They said that they will provide an update on monday. This comes days after apple removed a popular Bitcoin Wallet app. Cory johnson is with me now, and matt miller. And on skype is the ceo of the Bitcoin Wallet. What is going on . This gets to the fundamental issue about bitcoin. It is not about transparency. It is about whether you can get your money in or out. Trading is still going on. Withdrawals have been halted. Fundamentally, the success of mt. Gox is one of many places where the client is exchanged. I have to disagree. I hear a voice. This is not about a fundamental issue involving bitcoin. This is an issue with one of the exchanges. It has nothing to do with the fundamentals of the bitcoin source code. It is just a place in japan where people do most of the trading. Let me make the comparison. If you have a Stock Exchange that had to stop trading, it does not say anything about stocks. Technically that is true. I think it is important that some of the traits can no longer go through. Is definitely a problem with mt. Gox. Within the bitcoin community, the diehard believers have serious problem with the mt. Gox exchange. It is not the people who are wanting to take on the point and use it as a currency. It is more of a bitcoin way of thinking. It is traders were trying to make money. They are using it as a commodity. Jared, you run your own bitcoin exchange. You suspended training once upon a time. What is going on . There is a huge price disparity. Mt. Gox is bringing in hundreds of dollars more. That was exclusively due to the fact that you could not withdraw dollars over time. People would buy bitcoin. Now the bitcoin sales are slowing down the stop. It has almost been a year since people stopped using mt. Gox for the actual price. They use a Service Called bitstamp now. It is important to separate bitcoin from mt. Gox. If you cannot get your dollars at wells fargo, you do not blame your dollars. Theres no regulation yet. That continues to be a problem. Theres definitely regulation. There is transmission licensing. New york has regulations for licensing. That is the reason why you do not see exchange. I am not operating in the u. S. Right now. People are working in europe. Over time, as you see these regulations evolve, you will see more secure exchanges come along. With a coin, you have the option. You do not have to trading on mt. Gox. A lot of people in the u. S. Do not stop is located in japan. If you have your money at wells fargo, you probably feel safe. I keep my big wine in my closet on a piece of paper. There will be more and more places in the u. S. That are popping up. Market makers for example week that they are willing to start making market and transactions that are about 25 bitcoins or more. This is about apple. They turn away millions of bitcoin. I will be buying a new phone. Apple no longer offers the last bitcoin that they had. You have to go and use android or some other ecosystem to use bitcoin on your mobile phone. There are a lot of other places to use bitcoin. There are other places to trade bitcoin. The most buying and trading i have ever mt. Gox done is on the streets of new york. Isnt that mt. Gox is not totally necessary. You are talking about trading with a dude on the street. New york is a different marketplace. When do you think we will see exchanges based in the u. S. . Somebody will figure out this year, are believed to work the year. New york is taking a stab at it. We are talking about Digital Currency. Bitcoin may fail, but Digital Currency will not fail. We will see something decent by the end of the year. Can you give us an update on the actual regulations that have been passed the new york . They are talking about regulation, but nothing has happened yet. I am not sure what is going on as far as regulation in new york. In washington, a number of people who were working in bitcoin startups and woodhead talks with senators and congressmen, there is at least one congressman who asked for Campaign Donations to his campaign in bitcoin. Theres a group called coin validate. Its a bunch of enthusiasts, including the man who helped write the bitcoin source code. Theres also a man from the bank of new york mellon family. They are talking with the u. S. Government to try to pass regulations. One of the great things about bitcoin is that you do not need regulation for to work. As long as the internet survives, bitcoin will be out there. Digital currency will survive even if bitcoin does not. I get what youre saying, but bitcoin is Digital Currency. It is a democratically control, decentralized currency. When it starts working, it will be picked up in the source code. A lot of people believe that is the way to go forward. What about the real issue of the day . The technical issue. Can a Digital Currency overcome technical issues . I wonder what the technical issues are. I asked the lawyer. They said they were closing down because of technical issues. He joked that the issues are trying to get all of your money in your suitcases fast enough. The real problem is probably the software that the people at mt. Gox have written. Apparently it does not work well enough to communicate be source code seamlessly. It causes problems. People say they do not have the right programmers. It is the kind of thing that jerry could answer. We showed this great shark. 50 of the traffic is going to mt. Gox. We have seen difficulties in trading at mt. Gox. Sometimes the prices are way out of whack with what prices are trading at elsewhere. What is it about mt. Gox that tolerates these problems . Historically mt. Gox has had liquidity. A lot of times mt. Gox is your only option. Not easy other exchanges now that you see other exchanges, there are real options for people who want to buy large amounts of bitcoin. In the past, that was not there. When mt. Gox originally failed, when it dropped and he drove the price down and it was hacked in 2011, when the price was 31, they had an auction. Mt. Gox might have died then. This may be the end for mt. Gox. We will continue to follow the story. Matt miller in new york, thanks so much. Coming up, why a prominent venture capitalist lef Silicon Valley to head to the midwest. We will ask why, next. Welcome back to bloomberg west. Shares of linkedin are falling. There are concerns that growth is down. Shares are down nearly 10 . Now they are down about 7. 0 . It will mark the fifth straight quarter of falling growth. Linkedin is buying bright media. For more on linkedin, i want to bring in one of the companys very First Investors. He was a partner at Sequoia Capital for 12 years. He left Silicon Valley and move to ohio where he is investing in Midwest Companies as a cofounder and investor. Thank you for joining us. After spending 12 years at sequoia, why did you move to ohio . We saw the opportunities here. 25 of the u. S. Research is done here in the midwest. In addition, 22 of the gdp is here in the midwest. In the past, you did not have the incubators or the technology so that people could actually stay here and utilize it. People left. Marc andreessen studied at urbanachampaign. We wanted to stay in the midwest. We think it is the best place to build a company. I spent some time in the startup scene in detroit. You guys just raised 250 million in funding. What kind of innovations are you seeing out there that you want to put your money behind . There is a fundamental shift in technology. If you look at facebook, Mark Zuckerberg moved it to Silicon Valley. He needed people who understood how to do data centers, servers, network engineering. The emergence of the cloud, dropbox, has billions of files stored. It is all the cloud. The most important thing is that you are next to the customer. Many fortune 500 companies are in the midwest. We have worldclass universities and engineers. We have the university of michigan and osu. People can build their products and services here. They have access to cloud services. They have the technology. When they also needed was the capital. We decided to our right here in columbus, ohio. The early stages of investing are crowded. However you planning to navigate the crowd . From a midwestern perspective, there are 62 venture capitalists. The average fund stage is what would be considered a Seed Stage Fund in Silicon Valley. If you want to raise 3 million, 4 million, 5 million, you have to go area for to get that capital. We wanted to be a place where people could come to us and get the same sort of capabilities, networking, services and other things here in columbus, ohio and throughout the midwest. They should not have to move their company to Silicon Valley or new york. You were the very First Investor in linked in. You were on the board. What do you think about some of their efforts to get into new businesses . They are buying more companies. Just yesterday they bought a Company Called bright. My family is a huge fan of linkedin. One thing you can say about linkedin and their founder reid hoffman is that he has a vision. Can i put together all workers across the world . There are 250 million users of the service today. I think eventually it will be many more. It is a Central Place to get information. If i am not mistaken, bloomberg started out as a Foreign Exchange platform. Now theres Bloomberg News and bloomberg tv. It is the same thing that linkedin needs to do. What are your concerns about growth . If you look at the last few quarters, growth has been slowing down. Thanks there are always large numbers. It is a unique platform. They will see different changes and growth as Different Things happen. It is interesting to me where people are talking about today and the coming quarter. They will do estimates of 450 million. I remember sitting around the board with reid hoffman going, how will we make money . It is exciting to see what the whole team has done it linkedin. The venture capitalist landscape has changed dramatically as you left Silicon Valley. There is a fullservice marketing and recruiting operation. Should sequoia be doing more of that . It is funny that you say that. Quite frankly, as a marketing service, we brought that out in 1999. We brought in helping recruiting. I think the difference is sequoia has been doing that for many years. They just did not talk about it. Obviously Marc Andreessen has built a fabulous firm. They have been more in front about talking about these are processed. Sequoia has done many of those things from the beginning. We just hired someone to head up our recruiting services and make sure we have the best talent in all our companies in the midwest. Getting talent is on them for thing. You mentioned Kleiner Perkins. The cofounder recently joined us. He got a lot heat for his comparison of the war on americas 1 to nazi persecution of the jews. From your position where you are, what you make of his comments . Unfortunately he made some very poor choices in analogies. It is really poor. It is sad. He is on a college man who made some mistakes. It sounds like he has stepped back from some of those comments. Do you think Kleiner Perkins should take his name off the door . Any firm or you have multiple founders he has not been with the firm he has been with the firm for many years. Many people just call the firm kp. That is one of the things about firms that have peoples name on it. When Don Valentine started sequoia, he did not want to call it valentine Capital Stock because it is about the company it is not about any individual. Personally i prefer we did not call it kvamme and olsen. We did not want to associate with me and chris. It is about the firm. It is not about the individual. Mark kvamme, we will be watching you guys. I thank you very much. He is one of the biggest movie stars on the planet. We will hear about George Clooney on the challenges of directing his new movie, the monument men. Welcome back. Im emily chang. George clooney wears many hats in his latest movie. He directed, produced, and cowrote the film. It is about a group of u. S. Soldiers in world war ii who tried to rescue treasure from the nazis. Anybody who thinks they have this figured out, they do not. You can look to any director and they will tell you the same thing. You do not necessarily learned by successes. Those are easy. Success, when you get great reviews, you have it down. When they tear into you, you learn what to believe and what not to believe. It is hard to learn. You learn, and i still struggle with it if you want more George Clooney, and i am sure you do, catch the full interview on charlie rose. We will be right back with more of bloomberg west. It started as a camera for surfers and snowboarders. Go pro has become a big business. Today they filed papers for the ipo process. A camera maker for extreme sports started the company. This is it. It is the evolution of the world worlds best selling ultracompact camera. This is the plus. It is 20 smaller and lighter than the previous camera. It gets a better battery life. There are new modes and features that make it easier to use. We have taken the best of go pro and made it better. It starts at 199. What goes into this . How do you improve on what you did before . We are so successful with go pro because we are just developing products for ourselves. You are a big Action Sports guy . Now i am a big family guy. So i am thinking of new uses for the product and new accessories for people to fill themselves, not just when theyre skiing or surfing. They can also fill their families. I have a oneyearold and he just started walking over the weekend. Should i be using this . Absolutely. The personal content of your family is some of the most meaningful content you will ever capture. I was at the beach with my family and we created an incredible video. You cannot even call it a home video. It looks like it was professionally shot. I was there with one go pro and then i came home and edited it. I used our edit templates that would provide people for free. I created a video that looks like it was professionallyproduced. You are not afraid of google glass. Your pitch sounds a lot like what they say about google glass. You can capture all of these moments. You have to be looking at the competition. You have to have to plan. Google glass perspective is terrific for capturing the perspective of what you are looking at. Take your oneyearold, for example. When they start moving around a bit more, do you want to be down on the ground like this . Or do you want to hold your go pro and walk around, filming your child as they walk around your house. If you look at the videos that i captured this week of my family, you will see that none of them are from this perspective of me looking at you. They are from perspectives that make for great content other than just your own personal perspective. Tell me about the business. You are profitable. You brought in more than 500 million last year. What are the numbers looking like . Very good. We are going to make at least 2. 5 more. Will you make more than a billion dollars this year . Business is good. Were keeping in line with the trend of growth. Obviously you are profitable and you are making more money. People always ask you about going public. The market is looking good. Twitter filed for an ipo. When we you guys go public . I have said before, we are getting the company prepared. It gives us an opportunity to take the company in the direction we want to take. We have been profitable since the beginning. Going public is a luxury, not a necessity. We have to see how things shape up. I did not know that foxconn, they are known for making iphones, but they are a big investor in you guys. 8 were 9 . How is that Partnership Working . It is fantastic. I met him through her lead investor. His funds riverwood invested in go pro years ago. He is good friends with the ceo of foxconn. When kerry visited his Partner Companies in california, he stopped by for a visit and we realize that we have a shared vision of the future. The rest is history. It is a fantastic opportunity for go pro to partner with foxconn, and terry himself. Now we know that they have indeed file to go public. Confidentially i want to bring in Jon Erlichman. It is interesting with a question like go pro. They have become so successful in the camera business. Where today go from here . You hear a lot in los angeles about go pro trying to be more of a media company. Nick has said that. On the road to the ipo, you will hear a lot of that. Investors are curious about that next page or chapter. The reason they can point to that is obviously they are a big hit on youtube. People like their videos. They are packaging these videos for others. There is next chapter that they are still figuring out. Will there be go probranded content . Facebook and twitter are kind of like the new cable company. You find all of the different videos there. These guys may be like the new cable network. We will continue to follow the road to the ipo when it comes to go pro. Thank you. Still ahead, the worlds secondlargest toy company is heading to hollywood. We will speak about the new lego phone. 1, 2, 3. I am so pumped up. Welcome back to bloomberg west. Im emily chang. Print by brick, lego has built a feature film. The lego movie opens today. It features lego bricks and many superheroes. There are stars like will ferrell and morgan freeman. The road to hollywood was not always an easy one. Sam grobart looks back at the danish Way Companies 82yearold history. Lego is possibly the most popular toy in the world. More than 500 billion cents have been produced since the first were made in denmark in 1949. Lego is the Worlds Largest toy company. Unlike mattel, lego is still owned by the family that started it. It is a contraction of a word that means play well in danish. Christiansen bought the first plastic Injection Molding machine in denmark and began making these small multicolored bricks. The design was on enduring success. Any lego brick made after 1958 is similar to the case is made today. For decades, legos prime customer was a nineyearold boy. After a major loss in 1998, the company bounced back. They appeal to girls and adult fans of lego. Legos profit grew faster than apple between 2007 and 2011. There were more lego people in the world than real people. A new lego movie opens this weekend. It brings many characters in the lego universe to life. It has only taken the company 82 years to give the spotlight to itself. A reputation like legos does not happen overnight. It is built, brick by brick. For more on the lego movie, Jon Erlichman joins us now from l. A. Is everyone talking about this . We have all been created in our lives. Im sure you made some awesome lego stuff growing up. I am curious about it. Dan lin has made some good lego projects as well. He wanted to get this made as a movie. Dan, thanks for joining us. What was the one thing that pushed this movie i had . I love lego. As a parent, i was making big action movies. My kids could not watch them. I wanted to make a movie that my kids and i could watch together. As i became a parent, we would play lego together. Why cant we make a movie that the whole family can go to . What is the biggest difference between making a movie about lego versus making a Sherlock Holmes film . This is my first animated movie. I only made liveaction movies before that. It is a much slower process. It took five years from start to finish. It is a long, painstaking process. It is gratifying at the end. As the producer, you were a bridge between lego the company and warner bros. , who maybe dont happen. There was a kissing scene in the movie, did you keep it in or take it out . I was trying to protect the brand of lego. I wanted to immerse myself in who they are. I went to the theme park, the original factory. I have gotten to know who they are as a company. I also know warner bros. Well. I am trying to bridge both their interest. What is the best version of the movie that honors warner bros. Values and lego values . There are some big stars in this movie. When you start reaching out to these celebrities, do they say, awesome . They were super excited. We got everyone we wanted for the movie. Most of them play with legos themselves. They wanted to play with their kids. They are coming from a place where they are really passionate about it. It has already been reported that there is a lego sequel in the works. When you start a process like this, are you thinking you want to respect the brand. Do you want to make this one film, or do you think theres something more substantial we can do with it . When you first start making the movie, you just want to make a great movie. We fell in love with the characters. You can go to all these different worlds. You can go to the wild west, space, the city. We can take a lot of characters and go to other worlds for future movies. If audiences respond to the movie, we would love to tell more stories. Before we go, here is your opportunity to boast about your lego talents. Over the years, what are you most proud of . To be honest, i am very poor. I am not a master builder. My son, miles, he is a master builder. I am the opposite of him. I read the instructions and try to figure out how to build the thing. The kids go to sleep and im still playing with my legos. Think you for joining us. I will send it back over to you. Thank you. Our visitors to the Winter Olympics are and teacher of being hacked. We talked about the Cyber Security threat next. Welcome back to bloomberg west. One of the hottest s on twitter sochiproblems some of the more common issues include broken toilet, showers with wires in them, Hotel Lobbies that are still under construction. There are rooms without tv or internet. That must be the worst. Olympic and russian authorities are keeping a close eye on potential security threats. A former nsa director advised american travelers to be excessively cautious. Perhaps out of an excess of caution, it is hard to define excess, lets be safe. Clearly this is a high visibility event. It is an iconic target that terrorists like to go after. Be extra cautious. Cyber security is another concern. Visitors reported that their devices were hacked as soon as they connected to networks in sochi. I want to bring in a security cto, dave evans. How big is the problem . As soon as you turn on your phone, when you get off the plane . It can be. The biggest risk is the wifi risks. People have hotel rooms with poor internet and they are desperate to get internet. Criminals and organized crime are siphoning that traffic and looking for privacy information. This is not about statesponsored . It is about organized crime. Thats right. It is. We are seeing the typical criminals who do phishing are doing this type of activity. Weve also seen malicious applications. People are being prompted to download apps onto their entry device that might be fake olympics reporting. There are different advertising apps. Fake Bank Accounts . Exactly. What information are they looking for . I read that you may be getting hacked, but you are just poking around. What we have done in the last few weeks is that we have analyzed over 50,000 apps. About 30 has information being sent out. They are going after everything. At the end of the day, they want your usernames and passwords. It is not about finding out where my reservations are . Thats right. A lot of people use the same password on multiple sites. They are doing that by having fake apps. That is how they get it. How much control or power does the u. S. Government have in our security agencies to protect people from this . We do not have any control at the government level. It is up to consumers and businesses to have Security Software on their mobile phones on their androids, iphones. What should they be doing . We need to be having two things. The ability to scan apps for Security Software that can look for the apps and see if theres anything malicious, i mean you to encrypt all of our traffic on the suntrust and wifi networks. If anyone can scan the network and interceptor traffic. For all of these businesses, not just the u. S. , you have lots of people who are doing work and targeting. One of the things that happened i wonder, could any business what should they be doing to prepare for the return of all of these agent zeros from sochi . If a device goes into sochi or other countries as well, lets not just point the finger at russia, if the device has been there and has not got Security Software on it, it has not been encrypted, it might be prudent to wait that device and restore it. Thanks for nothing. The businesses, not what you tell your employees to do, what can the businesses on the other side do . Have to be looking at where people have connected and they have to look for password takeover. If you have connected from russia, and then another country within five minutes, chances are that has been taken over. Dave evans of marble security. We will continue to watch this. White earphones and start over. It is time for the bwest bite. 525 million. That is how much russia has spent on the olympics. It is so much more expensive than any other olympics. Beijing spends 132 million. No country has been like this ever before. We know a lot of this is corruption. I was in beijing covering the olympics. The whole story that year was that they had spent so much money to produce the games. They say there are similar problems. There was so much going into this. It is another level. So much is being wasted. I will be watching the opening ceremonies tonight. We will see you back here on monday. This week on political capital, jim jones talks about iran and afghanistan, we break down the jobs report, we preview the french coming to town, and Margaret Carlson and Ramesh Ponnuru with the last word. We begin the program is former White House National security adviser general jim jones. Thank you for being with us. You are familiar with how difficult it is to deal with karzai and afghanistan. There is now a word that they will wait until after the april elections to sign a security