so bitcoin is layer zero. ayers.e seen other l there are multiple layers and it's important we have stability and do things in a very smart, intelligent, best practices way. that is why giving these phd core developers, you have two -- o understand why they are not on board. that is not really clear yet. emily: is this essential to bitcoin becoming a more mainstream currency? if this does not happen, is bitcoin going to see an end. james: i don't disagree about trying to do it right, but i do feel very concerned that we're not just talking about a technology issue or financial issue. there's a psychological issue that people have decided over the last three or four years that bitcoin is something they're going to trust, they have to maintain that trust. there's a tension between the technology that if it takes too long, the trust disappears and that is a problem. it does open the door for other people to say bitcoin was good and it taught us some things and helped us realize alternate currency is a viable thin

this has been described as a threat to bitcoin. bitcoin's myspace moment, potentially. james think of this as the y2k of the coin. ahead to where this would need to grow and scale the our initial aspirations, so bitcoin is going to hit a wall. it's just a question of whether after that wall, whatever solution they come up with can be done quickly enough to inspire enough confidence among the broader community so that when we are past the hurdle, there is still a bitcoin business. you referred to myspace. it was one of the first social networks and now it's basically gone because it could not make it past its early growth space. there is a risk if bitcoin does not solve this problem, they will be in a similar situation. emily: what is the other opportunities for digital currencies? currency is the future, but maybe it is not bitcoin. nthem: there's the issue that there are a fixed umber of coins. by increasing the transactions per block, it will lower the price and more transactions will go through. bitcoin is layer zero. counterparty is what hyatt gold is built on. laye

to bitcoin since he was already a despised figure in the bitcoin universe, and mt. collapsed a here and a half ago, but go ahead and explain that to me. cory: i think this is a point it was in theay early stages of bitcoin. came out with this amazing statement that it had somehow lost 850,000 bitcoin, about half $1 billion and value of the time, and then months later saying, you know, we found about $100 million worth laying around in an unused wallet. i think it shows the hobbyist nature of this poorly written software and this poorly done exchange, and in the arrest of a man who had pocketed from unknown services -- sources under his control, i think we will say those are the early cowboy days of bitcoin. years ofe biggest venture capital investment ever, the biggest chunk of that in silicon valley was on block chain and bitcoin technology. , let's nott. gox forget, that was magic, the gathering exchange. they traded these playing cards that nerds, kind of d&d people would use. from ark ellis took that playing card exchange two make a bitcoin exchange. i don't thi

can bitcoin shake its underworld image? betty: and a massive selloff in greece as stocks open for the first time in five weeks. most in decades, showing the crisis is far from over. and we're midway through the earnings season with nearly 75% of results coming in above average. this week, we will hear from sprint, tesla and disney. mark: but there are strong headwinds facing the companies. to help us navigate the road ahead is a chief economist from morgan stanley. welcome. one of those headwinds is rising interest rates. what is the terrain going to look like when the fed decides to move? guest: i don't know if it is a headwind for equity markets. maybe the market could rally. that could clear the air on the overhang people have. the good for earnings, financial sector and other things. history dictates the market does pretty well and it's only when you go multiple times that people fear a slowdown. i am pretty optimistic about equities here. betty: one analyst said this -- guest: a 5.3% unemployment rate. if they think we

host: i would like to talk to you about bitcoin regulation. what is your view of the challenges? this gets back to the question of how much of that activity will move from regular space toted unregulated space. in part because of technology or in part because people are saying the regular did space is too burdensome? bitcoin is interesting, provocative, it has gotten a bad rap because of the early stigma around it is are there bad behaviors it is hiding because of its ok to this, criminal activities, the silk road server got busted. i think it is a novelty at this point. there are a few interesting things underneath. one is called block chain technology which supports bitcoin which has other applications and could really be disruptive or interesting, down the road. lastly as to bitcoin, are you , going to put money into something worthy value fluctuates 20% or 30% a day? you may put $200 into it for fun, but i don't think you're putting $3 million into it. >> on bitcoins, i'm fascinated by this topic. do you see implications for cyber security there? i know that is a lot of what

bitcoin, are you going to put money into something worthy value fluctuates 30% a day? you may put $200 into it for fun, but i don't think you're putting $3 million into it. >> on bitcoins, i'm fascinated by this topic. do you see implications for cyber security their? i know that is a lot of what the roundtable does. payment using block chain would be more secure than a payment that doesn't? tim: block chain technology is foundational and you can build on it including security features. there is a norm is interest around the potential -- a norm is interest -- around watching -- block chain technology. future payments will get interesting over the next 10 years. i will suggest to you that people exploring block chain technology will be at the root of new payment applications that will be intriguing. >> are we at a point where members will start to invest in them th? tim: our members are looking at all kinds of new payment options, biometrics, authentication, improvement to the card, non-card-based platforms, mobile payments, real-time payments. it will be an interesting

the latest news out of bitcoin land is the growing conviction that the architecture behind bitcoin, thehain, the way the transactions are settled, that can be useful to settle real money transactions, there are smart people working it. deirdre: paypal essentially started. co-founders talk a lot about, they were trying to find a different measure, a different currency and ended up with paypal. it is great to see you matt harris. early adopter matt harris from bain capital ventures. >>> when we come back, tim cook under pressure, the next iphone may be a dud. fill you in on that when we come back. this allergy season, will you be a sound sleeper, or a mouth breather. well, put on a breathe right strip and instantly open your nose up to 38% more than allergy medicines alone. so you can breathe and sleep. shut your mouth and sleep right. breathe right. . deirdre: apple in focus after a few weeks of stock volatility, analysts say the next iphone sales may be a dud. fly bridge capital partners matt witheiler is here and brad ad gate. some are saying the launch is not going to be that differen

how stable are bitcoins? ,uest: they are pretty risky and i think anyone who goes into it -- i am a fan of virtual currencies. i will note there are 300 plus some of them. bitcoin certainly has most of the market. i do think that i would caution anybody from putting a significant amount of their wealth into it. and i think that is true with any one investment, you should not put all your eggs in one basket. those are the things you learn from your mom and dad when you're a kid. there is a reason that those things actually resonate, because it is true. same with bitcoin, there is certainly going to be volatility. it looks more volatile compared to other currencies. i think we are going to see digital currencies developed in the future. who the winner of this game is, i'm not strong enough -- smart enough to say. the question on when to raise interest rates, i find it a little puzzling the definition of zero. we have low levels of inflation, higher levels of inflation. anybody who is struggling to pay rent or b

and so many people hope that bitcoin -- is that the nsa doing that? [laughter] who's controlling this thing? many of the, many of the people that were behind the original currency and who still work on it do see as a political vision that it can lead to the collapse of government to be replaced by some kind of randian, stateless utopia, which i think is misguided. but there is a political ideal behind crypto-currencies. >> well, there are also was a political ideal behind silk road, right? i mean, this idea of the market outside of any state or any kind of grounding in real life. >> yeah. and if you looked -- i wouldn't even have been able to have written this chapter without your help, although you don't realize that. [laughter] and the reason is because when you first wrote about the silk road, no many people had heard of -- not many people had heard about it. and then when you wrote about the fact that there's all these amazing drugs -- [laughter] at the click of a button, of course, the next day the traffic to that site just exploded. and everyone

so many people hope that bitcoin -- and is that the nsa doing that? [laughter] >> many of the people behind the original currency do see it as a political vision that can lead to the collapse of government to be replaced by some kind of utopia, which i think is misguided. so there is a political ideal behind the currency. >> there was also a political ideal behind the silk road, this idea of the market outside of any state and i would not have been able to write this chapter without your help. and the reason is because when he first wrote about the silk road, not many people had done so. and it was really amazing. and of course the next day it just exploded and everyone wanted to take a look. and i think a lot of people at first went there out of curiosity and they say that i came for the drugs would stay for the philosophy and there was an underlying part of this where we are not to be controlled by government. we are not to be told what we can and cannot do. we must run free in the silk road was a political project that is very convenient and. and t

. ♪ oh lord come by here >> amelia bitcoin clearly recalls the terror that day.rs tried stop the marchers demanding the right to vote. >> beating them with sticks, with billy clubs, anything they had. they began to beat them, the people, and they did everything they could to get the people to run back, while they were beating them. >> reporter: on the peddis bridge, amelia bitcoin faced the renegade sheriff. >> he hit me on the back of my neck, the back ever my shoulder. and it hurt, but i didn't know what to do. i had no idea what i circulate do. then the second hit felt me. felled me and i fell to the grown. that ground. i was unconscious. >> an officer pumped tear gas into her nose and mouth. >> then somebody came and said to the state trooper, there's somebody dead over there. and he said, "somebody's dead if anybody's dead, we're going to let the buzzards eat them." >> but amelia boynton didn't die. there is the never-before published emergency room log of good samaritan loss. among 17 injured, amelia boynton tear gassed, along with others beaten that day in

>> he takes bitcoin. >> if you use bitcoin, it wouldn't be traced. it's faster and easier to transfer than cash. most importantly, there are ways to make transaction anonymous, making it the preferred method of payment on the deep end. >> with anonymous payments, chat rooms and websites, it's tough with. >> the data we collect shows that most of the major cyber crime activity comes from it. >> james lewis used to work for the department of state and commerce, and worked with the current administration on cyber policy, and says that consumer issue. >> the only russian actors caught are the ones dux enough to take vacations outside of russia. if you are smart he'll go to sochi. case in point. a foremost center of cyber crime is carter. it focuses on buying and selling personal information. >> the u.s. scres service arrested the site. they continue to trade personal information understand the watchful eye of the founder. these sites can be devastating. they lost 45,000 when police say this man and two others used stolen credit cards. pt traction with th

bitcoin was an unlone unline currency. he admitted that it lost more than $350 million of bit coins. >>> one crew member is missing after a fire on a ferry in northern japan. passengers and crew were evacuated after the ship caught fire. local media said that the fire started in a truck parked on the lower deck of the car ferry. >>> heavy rains in myanmar have caused more devastation and left nine people dead. officials say 18,000 people have been moved to temporary shelters. more than 100,000 have been effected. seven townships have been described as badly damaged. most of those who died were in a boat that capsized. >>> a star player in the australian football league has taken an indefinite lead. adam goodes is an indigenous player who has played while being booed all season. some say it's because's not liked but his supporters say he's targeted because of his race. >> anticipation and excitement acidy swan fans stream in for the match. but there is disappointment knowing one of the team's players won't be taking part. >

the only thing is bitcoin center says, no, silk road is a good thing. >> that's correct, 100%. well, it makes the streets a lot safer. >> how? >> when you have prohibition, basically it leads to violent gangs taking the place of what would otherwise be peaceful trade. he's an entrepreneur and innovator who broke rules and basically did what the war on drugs hasn't achieved in 40 years. he's made the streets safer. is that not what the war on drugs is all about or punishing people who take drugs. >> a judge said no way it decreases violence. >> she's incorrect. lots of studies show people that use the site are six times less likely to encounter physical violence, five times less likely to encounter life threatening situations. they definitely made the streets a safer place. it's common sense. whenever you have prohibition of anything, you're basically replacing violence with peaceful trade and exchange. >> also you had the reputation feedback from users, so the fbi tested the stuff that was being sold, drugs, and said, this is unusually pure. it's not the usual poison we get. >>

many people hope that bitcoin -- is that the nsa doing that? many of the people that were behind the original kurianzi and to still work on it to see a political vision that can lead to the collapse of government to be replaced by some kind of randy and space with utopia which i think is misguided. there is it political ideal behind the current sea but i don't know who. >> there was a political idea behind silk road, this idea of the market outside of any state or grounding in real life. >> i wouldn't have been able to write a chapter without your help and the reason is because when you first wrote about silk road not many many people that had heard of it and then when he wrote the book about silk road about the fact that all these amazing drugs with a click of a button of course the next day traffic exploded and everyone wanted to take a look. and i think a lot of people i first went there with curiosity. there was an underlying come including the stuff that -- on the site that we are not to be controlled by government. we are not to be told w

the only thing is bitcoin center says, no, silk road is a good thing. >> that's correct, 100%.ell, it makes the streets a lot safer. >> how? >> when you have prohibition, basically it leads to violent gangs taking the place of what would otherwise be peaceful trade. he's an entrepreneur and innovator who broke rules and basically did what the war on drugs hasn't achieved in 40 years. he's made the streets safer. is that not what the war on drugs is all about or punishing people who take drugs. >> a judge said no way it decreases violence. >> she's incorrect. lots of studies show people that use the site are six times less likely to encounter physical violence, five times less likely to encounter life threatening situations. they definitely made the streets a safer place. it's common sense. whenever you have prohibition of anything, you're basically replacing violence with peaceful trade and exchange. >> also you had the reputation feedback from users, so the fbi tested the stuff that was being sold, drugs, and said, this is unusually pure. it's not the usual poison we get. >> t

he has done more to remove the credibility of bitcoin than anyone. else alive. >>> the president will call for huge reductions in carbon emissions from power plants. this depends on where you live. if your state mines coal, you are not favorable to this idea. the target is for the u.s. to cut e emissions by 30% in the next couple years. in california we're actually way ahead. our own state plan is to cut emissions by 40%. so we have already started. the california board says we could be the 25% within 10 years. we have few coal plants. northern california is natural gas. there's coal in southern california. the problem is hydroelectric. we were making clean energy there for a long time. the problem with hydroelectric in a drought is there's no hydro. >> exactly. >> a crucial component there. those standards are the northeast aggressive in the world. they match europe. >> and we have already started so we will be on our way if president obama can get this through. >> california leads the way there. >>> something you don't want to be leading the way in

matt loves everything about bitcoin.p, donald trump is trumping his competitors in the race for the republican nomination. we will have the results in our exclusive bloomberg poll. ♪ oft: sometimes i just -- course, i was queued up in the prompter. always on the move. >> stocks are trading ahead of a record ahead of that are 25% for the year to date. it is enough to put it at a record. in terms of what folks are looking for with earnings, they're looking to have any commentary on the us in and offering over the top service not connected to a caber -- cable network. any forecast on star wars, the next installation coming out in september. of the prior 12 earnings announcements, we have seen stocks go up. over the past year for disney when we see stocks climb and client. performance mixed the day after its reporting death reported earnings. the general trend has been decidedly upward as you can see. the company has beat or met earnings-per-share in the second quarter of 2011. will -- a very different story here because ahe

there's bitcoin and crypto currencies as a currency. honestly if a friend came up and said i'm going to keep my money in euros for a fund to see if i can enjoy the risk, i would ask do you have any debts in anything that's euro? they would say no. i would say you probably don't want to take on currency risk for a fund unless you are particularly a gambling person. unless you have debt denominated in bitcoin. sit volatile. it poses a lot of risks. it's not clear to me what the risk aversion up side is. >> let's go to michael who is wait anything gerard, illinois. thanks for waiting. >> caller: thanks for taking my call. we don't see regulations in wall street. i'm a small business owner. zero percent. i go to a local bank. i can't get a loan to buy a bobcat. you know, the problem is you talk about the 2008 collapse. not one person held accountable. in my small town you bounce a check for $18, they take you to jail. you guys need to live in the real world. that's how we look at things. we see the news, the rich people never held accountab

after staying on board to deal with the fire >>> japanese police arrested the head of a collapsed bitcoin company after $400 million currency disappeared. he is suspected of accessing the exchange's computer system and falselying data on the outstanding balance. in 2004 the system froze withdrawals because of what was said to be a bug in the software. >> cooking is a chore. now a team of robotic experts came up with a solution the world's first robotic kitchen. >> it's time for dinner and the world's robotic chef is hard hat work. every movement prerecorded as he made his spashty, crab basic. graceful way seems to represent the way a normal chef would cook dinner, this is a prototype installation, going on the market in 2018 priced at $75,000. the designer of the unit suggests it could come down substantially if the idea catches on. >> the company imagines one day all kitchens will be fitted with robotic arms, and the instructions how to make each dish will be bought online. >> you have access to the library of recipes which is intellectual properties of 100,000 different. in this case, y

shery: the bitcoin exchange has been arrested.detained in tokyo accused of accessing the computers in february 2013 and inflating his account. if convicted, he could face five years in jail. mt gox went off-line earlier. thousands of bitcoins worth several hundred million dollars were unaccounted for, suggesting they been stolen. rishaad: at least one person has been killed and 12,000 evacuated as wildfires rage across drought stricken northern california. the most affected area is near san francisco, where 50 houses and other buildings have been destroyed. a state of emergency has been declared. shery: a second american tourist has been accused of illegally hunting a lion in zimbabwe. the national parks authority says the doctor killed a lion with a high-powered bow and arrow in april. the hunt is said to have taken place on land where the animals are protected. the doctor was featured prominently on hunting websites pictured next to his dead elephant, hippo, ostrich, and antelopes. rishaad: we've got yvonne and zeb and richard h

bitcoin exchange head has been arrested.s accused of accessing the exchange's computers in february 2013 and inflating his account. if convicted, he go face five years in jail. time, thousands of bitcoins worth several hundred millions of dollars were unaccounted for suggested they had been stolen. china said by hosting winter olympics, it could be a sports market unlocked of 300 million people. beijing won games. it makes them the first city to host a summer and winter game. the winter is usually cold and dry. snow will have to be artificial. big names for the mining industry gathering at the remote australian city of kalgoorlie. live with a diggers and dealers when "trending business" returns. ♪ rishaad: the remote city of kalgoorlie is center as the mining industry means for the diggers and dealers conference. -- 2030 year, not that 23yrd year. paul: kalgoorlie is not the easiest place to get to. thousands of representatives make the journey boosting the population by 5%. this is story gold-mining town is one hour away fr

the bugged entrepreneur digital currency bitcoin. he has a web site where he shares what he learned. he has a bitcoin, web site. he is not all business. he did use some of the profits to buy a lego death star. you have to have one of those. >> you got to have one. >> there are some essentials in life. >> >> your kids seated up a lemonade stand. >> on the streets of new york city it's more complex. >> you could be arrested. >> not as simple as your own front yard. >> this time of year the kids are popping up all over the neighborhood with their stands and i got ice water for you. my favorite and i love you guys are the ones that are on the harlan hill in central park and they are not a lemonade stand. they are bottle of water for a buck. but i want to marry them as i come up. >> you would pay a lot more than a buck sometimes. >> really a beautiful day out there. speaking of the park, a lot of people are enjoying it today. it's getting hot. upper 80s is what we had as far as the official high temperature. we will at the humidity in as

is it going to be bitcoin? is it going to be some kind of other sovereign digital currency that we are going to be talking about? as you think about financial inclusion, what other cool new things that you think about? lauretta, maybe we will start with you. the future of the financial inclusion. what excites you? >> oh, jeesh. i didn't prepare for that one. well, i mean, without a doubt, the growing movement of -- towards some sort of mobile device and the moving away from the branch based activity is enormous. mean, just the growth of smart phones, low-cost smartphones across the developing world is phenomenal. five years ago, we would have never anticipated the number of smart phones in the developing countries right now. and the numbers are just growing amazingly so. and, yes, the issue of digital currencies is definitely going to grow. but i don't think bitcoin is going to be the answer. i think there are going to be other areas. i think central banks are going to start looking at how to issue their own di

emily: bitcoin hits a fork in the road. will it propel it into the mainstream market?mily chang and this is "bloomberg west." paypal makes its first acquisition since breaking off from ebay. it's a startup named modest. i speak with a cofounder. messaging act -- messaging app kik -- it's

emily: bitcoin hits a fork in the road. will it propel it into the mainstream market?y chang and this is "bloomberg west." paypal makes its first acquisition since breaking off from ebay. it's a startup named modest. i speak with a cofounder. messaging app kik -- it's cofounder tells us why it is that we chat of the west. and it's taking the reality tv

emily: what about bitcoin, does that get closer to what you imagine?eter: i am psychologically biased against it. if we could not succeeded paypal i would be tempted to come up , with reasons why nobody would succeed at it. emily: chances of it succeeding are unlikely? peter: i think it is slightly too cumbersome to work as a new -- to work at the end of the day as a new payment system. emily: you were the first outside investor in facebook. did you convince mark or did he convince you? peter: some combination of both. at the time it felt like a no-brainer, become but he was growing very fast. they needed more money for computers. i would be ahem relatively hands-off investor. emily: do you worry facebook could get this off track or distracted? peter: it is always a challenge. you have to do some new things because you are not in a static , world, and you don't want to do too many. you want to do just the right number of new things. palantir, customers include the cia and the air force, yet there is so much mystery around it. as i understand, palantir

. >> japanese police have arrested the head of a collapsed bitcoin company after nearly $400 million of virtual currency disappeared. he's suspected of having access accessed the exchange computer system and falsified data on his outstanding balance. the system froze withdraws because of what the firm said was a bug in the software. >>> a star player in the australian football league has missed a match scheduled for friday as a row over racism in the game continues. an indigenous australian who has been played by booing all season. critics say the jeers are because he's not liked. others say he's being punished for being local on indigenous issues. >> anticipation and excitement as sydney fans stream in for the match. but there is disappointment knowing that one of the team's players won't be taking part. >> i think booing and jeering is part of the game, but it seems pretty obvious people are having a go at what he is saying and what he has done. >> an indigenous australian and star footballer. he's on leave. stressed out by controversy that started two years ago when a teenage oppo

of bitcoin has been arrested.the exchange's computers and inflating his accounts. if convicted, he could face five years. it went online earlier last year. wereands of bitcoins unaccounted for and suggested they were stolen. at least one person has been killed and 12,000 evacuated after wildfires rush across california. the worst affected area is in for cisco where 50 houses -- is san francisco where 50 houses have been destroyed. a state of emergency is declared. fires burning out of control in oregon and in washington state. a second american tourists has been accused of illegally hunting a lion in zimbabwe. a pennsylvania dr. killed a lion with a high-powered ball in and arrow.ow it is said to have taken place in an area where the animals are protected. he has been seen in many pictures with game. ♪ shery: remote australian city is the center of tensions as the mining industry meets with a conference. in the 2030 year, it is for social -- 2030 year, it is for socializing. paul allen is there for us. -- 23rd yea

. >>> japanese police arrested the head of the collapsed bitcoin company after $400 million of virtualcurrency disappeared. he's suspected of falsifying data. in 2014 the system froze withdrawals because of what the firm said was a bug in the software. >>> the man accused of killing nine members of a black church in the u.s. state of south carolina has said he wants to plead guilty to the federal hate crimes charges against him. in a court appearance, the lawyerthelawyer said not to do until they find out if they are seeking the death penalty. >>> firefighters are trying to contain a series of wildfires in lake county. the fires in the northern part of the state have spread to more than 7,000-hectares. one firefighter died on thursday while battling a blaze. hundreds of people have been evacuated and the governor has declared a state of emergency. >>> there's been rioting and looting in venezuela. >> reporter: dozens of people looted this supermarket warehouse and other stores in eastern venezuela friday. another sign of the worsening shortages with locals struggling to get their hands

. >> the head of the failed bitcoin exchange has been arrested in japan.s detained in tokyo on suspicion of inflating his cash account by $1 million. it's reported that he denies any wrongdoing. bit coins were an online currency that allow internet users to store funds indefinitely. he admitted it had lost $300 million of bit coins. one crew member is missing from a fire on a ferry in japan. local media say that the fire started in a truck in the lower deck. it was 300 miles from its destination. >> officials say 18,000 people have been moved to temporary shelters over 100,000 people have been affected. >>> now, disspied stalls, strikes and scandals, rejoe de janeiro's construction is back on track. kimberly halkett reports. >> traffic gridlock into rejoe de janeiro is among the worst in the world. commutes can take hours. that is until a new bus rapid transit or brt system was constructed for some of the most congested parts of the city. >> i used to take four buses to arrive to my job. now i use only one and i have the time to make the trip, and i think

mark: what about the use of the bitcoin infrastructure?s that helping what you are attempting to do? jeff: we are doing a pilot program with block chain technology, and open letter that can help track assets. helping companies track their equity using this block chain technology which provides a great audit trail and great ability to make these markets more efficient. mark: wow. a lot to get in and five minutes. -- in five minutes. a pleasure to meet you. still ahead, china has gone from growth engine to source of concern for carmakers such as bmw and toyota. we will navigate this market after the break. ♪ to theelcome back bloomberg market day. i am mark crumpton. let's take a look at the european market close. >> we've seen stocks fall in europe today. snapped a600 has five-day rally. we've seen some commodities rebound, pushing commodity producers hire. they have been the biggest gainers on the benchmark, that has been outweighed by decline for banks. let's look at the individual stocks we have been watching today. mean -- iee what i wa

technology where there's groebl around us in traditional sectors like marketplaces and mobile and bitcoin, drones action et cetera. what we're looking for is for these young entrepreneurs that have an idea that changes the market. that starts everything in a different light and if you look at a company, working with their auctioneers and adding highly qualified knowledge about the sectors they're working in the objects they're getting are more special than a place like ebay. >> is their biggest competitor the traditional players or the e-commerce players like ebay? >> this is bringing new people to the markets. so they started in one sector, like you said, stamps or comic books and then find rare finds and we see they have grown from 20 categories when we invested to now 60. >> you mentioned that these types of exceptional collectible items, i would think of all the industries where the internet and smartphones are collect sd make disruptions it would be one very hard to get involved because you want to go see the items and verify their quality. how does it work and how do you get past th

most criminals demand payment in bitcoin, a type of anonymous, easy to use online currency. occurrence you pay the ransom, most get their files back. ransomware has been around for years, but the latest strain of the virus called cryptowall is wreaking unprecedented havoc. between last april and june this year, the f.b.i. has received 1,000 criminal complaints costing individuals and u.s. businesses over $18 million in losses. >> we're making a lot of progress. but like many other types of crimes, we're not there yet. it's still a problem and as i mentioned, we cleared up one and another shows up on the market. >> reporter: even police departments nationwide are getting hit and paying up. this year a small town outside chicago paid $500 ransom to a hacker who encrypt the filessor one of their computers and their back ups. >> if you're clever enough, you can really manipulate that from identity theft perspective and disrupt not only the local governments, but actually get into the personal finances, personal banking or financial accounts of individuals and just think of the p

less bitcoin but more block chain.s a chance to digitize the infrastructure underlying all assets that's long overdue. then i'm really focused on some alternative lending platforms because i do believe properly regulated a lot of these platforms, whether it's peer to peer or main street lending, small business lending, that is here to stay given the regulatory regime the banks are going to operate under. i've been focused on those three areas for the most part. >> so far. >> so far. thanks for having us on. >> thank you guys so much. >> appreciate it. >> thanks. >> duncan and buck. >>> we will take a break and come back. ten minutes left in the trading session with the dow down 60 points right now. >>> then we're going to talk about "ant man." disney's tale of a super hero. we'll preview disney's after the bell earnings with julia bores steen next. you're watching cnbc, first in business worldwide. bores steen next. you're watching cnbc, first in business worldwide. obores steen next. you're watching cnbc, first in bus

most criminals demand payment in bitcoin, a type of anonymous, easy to use online currency. once you pay the ransom your files are usually decrypted. ransomware has been around for years but the latest strain of the virus called cryptowall. the fbi received 1,000 criminal complaints costing individuals and u businesses over $18 million in losses. the most disconcerning part is even police departments nationwide are getting hit and paying up. this year, in a suburban chicago police department, they paid a $500 ransom to a hacker who encrypted files on one of their computers. another department in tewkesbury, massachusetts reportedly pay specialists and two private internet security firms to try and get past the ransomware but in the end they, too, had to pay a ransom $00. $500 may not sound like a lot but cyber security experts point out if you get $500 from a few hundred people all over the world, it becomes very profitable and at a very low risk. >> is there anything people can do to protect themselves? you have to know not to open this. if you don't, what do you do? >> it'

. >>> the bitcoin bank, the ceo arrested in japan over the weekend.he bank had been robbed. but documents show it was out of money before the alleged robbery. using some of the money of depositors to refund other depositors. >>> the hackers that took over the jeep that caused it drive off the road wirelessly will be in las vegas to explain how they did. and more pressure on apple. the stock down 14% off all-time highs. concern over popularity or the lack thereof of the apple watch and solid competition from chinese phone makers, guys, part of the struggle. >> thank you. >>> how does your water use measure up to your neighbors'? new program in san jose helps you find out. it's like a buddy system. this morning, mayor sam liccardo set to announce launch of a new online water reporting system. people logon to check water use this year compared to previous years. but the site outlines each home's water use in relation to homes of similar size across the city. get your water report card watersmart.com. >> it would be nice if we saw water from the sky. i do

basically we've used the technology, underlying the bitcoin movement.ut bitcoin, but the technology underlying it can be used to recreate wall street on a system-- create like a crypto version of wall street that can't be game, can't be rigged. the scandals you've been hearing about for six or seven years can't be done and we've issued the first crypto bond. >> you've invested half a million dollar of your own dollars? >> i eat my own cooking. first new york, a great company called new york bought 5 million of it. and did a great thing stitching this together for us. we got through the regulatory, the sec approved? >> well, the crypto bond didn't have to be sec approved, but there's a lot of other things going on to do require sec approval and they, jones day and they started gradually working us through the sec regulatory process. >> and quick before you go, you said right now you're not necessarily seeing a big sort of consumer appetite out there. from a customer standpoint, how do you characterize things? >> well, i think that things have gotten fair

the head of the failed mt gox bitcoin exchange has been arrested. he was detained in tokyo.was accessing the exchange's computers and insulating his account. if convicted, he could face five years in jail. in other news, china's manufacturing industry has suffered another setback with pmi data falling short of estimates. stocks falling to a three-week low on growth concerns. let's get more now with nick wadhams in beijing. with continued volatility, what is the outlook for the chinese economy after this reading? nick: we are starting to get a better picture of what is happening in the economy. it looks like the numbers are not good. car sales are down. bloomberg economists estimate that in the first half, chinese economy grew at a rate of 6.5%. the government has this year end goal of 7%. if we keep seeing more figures like this, we have trade on saturday and inflation on sunday, it does make the case for more intervention from the government. francine: we saw the government intervene to shore up the market. does it look like it is going to act again? nick: analysts from miz

most criminals demand payments in a bitcoin, an anonymous, easy-to-use online currency and once theymost get their files back. >> if i open a virus or if i open ransomware that has an encrypted file oit, on it, it encrypts everything that i'm connected to. >> the latest strain of the virus is wreaking unprecedented havoc. between last april and june this year the fbi has received 1,000 criminal complaints costing individuals and u.s. businesses over $18 million in lawsuits. even police departments nationwide are getting hit and paying ransom. this year in midlothian a suburban chicago police department, paid $500 ransom to a hacker who encrypted files on one of their computers and their backups. >> we're trying to get the word out that there are best practices to guard against these cyberattacks. while the sophistication of those that are behind the attacks is getting better and better and we don't even know where they come from. >> the fbi says there are ways to protect yourself. always use anti-virus software and a fire wall and disable pop-ups and backup your files and data. exper

one year it's drones and bitcoin and the next it's on to the economy.hard time understanding how public education institutions can be as flexible as somebody vocation schools that have come up like general a similar flat tire. how do you think budget allocation of time and resources between some of these would camp like programs versus the cuny system? >> it's a great point. i don't pretend will always be at the exact cutting-edge i think the question is how we are increase in improving our approach. if you look at the entrance of the core skills people need and the connection to the tech community they need. that does not mrs. to comply we are doing everything perfectly where we've got people counted to the exact most recent trend. it does suggest if you churn out generation upon generation of young people with the basic skills and the orientation and the since they belong and the exposure which is why i internship to mentorship and so jobs, i think i would keep a lot of the outcome. what i would call the fine-tuning can occur. >> one of the other thin

today sean bridges is due in court expected to plead guilty to taling more than $800,000 worth of bitcoins. he was arrested during a probe of the underground website silk road. google will respond to a european commission investigation into the search giant's alleged abuse of power. eu officials accuse google of distorting search results to favor its own products. >>> a federal judge could rule on the deflategate case today. he has directed patriots quarterback tom brady and nfl commissioner roger goodell to attend a hearing to discuss a possible settlement. >>> waiting on the federal reserve. interest rates may go up for the first time in ten years, and investors around the world are rattled. >>> and police in one state can now use drones to fire tear gas and tasers. new concerns over police becoming too militarized, and we're going to talk to the state representative who introduced the bill. . >>> welcome back to al jazeera america. it's 8:17 eastern. >>> police do not suspect foul play after a fan fell to his death at an atlanta braves game on saturday. he fell from the upper deck. no o

they are asking for a bitcoin and sending a link for the users to pay up.ley mad idy son hacked competitors back in 2012 to find vulnerabilities in their system. this comes after the hackers released tons of e-mails sent by ashley madison's ceo. >>> and joe biden's son hunter biden is denying that he has an account with ashley madison. yesterday, the website reported that an account was made using his e-mail address. biden said the account was set up by someone else without his knowledge. the married father of three said in a statement this was not the first time someone has used his name to try to discredit him. >>> it's now 8:41. tragedy on the indy car raceway. coming up, how the death of justin wilson could change the circuit as the drivers come to sonoma this weekend. >>> and one of the wettest winters ever has officials thinking about pumping the brakes on official. the major san francisco development that could seriously be slowed down. >>> san mateo bridge looking okay if you are driving out to the high rise. westbound, it's just average. you can se