A Bitcoin Bug? The Latest Hiccup for the Currency

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Feb. 12 (Bloomberg) -- Bitcoin Source Code Co-Author Alex Waters and Former Bank of America Global Wealth President Sallie Krawcheck discuss Bitcoin's troubles on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Thought they had people writing code who did not know what they're doing but i see the same thing at bitstamp.

This bug is more of an implementation issue.

A lot of the businesses operate with bitcoin have built customized software.

Sometimes that software does not flush out the whole spec coin the protocol.

This is something that has existed since 2011, this issue.

It is now coming to a head.

They have been working on it for a while.

They are working on changes that will address it.

It is more of a hiccup in a real bug.

Because these sites have had to go down to fix their service -- does it concern you as far as the future of bitcoin?

I don't think so, we have seen things like this before.

It usually gets fixed in a day or two.

There are a ton of people that will jump on this and fix it.

It is a community thing.

It is a cool moment.

Sallie, do you feel people in the broader markets care about bitcoin or is it for a tiny universe of enthusiasts?

Shall i say geeks?

Nothing wrong with geeks.

People are interested in it but they don't particularly think they understand that yet and are wondering if this is the next big thing.

What are you hearing from regulators?

There is a lot of learning curve with bitcoin.

At the new york state hearings and the d.c. here is, since 2012, it has gotten better.

There is a better understanding of it and the regulatory issues that go along with operating the money service business and businesses are becoming educated as well as the community.

This is not a traditional tech company.

This is tech finance and there are greater implications as far as regulation and legality.

The communist countries are outlawing bitcoin because it seems governments that need to control things freak out.

I think there is a lot of posturing between different nations as far as their political leanings toward bitcoin.

There is a lot of public statements that are being said.

Under the table, they are very pro-bitcoin.

As a political bargaining chip, it is still early stages.

Is it fair to say that regulators just try to shy away or be defensive about things they don't understand?

You can compare bitcoin to derivatives.

Do they find fundamental issues?

I would phrase it differently.

Not to be kind to regulars -- regulators, but they have mandates they are trying to come through on like investor protection.

They try to understand these things.

As with everyone, whether they work in the industry or are regulators, you immediately try to put it in a box that exists.

There are a lot of them.

There are a lot of regulators.

Understanding what that process is to get to where they need to be in terms of knowledge and then put in place sensible regulation, i'm sure you are learning a lot and your peers are spending a lot of time on it.

We are trying to walk the thin line between appealing to the tech community which tends to be anti-regulation because we are innovators and the regulators who say consumer protection is important.

We are trying to navigate those waters and bring everybody to the table for kroll operation.

Welcome to my life.

You work with a company called coring validate which was vilified in the bitcoin community because people thought you wanted to put names on wallets for everyone.

If i go through a bank, i have to give them my social or i cannot open an account.

It's attaching a routing number to your financial transaction.

It is not removing the option of having anonymous cash transactions.

I think people got a little stock on that.

Coin validation is a product we did it we have an incubator in new york and we try to build things c,oinapex.

People are so smart and awesome and young.

It just breaks me.


Thank you.

Thank you for coming.

Next, we will get personal with sallie krawcheck -- five burning questions.

She is in the hot seat with us on "in the loop." tomorrow, our guest host for the hour will be former resident of cnn, john kline, to learn all you can and more about the world of media.


This text has been automatically generated. It may not be 100% accurate.


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