Is Bitcoin Nearing the End of Its `Silk Road’?

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Oct. 3 (Bloomberg) -- CFTC commissioner Bart Chilton and Kamran Ansari, senior associate at Greycroft Partners discuss the future of Bitcoin following the bust of the “Silk Road” website and the prospect of regulating the online currency. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

Support -- what do you think?

I support keyword druglords.

It is potentially being used, according to customs officials and others, poor illegal money laundering and drugs and weapons.

I have got some concern about it.

Kamran ansari, you've got to jump in here.

I think it is an absolutely legitimate platform.

But it the fact that it lacks identity behind the purchases which is why people are using it for reasons that maybe elicits -- sara and i have argued, we make a lot of jokes about it, but the truth is we do not get along, but there and i have been talking about bitcoin -- where is the microeconomics for this?

Where is the currency stability?

We have a price?

Iron ore has a price, -- the price of bitcoin plunged 30% -- kamran, help me.

I think it is kind of whatever the markets can bear.

It is totally synthetic.

There is a lot of jargon here, but you are a true authority on this, bart, what is the underlying value or reserve currency cents?

There is none.

Which is why you see the volatility and appeared seras is saying 30%. it went from $140 down to $110. and a volume increase after the silk road bus.

It trades about 5000 times, and it was trading 65,000 times.

Huge increase in volume.

That is why you see the volatility.

Those that think them they do not like the dollar as much or don't like gold and silver and they want to invest in this cyber currency, all i'm saying -- it is not regulated, be careful, you will see this volatility.

Tom, you asked about the regulatory agency's alphabet soup.

The fbi is looking into bitcoin.

You are looking into bitcoin.

What is the role for the cftc here?

We are only a derivative of it.

The regulators have a primary role in it.

There was a derivative earlier in the year when they got questioned by federal authorities.

In new york, they close up shop and left.

When somebody closes up shop then leaves, that is not something -- your book is "ponzimonium," the book about memorial day, 2016, i'm going to nail you on this, is bitcoin a ponzi scheme?

I do not want to say this yet.

There are no rules or regulations based upon it, so it is hard to say, but i certainly think it is a risky endeavor.

Kamran, is bitcoin may ponzi scrim?

-- is bitcoin a ponzi schem e? i don't think so.

Stay with us.

Also coming up on "bloomberg surveillance," meet the man who may have changed the future of silicon valley.

He was the first to higher steve jobs.

The atari founder, nolan bushnell, and our next hour of "bloomberg surveillance." on bloomberg television, streaming on your tablet, your phone, and


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