 Today's episode of the Bitcoin Show is brought to you by usgoldcoins.com. That's 1-800-HOT-COIN-AND-MESI-GRILL-MEZI-E-GRILL-DOT-COM-AND-Mount-GOX-M-T-G-O-X-DOT-COM. Hello everybody and welcome to the Bitcoin Show. This is Tuesday, July 19th and this is episode 25. We've got a really big day today because with us for the second time on the air, we have Mark Carpellets. Did I say it right? And Adam Turner live from Tokyo, Mount Gox. Mark Carpellets is the owner of Mount Gox, the number one exchange site everyone knows, 90% market share, something like that. The guys have been around the longest and the biggest. And you guys, we're doing this at 8 o'clock in the morning in New York because it's 9 p.m. in Tokyo. Is that right? Almost 10. Almost 10 at this point. Yeah. We had a little technical difficulties getting started. But what we want to talk about is two things. One is the two-factor authentication that Mount Gox has out now and there's a lot of buzz about it. It's been out for a little while but people are talking about it and they're wondering like, what is it like? How does it work at all that? So we want to actually do that, go through the process and demonstrate it because I got mine yesterday. And then you guys have a big announcement a little bit later in the show about an acquisition, some sort of a Mount Gox acquiring some other company. So that's going to be big. So stay tuned for that. So let's first talk about this YubiKey. What's the deal? How long have you guys been working on this YubiKey thing? Well, we've been working on this for about two or three weeks before opening the actual YubiKey offer. We've been listing it quite a lot. 15 what? Yeah, so about three weeks. Oh, okay. Well, I got mine yesterday via FedEx and it says I got a letter on the Mount Gox new stationery. Do you see their new logo? I like that. And it's right from Japan and it says, Dear Bruce Wagner, your Mount Gox account, Bruce Wagner, has been able to support two-factor authentication. And for those of you who don't know what that means, two-factor just means that you have to have more than one thing. Like your ATM card, you've got your card and your PIN number. So you have to have two things. That way if somebody steals one thing, they're not going to get in. You have to have two things. So it's two-factor authentication. Please find the attached YubiKey. And this is this little YubiKey. And you know what's really funny? I don't know if you guys saw that. It was actually like a fix to the paper like this. It was kind of like glued on. And I swear, when I pulled this out of the FedEx envelope, I thought it was just a picture of the YubiKey. And I'm looking in the envelope going, where's the YubiKey? I don't see it. I'm expecting some kind of an electronic gadget or a box or something. And then I look closer at the letter and it's actually glued right onto it. It's like as thin as a credit card. It's like this tiny little wafer. I don't know if you can see that, but it's like minuscule. And I'm like, oh my gosh, that's actually it. It's not a picture of it. And it says my serial number, which will log me into my Mount Gox account. So then it explains there are two ways to use it. You can touch the round part. And at first I thought that was part of the circuitry, but it's actually this gold or brass colored circle. It says you can touch it for one second. And the first OTP, which is just a special password code, is generated. And that's what's required for trading. And if you enable withdrawal protection, the password you need for withdraw is generated by touching and keeping your finger on it and holding it down for at least two seconds and releasing. So it's a different password that you get for making withdraws. Is that right? Is that right, guys? Can you hear me? Yeah, that's exactly right. So there are two modes that the UBT operate in a quick press and a long press. So depending on what you're doing. It better be right because I read it right from the letter. So here's what we're going to do. Let me bring up Mount Gox. So I want to actually try this right here on the air with you guys so you guys can see how easy this is. And honestly, right before this show right now, I have not done it until just this morning. So this is my screen and I'm literally going to click Login. And it still requires my username and password. So I have to go over here to my KeyPassX and I don't even know my username. I'm so lazy, I just copy my username and then I'll copy my password. And of course the whole world knows my password now. But it won't matter because I click Login and it says UBKEY. Now I did experiment with this literally just seconds ago right before we started taping. And if you look at this camera here, you'll see the UBKEY inserts to a USB slot. But I made the mistake, it's really really thin, it's not a normal USB, it's like half as thick. And you can insert it the wrong way. And the way you want, if you insert it the wrong way it does absolutely nothing. Because the metal contacts are not touching anything. You have to insert it with the circle up. So when you insert it you should see the circle up. And when you do, there's actually a green LED light that lights up in the middle of the circle. That's how you know you've made contact. Plus it goes ding, the windows ding ding ding. So anyway, it's plugged in. It doesn't matter if I leave it plugged in all the time or I really should put it on my key ring or something and carry it with me, right? Is that the idea? Sorry, we're having a hard time here. Oh, I was saying that it doesn't really matter if it's plugged in all the time or you just plug it in when you're going to use it. Either way. Yeah, just when you need it. When you need it, okay. And it's got a hole so you could literally put it on your key ring. I can see, you know, when you go to the grocery store and you get these little key fobs, these little plastic cards that they scan at every single grocery store and every single drug store, I can see us having like a hundred UB keys for every website we go to. But anyway, at this point, you just plug it in and it's asking, if you look at my screen there, you'll see it says UB key and I just literally touched it. I just barely, barely, barely touched it. And it popped in my password and logged me in without doing anything else. I didn't press anything else. Let's do that again. That was really fun. Okay, I'm going to hit log out. I'm going to hit log in. Like I said, I'm just going to log in and out log out all day because this is so fun. All right, let me put in my password and that's the hard part. I'm going to hit log in. Now, literally go to my screen and I watch. I'm literally just going to barely touch that circle for less than a second and it pops in my password and logs me in without touching anything else. That's it. And you see I have no money whatsoever. But anyway, that's how you get in. It's amazing. The coolest part of this is that nobody from now on, for the minute that I register this UB key, no one is ever going to be able to get into my account without it, right? Yeah, exactly. So what will happen when you buy a UB key and we actually put it through the shipping process? You'll get an email. After that point, you will probably, when you log into Mt. Gox, you'll see a OTP, like the UB key. It'll prompt you to put in that password. Obviously, you can't use it until you receive the key. Once you do get the key, you obviously use it. You register it and then you can use it forever thereafter. So I will be sort of locked out of my account for the time period that it's shipping to me. Because once it's set up, no? No, just it'll prompt for it and you can just enter through it until you actually use the UB key. You won't need it. Oh, so it'll prompt for it. I can just skip past it and it'll let me log in. But the first time I use it from that point on, it will always require it. That's clever. So that activates it. Oh, okay, that's clever. So I'm not locked out of my account in the meantime. Okay, cool. Now, this is really small. It's really convenient. I can put it on my key ring. What happens if I lose it? What happens if you... If I literally lose the UB key? If I drop it down through the drain. We'll send a customer another one if they need it, of course. Best way is to, I guess, contact us. Yeah, so just import mtgox.com and we'll check right on it. Okay, but you already have... You're obviously already going to have my shipping address and everything because you sent me one before. So you'll know that it's me because you're shipping it to me and we'll be in correspondence with the email address that's on my account and so forth. So that's still secure. I mean, nobody can imitate me and say that they lost it and have it shipped somewhere else. Obviously aware of that. Right? There's so much chalk right now, Bruce. Oh, okay. I know. The miracle of Skype all the way from New York to Tokyo. But no, I was saying that you're not going to... You're going to verify the identity before you send it to someone. It's not any better. Not any better. Yeah, maybe just if you talk slower, maybe we can make out what you're... No, I was just saying that if I lose it and you have to send a new one, then you're going to be very careful to identify who it is you're shipping it to. You're going to ship it to the same person. Yeah, exactly. We wouldn't ship it to a new address unless we got some more information. More verification. Okay, cool. All right. Well, this is fantastic because the two-factor authentication as we've been talking about is obviously very, very important. We've learned a lot of lessons. Everybody has learned a lot of lessons recently with everything that's happened. And we know that it's so important that even online banking doesn't have this level of security. I know with my online banking, I don't have any two-factor authentication yet. So it's a very, very good thing. What is the status on people recovering their accounts since the hack? What percentage of the accounts would you say have been recovered? How many accounts have been recovered? And turn this figure down. So far, we have about 45%. Most of the remaining accounts are inactive accounts anyway. Would you say 45%? 45% of accounts which makes up for about 99.9% of all the funds deposited on empty gods. So 45% of the accounts which makes up what percent of the assets? The accounts that are actually holding balances and are in use. Okay, so pretty much everybody who's active is back for the most part. And I see the prices coming back to it. By the way, the trade data on Mt. Gox, I've always wondered this. When it shows the trade data, the high and low, is that for 24 hours or 48 hours on the actual webpage itself? Yeah, it's for 24 hours, Bruce. Okay, so in the last 24 hours as of this moment, it's reached a high of 14.70. So it's creeping back up again as everybody, one of my catchphrases they say that I say is up, up, up. I don't recall saying that, but anyway, apparently I have. And the low is 12.51, so it's starting to gain again, it looks like. And that's a good thing. And now the weighted average, oh, the weighted average, that's new. What is the weighted average? How are you figuring that out? How are we figuring out the weighted average? The weighted average is a volume weighted average price. So basically it's average price on 24 hours, weighted by volume. Weighted by the volume of each trade. Oh, that's cool. I like that a lot. So that's a much more accurate. Sorry? Yeah, we think it's a bit more accurate. Yeah, a lot more accurate as opposed to the last price. The last price could be $12, but that's just because the very last moment somebody sold a hundredth of a Bitcoin at that price. But a weighted average tells you over the last 24 hours the weighted average. Now the volume is also for 24 hours? Yeah, it's all a moving window. Everything's a window of 24 hours from this moment past. And that's, is the volume in dollars or Bitcoins? No, Bitcoins. Oh, it's in Bitcoins. Okay, you see, that's a good question because somebody told me the other day it was dollars, but it's actually Bitcoins. Okay, so it's 24 hours volume of Bitcoins. And the weighted average, I like that. And the high and the low is the highest and the lowest for the last 24 hours. And then the actual spread, you have to go into market depth, right? Because if you want to see the lowest, I guess the highest bid or the lowest ask, you have to go into market depth to see that information. Is that right? I'm having some trouble hearing you again. Oh, if you want to see the lowest ask and the highest bid, you have to go into market depth to see those numbers. That's spread. All right, cool, cool. Just understanding the data. All right, cool. So I see, obviously, you guys have some other announcements too about other currencies. Now, you started doing Euro transfers and I see the status here. It says that they're temporarily frozen, so we're not doing Euro transfers at this moment. Is that right? Yeah, at this moment, everything is effectively frozen while we work with our bank to get our account up and active. So ETA is this Thursday hoping to get everything running by Friday. And we are looking at trying to get something all set up in the meantime just in case there's other delays that we've run into. Did the banks have a problem with it being a cryptocurrency? Is that what it was? Or did they contact you? Or how did that happen? Did they actually have a, did they say that they've got a problem with the cryptocurrency or just that they don't? No, well, they don't have an opinion on this. They just see it as a risk. So yeah, they just, like, this is risky. Yeah, the generic excuse. Yeah, you know, it's kind of like these people who are accepting MasterCarded Visa and you know, I say it's easy to open a bank account and there's nothing illegal about having multiple bank accounts. So always have three or four or five bank accounts and that way if, you know, it's not surprising if the banking industry has a problem with these types of things. I think it's a good idea to always have a couple more bank accounts just waiting in the wings. But I don't know, just a thought for everybody out there. If you're in a startup or something like that where you're going to accept MasterCarded Visa or some sort, anything that is going to be a possibility that a bank might find out that it's related to cryptocurrency and say, no, you know, they'll make up an excuse about risk or whatever and they just shut you down. It's a good thing to actually have a backup bank account, to have multiple bank accounts, you know? Yeah, you guys can tweak your volume down just a little bit like on your speakers, I think maybe that's coming back. I don't think it's on our end, okay. So anyway, multiple bank accounts I think is a good idea as a backup. Now, do you have any ETA on when the euro situation will be resolved? We're hoping by this Friday. Yeah, I mean, if we hear good news back on Thursday 100%, we'll get it back up within, I don't know, hours. But we don't know what, we're hoping that they're going to get back to us with an AOK. There's really no reason that they should be able to say no to us. It seems like more of a branch issue at this point. Oh, okay. Is the same bank you're going to be dealing with or are you changing banks? You're still working with the same bank? No, it's a new bank, SG. SG? Yeah, so apparently the local branch doesn't have the authority to set up the account due to I think the amount of funds that we plan on moving in and out. Oh, okay. All right, so we'll know something by then. And also, you're still continuing the 0.3% trade fees. Now continuing through August 9th, is that the plan? Yeah, up until August 9th we're going to keep it at 0.3% for everyone so they can take advantage of that. And yeah, after that we're going back to our standard trade fees. Then back to the standard trade fees. Okay, cool. And then the standard trade fees are 0.65%, right? You got it. Okay, and 0.3% until August 9th, so that's cool. Also, back to the YubiKey, what's the cost of one of these things? How much does it cost? Yeah, so all in, it's $29.99. $29.99 including everything? A floating rate for the Bitcoin purchase, I do believe. A floating rate, what was it? Yeah, it's a foolish mess. That's all, like I said, it's all in. So the $29.99 is all that a customer would pay. Okay, including shipping and everything? Yep. $29.99 in the US, okay. What were you saying about a floating rate? Yeah, so... What's EMS? What are you showing us, Mark? You can buy the YubiKey for Bitcoins. Honestly, it's just based off whatever Bitcoin's worth at the time. Oh, okay. Great, got you. And what are you showing us, Mark? What is that? That's the envelope that you used to ship it? Yeah, that's our EMS envelope that we're stuffing every morning. Oh, okay. With YubiKey's? Yeah. And there it is. There it is. That's the thing I pulled out and I thought it was a Xerox copy of a YubiKey. And then, yeah, exactly. It's almost as thin as the paper. It's so funny. And I looked in the envelope and I'm like, oh my gosh, they sent me the piece of paper with no YubiKey. And I'm like dumping and outgoing, where is it? That's so funny. So $29.95. That's pretty good. That's a pretty good deal. I mean, if you've got any kind of serious funds in there, you want to protect them and that's a really good value. I would think shipping it from Tokyo, that's probably just barely more than the cost of the shipping. That's a really good deal. Yeah, it is. Going forward, it'll be kind of a no-brainer for everyone. Hopefully, everyone learns from our mistakes. Yeah. We can ensure everyone accounts are safe going forward. Yeah. You must not be making any profit on these YubiKey's. You're just doing it at cost, right? Essentially, yeah, I think maybe there's some places in the world where we'll make a couple of dollars. Yeah. And so I think it'll be a loss. Yeah. So it'll be even out. Okay, cool. All right. So let's see. What else? Okay. So tell us, is there any other big news you want to share? Oh, by the way, the euros are on hold right now. We're going to know more by Friday. You're still doing the Great Britain Pounds, the UK pound, and the Australian dollars. Yeah, we are. And actually, we put a note on the site just moments ago saying if people want to send euros to that account, it's possible, but there's a 2% exchange fee. Yes, just by Barclays. Yeah, so that's just by Barclays, not by us, but it's possible to send that way. Oh, so it's possible to do euros right now through the Barclays bank with some sort of a 2% exchange fee that they charge? Okay. Yeah. That's cool. What about through the US bank? Can you send euros through the US bank or they don't do that? Can you send euros to the US bank? No, we don't. We have a euro account on the Japanese bank, however. We can send euros. You can send euros to the Japanese bank? Yeah. And is there an exchange rate there? What's the exchange rate here? It's not exchange, it's as euros. Okay, so yeah, if you send euros to us, we can accept it as euros. Oh, so we can send euros from Europe to the Tokyo Japanese bank with no exchange fee, just directly wire it as euros now. The only drawback is that you're sending an international transfer, is that it? Yeah, I think the fees are higher. The fees are a bit higher. Now, I mean, the other method, the other bank that you're sending euros to is, I mean, I don't know how it works in Europe because in the United States, of course, domestic is domestic in the whole United States, but in Europe, every country is almost like a state. Like if the bank is in Germany or something and I'm sending it from somewhere else, is that considered international? If I'm sending it from the Netherlands to Germany? Are you talking to us, Bruce? Yeah, did you hear me? Is your speaker, maybe you need to turn your speaker volume really low, as low as you can. I'm going to turn it up. I think it's, or put the speakers behind the mic because I think that we're getting feedback on your end. Yeah, we're turning the speakers in a different direction here. Okay, that's a good idea. Yeah, yeah. Okay, cool. This is right. Headphones and earbuds actually help to remember that for the future. But anyway, so when you, when we, okay, the previous method, when we send euros to the European bank, turn your speaker down a little bit too. When we send euros to the European bank, is that considered international? Like from the Netherlands to the European bank? I think so. What? From one of the separate countries to the UK bank. Is that international? No, the UK is in SEPA too. So you can send a SEPA transfer to the UK bank. So normally you have no fees from your bank, or really little fees. You can send us euros directly. And our bank will convert to pound for a 2% fee. And the credit will be, will appear next day on your anti-gox account. Okay. So basically you can, it sounds like you can send euros to any of those banks. You just have to kind of shop around and see from wherever you are what the lowest fees are going to be. And if they are going to charge any kind of a conversion rate for the exchange, from euros to dollars, or from euros to whatever. Is that right? What? Yeah, you can, like, yeah, figure out what's going to work best for you. I think transferring to the UK bank is going to be cheaper than sending euros to... Depends on the amount. Okay. So yeah, you'll have to do some research and we're willing to work with anyone if they've got any questions. Okay. Shoot us in the... Got you, yeah. Because I know that's a big issue for anybody in Europe. What was that? What was that? Okay, yeah. Alley was trying to send a few... The amount you are trying to send is big enough. Like, for example, more than 10,000 euros. It's probably cheaper to send directly to Japan rather than paying 2% of exchange fees. If it's more than 10,000 euros, it's probably cheaper to send it straight to Tokyo. Probably. Probably. Probably. Okay, we have to do the math, of course. Get a shop around and check. Okay, that makes sense. All right, so we got that covered. Now, are there any other news that you want to... Oh, what about the Canadian dollar? Are you set up for Canadian dollars directly? Oh, can you say again, Bruce? The Canadian dollar? Are you set up for that? What's going on with Canada? Canada is... We're waiting for the documentation to come from Canada so we can continue the process. Okay, all right. So that's... You're waiting for the confirmation from that. So that's coming any day as well. All right, this is all good. All good. It's growing. All right, cool. So let's talk about now your big announcement. Wait, do you have any other news before we talk about your big acquisition announcement? Anything else, any other news you want to share with us about what's going on? I don't think so. Volume has been really high. Everything's been pretty steady the last week or so. So we're pleased with that and seeing confidence back in the market. So it's good. That's great. Okay, cool, cool. All right, so now tell us the big news. The acquisition. And when did this happen? Officially. When did it happen, the acquisition? Officially it happened probably last week. Yeah, so we've... Last week. So last week we finalized the deal and we've officially acquired MT Gox Live under MT Gox or T-Van. So we're pretty excited about that and all the tools that those guys are bringing with them to the MT Gox family. MT Gox Live, show my screen. So MT Gox Live, show my screen there. MT Gox Live is a website and it's a company and it's an Android app and what is it a development team they have going on? Tell us about MT Gox Live. So yes, it gives like a real-time view of the price resistance for our Bitcoin exchange, MT Gox. Can you say about it? Yeah, MT Gox Live basically shows a real-time market. I'm sorry, say that again? Yeah, basically MT Gox Live you can see the market in real-time so you see, well, it just creates and the depth. The depth, yes. It's a cool tool. The graphs update in real-time, the depth and all sorts of different charts I see here. So it's a website and they have a lot of tools and there's also an app for Android and there's one for iPhone that's waiting to be approved. Yep, I think they submitted it a couple of weeks ago and it's still pending. Okay, I guess there's a new version that they're waiting for Apple to approve. Okay. Mark's just pulling up MT Gox Live on his Android. Okay, yeah, I want to talk about that because I know I was actually contacted the developer of MT Gox Live and I installed it on my phone and I want to talk about one of the really cool features. It's very innovative with MT Gox and that but while he's pulling that up, this is probably a good time to take a quick break and thank our sponsors, our beloved sponsors because without our sponsors we wouldn't be here to tell you about all this cool stuff in the Bitcoin world and they are USGoldCoins.com. USGoldCoins.com is Andy Gauss. Andy Gauss is my monetary guru. I mean Ed and I have been fans for two or three years. He's got national radio show twice a week and he's all things money, not just Bitcoin. Matter of fact, Ed and I introduced him to Bitcoin but he is an expert in world monetary systems and the history of money. I mean he's just brilliant. He has a show called Real World of Money which he's actually bringing the Wednesday show to only one TV. So he's going to be here live every Wednesday morning 10 a.m. Eastern with the Real World of Money hosting it with Patrick Tempone so that's really exciting and he also happens to be a sponsor. You know, I couldn't believe in him more. Obviously he believes in us and what we're doing but I really, really couldn't believe in him more. We, as I said, we were fans for a few years. We became customers and I wouldn't recommend anybody else at all when it comes to investing in rare, which is called numismatic gold and silver USCoins as an investment. They hold their value in two ways. Both because of the obviously their gold and silver, the metal itself, but also because they're rare. So you have double insurance on the value. You've got the protection of it being rare and gold or silver. And he's an expert. He's an absolute expert. And if you ever get into trouble or for whatever reason you want to sell some of your gold or silver coins he'll buy it right back directly from his customers but that's Andy Gauss and he is totally accessible. You can reach him anytime by calling 1-800-HOT-COIN. The website is USGoldCoins.com. USGoldCoins.com and the phone number is 1-800-HOT-COIN. Just ask for Andy and thank him while you're at it for sponsoring the Bitcoin Show and OnlyOneTV because as I said without these guys we wouldn't be here. And of course the famous Mezzy Grill, the world's first brick-and-mortar restaurant to our knowledge that accepts Bitcoin and they're right here in Midtown Manhattan just a few blocks south of Columbus Circle. You live here, you're passing through. I mean everybody who's anybody either lives in New York or passes through New York at some point. So when you're in New York make sure when you're doing all the sightseeing and everything when you see Columbus Circle go, oh Mezzy Grill it's only three blocks south of there. Mezegrill.com where authentic Mediterranean food meets modern flavor. It's fantastic and the reason we discovered it again is because it's one of Ed and I's favorite restaurants. We eat there one, two, three times every week. It's really healthy and Dr. Frugal approved. It's very affordable. So I mean it's extremely healthy and affordable. I mean how can you go wrong? And because Marwan the owner has become our friend, of course they accept Bitcoin. Now they've got tons of media attention because they're the world's first restaurant to accept Bitcoin. And of course, Mt. Gox. Mt. Gox is the largest and oldest Bitcoin exchange. I'm not sure if they're the oldest but actually technically there are probably some that have been around even earlier but Mt. Gox definitely is the leader with something like 90% market share. MTGOX.com. Mt. Gox is an easy convenient way to buy Bitcoins online, sell Bitcoins for multiple currencies and obviously we're interviewing them today but they're the market leader. They have had problems with being hacked like Citibank and any other institution has these difficulties with, you know, basically they're growing pains. We all know about growing pains because Bitcoin is new but they're growing at Bitcoin speed and they're improving. And today's topic is evidence of that. We're talking about the YubiKey and how two-factor authentication will secure your account. So they're resilient. They're here for the long run. They didn't just run away with everybody's Bitcoins. They're here and they're not going anywhere. So we thank Mt. Gox for sponsoring the Bitcoin show and bringing us to you too. So thanks guys for that. Did we lose Mark? He went to get his Android. There he is. So, yeah, the MTGoxlive.com is the site and then there's also an Android app in the market. Oh wow. So that gives you... Oh, that's the website, right? That's actually giving us the website. Yeah, that's the same thing I'm looking at. If you bring up my screen, yeah. The website. Yeah, exactly. He's showing us on his iPad. Looks like an iPad. Yeah, and that's the website. So, yeah, show him my screen, Ed. So you see, yeah, that's the graph that we're talking about with the spread and that's just super valuable that you can see all this data in real-time. Is it updated real-time or are they refreshed? I think it's updating right now. Yeah, it's in real-time. Oh, okay. In the middle you've got the market and you've got the death showing too on both sides. Mm-hmm, the death on both sides. That's really, really cool. Very sophisticated. And the big number, the number on the top right and the large number is 13.78. Is that the last price? Yeah. So that's the last and low and high. Okay, that's really cool. MT Gox Live. And so now there's an app in the Android market called MT Gox Live. And that does the same thing, right? Yeah, so essentially it's got the live market feed and also the payments, the QR. Yeah. So you pay or you transfer bitcoins with QR codes as well. Yeah, now that's the thing that intrigued me because I was on the phone recently with the developer. There it is. Okay, can you see that? I don't know if you can see that. Use bitcoins anywhere, MT Gox Live, free download. Okay, so this is the market. Is this the market page for the... What website is this? This is the mobile application. The mobile application. What's that? Okay, there it is. Oh yeah, yeah, you see the screen sliding by. So you've got all the live data but you also have the ability to transact point of sale. So that's what I wanted to ask you about because I know you guys have... We were calling it a voucher system but what do you call it with the QR code that's for payment processing? Do we have an import the QR code? What do we call it? Just POS? No, for now the QR code... There are some projects with QR codes. For now you can just create a redeemable QR code. So you can create a QR code on your phone and just show it to pay someone. Okay, so that's what... I was talking with the developer of that app, of the actual app for MT Gox Live and he was calling a voucher system which kind of makes sense. So basically with the app you can log into your MT Gox account and you can create a QR code which is a payment system that you can actually create a voucher that has value and then a merchant could scan that QR code to receive the payment or another person that has the same app. Any two people have the same app then they have a MT Gox account. I can create a redeemable QR code so you can literally scan the QR code and that is the payment itself. Is that how it works? Did I explain it right? That's exactly how it works. So it's super easy for anyone to transfer money to, like you said, a friend or a merchant or really anyone with the same application. And so it's just app for app. Right now the easiest way is they both have the same app. Say that again. So the easiest way is if they both have the app. Still can't hear you. So the easiest way is if they both have the same app. Of course, yep. Okay, all right. But that is cool because they... So a merchant, in order for a merchant to get set up to accept these all they have to do is have this app. Yeah, exactly. Like your friend at the Mosaic Grill I'm sure could make payments really easily that way. We're working on the other way around basically allow merchants to create QR codes for the products and people would just scan the products they want and pay those in real time. Okay, so like an invoice? Like a QR code that's an invoice? Yeah, so they have essentially a way to display the QR code and then the app would take a picture or photo of that and then transfer the payment to the associated gen account. Okay, with their approval I guess. They'd have to click something. So see that, sorry, that feedback is coming again. It's haunting us. So okay, this is really slick. Are there any merchants that are set up that you know of yet that are actually using it? Are there any merchants that are... It's still quite new. Yeah, so it's only been around for I think maybe up to a couple weeks. Only a couple weeks, okay. But conceivably any merchant can do this. I know Marwan has an iPhone so he's using mybitcoin.com or something but in that works. But he can also, just when he gets his Android phone he can actually install this app and he can immediately, as long as he has a Mt. Gox account and an Android phone he can install this free app Mt. Gox Live and then he's immediately set up to accept these vouchers, that's it. Yeah, and the transfers are instant so you don't have to wait for the Bitcoin network to go through all the confirmations so it makes it really... Is the transfer instant? The app has to have internet connectivity, right? Can it happen offline? No, it has to be live. It has to be live online. Okay, well, you have to anyway. But it is instantaneous without waiting for verifications or anything. So that's very clever. You're basically... Okay, in the app when I want to send $8.59 in dollars to Mezzy Grill I can enter $8... Can I enter $8.59? Will it automatically calculate the value in Bitcoin? So how do you type that in there? It's just in the app you type in the amount and then it creates the QR code. Yeah, so you just type in the amount that you want to transfer and then set it up so the other person is ready to receive. They take the scan of the QR code and it's essentially transferred right into their account. So it contains the amount but it also just contains the authorization to take that from my Mt. Gox account, right? What holds in that QR code does it also include the authorization or is that done before? It's done because you... because you authorize it by creating the QR code. Yeah, so I mean the first step is logging in through the app for the address and the redeem code. So the QR code acts as a coupon of value. You could literally... you could even print it and give it to somebody or something and it's literally like value. Now if it's not redeemed, can you cancel a QR code once you've created one? They can be canceled. Do we have it so... You can just redeem it yourself. Oh, so you just redeem it yourself? Oh, so anybody can redeem it. Okay, okay. If you create one and then it's lost, like if you create it and then your battery dies. Yeah, it's in your account history so you can always... Okay, so you can redeem it right on Mt.Gox.com in your account history. There's a way to redeem it there yourself. Yeah, I think it's actually through the app we'll have the history. So how does the history between make something more easy to use? So yeah, it might not be too user-friendly right now but like I said, we've acquired it Mt.Gox is live and we want to work with them to make it easier for everyone. Yeah, well, yeah, you just acquired it like days ago. So I will give you a little bit of a chance. But yeah, so... But the ultimate idea is that you can either cancel it or redeem it yourself or reverse it if you create one. That's really slick though. I think that's what's needed because we went away to do instantaneous transfers with a trusted entity and just... That's what we know is needed. Just a quick scan, beep, and it's done. Because it's just super, super simple. If you could put it into a smartphone then obviously anybody can integrate it to a cash register as soon as the demand is there. So by the way people, when you're in restaurants, ask them why they don't accept Bitcoin. I mean, you know, this is a movement and it takes you, it takes feet on the ground. So when you're in a restaurant, you're in a gift shop, you're in a store especially the little brick and mortar shops, you know, that a few... a little bit of extra foot traffic would make a difference to them. Go ahead and ask them, have you considered accepting Bitcoin? Do you know how easy it is? You can send them to bitcoinme.com or to Mt. Gox or whatever and explain to them how Bitcoin is benefiting them. And one of the things that merchants love to hear, you know, like for example this just happened, I'll tell you this quick story. The couple... two days ago we were in one of our favorite restaurants that's right here in our building and we're sitting there talking to the owners because we go there all the time and I said, remember Bitcoin, I told you about Bitcoin and they're like, yeah, yeah, yeah, we want to buy some of that because we heard it's a great investment and because I had told them about it and I said, well not only that you want to accept Bitcoin in the restaurant because look what happened to Mezzi Grill, you know, they've had routers there, or Reuters, it's called, NPR Al Jazeera English CNN International Business Week, Smarter Money, everybody, just a stream of media coming in there. He's had more publicity than he ever dreamed possible because he accepts Bitcoin. I said, you guys could be the second restaurant in Manhattan to accept Bitcoin and he's like, yes, yes, I want to do it right now, you know and I hadn't even told him yet what they really want to hear. It's like cash, there's zero transaction fees, there's zero charge backs and there's no bank approval needed. He's like, yes, yes, yes, yes, yes. It's really an easy sell, you know, just to talk to the owners of your favorite restaurants that you go to and gift shops and stores and retailers of all kinds. Brick and mortar shops that accept Bitcoin make headlines too and tell them, you know, they can do a press release and you can be the first restaurant in Portland or Huntington, West Virginia, you know or Paris, France or whatever that is actually newsworthy and camera crews are going to come in and show how it works. So this is a really important point. We want to help this Bitcoin revolution movement take hold. It's a lot easier than you think. Just talk to the owners of these shops and say, hey, why don't you accept Bitcoin? And if, you know, they want a little bit of extra business in these hard economic times, it's a great way to do it and publicity always helps, right? So this voucher system with the MT Gox Live app just makes it that much easier to do these transactions, right? Yeah, it's kind of the missing link as far as Bitcoin really taking off. There's been a lot of speculation. It's going to be all up to the merchants. So enabling them is our job and educating them as kind of the customer's job and letting them know that they want to use Bitcoin as a tool. Right, exactly. And, you know, a lot of people say that, you know, Bitcoin will really take hold once merchants accept it. I mean, I'm not really convinced that that's essential. I mean, it's, to me, it's more of a symptom than a cause, but it doesn't matter. It's all synergistic. So as more and more merchants accept that it is a good thing because for one thing, it gets publicity. For other things, it combats like, you know, certain reporters are, you know, almost mocking Bitcoin. Like, oh, the only thing you can buy is alpaca socks, you know. It's, you know, we want to prove to them, you know, like NPR went to Misi Grille and they're like, well, this is the only restaurant in the whole entire world that accepts Bitcoin, almost like mocking it. And I really wanted to show them that, well, okay, now there's two, now there's three. You know, there's one in Brooklyn, so this will be the third one in Manhattan. I mean, in New York City and so on. I want to show them that within a week's time, there's now three. It is spreading. And as people see that, see it spreading and proliferating, it's really an exciting thing. So it is, this is the thing. Businesses will not, what am I trying to say? Businesses don't need to be convinced to accept Bitcoin. They will accept Bitcoin once everybody has Bitcoin. So it's this thing that goes hand in hand, you know. We have to have the fluidity of Bitcoin so that it's really easy for everybody to buy Bitcoin. Obviously they can on Mt. Gox. It's so easy. And with more and more apps on their smartphones, it's really, really easy for one person to buy a Mt. Gox and supply their whole junior high class, you know, with Bitcoins or whatever. And then if everybody has Bitcoins, that's part of it. The other half of it is asking. Merchants will feed demand. So if the customers are asking, why don't you accept Bitcoin? And if two or three people ask them and they really give them a compelling argument, look, it doesn't cost anything. There's no bank involved. There's no approval process. It'll take two seconds for me to set you up and there's no charge backs and there's no fees. They're like, there's no downside. Just do it, right? It's very, very easy to sell merchants on doing that. So if you guys who care about Bitcoin do that in your town, go to your favorite restaurants and you know the owners anyway. Say, look, why don't you accept Bitcoin? And you can set them up with this voucher system with MT Gox Live or whatever way you want to do it. Literally, how long does it take with this MT Gox Live? You install the app and basically you're done. You accept Bitcoin through the voucher system, right? Yeah, absolutely. Just download it and link it to your account. That's it. I mean, if you create an account, you don't have to have any funds in it. You just create a Mt. Gox account and install the app and you're done. Right? Now you're a merchant that accepts Bitcoin. It's really that simple, right? So anybody who has this app can come in and you can scan their barcode with your smartphone. It has to be an Android right now, though, right? But you know, you can get one of these cheapy Android phones that's by the cash register only for that purpose and you're accepting Bitcoin instantly. And now can they do that through the website if they have a browser but they don't have an Android phone? Yeah. Yeah, they can. How do you do that with a website alone? With the website alone you use a re-draw page to re-draw, for example, Bitcoin as a redeemable code. Okay. So you get the code you can just give to someone on the internet and instant messaging or anything. So you can email it to somebody? How would you transmit it? So you can do that on your website on the account and then how do I transmit that to somebody? Can I email it? What's the easiest way? Can I email it to them? Yeah, you can send it any way you like. It's just a string of text and it's like a coupon code. Oh, it's just a string of text. Okay. Just a normal coupon code. Now can I do it directly from Mt. Gox account to Mt. Gox account without having to have that string? Can I send it directly to your Mt. Gox account name? No. You can't do that? Yeah, okay. Some restrictions on that for legal reasons, I think, right? So, okay. I'm in my account now. How do I do that? How do I do withdrawal funds? Yeah, so you go to withdrawal funds section. Go to my screen now. And then there should be a camera which option it is. So, it's not as a redeemable Mt. Gox code. Oh, here it is. Yeah, US dollars as a redeemable Mt. Gox code. You see that? Let me make it a little larger so you can see. There, can you see that? Okay, so US dollars as a redeemable Mt. Gox code. And then I put in the amount to withdraw. Oh, okay. So, it's not specific to a particular merchant. It's just an amount. Right? And then I just hit send request. It says I'm not logged in. I guess I have to find my UB key. I've lost it. Okay, well anyway. I already lost it. But anyway, so now that's going to give me a string of numbers and that long number is all I need to give someone. I can send it as a text message or an email or whatever. They just take that number and they can what they go to upload funds and they enter that as a redeemable number. Yep, they go to the out fund section and just redeem it there. Okay, so this is a way that I can transfer funds in US dollars or Bitcoin. I see that. You can do Bitcoin or US dollars, either one, as a redeemable code. So, I can withdraw it as a redeemable code and I just get that code to somebody else. They log into their Mt. Gox account and they can paste that number in and they've just transmitted the money into their account. So, you can do this even without the app. That means you can do it on an iPhone right now today with a browser, right? You can do that right now today with an iPhone then. You can do that with an iPhone or an iPad if all you need is a browser. You could do it this way. It's a little bit more cumbersome, obviously. The app is easier. Yeah, the app is easier because it just creates a barcode and one person hits send and the other person hits receive and you scan it and you're done. But it can be done with an iPhone or an iPad even today or anything with a browser by using this method. So, that's really slick. Well, this is really exciting. So, what does the future hold? What is your prediction about what's going to happen in the six months from now? Where will the Bitcoin world be in six months? First, let's start with this. What will be the value? Let me ask you guys this. What will be the value of a Bitcoin in six months from now? That is a very good question. You guys should know. You run the market. Who knows? I'll have to watch and see. Oh, you're not going to predict. Okay. I say, you know, I famously say it's going to be $1,000. What did I say? $1,000 within a year. Yeah. But I keep saying that. I always say $1,000 within a year, but it's like that window of time that whenever I said it last is what counts. Eventually, it'll be true. What? Would you bet your Bitcoins on that? Hmm. That's a good question. I'm not a betting man. I just put predictions out of thin air, but I don't actually bet on them. That's interesting though. What do you think? What do you think? What's it going to be in a year? Who knows? I mean, the way it's gone up and then come back down, I think it's impossible to tell. Again, I think a big part of it counts. Yeah, exactly. Yeah, we're working on a different system for TOS as well. So something separate from what's going to be done on the iPhone and Android OS. Wait a minute. You just held up a box, a white box, and you can't do that. You have to tell us more. What is this white box? What is this? You're teasing us. Only I am allowed to tease people. What is this? It says Open Blocks 600. So what is that? Oh, is that one of these open systems that's like a server in a box? Yeah, basically we're going to use this to build point of sale kind of machines with a QR code reader on the little screen. So the merchant says for example you have to pay 3 bitcoins so you get your mobile phone, you show to the QR code reader and you just pay instantly. Wow. So that's going to integrate with existing point of sale systems? Is there some standard for communicating with point of sale systems? There are a lot of standards which make it a bit difficult but we're going to try to get this working with what people ask us. We're already in contact with a few merchants who want to exit bitcoins but don't want to make their process more complex. So we're going to integrate those first and anyone who comes first gets interface first. Wow. Okay, so are you taking orders for that thing yet or what? When is that available? It's still being developed so we are not taking orders from just everyone but we accept we're trying to work with small vendors with reduced capacity where I have time to test and work with this. So you're taking a waiting list if somebody wants to get on the beta testing group then they can contact you. If you're a small merchant and you want to sign up to maybe test it in the future when it is ready for testing, they can contact you about that? So we're going to beta test for a while? You're probably going to beta this until at least November. Until at least November. Wow, that's exciting. See, I knew it. I knew there would be lots of point of sale systems that would just be plug and play with the existing cash register. I was surprised to find out when I did just a little bit of research that there's really only two major, major cash registers in restaurants in Manhattan. Every restaurant in Manhattan uses one of these two vendors. And that's really exciting because if you can somehow get something to work with both of those, you've got them all. You just have a plug and play device that just, you know, they're good to go. Boom, now they have not only MasterCard Visa, American Express, you know, cash check. They've got a Bitcoin button, which is awesome. That's what they need. They just need a Bitcoin button. That's cool. That's what we want to do, yeah. We have to enable those merchants to take Bitcoin. Yeah, yeah. This is going to change everything, everything. Okay, so it looks like we're about out of time. So is there any last parting thoughts or words of wisdom or predictions you want to make before we wrap it today? I think we're good. Okay, we have one thing to announce and that is the, you know, we're launching the Bitcoin show in many, many new languages. I mean, we already have a daily show in English and we're doing weekly in Spanish as you guys know, but now we're launching many other languages, you know, German, French, you know, I don't even know what all Chinese, Japanese, Portuguese, on and on and on. The list goes on and on Thursday, Thursday morning 8 a.m. Eastern in New York, which is 9 p.m. in Tokyo, we're going to have you guys on and basically do the same thing again and we're launching the premiere edition of the French language, La Bitcoin. Which will be great because then Mark I bet Mark will just ramble on and on in French, so that will be fun in his native time. It's always a lot easier when you're speaking your own language. I won't understand a thing, but somebody will have to translate it for me later. Thank you guys for taking time out of your evening and I hope you have the last train home tonight and thanks for joining us from Tokyo. As always the other thing, it's a good opportunity and it's fun. Great, ciao for now. See you guys and see you guys same time tomorrow. 2 p.m. Eastern Monday through Friday. Thanks for joining us.