Bitcoin Hits $101 - Doubles Since Cyprus

Tyler Durden's picture

From a January 2nd price of $13.16, the price of a Bitcoin in USD had risen to $46 on March 16th - right before the Cyprus 'solution' was announced. Since then, in two short weeks, the price of a Bitcoin has more than doubled, reaching $101 today. This 'exuberance' in non-fiat currency, should perhaps warrant caution as we noted here, the US is now not only actively monitoring but has commenced regulating the Bitcoin market and those who participate should be well aware that when uncle Sam is involved, things tend to have an unhappy ending for pretty much everyone involved.




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machineh's picture

Bubble III, bItCHeZ!

Bubble I = internet stocks, 1999

Bubble II = houses, 2006

Bubble III = Bitcoin, 2013

Rock on ...

camaro68ss's picture

Would anyone like to buy some Tulips?

Harlequin001's picture

No, but if you have any gold...

ACP's picture

Interesting that even bit coins are having a low volume meltup, at least the last week or so.

Debtonation's picture

I embrace the BTC bubble.  I've been making a fortune.

Stackers's picture

Powers at be must love the flood into another fake money and not into real money

Lost Wages's picture

Yep, the more people Max & friends talk into bitcoin, the less people buy silver. With bitcoin over $100 and silver under $28, is it really any mystery? Wouldn't be surprised if Max sold all his silver in May 2011.

ParkAveFlasher's picture

I don't believe that. 

Max just installed a silver gong behind him, it says "$500/oz", just so he doesn't have to say it loudly every 15 minutes.

philipat's picture

Because Bitcoin is the ONLY thing that cannot be manipulated by TPTB. So far..............

Cap Matifou's picture

Buying up with unlimites funds, spread scary stories about a crash, and then "fulfill" it with dumping all at once to cause panic, will do away with BTC pretty much the old fashinoned way.

Bunga Bunga's picture

All the sceptics will turn bullish when it crosses $100.000 mark.

OutLookingIn's picture

Bitcoin? Or Bitcoins?



boogerbently's picture

...doubles since Cyprus????

What is its value tied to, that it "doubled since Cyprus"???

ParkAveFlasher's picture

Correct me if I'm wrong, but the more cyphers I can produce by the amount of processing power that I can wield, the more bitcoins I "discover", because bitcoins are essentially mathematical cyphers based on functions, whereby if I am able to run functions that do not yet exist in the freely available and universally shared and transferred "log"  and discover new configurations, I successfully create wealth.

And inasmuch as the structure and rules around which the cypher is maintained and the unique users of the cyphers adhere to those rules, bitcoin is stable.

Now tell me, what is the difference, if I swap out "cypher" for "serial number" and "processing power" for "printing power", between bitcoin and any scrip that has ever been developed? 

Serialization, accounting, and authentication have never been the problem with fiat.  Redemption, quality, and trust are the problems with fiat. 

The problems with fiat are human problems.  The problems with fiat are ancient. 

Thus, bitcoin feverishly applies a technological solution to a problem that requires no technological solutions.  In fact, it simply introduces new human problems.

If you don't think that bitcoin transactions can be traced, you are sorrily mistaken.  You mightn't be able to crack codes but you can certainly monitor traffic and make informed inferences.  You can also coerce human members of a network.  You can wipe data.  You can pull plugs and destroy servers.


LuisCypher's picture

If you don't think that bitcoin transactions can be traced, you are sorrily mistaken.  You mightn't be able to crack codes but you can certainly monitor traffic and make informed inferences.

True , but you can also set up 1, 2 or 200 wallets yourself then shuffle the money between them. Later, pay it all back into a single wallet if you want. You cant determine which transactions are legitamate  and which I am using to launder/distance myself from the funds.

The problems with fiat are human problems.  The problems with fiat are ancient. Thus, bitcoin feverishly applies a technological solution to a problem that requires no technological solutions.

To address those human problems bitcoin has built in depreciation and a finite limit. In the context of bitcoin that is a solution to many of those problems because at the moment bitcoin is an "end user" currency, not an "other peoples money" currency.

What I mean by that is it's useful as a store of wealth and to facilitate trade, but due to trust issues it is hard for middle men to implement fractional banking practices or rampant money printing, you need to actually provide a service to skim profits.

ParkAveFlasher's picture

True , but you can also set up 1, 2 or 200 wallets yourself then shuffle the money between them.

You have named a workaround to spread risk, not a feature and certainly not an inherent strength.  People do this with bank accounts every day.  More importantly, people do this with their physical assets, everyday.

To address those human problems bitcoin has built in depreciation and a finite limit.

Anything that you exchange cash for depreciates.  It either proves useful or does not, or, you measure its depreciation or you don't.  Most owners of electric can openers, for instance, do not measure the depreciation of the can opener.  This doesn't mean that it doesn't happen.  You name a quality of all things. 

All serialized scrip is finite.  If you serialize scrip by a fixed set of rules, there is a natural limit to any serialized thing.  For example, if you issue bonds, and those bonds are serialized with the rule "6-number sequence", then you are limited, naturally, finitely, to issuing 100,001 notes.  Those notes may vary in nominal value aka quality, however you are limited in the number of actual notes (or events of exchange). 

Now, my next question, because I am ignorant and would like to know, does each transaction receive a single cypher for the sum of the transaction, or is each and every bitcoin coded distinctly and permanently?

Back to the points:

is it's useful as a store of wealth

The implicit wealth in a bitcoin is intangible, so no.  It is a record of account of energy, time, and materials produced or exchanged in the real, tangible world - translated into an encrypted language.  I think Bitcoiners miss the point, that BitCoin excels as a record of account between two parties exchanging real goods or services.  I think Bitcoiners try and practice an "everything you can do I can do better" mentality.

and to facilitate trade

Not yet, not until there is a more universal acceptance.  It has the INTENT, as all swap loops do, of facilitating trade but right now, it facilitates only money laundering.

but due to trust issues it is hard for middle men to implement fractional banking practices or rampant money printing, you need to actually provide a service to skim profits.

I can not refute this because I do not understand this statement.  What can be "skimmed" via BTC?


wee-weed up's picture

Bit-er's soon to be bitter.

SeverinSlade's picture

CBs can only artificially suppress PMs and risk for so long...Eventually the market wins.  Said it before and I'll say it again.  I'd much rather convert fiat into PMs at a huge discount (that is precisely what the manipulation creates) than chase a mega-bubblish rally in a digital currency market.

PathForward's picture

TPTB have likely been setting up a plan over a period of time with the intent of reducing overall confidence in BTC. Imagine you’re TPTB and you’d like to discredit BTC. What would you do? How about this: legitimately mine your own Bitcoins in order to build up a substantial inventory, then develop a strategic purchase plan wherein you’ll drive the price up in a parabolic manner to a certain point, during which you continue building your inventory level. Then you’ll suddenly trade a large quantity of your BTC into the market thereby driving the price down dramatically in a *very* short period of time. Then, you’ll continue selling your remaining inventory as needed to hold BTC prices down for a period of time, after which you’ll allow prices to slowly begin to rise. After the general population of BTC owners views that price action over a period of several weeks, how much confidence in BTC will remain? BTC was $100, now $10, thereby demonstrating extreme price volatility to the world. As the BTC price trend slowly climbs back upward, the TPTB will likely continue to mine more BTC and make additional small quantity purchases in the market – rinse and repeat as needed to continue destroying market confidence. TPTB don’t care if they lose fiat money while playing this game – it’s small potatoes to achieve the desired goal. Why should TPTB attempt to regulate BTC when discrediting it may be much easier? A futures market in BTC isn’t required in order for TPTB to play the game unfairly.

Long_Xau's picture


TPTB don’t care if they lose fiat money while playing this game

TPTB rely on money to survive. They only use their powers when they think they can gain something from it.

it’s small potatoes to achieve the desired goal

They need to first truly appreciate the potential in Bitcoin before they can set such a goal. If they ever did, they would quit their jobs immediately or push their scheme for a final kamikaze round by e.g. turning the money printer to the max. Think about it.

Lost Wages's picture

I stopped watching his show after he was on Abby Martin "Breaking the Set." It just got worse from there, from what I can tell.

GoinFawr's picture

Was that before or after he had Fekete on his show (twice)?

Nobody as prolific as Mr.Keiser bats 1000.

SafelyGraze's picture

so many people seem to misunderstand bitcoin

it is incredibly simple, with value based partially on proof-of-work.

The proof-of-work also solves the problem of determining representation in majority decision making.

If the majority were based on one-IP-address-one-vote, it could be subverted by anyone able to allocate many IPs.

Proof-of-work is essentially one-CPU-one-vote. The majority decision is represented by the longest chain, which has the greatest proof-of-work effort invested in it.

If a majority of CPU power is controlled by honest nodes, the honest chain will grow the fastest and outpace any competing chains.

To modify a past block, an attacker would have to redo the proof-of-work of the block and all blocks after it and then catch up with and surpass the work of the honest nodes.

The probability of a slower attacker catching up diminishes exponentially as subsequent blocks are added.

To compensate for increasing hardware speed and varying interest in running nodes over time, the proof-of-work difficulty is determined by a moving average targeting an average number of blocks per hour. If they're generated too fast, the difficulty increases.

If this explanation isn't clear enough for you, you have no business buying, holding, or using the things.

Scarlett's picture

precisely, those who can't understand bitcoin should stay away.  Bitcoin is for those who understand the safety systems SHA256, RIPEMD160 & elliptic curve cryptography in place, it's very easy for someone new to computers to put them in danger.

BTW, the gold defaults seem to be accelerating, non?  MF Global, ABN AMRO, bacwardation, 7-years line for Germany...  I'm sure there's more.

boogerbently's picture

Sounds like one of those video games where you buy "land" and stuff.

Blano's picture

My coin dealer says otherwise.  Completely out of silver eagles, including pre-2013.  Had to buy rounds this weekend.

On the bright side, got my broke college student daughter to at least start buying some dimes.  

silverserfer's picture

stackers< i dont think there are many local coin shops scattered around cyprus. Available physical PM's I dont think are readily availale to purchase except maybe online there.

Albertarocks's picture

You've got the best handle I've ever seen.  Nicely done!

Albertarocks's picture

My guess is that there will 'never be' a big volume melt-up since there will 'never be' a big volume of Bitcoins.  There are 11 million in existence today with 21 million as the cap.  There will 'never be' more than 21 million of 'em and the last one will be built in year 2030.  BUT if the Fed had any brains they'd be buying up as many bitcoins down here at the cheap level so they can "try" to slam the market in the future if they dare.  I say 'dare' because they would never have the ability to go into the Bitcoin futures market and fuck it up completely like they do every other market.  If they were to try to slam the Bitcoin market down at some point in the future they will have to spend all their Bitcoins to do it.  And then what?  They're out of ammo.  Same applies to 'anybody' who might want to slam it down and find that they didn't have enough ammo.  The fact that Bitcoin cannot be ruined via "Bitcoin printing" literally ensures that it actually can "never" go down.  It can go one of two ways only.  "UP" or "OUT OF EXISTENCE".

GoinFawr's picture

BTC is intriguing that way

Simplifiedfrisbee's picture

And so what is bitcoin without fiat monies?

ParkAveFlasher's picture

And what if all, or even the balance of, 21 million bitcoins get hoarded by a single entity (who has gone through the trouble of maintaining scores of individual nodes or "storefronts" or wallets or dummy companies), or the smallish group of redeemers / exchangers of bitcoins-to-real-goods are unable to redeem or exchange. 

BitCoin has advantages as an encrypted unit of account, and therein lies the value and therein lies the driver of its price in dollars.

Tango in the Blight's picture

If the Fed or some banks buy up Bitcoins by the millions the price of the remaining Bitcoins will skyrocket. So Benny and Jamie please fucking do that!

Just like I'm glad they're suppressing gold and silver, moar chances to buy low.

Albertarocks's picture

A 'ruling' was made last week by 'the authorities' in the USA that Bitcoin 'is not' illegal.  Sorry I can't quote exactly who that was but it was the banking authorities somewhere along the line.  Perhaps the Fed itself.  As far as I'm concerned that's a green light.  Besides, I don't give a shit whether they deem it as illegal or not, it's more real than their god damned fiat and there's nothing they can do about that.

I am 100% convinced that they just love it because the biggest criminals in the world will suddenly see the incredibly powerful tool it has become for the purposes of hiding, transferring, laundering money.  And the biggest criminals in the world are the CIA, the Fed and the entire banking community.  You'd better believe they're going to take full advantage of it.  Over $1000 before the year is over.  Maybe much sooner than that.





Albertarocks's picture

Duplicated below for some reason.

billsykes's picture

It has already been shown that it can be traced and manipulated. Its already worth 3x more than a silver ounce. Tell me how that is? 

This is the same thing as that gay game a couple yrs ago where they hired Chinese people to click and virtual mine. Where is that now? I guess you can get news of that if you search on netscape webcrawler or it might be on my space.



Albertarocks's picture

Very interesting.  If you can provide any links showing that it can be manipulated and traced I'm sure a lot of people would be greatly indebted to you.  How is it more valuable than an ounce of silver?  Easy... people are willing to pay more for it than an ounce of silver.  Want me to tell you 'why' that is too?

Cap Matifou's picture

With pulling the plug on the interwebs and/or electricity the virtual currency grinds to halt. Silver remains still 31.1g to the oz.

Albertarocks's picture

Exactly right, which is why I said "It has two ways to go, UP or OUT OF EXISTENCE.

Pladizow's picture

The US Gov will step in and embrace, support, endorse, regulate and ultimately crush!

NoDebt's picture

I was in at $48.  Talked about it here on ZH in several threads just a few weeks ago.  Only did $500 just as "research" on how the thing operates.  Now I wish I had gone $5,000 or $50,000, but that's the breaks.

Regarding how it works..... it's a complete clusterfuck setting up an account with (Bitcoin itself and their wallet are easy, but getting it funded is the problem and that requires an exchange like the popular Mt. Gox or similar).  When I went to the bank to wire the money to Mt. Gox they flagged down every manager in the place to try to talk me out of it.  "Sir, you realize once we complete this wire transfer there is no way to pull it back, right?  AND YOU REALIZE YOU ARE SENDING THE MONEY TO AN ACCOUNT IN JAPAN, RIGHT?"

Yeah, yeah, yeah.  Por favor, send the fucking money already.  I know what I'm doing (I think).

You gotta WANT it, baby!  This ain't PayPal with some chocolate sprinkles on top.  This is like opening an FX account in Japan from the US.


TBT or not TBT's picture

How does one declare the foreign account to the IRS? The usual way?

NoDebt's picture

At present, you don't.  One of the many unanswered "real world" questions left before me.

Alea Iactaest's picture

LMFAO. How long until securities registration, qualified investor status, etc.? BitCoin invites competition, but watch your back if you think YOU can compete with FRNs. Stupid sheep.

Banksters's picture

The cartel will ass hammer bitcoin.  Not if,but when.


I like silver.   You can touch it and industry needs it.

Alea Iactaest's picture

It's either (i) an electronic currency, ready to get all the "benefits" from .gov that would imply, or (ii) it's a novelty not much better than tulip bulbs. Which is it?

If you vote (iii) none of the above because This Time Is Different then I will simply wish you bonne chance.

Albertarocks's picture

I was looking into Bitcoin when it was trading at 6 cents.  I didn't buy any back then.  Too bad because $1,000 worth of Bitcoins back then is worth $1.7M today.

I agree with you on the rest of it too.  It sure is a clusterfuck trying to get the account set up and then funding it.  I had no problems with my bank (Canadian) trying to talk me out of anything though.  The problem is waiting for the fucking money to show up in the account.  WTF is "somebody" doing with our money while it is "hung up" somewhere out there in the fucking ethernet?  That has always bugged the living shit out of me because "somebody" is using that money for the 4 or 5 days that it vanishes.

BTW, I didn't set up with Mt.Gox but with the new startup in Canada called VirtEx.

They issued an IPO last week and it sold out in 12 hours.  They are the new kid on the block but they seem totally legit.  The website is a bit hard to navigate and I've spoken to them about that.  They're aware of it and will endeavor to fix it up as they move along.  But for you Americans, if you're a bit more comfortable setting up your Bitcoin buying platform a little closer to home, and trust a Canadian start-up, then I'd suggest the link above.  My money is where my mouth is.  If nothing else, it doesn't hurt that you and we at least speak the same language.

billsykes's picture

Ha Ha, you are gettn scammed. 

IPO they say? hint ipo is initial public offering.  They are private. you cannot "IPO" without an exchange. without a prospectus. 

They are on no known exchanges. They issued no financials, they have zero audits or auditors. They have no management listed. 

IF they are VERTEX- or VTXX they have a huge market cap of 43,000.00

In short they are a total scam. 


Buy in if you want but my gut is telling me you are not one of the punters. 

Albertarocks's picture

Getting scammed?  How am I getting scammed when I didn't buy it?  lol  It was gone before I had the chance.

Secondly, I now know the owners.  They are the real deal.  Sure, very small but in no way a scam.  That wasn't even a half-assed good debunking attempt billybob.  Next?