an online exchange in way to transfer value online and eighty percent of bitcoins are traded on mt gox now mt gox stands for magic the gathering online exchange it started life as a place where you could exchange magic the gathering cards for cash and it ended up not by design obviously but it became the place to go to trade bitcoins as well but william has created a backstage look at what the mt gox commando looks like as you see it looks very nine hundred fifty s. now max you created the hollywood stock exchange where it's run by the virtual specialist technology which you invented and a few days before mt gox crashed. you warned exactly of this so explain what is wrong with the market making function here the way trades are processed the buyers in the sellers at mt gox and all these other exchanges it's not done in a way that's commensurate let's say with the way trades are cleared and exchange the new york stock exchange or some other exchange where there is a specialist function who is making a market and their job is to create a fair and orderly price matching buys and sells and

it goes into the same queue as somebody trying to place an order for a thousand bitcoins so first ofall there's really only one security here and that's but going but there's multiple exchanges trying to. the exchanges buyers and sellers of big going tonight have different price discovery spread out over different exchanges and they're all inadequate so you have this incredible spread on different prices on different exchanges so that's problem number one the good news is that there's only one security or they need to make a marketing but there needs to be one at least one functioning market that's able to take buys and sells and create that what it would look like mt gox you'd be able to for example put in market orders for bitcoin at a fair and orderly price that would be at or near what is the market for for bitcoin right now you have a lot of people putting in a limit orders they want to buy sell at a certain price and these are lined up and they're trying to match these limit orders against each other there is no real good way to buy and sell at the market or market orders and i

now supporting bitcoin now is similar to the campaign to crash j.p. morgan to buy silver talk a talk us through this bitcoin story but i you know and it can be used as a medium of exchange but with the appropriate patient of software they can be used to make promises that if you could you could have a promise of a bit point in the future or not require any banking system at all it just be totally distributed ok well let's talk about the crafty morgan by sober campaign because the idea there was that j.p. morgan was short billions of ounces of silver if you took physical delivery of silver you would force. them to cover their shorts and impair their balance sheet and blow them to smithereens now the issue there is that j.p. morgan because of the corruption between them in the us government and their ninety trillion derivatives off balance sheet pile of debts and other flora and fauna of financial chicanery they're able to simply sell silver short sell silver naked short in the silver market in the silver futures market and put a lid or a ceiling on sil

won't crash when the bubble he's inflating crashes so he buys a picasso some people buy gold silver bitcoin things that have intrinsic value real value and he's smart in that he's parking the money he steals and let me say i'm using this word literally steals as an eric holder would prosecute him if eric holder wasn't in stevie cohen's pocket looking as botox he puts that money into something that's going to maintain its value i salute you stevie cohen of all the terrorists out there you are the primo to lock down the primo terrorist you're doing a fantastic job ok but i want to compare this to the american dream why it is like the dream it's called the dream rev picasso's now he was that he bought it from steve wynn the vegas casino magnate and he was due to buy a few years ago in two thousand and six for one hundred thirty nine million dollars which is sixteen million less than one hundred fifty five million isn't well what happened to that sale with steve wynn accidently elbowed the painting ruining it so he couldn't conclude that sale. when received a forty five million dollars insuranc

every bitcoin, the next bitcoin is even harder to create.ight now it requires vast amounts of cpus generally through amazon cloud and things like this to create the next bitcoin. it would be exceedingly impossible or exceedingly difficult to create a counterfeit bitcoin. >> hacking bitcoin could be a problem. what about someone coming up with a counterfeit that end users don't recognize as being counterfeit? then eroding the purchasing power of all existing bitcoins. >> one of my concerns, too, a lot of stories about drug dealers using these kind of things. i think it's a matter of it's not regulated. it's not controlled. so how, you know, as michael raises all these questions, sort of how do you account for all of the unknowns? >> it is regulated. >> what's the value of it? what's the value of one bitcoin? >> i think right now one bitcoin goes for about $110. i think it's skyrocketing precisely because of all these great aspects about it. >> the whole bitcoin market is about $1 billion. it's a novelty for the geek squad. i can assure you if

come into existence that number has halved recently used to be fifty bitcoins every ten minutes and then that number will have again and will continue to have going forward until the maximum number have been created twenty one million and then that's it for the total circulation a bit going so there therefore by that notion alone it is completely against anyone's definition of a ponzi scheme because there is a definite number there's a finite number therefore it's not a ponzi scheme your thoughts it's not a five to scheme at all because it's creating value by stripping the total volume of it one of the other things that people don't really realize is that the smallest unit the base going to have this one is actually a group of numbers and they can be subdivided into one hundred million pieces so even the seven hundred thousand dollars associate which is the smallest unit is going to be less than one percent right so for ease of use going forward this is what economists would call or what aristotle referred to as fungibility you can divide a dollar and two hundred pennies you can div

dollar versus the bitcoin. mary thompson following the bitcoin story all day today. mary?hey, there, maria. many compare bitcoins to commodities like gold, as there's finite amounts of the digital currency. charlie schrum, a partner at the new york lounge ever and an early investor in bitcoins sees bitcoins as something different. >> it's cash with wings. it's literally cash with wings. that's the best way to describe it. >> its wings clipped late this week, though, after reaching a high of 240, bitcoins dropped 270% to a low of just over $54 before recovering slightly. bitcoins rocketing higher and on to the public stage as investors bought them during the cyprus crisis. since then, falling to earth, as speculators pulled out and hackers moved in disrupting the bitcoin ecosystem. bitcoin enthusiasts like them because they can be transferred into dollars and deposited into their accounts. detractors say bitcoin's volatility is anything currency like, given movements like 1% are cause for concern when it involves the dollar, euro, yen and others. some say bitcoins carry the

just pay in bitcoins. the first new york city bar is now attempting, excuse me, accepting them as payment. how on earth is this a wise financial decision? the bar owners are here to respond. plus, can you define your career in 140 characters for less? how twitter resume's are transforming the job market. more "money" straight ahead. ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from t

killing gold price the use of bitcoin seems to have increased dramatically in spain italy greece cyprus and elsewhere in southern europe over the last two weeks this is most likely driven by increased concerns about the future value of the. euro historically these kinds of concerns would have had investors headed for the safety of gold instead the value of big points as shot up in relation to the euro and remember during the cyprus crisis there was a one point three million dollars purchase them and mt gox for bitcoins and that's the thing is like you know they have capital controls they have people at the airports looking to see if you have more than a thousand euros cash however if you have a thumb drive. you can cross the border or you can keep a big coins in a mind a wallet and you know if you just memorize the address you can walk around anywhere in the world with a million two million five million twenty million dollars in bitcoin and you can use that as good currency and i just want to point out that one of cyprus crisis hit and bitcoin it was just getting to that forty to forty

place their bets it's far from certain that bitcoin is going to be a big deal said lightspeed venture partners jeremy lew has made two investments in the space but the potential for disruption is enormous if bitcoin realizes its full potential you're talking about disrupting visa first data master card a lot of banks western union these are huge multibillion dollar companies it's far from certain but if it happens a lot of value will be destroyed and a lot of value will be created that's when venture capitalists should be looking right i mean bitcoin you have to compare to bit torrent bit torrent made piracy so-called of intellectual property like music and films a reality for millions totally transformed that industry to the point now where the makers of game of thrones have said that we welcome the pirates pirating game of thrones it's our marketing strategy and we haven't stopped making money so they finally got the religion they got it so chris dodd to. stop killing kids like guarantors meanwhile on bit coy similarly mastercard wall street will have their come to bit christ moment

market reaches its apex then as we've been saying all roads lead back to some form of gold slash bitcoin global currency standard and the other thing that i've seen about when the cyprus selling their gold part of this is about the bailout documents with the troika and they also imagine that they're going to earn six hundred million euros from increasing the corporate tax free how are you going to increase the corporate tax rate what corporation is going to remain in that country this is over the next three years they see right well when you have people who live in the world of academia put out white paper suggesting that they can raise taxes on corporations in a country that's now bankrupt and somehow raise enough money to pay off the debts that's what happens you need actual people on the ground who are doing business not academics who are cranking out white papers who have never had a real job in life ben bernanke has never had an actual job in his life paul krugman is not actually ever had an actual job in his life they're just put out insane documents and if it doesn't work out they

million five million twenty million dollars in bitcoin and you can use that as good currency and i just want to point out that when the cyprus crisis hit and bitcoin it was just getting to that forty to forty five range i said it would get two hundred fifty on the cyprus crisis it did in fact get to one forty eight which is you know good does a good is one hundred fifty i was one hundred percent correct on that another relationship between big coin gold and silver i think it's a bit premature to make those kind of connections because the market cap of bitcoin is not quite heavy or big enough however i will say that those who are owning and buying and building positions in bitcoin you would it would be prudent to peel ten percent off of those profits and park the profits into silver because silver is the natural hedge of bitcoin going forward big corn and silver will be vying as who will be the global currency that will replace all the other field currencies like the dollar and and the year on these other currencies bitcoin especially in places like africa will explode in value the ameri

are -- bitcoin. people like the notion of virtual currency and i think it will have a place in a every portfolio in the future. melissa: people are making money, people are losing money. that's why we want to make sure our audience knows what is going on. we thank you both for coming on and helping us it figure it out. >>> here is our money question of the day, would you trust any investment that doubles your investment in a week? everybody wants reward and not the risk. you have to be in it to win it, baby. we want to hear more from you. like us on facebook.co facebook.com/melissafrancisfox. or follow me on twitter at melissa a francis. a lot of bitcoin on twitter. >>> moving something that moves the market. jpmorgan shareholder letter by chairman jamie dimon. he addresses the london whale disaster and the state of our housing markets, dimon is pretty much bullish. this is the part that really got my attention. he says that our country needs to be prepared for the impact of haven'tal, quote, rapidly

to run of the same market capitalization of silver so that would imply a price of bitcoin of twenty seven hundred dollars per bit coin up from the current hundred twenty hundred fifty range which i see happening you know in the not too distant future then you'll see a lot more money flow back and forth from so over bitcoin gold etc but these are the only three hard currencies in the world today one of the other ways to protect yourself from the collapse of our financial system and our economies and inflation and things like that is your wage and your income now on the top level we have many of the top one percent of course don't actually work for a living they receive income through dividends and capital gains national grid links dividend to inflation the national grid has reaffirmed its commitment to increase dividends at least in line with the rate of u.k. inflation for the foreseeable future now max this is me of what you have always argued to u.k. workers here is that you should tie your wages to inflation to the money supply in fact but at least here this is the. why you see th

and bitcoin certainly doesn't.upled in a matter of days and then again a week later, and now it's fallen 75% in just a few days as well. there's no trust nor terms of the value. it's behaving much more like a shock that we enjoy watching the gyrations of, but not really a currency we can trust on its value hour to hour. >> it kind of feels like a dp gamble and a speculative stock. so why are people, and not just everyday people, but big investors, why are they starting to get on board with this? >> i think there are two reasons. i think there's a good reason and a bad reason. when you have a stable supply of currency and there are more things that that currency can buy, the value should go up. so the mainstreaming of bitcoins on the internet, i think, has helped its value and maybe brought it from $1 to $10 or $10 to $30. but when you see it exploding to 250, $260 and then falling again to $75, you realize this is really a speculative exercise. this is a situation where people see like a stock price rising and they

thanks for bitcoins and that's the thing is like you know they have capital controls they have people at the airports looking to see if you have more than a thousand euros cash however if you have a thumb drive between you can cross the border or you can keep a big coins in a mind a wallet and you know if you just memorize the address you can walk around anywhere in the world with a million two million five million twenty million dollars in bitcoin and you can use that as good currency and i just want to point out that when the cyprus crisis hit and bitcoin it was just getting to that forty to forty five range i said it would get two hundred fifty on the cyprus crisis it did in fact get to one forty eight which is you know good does a good is one hundred fifty i was one hundred percent correct on that another relationship between big coin gold and silver i think it's a bit premature to make those kind of connections because the market cap of bitcoin is not quite heavy or big enough however i will say that those who are owning and buying and building positions in bitcoin you would it w

connell: the bitcoin market.ar right here in new york city that is using bitcoin. that is coming up. dagen: they are in on it now. i do not know. i am sure they are nice. no, we do not know that. they might be losers when it comes to creating facebook, but here are some winners today and losers on the nasdaq. ♪ thank you orville and wilbur... ...amelia... neilil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. (announcer) scottrade knows our and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade

these germans are sold on the idea bitcoins of the new gold and if you're not involved you'll be left behind every day you decide not to use a free and decentralized currency like bitcoin to actually decide for supporting the existing financial system with its flaws for yet another day created four years ago by an anonymous computer these lines of letters and numbers can be traded to allow instantaneous global purchases without being tied to the rules of existing and discredited financial institutions there is no organization no institution who is able to control or manipulate the whole financial system of bitcoin you know banks no central banks. no credit card corporation that means that nobody is charging you any fees nobody can stop you sending money from a to b. like if you would donate one would want to make donations to wiki leaks you can still do that in bitcoin following growing mistrust of a stop after the botched bailout of cyprus people want their money where governments can't touch it but i think the big huge did a really good job to raise awareness when they seized the ba

bitcoins explained next.luna.com welcnew york state, where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit thenewny.com . >>> which would you trust, the euro, the official currency of the eurozone backed by european governments, used by hundreds of millions of people or this, a virtual currency called bitcoin created by an anonymous hacker four years ago used for a range of illicit activities in the early days and now gaining kind of a mainstream following after the botched bailout of cyprus for many the answer was this bitcoin. maggie lake is here to explain. maggie, what is a bitcoin? >> it is a digital currency but not that easy to unde

no organization no institution who is able to control or manipulate the whole financial system of bitcoin no banks no central banks. no credit card corporation that means that nobody is charging you any fees nobody can stop you sending money from a to b. like if you were going made one would want to make donations to ricky meeks you can still do that in bitcoin following growing mistrust of established currency after the botched bailout of cyprus people want their money where governments can't touch it and i think the you did a really good job to raise awareness when they seized the bank accounts in cyprus since then i mean there's been a. craze going but coins are secure nobody can seize it nobody can freeze an account to get involved you have to download an application called a wallet there. you can start to buy them at this bar digital currency exchange a group b. once a month to treat their electronic cash an establishment is happy to take coins as legal tender for any purchase but once you get all set up with the big calling software it becomes as simple as point click and your elect

melissa: but bitcoin is not a better store of value.up and down all the time. >> and i didn't say it is a store of value. a look at it as a transaction. melissa: really quick before you go, the first one is in cyprus and san diego. how did you pick those two locations? because they don't have a lot of common. >> we first announced the machine about a month ago when we are finally ready for the market. cyprus at that time had no banks are atms. we thought we would announce to put one there. melissa: a lot of good attention. thank you for coming on the show. we appreciate your time. up next on "money," you have heard a bull and bear markets. this little guy mightust be the best stock picker out there. stay right there for more. ♪ ♪ melissa: it is time for a little fun with "spare change." joining us today, thank you. >> thank you for getting my name right. melissa: i know. every week. every next week of the back to saying it the wrong way. don't get excited. first up, do you know what this is? do you know what that is? it is the sound of

bitcoin is your fight against tyranny so if you're pro-gun then you'd be pro bitcoin for the same reason fight against charity the state has taken on the role of mass execution or you need to take a position against that guns are the old way from two hundred years ago. bitcoin is the new way the whole thrust behind because the article says is that it removes the need for trust in currency trust and bankers trust and governments trust the two won't collude to do you over like they did with everybody in cyprus again people again many articles this past week from business week to bloomberg everybody's talking about bitcoin in the mainstream financial press of course we were talking about it here three years ago but they're saying this is the thing is that people don't trust the banking system anymore and they'd rather trust each other when banks don't trust the banking system anymore and that's why since two thousand and nine which they are going came into existence central banks stopped borrowing from each other and buying gold because they don't trust each other the counterparty rest are

are accepted. >>.2885 bitcoins.ly adopters. the owners were quickly won over. >> can you explain how this works? >> you put in the amount in u.s. dollars. you go to your wallet on your phone, your bitcoin wallet and scan the code and press send. we get the joins converted into dollars within minutes for us and you get your drink and -- >> and you get paid. it is one of the few brick and mortar places to accept the payment system. >> they're transferred directly from person to person via the net. >> the virtual coins are bought and sold through a limited number of online digital exchanges like mount gox. you can't buy them with a credit card. you do need to link a bank account or cell phone. >> i just heard about this. >> charlie is an investor and the co-founder of exchange bit instant. he admits the currency has a reputation to overcome. >> in the beginning bitcoin was i would say over 80% volume was for illicit activities, drugs, fake i.d.s. >> the boost of popularity came on the heels of the crisis in cyprus wher

like bitcoin a reality of currency that is actually out of the control of governments that are being. you know very very uncomfortable both for those that don't like the state to be in control of everything and both for those that lie don't like corporations to be in control of everything because today we are witnessing actually a coincidence between the state power and corporate power more and more these kind of high power structures that the top occupier meets are actually corporate to be them a state or or a. transnational corporation to actually make people more poor coming up the fears of the put in as the world waits for north korea's next to move with the police to missiles now in firing position we are stunned what the international community could have done to bring the situation under control before this just off the breakup you can stay with me. pretty three. three. three. three stooges free. food free volunteer video for your media project c.e.o. don carty dot com. the world with. its technology innovations all the developments around russia we've got the future covered.

and the bitcoin craze. is this for real? you can't touch them or put them in your wallet but they are worth a boatload of money at the moment. the demand who want to make them mainstream. "countdown to the closing bell" starts right now. liz: good afternoon, everybody, i am liz claman. the last hour of trading on the last day of a week of record breakers. let us show you what has kept the red from becoming a deeper shade of crimson and it is many consumer stocks reaching all-time highs today like home depot, tupperware and mcdonald's. a lot of good these names did for the market. dow jones industrials although down more than 70 points, lower by 30 points, and the s&p down eight, no more record there for the moment. weak retail sales, consumer sentiment. they came up with average financial earnings for that is why you're seeing a tiny bit of red. embattled retailer jcpenney was a retrieve i in the court battle with macy's all over martha. ruling even though macy's is a contract with martha stuart, jcpenney can continue sellin

, some say bitcoin is the new gold.e markets, what is your comment on bitcoin? >> if it wasn't legitimate currency it wouldn't be dropping from $200 down to $90, to be running the other way and a stable value. to me it is a large commodity scheme. very tough to convert it to real currency. stuart: direct and to the point. now, the dow is down 102 points, so it is folly not as sharply in percentage terms as gold, but what does this mean for the average investor on the stock market? >> stay tuned. this isn't necessarily the bad thing everybody makes out. would you rather buy something when it is on sale or buy something when it is 50% more expensive? this is the exact time to start getting in. now is the time to start thinking about volume. stuart: appreciated. germany wants a wealth tax in spain, portugal, greece to pay for future bailouts. will they get this? facing an election later on this year. let's tax the rich people. liz: angela merkel in the middle. she has an election coming up. it is hard assets now for southe