This transcript has been automatically generated and may not be 100% accurate.

... I ... call stop responding to attract some real cash even as industry leaders a warning about the potential for abuse while commit Digits I'm Simon Constable between Wall Street Journal that the beach corporate bureau chief and spends on say on the set to tells all about its ... ties with being a ... Bitcoin with little about it ... another Bitcoin startups trucking catch tells about ... write to Mr what is ... the great thing about covering technology things come out of left field sometimes ... and all the sudden ... the kid turned to the next big thing ... so what became analysts still in the last two months is this thing called Bitcoin ... which uses virtual currency which is ... created by this mysterious person in two thousand and nine and nobody knows what's much about ... and it's been growing over the last two years and so not attracting the attention ... of venture capital investors to ... invest in high risk factors ... and so ... we reported exclusively that news core doctors is is ... probably the biggest factor couple from New York ... is investing million of us around five million dollars ... into this new so-called point based ... on its way you can keep keep Kenneth Bitcoins are you blind to what you pay for what one of us yes and and and so you got the safe place to keep them you can go into the service and you can buy and sell Bitcoin ... you can put it in your digital wallet and then you can transact with merchants who accept the coin pocket so this is taking off this is the role of Fame this pic on things ... beyond its typical comedy but also the legal astonished ecosystem the ecosystem is growing just like the Apple ecosystem ... group while there are some real risk selloff ... on the risks of energy use and hacking explain why you dressed so ... you know it's a currency that's not backed by any central bank sets the bursting of Commerce and most currencies are backed by governments and some pay was set on a different kind of stuff that are the reason why sketch and as people walk around the world may see ... central banks across the world pumping money into these economies ... deflating the value of the currency's some the US would happen if Cyprus to many of the money on the bag really wasn't worth anything ... and so ... the risk is that ... people can attack ... Sony's exchanges ok ... and this happened up a few months ago where the dinner at the Nile serves attack on now talks which is ... Dick's Bitcoin exchange business has the largest exchange ... and ... what they said in their press release is that ... that on the website ... and then people can ... buy and sell what is the site goes down as a people but not too late ... and they start doing public selling a kite ... and the place of the Bitcoin plummets ... and then the Packers ... accumulate Bitcoin ... and then once they get it on the cheap you know then ... they stop their attacks ... in NP ... the national market we appears a man if I start rising and so ... this is part of a thing were beginning to see that some of these Bitcoin exchanges and Mrs among on regulated off of the of the market here ... I'm that you would think would be a winner or a real sort of ... thing that will enable one to shy away from it but still people out ... piling into the cyber friends to call small businesses saying hey I'm gonna make it so you can pay with bitcoins that yet so warning isn't facts about the coin is that the person credited the cap on the number Bitcoins twenty one million Bitcoins write ... an eleven million of them have huge distributed so far ... supported the theory of the investment Bitcoin strategy is that ... it's a limited supply ... and demand grows it will naturally lead to an increase in the price of this ... ball unit of currency ... and so that's what some people are bad and ... other people are thinking it could turn into legitimate payment mechanism because if you use a credit card ... to such ... a transaction fee of ... two a half to ... three percent ... and so ... part of the fear is that this will spread around the world ... is merchants full adopted since ... there are very low margin business is a lot of these retell establishment and then they can basically makes more money by accepting bitcoins ... and and human you mention that that that the company credits has planned limits on the number of coins ... by zoning that promise and make it the same weight on and change that at some point the future so you have no doubt Dante's from my evening ... even if the sauce ... well ... that is the question ... of the way the system was are detected as Anderson is that it is capped at twenty one million ... but ... who's who's to say that's can happen you know it it is a contract you sign that ... they will have gone or no this no contract ... is just the way the software was created and so I think that is deftly a risk factor but ... we talk to Fred Wilson whose when the ... investors in New Square Ventures about this he said ... photo to write a prospectus to withstand all the respect is um as to be very long ... very long ... disclosure and so ... it's the old people should Deathly ... tread carefully or typewriters a lot of excitement ... a lot of excitement attract athletes ... on sale the will Street gentle I'm Simon console ... and that was digits