place to go to trade bitcoins as well but william bonzai 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 on 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. commensurate let's say with the way trades are cleared in the exchange to 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 so they do this by by having both the ability to match trades buyers and sellers but also managing an inventory of whatever it is they're trading in so if it's i.b.m. stock on the floor of the new york stock exchange the market maker would have an inventory of i.b.m. stock so that if in fact there w

an online exchange and 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 bonzai 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 on this so explain what is wrong with the market making function here the way trades are processed the buyers and 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 se

-prize your welcome to the kaiser report many people want to know what is going on mt gox the bitcoinexchange i'll tell you what's wrong with market making we're going to talk about that right now stacy herbert max keiser for those out there who don't know of course the big point is this new currency it's a network protocol. an online exchange 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 bonzai 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 on this so explain what is wrong with the market making function here the way trades are processed the buyers and the sell

improved ideas that have come along sense then that i'm hoping to bring to the to the party what would mt gox look like with a proper market making function if it were actually matching buyers and sellers right now their hands off it just comes as the orders come in it clears those orders even if it's point there is there is there one bitcoin it goes into the same queue as somebody trying to place an order for a thousand bitcoins so first of all there's really only one security here and that's bit going but there's multiple exchanges trying to. be exchange of buyers and sellers a bit going and i 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 that you need to make a market in 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 orde

now mt gox stands for magic the gathering online exchange.

i am max kaiser welcome to the kaiser report mt gox is down that means a bit going bubble is over sell everything. cyprus is going to sell their gold now they're not yes they are no they're not yes they are no they're not yes they are hoops the fed just released their minutes a day early to a few wall street banks sell everything now wait buy everything no worries so everything buy sell sell bought stationer first i'm going to start with this tweet from bloomberg athens cyprus a central bank hasn't discussed any plan to sell gold reserves in the cozy a based institution spokeswoman. said max this was following on a headline earlier in the day it became big news everywhere which was cyprus to dive into its gold reserves a draft bailout document seen by the financial times said the cypriot thordis have committed to sell the excess amount of gold reserves owned by the republic the excess amount was ten tons of their thirteen point nine tons which was worth four hundred million euros well on this show we have said that the i.m.f. the e.u. the e.c.b. the so-called troika there their goal as

i am max kaiser welcome to the kaiser report mt gox is down that means a bit going bubble is over sell everything cyprus is going to sell their gold now they're not yes they are no they're not yes they are they're not yes they are the fed.

because we prerecorded an interview with tony gillespie a bit pay the day that the market crash at mt gox but before that i want to talk about the bigger picture of this and that is tech crunch unfazed by bitcoins wild swings and mysterious origins silicon valley v.c. place their bets it's far from certain that big coin is going to be a big deal said lightspeed venture partners jeremy lu 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 capitalist 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

euro and remember during the cyprus crisis there was a one point three million dollars purchase on 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 millions. 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 t

by a max kaiser welcome to the kaiser report mt gox is down that means a bit going bubble is over so everything cyprus is going to sell or gold no they're not yes they are no they're not yes they are they're not yes they are open to the fed just released our minutes a day early to a few wall street banks sell everything now wait buy everything away so everything buy sell sell bought stationer first i'm going to start with this tweet from bloomberg athens cyprus a central bank hasn't discussed any plan to sell gold reserves in the cosey a based institution spokeswoman. said max this was following on a headline earlier in the day it would became big news everywhere which for us.

safe calling currency because i mean we still hear stories about hackers don't we just last week mt gox exchange which deals with the majority of bitcoin trades came under an attack so i mean so it doesn't sound very safe they lost no money and there was a loss of twelve thousand five hundred dollars just after christmas from on individual but in the united states court of the f.b.i. there are three bank robberies a day and it was seventy five hundred dollars each each time three times a day three hundred sixty five days a year but people still use those bags but at least people with money in those banks do have a guarantee from that bank guarantees my thick killings. the article process guarantees your bit coins and it can't be altered by politics is. ok you touched on cyprus there and a lot of the arguments for big coin suggest that this is good because it's an industry that isn't regulated but the whole point about the financial crisis is that this was caused by unregulated banks. actually it was planned the i.m.f. put out a white paper and november of last year by sherry mark karr t

guys are welcome to the kaiser report many people want to know what is going on mt gox the bitcoin exchange market making we're going to talk about that right now stacy herbert man.

-prize are welcome to the kaiser report many people want to know what is going on at mt gox but goingexchange. market making we're going to talk about that right now stacy herbert max guys there are those out there who don't know of course the big question is this new currency its network protocol.