> well bitcoin was built upon principles to mimic much like gold.et in the process of creating more than exists. therefore it doesn't need that because it's backed by -- and this is a bit the people find hard to understand but kripmass. anybody can see there's sound principles behind how this currency is created. it trades on a free market so people focus on the price of bitcoin but it doesn't need the backing in order to make it. that requires a bit more understanding of how the code works. >> but given the volatility we have seen. you're a former investment banker and trader as well. would you recommend investors out there to buy bitcoin. >> i believe there's a lot of untapped value. the innovation of programmable money has significantly further to go but markets are very very unpredictable right now. we've seen quantitative easing push money into the stock markets. people borrowing at virtually 6%. buying back stocks the property market bubbles and in that time gold has only just started to turn around. i think you'll see bitcoin follow gold at t

bitcoin, you respond with that is hardly interesting.nteresting is the framework, this way of anonymously tracking transactions relatively cheaply and freely, making transactions that previously got hamstrung by the existing financial system. it is a really key point. we can't separate it from how much of the bitcoin frenzy has been about the speculation related to the currency, and these two things gotten so mixed up. it's as if you mix up html, this markup language that created the web and websites themselves. the value of these things are tied together. >> the idea i'm thinking about -- dominant site in the early web, lycos will be the future of the world. the internet was the exciting thing. the technology might be. >> it's like html. it is a markup language for currency, like html is a markup language for the world wide web. the notion is powerful that it is a platform, getting all wrapped up in what happens in the day-to-day bitcoin prices. >> to what extent -- for me, and i think for most people, when they really start to dig into

we're not the only firm in bitcoin. bitcoin is a -- more like e-mail or the internet. who owns or controls it. that's the great power of bitcoin. so even though we're clearly leading the market in terms of the number of wallets or merchant sign-ups there's a huge industry of people doing bitcoin all over the country. >> imagine one of the shareholders like the japanese mobile operator buying you, or do you think you're part of a public service and you need to be kind of spread around and owned by many? >> well the bitcoin network you know will ensure that happens regardless. there will be many bitcoin companies like us like many internet service providers but might be more consolidation than that. but, no, i don't think there will be, you know acquisition by a telco or pank in the near future. we want to stay an independent company. >> are you profitable? i imagine the price drop has hurt you guys. >> we don't disclose those numbers obviously, but our revenue's not tied to the price of bitcoin at all. we charge 1% when people buy or sell bitcoin. and so if the price is

not just bitcoin. we here in washington need to take notice of them certainly the folks in the tech sector need to be learning more about figuring out how it's going to affect business. >> thank you all. >> thank you mr. chairman. [applause] >> i am david young with verizon a board member for the internet education foundation and i'm proud to introduce our next speaker who will be addressing one of the most pressing issues on the internet today and that is cybersecurity. you have all seen the headlines and read the stories about the latest hacks and data breaches and just last week president obama raised this important issue in his issue in his state of the union speech calling on congress to act swiftly. that's why we couldn't have a better person for next keynote then suzanne spaulding. ms. balding his under-secretary for the national protection and programs director at the department of homeland security. she has spent the last 25 years working on national security issues which includes experience i

about bitcoin.> yeah, that has become almost a clichÉ comment about bitcoin. anytime anyone talks about the value of the currency, and what's happening with bitcoin itself, you respond with well, that's hardly interesting. what's interesting is the block chain framework, this way of sort of anonymously tracking transactions relatively cheaply and even freely making transactions that deviously got hamstrung by the existing financial system. we are investors in that as well. i think it's a key point, but i also think we can't separate it from how much of the bitcoin frenzy has been about the speculation related to the currency. and these two things that gun so mixed up. i always say it's kind of like as if you mix up html, there's markup language that created the web, and websites themselves. the values of these things are tied together but let's not get a speculative frenzy to let what we think about one influence what we think about the other. >> i'm thinking about early websites like lycos a domina

say don't blame bitcoin for what criminals do.use them? >> we want to abide by the same rules that it is a currency is to fold its own against cash. john: every time someone makes a deposit more than $10,000 you have to tell the government. >> by show put their briefcases five printer thousand dollars in cash they need to do paperwork to ask a few questions. >> did is interesting that he brings up money-laundering and grows the biggest laundromat is the federal treasury with a median exchange of course, -- a choice. john: most dash money is not even in america. the treasury has 1.2 trillion dollars. i understand why he goes after mom-and-pop laundromat down the street as it is just a fraction of that amount. >> but most criminals is very difficult to put into a bank account to pay somebody a lot of money in cash. >> is bad law enforcement. go after the criminals and find a way to catch the criminals not what's innocent people using as well. >> with $1 billion of transactions. john: that is what he was complaining about the silk ro

gambling sites. >> the sites depend on bitcoin bitco payments. >> bitcoin is an incredible technologyambling. >> coming up police privacy polygamy, the war between the state and individual freedom. ♪ ah, push it. ♪ ♪ ♪ ♪ push it. ♪ ♪ p...push it real good! ♪ ♪ ♪ ♪ ow! ♪ ♪ oooh baby baby...baby baby. ♪ if you're salt-n-pepa, you tell people to push it. ♪ push it real good. ♪ it's what you do. ♪ ah. push it. ♪ if you want to save fifteen percent or more on car insurance you switch to geico. it's what you do. ♪ ah. push it. ♪ i'm pushing. i'm pushing it real good! [vet] two yearly physicals down. martha and mildred are good to go. here's your invoice, ladies. a few stops later, and it looks like big ollie is on the mend. it might not seem that glamorous having an old pickup truck for an office... or filling your days looking down the south end of a heifer but...i wouldn't have it any other way. lo ok at that, i had my best month ever. and earned a shiny new office upgrade. i run on quickbooks. that's how i own it. ♪ john: do you own your >>> do you own your body? i would think in a free

to be clear it's insurance against bitcoin loss.een operating successfully in the u.s. for two and a half years. have insurance to back it all up. >> isn't this vulnerable to hacking? given the fact that it's all done electrically. how do you protect yourself? >> so i'd actually argue our site goes far beyond what normal bank security does and we'vebe operating without incident thus far. have insurance just to give everybody peace of mind. i think the really good sites are going above and beyond normal financial security looks like. >> what would you say is the biggest cyber currency competitor to bitcoin? we might be talking about more in a couple years? >> in my opinion, there really isn't. bitcoin is more than an order of magnitude ahead. we have over 2 million customers in the u.s. really, no other -- no other digital currency has the following and types of companies build like bitcoin does at the moment. >> then even pro known independents argue that it may look a lot like that. why make that argument? >> i think people -- it s

and bitcoin infrastructure. >> i don't know that we are necessarily focusing on bitcoin infrastructure. i think we are focused on criminal activity where criminals choose to have payment made in bitcoin. as part of the gameover zeus takedown, we took down a ransomware. it was called cryptolocker. screens would be frozen and people would be told that files were locked. to get access they had to pay a ransom. the ransom had to be paid in bitcoin. it was not the bitcoin that was the problem, it was the ransom and the locking of files. >> you mentioned cryptolocker. it seems like there is something happening with cryptolocker on one end and sony on the other. we are seeing cybercrime going from data into more and more -- from theft of data into more and more extortion. is that something you are worried about? >> extortion over the internet has a long history. it might be getting more sophisticated. i think it is not a new problem. it's been a problem for some time. it may be growing in sophistication and breadth as we see cyber's growing but i do not think it is a new problem. >> lets get

almost 19,000 bitcoins were stolen.s attack coming a year after the collapse of the exchange and concern about how secure bitcoin is. >> now it is time for the press review. welcome back and it is time to take a look at what is making headlines around the world. papers around the world focusing on the historic drop in the euro admits the political crisis in greece. >> we start with a business daily here in france. the euro has slipped to a nine year low against the dollar. focusing on this historic drop. you can see the downward spiral of europe. 'the wall street journal" talking about how the eu is showing new signs of week this. you can see this euro coin drowning on the front page. france and germany have raised pressure on greek politicians ahead of an election later this month. they are talking about the return to signature brinkmanship in europe over this crisis. what is this political pressure? francois hollande and angela merkel have raised the possibility of what has been dubbed a greek exit from the eurozone.

john: these sites depend on bitcoin payment. >> bitcoin is incredible technology that is facilitatinglot safer for people doing gambling, coming up police, privacy polygamy, the war between the state and individual freedom. you know your dentures can move, unlike natural teeth. try fixodent plus true feel. the smooth formula helps keep dentures in place. it's free of flavors and colorants, for a closer feeling to natural teeth. fixodent. and forget it. [ male announcer ] when john huntsman was diagnosed with cancer, he didn't just vow to beat it. i vowed to eradicate it from the earth. so he founded huntsman cancer institute. ♪ ♪ everything about it would be different. ♪ ♪ it would feel different. ♪ ♪ look different. and fight cancer in new and different ways. with the largest genetic database on earth that combines 300 years of family histories with health records to treat, predict and in many cases, prevent, cancer. [ huntsman ] we made it welcoming and warm with a focus on beauty serenity and getting on with life. [ male announcer ] huntsman cancer institute is the only cancer hosp

john: these sites depend on bitcoin payment. >> bitcoin is incredible technology that is facilitatingites. it is making gambling a lot safer for people doing gambling, coming up police, privacy polygamy, the war between the state and individual freedom. ♪ john: do you own your body? i would think in a free country that you do as long as you don't hurt somebody that else that you're free to do with your body what you want. but you can't in america or in most other countries for that matter. the state decided that some ways you may use your body are so dangerous or immoral that they must be banned. i don't see why. for example every state bans plural marriage. gay marriage is now more accepted but why stop there, if you own your body, why can't you marry two people or six people? i invite ad polygamist family on to the show. >> somebody asked me one time how we deal with the gender inequality of polygamy. well we try to give joe a break now and then because, he can tend to get picked on a day -- >> he is kind of "outnumbered." >> if there is something he has done to another wife or some

we're talking bitcoin. it may have got a boost today, this monday because the first licensed bitcoin exchange is set to open in the united states. it's going to be called coin base and importantly, it's being backed by the new york stock exchange. let me just go straight over to the one and only tech guru. is this finally, i guess, what legitimatized this currency? >> well a bit of background, aaron. bitcoin has been through a terrible time. it was very, very fashionable a year or so back. it's coming back down since then. it's had an image that's been mainly used by drug dealers and various criminals. and the most permanent exchange basically collapsed, leaving a lot of people out of pocket. it needed this good news. this is good news. coin base is a company based ton west coast. it's classic silicon valley start-up. it's received $75 million of backing just a few days ago, from investors including the new york stock exchange, and now it's going to be able to run an exchange in the u.s.. it already does th

so there's an awful lot of buzz about bitcoin. and i actually have some concern, not -- i don't want to say something negative about bitcoin but i want to say something cautionary about the idea of exotic new payment systems. we defend entirely -- the whole society depends upon the stability of the monetary system. and if there was something that disrupted that, if a dollar bill taken out of your pocket suddenly became worthless or there was a big inflation, the level of havoc that we would have would be -- would dwarf anything we've seen. the meltdown in 2008 would be nothing compared to it. so there's a lot to be protected there. and one has to proceed -- i think the country has to proceed and the world has to proceed quite carefully. the other thing is that there are some very interesting payment systems. in kenya, for example, you can make mobile payments easily and you have a lot of unbanked people. underneath that, it turns out that the cost of those payments is enormous. i'm not sure i know precisely but i have in mind that

now, so the bad guys doing business bitcoin, and it was difficult to even use their atm.e. >> well, my mom wired, put in like a cash money order at some point -- gerri: we're looking at that atm right now. >> that's the atm i used. it's a little scary there's no button. if something goes wrong, there's nothing to hit. so she wired the money to this bitcoin outfit based in brooklyn, and the problem is bit coyne's price so volatile that the funds fell short by $25 and the only immediate way to top off her ransom was for me to run down to green point and put $25 into the this bitcoin atm, and that was the only way she could make her deadline. gerri: it's amazing to me. your mother eventually got her data back. she did not pay a thousand she paid $500. she wrote sort of an apology note to these guys saying please take my money and give me my data back. they did. elena, great stuff. fascinating story. appreciate your time. >> thank you. gerri: and we'll be right back. how could a luminous protein in jellyfish impact life expectancy in the u.s., real estate in hong kong and the

bitcoins would you?an investment? >> i -- >> like a currency. >> well currency investment slightly different. and so the advice i give my friends is don't buy any bitcoin that you wouldn't be comfortable losing. rather like a seed investment in a technology -- >> wait a second. i wouldn't feel comfortable losing any of it. >> then don't by bitcoin. i give similar investment in angel investing. if you're going to put money in a start-up company, only put in enough money you're comfortable losing. >> so it's like vegas. >> it's not like you're just rolling the dice on whether you get a six, seven, eight is the outcome. but it's the fact it's a risky adventure which might end up being -- >> does this displace american express or mastercard or visa or paypal or what have you? >> i think the possibilities are -- for example, one is it can bank the unbanked in a lot o the markets where the banking system is too expensive. second thing is you can create machine to machine commerce which could do all kinds of di

. >>> up next why bitcoin may be here to stay. pros tell us why they think the virtual currency will change the world for the better. i am never getting married. we're never having kids. mmm-mmm. we are never moving to the suburbs. we are never having another kid. i'm pregnant. i am never letting go. for all the nevers in life state farm is there. >>> the sell-off continues. the dow down 164 points, and this has just been happening in the last 15 20 minutes. art cashin was telling us he's not seeing a lot of intense selling on individual stocks but this cascade lower following the fed's announcement at 2:00 eastern time. we're down to the 17,219 level. all 30 xon components 3 of them are positive. boeing caterpillar, and 3m. >> we should take a look at gold as well seeing how that's responding in the aftermath of the fed's latest meeting. the currency better known as bitcoin is back with a buzz led by the winklevoss twins. >> but can the currency carry its weight and survive in the marketplace. let's bring in two guys from "the wa

bitcoin prices are in a freefall. the price of the currency is falling 32% in the past two days. $184, the lowest it has been since october 2013. russia has been starting to ban bitcoin-related websites. apple and ericsson suing each other over wireless technology. ericsson is asking a federal court in texas to determine whether it's licensing terms are fair. now to the lead, blackberry shares spiked earlier today on a report that samsung made an offer to buy the company for as much as $7.5 billion. now shares in after-hours are moving in the other direction, down. a statement from the company, saying it is not in talks with samsung. for more details, the bloomberg news reporter who covers this so well. the reuters story looks like it was wrong, at least that is what blackberry is saying. how do we know? >> they said blackberry is not engaging in discussions. if you look at what writers did lay out, -- reuters did lay out actually values blackberry 24 times which would be how much the company was valued at one it was

[laughter] the winkle voss twins are right up there and bitcoin gets a lot of press. they are ready to go and i think the sec is seven in internal conversation about this and struggling whether to launch this. there are a lot of question marks with security and regulation. look out, this could see a lot of media attention and could steal the show next year if it launches. >> bitcoin are kept in a virtual vault. you have gold, it is a block of gold. >> the sony hackers probably casted a dark cloud over this. now you will have all of your assets stored in a virtual vault. that will definitely be something to watch out for. >> thank you so much. we have to leave it there. we are on the markets again in 30 minutes. "market makers" is next. ♪ >> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> is the government doing enough to help companies fight cyber crooks? should they strike back? it is a happy time, a happy new year for some americans. the minimum wage just rose in 20 states and d.c. art laffer will we

bitcoin and software were used to protect the anonymity of users.bricht attorneys say that government tracted him. >> it's going to have implications for criminals and criminal gangs. >> ulbricht supporters say that the case has implications not just for criminals but activists, not to mention anyone who cares about the constitution which prohibit illegal search and seizure. >> this is very concerning. that concern fuels my energy because--i'm fighting for my son, of course, but it is bigger than ross. >> such lofty issues are not expected to be a big part of his defense as he faces conspiracy charges for drug dealing computer hacking and money laundering. during the trial's opening argentinas government prosecutors reasserted their claim that ross ulbricht is the dread pirate roberts. ulbricht said he built the silk road but had handed over control of the site. he said he was lured back in after government investigation was under way to take control of a conspiracy that he had little involvement with. >> in russia human rights activists have condem

yeah, if you're not safe to keep your money safe in a a slovenian bitcoin exchange, where with you keepys? [ laughter ] this is pretty cool. angelina jolie met pope francis today during a screening of her movie "unbroken" at the vatican. catholics thought it was wrong for angelina to promote her movie in a house of god, while god was like, "shut up, dude. this is angelina jolie. [ laughter and applause ] i want to meet her, man. i know i created her but she is pretty awesome." and finally, you may remember that after the donald sterling controversy, former microsoft ceo steve balmer became the owner of the los angeles clippers. well, looks like he is having a a pretty good time. check him out. ♪ >> jimmy: he looks less like an nba owner and more like one of those windsocks at a car dealership. [ laughter ] [ cheers and applause ] when he saw that, donald sterling was like "now i hate white people." we have a great show. give it up for the roots, everybody. [ cheers and applause ] ♪ [ cheers and applause ] >> jimmy: thanks, guys. thank you so much. thanks for watching. it's been a great

. >> what about bitcoin, does that get closer to what you imagine?> i am psychologically biased against it. i would be tempted to come up with reasons why nobody would succeed at it. >> chances of it succeeding are unlikely? >> i think it is slightly too cumbersome to work as a new payment system. >> you were the first outside investor in in facebook. did you convince mark or did he convince you? >> some combination of both. the company was growing fast. i convinced them i would be relatively hands-off. >> do you worry facebook to get -- facebook could get distracted? >> it is always a challenge. you have to do new things, because you are not in a static world, and you don't want to do too many. you want to do the right number of things. >> you created palantir. customers include the cia and the air force, yet there is so much mystery around it. as i understand, palantir is using data on a massive scale to solve problems from disease to terrorism. >> it is always an interactive problem. part of the data can be processed by computers. parts of that da

bitcoin was used to protect users. government used illegal surveillance methods to track him. the trial could set a precedent for how crimes were prosecuted. if successful. the government can show they have linked individuals to operating a website, and it's going to have implications for criminal gangs. >> ooul brict supporters say the case has implications for criminals and political activists, and anyone who cares about the 4th amendment. and inhibits unusual safe and seizure. >> i feel like the bill of right is on trial as much as ross is. it's concerning. it fuels my energy. i am fighting for him, of course. but it is bigger than ross. >> reporter: lofty issues are not expected to be a big part of his defense as he faces conspire itry charges. the opening argument has prosecutors reassociating claims that -- rae asserting lames that he is the dread pilot. his lawyers conceded he built the silk road. but he handed over control. he was lured back in once the government investigation was under way to take the fall for a criminal conspiracy he had little involvement with. >>>

. >> what about bitcoin? does that get closer to what you imagine?> i am probably psychologically biased against it. if we could not succeed at paypal, i would be tempted to come up with reasons why no one could succeed at it. >> do you think the chances of it succeeding are unlikely? >> my sense is that it is still slightly too cumbersome to work at the end of the day as a new payment system. >> you were the first outside investor in facebook. did mark convince you to invest or did you convince mark to let you invest? >> i suppose some combination of both. it felt like a no-brainer. the company was growing very fast. they only needed more money for computers, and i convinced them that i would be relatively hands-off as an investor. >> do you worry that facebook could get distracted? internet.org, drone companies, virtual reality? >> it is always a challenge. you have to do new things, because you are not in a static world, and you don't want to do too many. you want to do the right number of things. >> you created palantir. humans. one reporter who

and despite a collapsing bitcoin currency. now to the lead, get ready for netflix in all corners of the globe. the streaming service has a global expansion program going so well that it will be in 200 countries by the end of the year. generating material global profits into 2017. no profits in the fourth quarter but 4.3 million subscribers. the revenues were up and there was no cash flow. net income on $83 million. that stock is aiming after hours. -- zooming after hours. i say the stock not for the business, but that subscriber number. are these from previous quarters? >> it is definitely international. it came in pretty much in line. margin expansion, they have provided more than ever before, a very strong outline for earnings. invisibility by 2017, as you alluded to. >> the thing that always jumps out is content cost which is harder to figure for a lot of reasons. they advertise overtime. what do they say about content and the conference? >> it is pretty much consistent with what we expect, which is that content costs will

so there's an awful lot of buzz about bitcoin. and i actually have some concern. not that i want to say something negative about the bitcoin, but something cautionary about the idea of exotic new payment systems. we depend, entirely the whole society, depends upon the stability of the monetary system. and if there is something that disrupted that, if a dollar bill taken out of your pocket suddenly became worthless when there was a big inflation, the level of havoc that we would have to be -- would dwarf anything we've seen. the meltdown in 2008 would be nothing compared to what we've seen. so there is a lot to be protected there and one has to proceed -- the country has to proceed, and the world has to proceed quite carefully. the other thing is that there are some very interesting payment systems. in kenya, for example, you can make mobile payments easily. you have a lot of unbanked people. underneath that, it turns out that the cost of those payments is enormous. i am not sure i know precisely, but i have in mind it costs like 30% to make a payment. that is not

what do you see the future being and how would that relate is like bitcoin? >> in the mid-90's i was involved in a startup tried to make it possible to make payments over the internet and the big success of that venture was credit card payments moved over the internet and into the existing classic banking system of visa and mastercard. the thing we tried to build but not so successful or micro-payments and checks and paypal became very successful sometime later. there is a lot of buzz about bitcoin and i have some concern -- i don't want to say something negative about bitcoin but something cautionary about the idea of exotic new payment systems. the whole society depends on the stability of the monetary system and if there was something that disrupted that -- a dollar bill taken out of your pocket suddenly became worthless or there was a big inflation, the level of havoc that we would have would dwarf anything we have seen, the meltdown in 2008 would be nothing. there is a lot to be protected there and the country and the world has to proceed quite carefully