The Bitcoin Parabola Continues: Up 10% In 12 Hours, Hits $1170

Tyler Durden's picture

Despite the US being largely on holiday, the demand for digital currencies continues to surge. Bitcoin has rallied another 10% overnight as Chinese appetite for alternative stores of value remains unabated (BTC China is nearing its record highs) as USD/BTC is trading at $1170 - on its way to crossing the Maginot line of gold's spot price (within a few hours at this pace). Bitcoin though has nothing on its smaller cousin Litecoin which has now run from $1.11 to over $48 in the last 5 weeks. In fact, almost every crypto-currency in the world - from Infinitecoin to AnonCoin is surging... with only the ironically named PhoenixCoin (-68% overnight) not rising from the flames of fiat torment.

 

Bitcoin is making new highs in USD...

 

Getting close in China...

 

and Litecoin is exploding...

Charts: BitcoinWisdom

 

Almost every digital currency is on fire... (via coinmarketcap.com)

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CH1's picture

Up, down and up again... but it remains Freedom Money.

The ability to route around the cartel is FAR more important than the price.

SafelyGraze's picture

wow

the number of digital currencies seems to be increasing without bound

it is almost as though there were no ceiling on how many of them could be created

CH1's picture

And whoever wants can use them. Whoever doesn't, doesn't have to.

Smells like freedom!

Balvan's picture

Bitcoin and Litecoin will crash soon, I'm going Quarkcoin, buy them while they're dirt cheap

CH1's picture

Bitcoin and Litecoin will crash soon...

Funny that your wishes redound to the benefit of the fiat cartel.

You've been handed a tool for killing the Fed, and you hate it.

You appear to have judged yourself.

TheCanadianAustrian's picture

Regardless of whether you believe on whether BTC is a bubble, ZeroHedgers should all agree on the following...

Litecoin IS a bubble than will come crashing down to ultimate ruination. This is a "Keynesian" spinoff of BTC that punishes its users for "hoarding" the currency.

fonestar's picture

Look at how it just blows through supposed psychological barriers!

Can your oldcoin do this?

Spigot's picture

Now TARGET is accepting BTC through its online ordering platform. Largest US Retailer. Happy Happy. This ride is gonna be nutz. You WILL end up using BTC. What it will cost you will be determined by when you get in.

CheapBastard's picture

ByPassing the Almighty Dollar...Bankers ain't going to like it.

nope-1004's picture

Target is accepting Bitcoin for their "Gyft" cards.  So you buy a gift card digitally and that is "freedom", as opposed to walking into the store and paying cash?  How is being monitored by an NSA developed fxn "freedom"?

Cash is the real enemy of the bank, not a digital currency.  Try going to a bank and taking out $5000 cash.  At my bank they question the hell outta me for anything more than $1000.  In fact, I asked for $1500 a few months ago and they had the audacity to tell me that "they don't have that kind of cash on hand".

Digital currencies are not anti-fed, anti-banking, or freedom.  They are the complete opposite because you are tracked and traced, documented and ultimately taxed on your transactions.

It is obvious to whoever has dealt with banks that cold hard cash is the enemy, because it is untraceable.

 

fonzannoon's picture

"Digital currencies are not anti-fed, anti-banking, or freedom.  They are the complete opposite because you are tracked and traced, documented and ultimately taxed on your transactions."

Whamo.

 

nope-1004's picture

Also, ask yourself:  Why are big retailers accepting digital currency?  What advantage is it for them to do so?  From a buyers standpoint, like fone and CH1, you can argue all kinds of "freedom" ideas.  But why would Walmart and Target accept a digital currency?

One simple reason IMO is cost.  The transaction is way easier to manage.  Revenue and tax can easily be logged and traced, showing the value of the sale, from whom, by whom.  Value added taxes on large purchases are then easily monitored.

So the big box stores, Amazon, eBay, and others are going to accept Bitcoin as a political "anti-fed" statement?

Really?

 

fx's picture

these parabolic moves mean the death of those "currencies" as means to pay for goods and services. What price do you set as a retailer when the exchange rate to paper money fluctuates by 10-20% within hours? This is a bubble made in china. and probably as durable as most of the stuff that is coming from there

fonestar's picture

How does it mean the death of digital currencies?  Explain.  Every deflationary currency in history has been forcefully diluted and killed by banker and government intervention.  Now we have a deflationary, viral p2p currency that cannot be forcefully diluted or killed.  So this should finally put an end to the deflationist argument that nobody would want a currency that actually increases in value. 

If Krugman really wants to go toe to toe he can release his own "Krugcoin" to compete with Bitcoin.  Krugcoin will get easier to mine as time goes on and increase by the billions every month.

ElvisDog's picture

It seems to me that the death of digitial currencies will come from the shear number of them. When it was just bitcoin, it was simple, an easy-to-understand Guy Fawkes-style narrative. That chart showing all the current digital currencies looks like the tower of Babel. 

fonestar's picture

I'm sure.  Keep wishing because most of those currencies were created as a joke not a serious contender to Bitcoin.

ElvisDog's picture

What's the expression? "I don't have a horse in this race"? You assume that I have an emotional attachment to the failure of bitcoin. I do not. I invest based on my assessment of the risk-vs-reward of the investment. Right now, to me, the risk of bitcoin far outweighs the reward. I'm going to watch from the sidelines and will sleep well at night.

fonestar's picture

And others like myself will be leading the charge.  I have a significant portion of my portfolio in BTC and it doesn't cause me to lose any sleep.

jomama's picture

a) good for you

b) no one cares

feel better now?

BigJim's picture

 I have a significant portion of my portfolio in BTC and it doesn't cause me to lose any sleep.

Well, if (say) you bought $100 worth when it was at $10, I'm not surprised!

But for the rest of us who can't see why there can't be several hundred different versions of bitcoin, it resembles tulipmania.

We may all be proven wrong, in which case, your 'investment' will look pretty damn smart, and when we all meet up the drinks will be on you :-)

Or it may all come crashing down and your 'speculation' will have lost you $100 (assuming you didn't cash some out before it all fell apart).

Anyway, it's quite something to see and, as other pro-freedom types have said, let a thousand currencies contend! That's what markets are for - to pick winners and kill losers, for the overall betterment of everyone.

Prisoners_dilemna's picture

Fonz and I were both here on this very forum, answering questions, encouraging others, explaining BTC back when BTC was $10.

So uhhh    Where were you then?

 

Just get some dummy.  Shut up and just get some.

bwh1214's picture

Hey just throwing this out there.  I’ve heard a few numbers out there, but I’ll use a billion ounces of investible silver since it’s a round number.  Represented here as the total world reserve silver of 29.665 tons, pretty much exactly a billion ounces.  That means that that at todays price there is about 20 billion dollars worth of investible silver, one of the oldest forms of money, never lost all of its value as a store of value, and the second most useful industrial material behind crude oil.  Against bit coin, something that no one knows who owns what, there is no intrinsic value, and it has not existed long enough to know the drawbacks, vulnerabilities ect.   It hit 1224 bucks on a site I was following, which is really close to 15 billion dollars of investable bitcoin.  Does that sound right to you?  Make your own judgment.

Advoc8tr's picture

There are already multiple payment processors that fix the exchange rate to that which applied at the time of the sale and instantly convert to USD and drop it into your bank account.  Exactly the same end result for the retailer as credit card payments without the enormous fees.

More USD are created every month or so than the entire market cap of BTC ... of course it is rocketing against these FIATs - it is exactly what you would expect from an unmanipulated fixed quantity currency.  This is infact what Gold SHOULD be doing ... makes perfect sense and can be interpreted as proof that it is free from manipulation ?

All I know is that $100 for 20 BTC coins a while back was the best "waste of money" I was ever responsible for :)

I love the way it makes you stop and think before you buy something ... do I need it now or can I wait - knowing it will be less expensive the longer I wait. 

fx's picture

tulip bulps. digital ones, but still tulip bulps.

fonestar's picture

Captive Stockholm syndrome and dollar-based mind control experiments.

walküre's picture

No, this isn't tulip mania. When tulip mania struck, ordinary people were betting the farm and lost it all. Farmers bought into tulip mania and paying a hefty price. From where I sit, it doesn't look as if people are throwing everything including the kitchen sink at BTC. This is something else.

If Target accepts BTC for gift cards, at what rate do they accept BTC? Do they convert in Dollars before the transaction or does the buyer exchange the same amount of BTC into a fixed Dollar amount of a Target card? Seems stupid if they did it that way.

fonestar's picture

They can't reference anything other than tulips and dot.com because they lack the language to accurately describe what they are observing.  It's like a pacific islander seeing an aircraft for the first time and trying to tell the villagers about it.

All nationalist currencies are virtual currencies, but this is the first time we have seen a non-nationalist (and deflationary) currency take them on in the markets.

Renfield's picture

This crypto-currency explosion reminds me of the early days of currency - when various entities, and yes, governments, would issue their own scrip.

Also reminds me of the early days of PTP. Napster got all the early heat and folded; but its descendants didn't. You can't hold back real progress.

I would have liked to participate in BTC early on, but it seemed (and still seems) too risky for our tiny budget and limited ability to 'hide' electronically - big reward, but big risk, so in our case no. I'm happy for those who speculated early and won big. I think you, fonestar, should be congratulated by any honest investor or speculator. You may lose later, but you are sure winning now with (so far) one of the few investments not corralled by the oligarchy. I don't know if BTC will last, but I think that crypto-currencies will, and right now I am cheering their rise.

You not only speculated well (at this point) but you are part of a strong challenge to fascist power. Frankly, I think you deserve some applause.

I don't know how it will end but it feels like a sea change to me. I applaud BTC for successfully challenging the status quo (for now) and love these threads just because as the gorilla so correctly posted, outside of bankster control there is freedom (including risk). Government and all its institutions always protects its dinosaurs.

Freedom to win, and freedom to lose. I think this is how currencies, and indeed any investment or speculation, is supposed to work. Capitalism and free markets, no?

PS: Do you know of any 'for dummies' guide to crypto-currencies? NO, I DON'T want to invest. I never invest in anything I don't understand. But I would like to understand it, and I am having a lot of trouble finding something that just gives me the basics in non-jargon language. I know that, much like PTP, such a nice easy guide may not actually exist. Thought I would ask in case it does, though.

fonestar's picture

These are still the very early days and lots of opportunities lay ahead.  The nice thing about the design is that it allows any budget to get in.  I'm sorry, I don't know of any good primers... just the videos at bitcoin.org.

Renfield's picture

Thanks, FS. I wasn't really expecting that there would be one, any more than with PTP. But it's a start. Husband and I will browse that site, thanks much.

InspectorBird's picture

I'm happy for those who speculated early and won big.

Why? They didnt create wealth, its a zero sum game. For some people to win big wih bitcoin, somebody had to lose big. The wealth is not created with bitcoin, its just transfered from suckers to winners. So im not happy for those who won big, because a lot of poor shmucks lost big (they maybe dont know it yet, but they will soon find out, as this pyramid comes crashing down)

Bunga Bunga's picture

Tulips bulbs you dig into your garden, but bitcoin has an actual purpose and that much more efficient than our system of central banks, banks and brachnes.

BaBaBouy's picture

WHEN The Little White Haired Woman...

YELLING Pulls The Plug On The BITsky...
WATCH OUT BELLOW...

REMEMBER, USG (IS ABLE) Controls The POG, A WorldWide Currency And Commodity Etc..

balanced's picture

You've obviously not spent any time researching the topic on which you are commenting. I suppose your level of arrogance is so high due to your obvious level of ignorance. It's ok though, I'm sure it feels better than admitting to yourself that you were dead wrong for not getting into Bitcoin.

fonestar's picture

I think even in the five figures Bitcoin will not be in a bubble and you could still be considered an early adopter.  There's still time to get onboard but once each Bitcoin starts to gain critical mass their time will be up. 

Apres moi, le deluge.

itchy166's picture

I can own an unlimited number of bitcoin wallets and transfer between them. If I give you a memory stick that has an unencrypted wallet containing 3 bitcoin, and you give me $3000 or 3ounces of gold, where is the record that a transaction was made? 

What if we just swapped to equal wallets? Even the blockchain can't track users. 

chaartist's picture
In the end why would anyone be against Bitcoin? It’s their money if they want to use it in that form. It’s absolutely none of my business who does what with their money or computing power. How could anyone be against a competitor to the major fiat currencies? If you don’t like the concept, just ignore it. Bitcoin is just massively distributed data. The private key that allows me to move Bitcoins under my control to another account is just a 256 bit number. Governments will have a hard time outlawing math. They have hard enough time as it is waging war on drugs, file sharing, prostitution, money laundering and fraud. Governments would not like this development at all. So false flags are expected. And there is no Bitcoin mania, there is only fiat panic. Volatility will remain big issue for non-geek masses to enter the market. The currency exchange rate risk of going in and out of Bitcoin may be easily as high as 10%+ in a single day. Still the benefits are attractive. Anonymity. Decentralised. Government free.With tremendous transaction cost advantage. Not a debt-based system. Biggest risk? If there is a technical flaw that will get exposed when a billion people are using it. Competing crypto-currency backed by major international companies on the supply side. Or invention easy to access free energy. In the end it is not about Bitcoin. This is about transactions taking place outside of the currently approved system. Bitcoin just happens to be the medium. You don’t have to like what these people holding Bitcoins do. But there is always a market for this. My take on Bitcoin here: http://www.offgridminds.com/misinformation-blog/2013/11/28/questioning-bitcoin-at-1000.html
Rock On Roger's picture

Ho Lee Fuk

37 types of 'coin'.

For what, to buy junk on the internet?

 

 

Stack On

fonestar's picture

If you visited the deep web you would know that there's a lot more than "junk" there.  You can buy anything you want.

Rock On Roger's picture

Sure I can buy things I want but I'm not so sure I can buy things I need.

Like shelter, food (except mail order pizza), transportation.

My kid's tuition to trade school.

You know, real things.

 

Stack On

fonestar's picture

Yes, all of that stuff is available for Bitcoin.

fonzannoon's picture

fonestar I have nothing against bitcoin, and I wish you well with it. But looking at it from where I am standing now....having sat on my hands a bit too long....I gotta take a pass. The trajectory of it now just scares the shit out of me. Not only that but when you put in in comparison to the S&P the S&P now looks like the turtle and bitcoin is the hare. It almost seems like this was by design.

So it would not surprise me to see Bitcoin go to 5k and litecoin 1k and then they just collapse and then whoever accepts them starts bailing and the whole thing implodes on itself while the Bernak/Yellen just smile and say "well the S&P is still up 30% ytd in a nice calm orderly climb....come on in, waters warm!".

 

fonestar's picture

It will not crash and burn because Bitcoin fills a niche that no other currency or precious metal can facilitate. 

fonzannoon's picture

You seem very conflicted about the future of bitcoin. Hang in there and try to build some confidence about it. Who knows, but keep your chin up and get some swagger! Enough of this "I'm just not sure" crap!

fonestar's picture

How do I seem conflicted at all?  I have been a zealous supporter of Bitcoin since 2011.  I have never waivered in my conviction.  Start making sense or at least tell the truth.

fonzannoon's picture

This is the 3rd time in the past week my obvious sarcasm goes completely missed. WTF is going on with everyone?

BigJim's picture

We're just tired... and emotional because we didn't buy some BTC when Fonestar first appeared here preaching The Word.

And wondering... how high will this go? And KNOWING that if we buy today the price will collapse tomorrow... but if we don't buy today, the price will keep rocketing, $2000, $5000, $10000... and we'll be kicking ourselves for thinking $1000 looked expensive. And also KNOWING the day we buy is the day it tops.