This page has been archived and commenting is disabled.

Fortress Loses Millions On Bitcoin Investment

Tyler Durden's picture


Readers will recall that back in October, when the only way for Bitcoin seemed up, none other than the head of sophisticated hedge fund/private equity megafund Fortress Group, Michael Novogratz, recommended buying Bitcoin:  "I have a nice little Bitcoin position,” Novogratz said. "Enough that I’m smiling that it doubled... Put a little money in Bitcoin...Come back in a few years and it’s going to be worth a lot."

Or, you can come back in a few months and now that the momentum euphoria is over and done with, watch it be worth far less.

According to the FT, Fortress "is sitting on losses of $8m on an experimental investment in Bitcoin. The company’s annual report revealed that it bought $20m of the virtual currency in the final months of last year, making it the first mainstream investment company to list Bitcoin among the assets on its balance sheet."

The value of its position was already underwater by the end of December, however, and the price of Bitcoin has continued to slip this year amid scares over the underlying technology and the bankruptcy of what was once the largest virtual currency exchange.


By buying the currency for its own account, Fortress not only places a small bet on its future value but also learns more about the practicality of using Bitcoin as a financial instrument in the future and about the potential for business built around virtual currency.


The company deemed Bitcoin too speculative, however, to put in any of the funds it manages on behalf of other investors.

Good. Because as of year end, Fortress valued its stash of Bitcoin at $16.3 million at the end of December. Since then Bitcoin has fallen by a further one-quarter so far this year, cutting the value of the stake to $12.1m at mid-Friday prices. The bankruptcy of the formerly biggest Bitcoin exchange will do that.

As for Fortress, don't cry for the asset manager: "The experimental stake in Bitcoin represents a fraction of Fortress’s $2.6bn balance sheet. The company manages $61.8bn in assets and posted a 121 per cent rise in net income to $484m for 2013."

Oh well: on to the next gigamomentum (to borrow a popular prefix) investment which sophisticated investors buy into and just because the dumber money always chases on their coattails, makes them believe what incredible investors they are. So for anyone following in Fortress' footsteps: go for it, just don't come back to check on your money "in a few years." It will have long since been "disappeared." Come to think of it, just like those millions of Mt. Gox bitcoins...


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 02/28/2014 - 19:54 | 4491919 Maximilien Robe...
Maximilien Robespierre's picture

Yeah Fonestar, where did the money go?

Fri, 02/28/2014 - 19:54 | 4491923 Dear Infinity
Fri, 02/28/2014 - 19:56 | 4491933 fonestar
fonestar's picture


Fri, 02/28/2014 - 20:02 | 4491957 James_Cole
James_Cole's picture

Goes to show how good these guys are at their jobs - fuck up one of the easiest investments in the past couple years. 

Their aptitude seems to be graft, crime or.. lose money. 

Fri, 02/28/2014 - 20:10 | 4491997 linniepar
linniepar's picture

Gold, bitchez!

Fri, 02/28/2014 - 20:21 | 4492053 FEDbuster
FEDbuster's picture

Still better than Bill Ackman's JCP bet ..... Booo Yaaaa!

Fri, 02/28/2014 - 20:28 | 4492077 fonestar
fonestar's picture

Once fonestar has established the BWO, he will round up anyone who questioned Bitcoin.

Fri, 02/28/2014 - 20:51 | 4492095 AlaricBalth
AlaricBalth's picture

Most of the herd is rounded up already. They just can't see the fences. Those who questioned Bitcoin are the wild broncos who can't be penned.
I do sincerely hope you do well though. It's just not in my portfolio allocation model.

I will continue to up arrow you however just to muck up the ZeroHedge Fonestar Sentiment Index.

Fri, 02/28/2014 - 21:37 | 4492294 knukles
knukles's picture

Bitcoin is about as secure as the Ukrainian people now that Biden spoke with their Prime Minister.

Fuck yeah.
              Thinking about disrobing and running around yanking on Dr. Happystick.... do about as much good.

What the fuck has happened?
It's mad.
We're all in one monolithic, never ending, infinite, timeless asylum!
Mad, I say...
It's All Mad!

Fri, 02/28/2014 - 21:46 | 4492320 NoDebt
NoDebt's picture

The greatest ponzi schemes always have the most enthusiastic victims.

Fri, 02/28/2014 - 22:00 | 4492356 HarryWanqer
HarryWanqer's picture

LOL... how many billions have been lost betting on Silver or betting against the USD?

Let's hope you metal morons and crypto cunts rip each other to pieces.


Fri, 02/28/2014 - 22:09 | 4492384 NoDebt
NoDebt's picture

Thanks, Harry.  Always nice to hear the occasional shout-out from the peanut gallery.  How's the view from the cheap seats?

Fri, 02/28/2014 - 22:24 | 4492414 nodhannum
nodhannum's picture

@Harry...It's Howdy Doody Time!

Fri, 02/28/2014 - 22:32 | 4492424 HarryWanqer
HarryWanqer's picture

Watching everyone jealously argue which alternative "currency" is doing less bad is worth the tickets. Notice how losses are denominated in USD... I rest my case.

Fri, 02/28/2014 - 22:38 | 4492438 q99x2
q99x2's picture

Harry. Looks like you are related to that other fool Hamy. Maybe you are siamese twins and he gets to wipe the ass for a year while you get to speak.

Sat, 03/01/2014 - 08:30 | 4492966 f16hoser
f16hoser's picture

One more time people, repeat after me: "If you don't Hold-It, you Don't Own It!"

Why is this so hard for sheeple to comprehend??? If you have/had enough scratch to buy Bitcoin, you should have bought Gold/Silver Bullion. Nuff said.

Fri, 02/28/2014 - 22:45 | 4492454 DirkDiggler11
DirkDiggler11's picture

I haven't lost one cent on my silver and gold phyz stacks because i haven't been stupid enough to sell. My phyz is a store of value for long after my timeline has dropped to zero.

Watch your USD's be worth less that toilet paper FuckTard.

Sat, 03/01/2014 - 00:34 | 4492621 Rukeysers Ghost
Rukeysers Ghost's picture

Wouldn't you be better off if you bought a blue chip collectible like a vintage Bentley or Corvette? They hold their value better than precious metals and are more fun to play with until you assume room temperature.

Sat, 03/01/2014 - 08:13 | 4492949 spinone
spinone's picture

Firearms are a good store of value with permanent utility.

Sat, 03/01/2014 - 15:33 | 4494126 Miner
Miner's picture

The same is true of my Bitcoins.  I was smart enough to pay the 0.0001 BTC to transfer them to a wallet I physically posess, and lost nothing when Gox died.

Fri, 02/28/2014 - 23:41 | 4492552 StillSilence
StillSilence's picture

LOL... how many billions have been lost betting on Silver or betting against the USD?

Let's hope you metal morons and crypto cunts rip each other to pieces.



Please provide your timeline. Then go back 5 years from the start of it, then 10 years, then 25 years, then 50 years, then 100 years, then 500 years and let us know if you think silver ounces or (debt) currencies of any sort would have been the better decision for preservation.

Sat, 03/01/2014 - 05:34 | 4492852 FinalEvent
FinalEvent's picture

There is no loss. He still has as many bitcoins as before.

Bitcoin is not a stock.

It's not ment to be converted to FIAT all the time.

It's like gold. 1 ounce in the hand stays 1 ounce in the hand. 1 bitcoin in your wallet stays 1 bitcoin in your wallet.

Unless you are too stupid to give it to someone else. Would you do that with your gold too?

Sat, 03/01/2014 - 04:43 | 4492788 daemon
daemon's picture

" Let's hope you metal morons and crypto cunts rip each other to pieces. "

Don't forget the other toilet paper (USD, EUR, ....) eaters. And also the oil,uranium, .... eaters.

I've always dreamed of playing the last of the Mohicans.

Sat, 03/01/2014 - 16:44 | 4494382 Lionhearted
Lionhearted's picture

What made USD the world reserve is that it was once backed by precious metals. Now it's backed by NOTHING and look what has happened to it since 1913. Nixon drove the final nail in the USD coffin in 1971 when everyone decided that they wanted their PM's instead of the dollar. Look what's happened to the VALUE of the dollar since then. From 1833 to 1913 an once of gold was $18.94. From 1913 (Creation of The Fed) to 2013 the price went from $18.94 to $1326.00. I posit that the value of gold has not gone up the value of USD has gone down. Holding longterm savings in USD only allows The Fed to steal your money.

Sat, 03/01/2014 - 05:35 | 4492785 daemon
daemon's picture


" The greatest ponzi schemes always have the most enthusiastic victims. "


But, .... you and a lot of the people who agree with you, when reading this :

" ... investment which sophisticated investors buy into and just because the dumber money always chases on their coattails, makes them believe what incredible investors they are. "

just don't seem to realize that, depending on the circumstances, this is applicable to everything, ...  even precious metals.

In the end, it's always some process that happens between those who have informations versus those who haven't. Maybe not that far from ponzi schemes, in this respect.

Fri, 02/28/2014 - 22:22 | 4492408 nodhannum
nodhannum's picture

The new movie, 2014...My's full of Biotcoins!

Sat, 03/01/2014 - 14:55 | 4494003 Keyser
Keyser's picture

Dave? Dave's not here.


Fri, 02/28/2014 - 20:51 | 4492160 funthea
funthea's picture

Fone, dude, I don't even have your kind of enthusiasm for gold. You do realize the very real possibility that the day may well arrive where you are left holding your dick in your hand. Fawning over memories past of when you were masturbating to your virtual ivory tower of bitcoin. 

Fri, 02/28/2014 - 20:54 | 4492180 fonestar
fonestar's picture

That is impossible.  fonestar's PAL has already run all probablistic outcomes through his simulator.

Fri, 02/28/2014 - 21:05 | 4492204 knukles
knukles's picture

From a Quantum Mechanical perspective I'd suggest your probability simulations are worthless.  (It's philosophical thing that, relating to your design of the experiment, the measuring apparatus design and physical composition itself, observations, your participation therein, and assumptions as to the nature of the wave or particle you assume to be measuring let alone the more fundamental consideration as to whether any of it is even real.)
You, every jack and his dog.

Fri, 02/28/2014 - 21:16 | 4492243 nope-1004
nope-1004's picture

I think he meant to say "stimulator".  lmao


Fri, 02/28/2014 - 21:05 | 4492210 Bay of Pigs
Bay of Pigs's picture

I'm sure the people invested in Mt Gox would agree with you. It's impossible they have lost their money.


Fri, 02/28/2014 - 21:31 | 4492281 FEDbuster
FEDbuster's picture

Mt. Gox, the MF Global of virtual currency exchanges.

"and it's gone.....  What do you mean it's gone?  It's all gone." Southpark

"If you can't stand in front of it and defend it with an AR-15, you don't own it" Ann Barnhardt

Fri, 02/28/2014 - 21:39 | 4492299 knukles
knukles's picture

Q:  So my hemorrhoids are good?
A:  Yes, Knukie, better than Bitcoins!

Fri, 02/28/2014 - 21:49 | 4492329 LoneStarHog
LoneStarHog's picture

Simulator? Is that the one with the handle, makes a flushing sound, as the contents swirl around a bowl, then fall into a hole, never to be seen, again?

Fri, 02/28/2014 - 21:56 | 4492353 erg
erg's picture

I've developed an injury from faithfully junking you. Pay me now!

And not in your vaporcoin or ghostcoin or whatever the fuck you call it.

Sat, 03/01/2014 - 09:58 | 4493042 Slave
Slave's picture

Can we please stop feeding this troll? He'll go away if you just ignore him...

Sat, 03/01/2014 - 11:19 | 4493257 fonestar
fonestar's picture

Although fonestar is drawn towards Bitcoinophobic activities, simply not replying to him does not change his application specific mission.

Thank-you for choosing fonestar.

Sat, 03/01/2014 - 11:49 | 4493354 Hooter Shaker
Hooter Shaker's picture

I'm pretty sure fonestar is a vrtual junk collector.  I'm going to help him out with another junk.  He will be mighty dissappointed when he takes it all to the scrap yard and finds out they only pay for REAL junk.

Sat, 03/01/2014 - 08:33 | 4492969 negative rates
negative rates's picture

Your #'s aint lookin so good there einstien, you are living on borrowed time my friend.

Sat, 03/01/2014 - 11:47 | 4493353 Black Warrior W...
Black Warrior Waterdog's picture

With comments like these, why does anyone take this troll seriously?

Sat, 03/01/2014 - 12:26 | 4493494 Jonas Parker
Jonas Parker's picture

"Once fonestar has established the BWO, he will round up anyone who questioned Bitcoin."


C'mon down to Texas and try it, asshole! We don't like threats!

Sat, 03/01/2014 - 12:31 | 4493516 Jonas Parker
Jonas Parker's picture

Bitcoin - the investment that keeps on taking...

Fri, 02/28/2014 - 22:34 | 4492429 Lets Buy The Dip
Lets Buy The Dip's picture

get physical yes I agree. BITCOIN is DOOMED! =>



Sat, 03/01/2014 - 04:04 | 4492783 anu
anu's picture

If I had a gold atom for every time someone said "Bitcoin is dead|doomed" I'd be richer than Goldfinger

Sat, 03/01/2014 - 20:56 | 4495235 logicalman
logicalman's picture

I think your math is a bit off....

in 197gm of gold there are 6.02 x 10 to the power 23 atoms.

That's a lot of atoms.

Sat, 03/01/2014 - 03:57 | 4492776 anu
anu's picture

Same recommendation as for gold: Paper gold is just a promise. Paper Bitcoins is just a promise. Don't store Bitcoins in an exchange, don't store them on computers. Store them in a brainwallet:

Fri, 02/28/2014 - 20:01 | 4491960 Mentaliusanything
Mentaliusanything's picture

Smartest Kids on the Block!

Fri, 02/28/2014 - 20:08 | 4491985 max2205
max2205's picture

Traded it on paper and now I am a paper millionaire

Sat, 03/01/2014 - 02:20 | 4492719 Mentaliusanything
Mentaliusanything's picture

minus 4 for what?  time and time again we see companies like Fortress dabble in momo. money is cheap so they chase momentum. All it takes is a sudden movement, a gust of air and the house falls down. No longer do you understand sound money. Sound money is land, sweat, toil and the product that flows from it. Sound money is not taking margin at 2 & 20, that is middleman theft. judge a man by this hands and what he does with what they produce. Yes I have to admit that my eldest son has been in Bitcoin from the begining. He asked and I gave him cash to build the computer and he did, by hand with parts sought all over the World. I never asked why he needed $ 15 thousand. At 25 he can buy me 50 times over. Sometimes I regret letting him pull a computer apart at the age of 10. Upside is I never need to pay for Norton virus or anything that appears blocked and encripted because he goes into a black screen and alters code. The best thing is he so totally understands the Fiat monetery system and is expert is solving complex algorithms. The future is our children and trust me they are aware and very awake. And they are pissed off. just wish he had calouses on his hands and a tan from nature. As for Bitcoin, it works. just has some start up glitches. The weaknesses are known and are being addressed. I admit I don't understand it fully but the advantages are both enormious and destructive to an old system that appears to be failing. Look for E bay/ Pal to accept it and its mainstream. It is clear ex teething troubles it could be ( and I say COULD) be a solution to unsound money. Pity about the greed part of human make up. Ok I have some poddy calves to feed and the Combine needs a new battery. The Wheat and corn however looks strong and healthy and will bring a good price.  

Fri, 02/28/2014 - 20:17 | 4492024 MeMongo
MeMongo's picture

Phoney!  Shit is not to love. Get on board with some real tangible assets before it's too late

And don't call me "tardo"!

Fri, 02/28/2014 - 20:28 | 4492079 fonestar
fonestar's picture


Fri, 02/28/2014 - 20:33 | 4492099 Johnny Cocknballs
Johnny Cocknballs's picture

The children are right to mock you, Fonestar,

Fri, 02/28/2014 - 21:48 | 4492328 johnQpublic
johnQpublic's picture

ya gotta admire his unwavering commitment to it though

Fri, 02/28/2014 - 21:55 | 4492351 NoDebt
NoDebt's picture

He's punch-drunk, John.  Like a fighter who's still standing on his feet even though he's actually unconscious already.  It's pathetic and sad.  Just leave him alone.  He's had enough.

Sat, 03/01/2014 - 08:35 | 4492971 negative rates
negative rates's picture

He's had enough but your still in trouble.

Sat, 03/01/2014 - 09:50 | 4493030 NoDebt
NoDebt's picture


Sat, 03/01/2014 - 09:56 | 4493038 negative rates
negative rates's picture

You missed the (Reconsider Status) part, that was the point, not your interpretation of butchering a language.

Fri, 02/28/2014 - 21:55 | 4492349 bonderøven-farm ass
bonderøven-farm ass's picture

fonestar......Davi Baker?

I do believe the TSA is on to ya bubba....

Fri, 02/28/2014 - 20:23 | 4492064 RafterManFMJ
RafterManFMJ's picture

FoamStar is like that retard you tormented as a kid, paying him a quarter to eat a roach or throw a brick at the crossing guard;

Eventually, you matured and learned compassion, and became the retard's champion, guiding him in his job bagging groceries or promoting BitCoins;

You realize your hatred of him is naught but a manifestation of your fear about how YOU might have turned out, and you think as you wipe his poo from his hair, 'There but for the Grace of God, go I."

Fri, 02/28/2014 - 21:02 | 4492205 MeMongo
MeMongo's picture

Unfortunately rafter 7th grade we had a case where a girl had a hotdog in her lunch nearly everyday. And sorry to say she would sit and deep throat it before eating it! Hindsight sucks sometimes but I can tell you there were some rough 7th graders and they were merciless to say the least. Hard telling what she's doing now.

Fri, 02/28/2014 - 21:08 | 4492220 knukles
knukles's picture

rafterman... you are of compassion...
keep coming back...
BTW, he just may be constitutionally incapable of being honest with himself, let alone sane...

Fri, 02/28/2014 - 22:25 | 4492418 TheReplacement
TheReplacement's picture

A smart guy might have been nice and asked her out.  Were you smart or was she ugly with snaggely teeth and braces?

Fri, 02/28/2014 - 22:34 | 4492427 spdrdr
spdrdr's picture

The disdain exhibited towards the fonestar tag-team is well deserved.  

The fonestar tag-team are all Government stooges, and Big Government is boosting this and other crypto-currencies, which all rely upon the idiot users self-reporting all transactions through the block-chain code.

No wonder BTC has gone "mainstream", and has recently been embraced by the Big End Of Town...  Fuck's sake, these fonestar pricks should be the very first hung from the lamp-posts, because they are at the absolute forefront of pump-and-dump misleading and deceitful conduct.


Fri, 02/28/2014 - 20:26 | 4492073 rubiconsolutions
rubiconsolutions's picture

fonestar = Schadenfreude

Fri, 02/28/2014 - 21:22 | 4492258 snr-moment
snr-moment's picture

No Not possible.


Schadenfreude would know how to have fun.

Fri, 02/28/2014 - 21:40 | 4492303 knukles
knukles's picture

+ bazillion

Comment of the week!

Fri, 02/28/2014 - 20:43 | 4492131 eurogold
eurogold's picture

Fonestar, you are such a douchebag.....go away !

Fri, 02/28/2014 - 20:49 | 4492153 fonestar
fonestar's picture

Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha (no).

Sat, 03/01/2014 - 00:25 | 4492611 firstdivision
firstdivision's picture

He is actually Fontas

Fri, 02/28/2014 - 21:45 | 4492315 caShOnlY
caShOnlY's picture


me too because and asshole and his "currency" shall soon be gutted by a central bank.  buy the gold, moron.  buy the silver, moron.    

Fri, 02/28/2014 - 21:50 | 4492336 Ness.
Ness.'s picture

Don't worry fone.  Your 1's and 0's are safe.


Largest single personal data hack ever? 360mn stolen account credentials found online

However, he did say that the email addresses in question are from major providers such as AOL Inc, Google Inc, Yahoo Inc, and Microsoft Corp, as well as “almost all” Fortune 500 companies and nonprofit organizations. 

“They can get access to your actual bank account. That is huge. That is not necessarily recoverable funds,”she said.



Sat, 03/01/2014 - 19:27 | 4495023 Exponere Mendaces
Exponere Mendaces's picture

Of course Tyler can't mention 2013 performance - it might make him look bad.

Being up a 56-bagger makes the recent swings look like peanuts. Fortress? Hey, they're big boys, they can hang with some "heat". This year, Bitcoin is going for the gusto - wouldn't surprise me if we cross over into the 5-digit range by the end of 2014.

But keep on slinging mud, we know you're just jealous and way too stubborn to even participate.

Mon, 03/03/2014 - 03:27 | 4500550 MeelionDollerBogus
MeelionDollerBogus's picture

Zerohedge isn't a pennystock newsletter.

If that's what your after go log into one, that's all bit-con ever did.

Fri, 02/28/2014 - 20:01 | 4491955 fonestar
fonestar's picture

Unfortunately the "goxing" has come to an end.  Get onboad this train before it leaves the station!

Fri, 02/28/2014 - 20:19 | 4492039 negative rates
negative rates's picture

What ?, the volitility train! Godd Luck w/that.

Fri, 02/28/2014 - 20:32 | 4492093 fonestar
fonestar's picture

Is volatility a scary thing for you?  Intelligent investors and speculators look for volatility.

Fri, 02/28/2014 - 20:38 | 4492117 nmewn
nmewn's picture

So, its not a "currency"?

Fri, 02/28/2014 - 20:44 | 4492128 fonestar
fonestar's picture

Why can currencies not be volatile? 

Fri, 02/28/2014 - 20:50 | 4492151 nmewn
nmewn's picture

Oh, I don't know, little things like commerce.


You edited your comment, thats a lot like BitCoin, now you see it, now you don't ;-)

Fri, 02/28/2014 - 20:53 | 4492172 fonestar
fonestar's picture

Bitcoin shines bright with our third eye.

Fri, 02/28/2014 - 20:58 | 4492193 nmewn
nmewn's picture

Yeah, as bright as a diamond in a goats ass.

Sat, 03/01/2014 - 08:39 | 4492974 negative rates
negative rates's picture

Oh yea the trouser snake, hows that pain in the neck treatin ya, or are you really a youngster?

Sat, 03/01/2014 - 08:42 | 4492976 FredFlintstone
FredFlintstone's picture

Trying to get banned from Hilton?

Fri, 02/28/2014 - 20:58 | 4492187 Cabreado
Cabreado's picture

In a state of chaos, of course everything can be volatile.

In a state of chaos, legitimate currencies would tend toward the most stable, in this context.

Why do you not understand that by the time a cryptocurrency ever takes hold, with any semblance of stability, either you will be long gone, or the entire landscape will have undergone enormous upheaval, and by definition then, the primitive BTC will have been commandeered and re-engineered by forces that control?  That is your best-case scenario for BTC, and you wouldn't like it at all, anyway.

Fri, 02/28/2014 - 20:59 | 4492194 Ness.
Ness.'s picture

Speculators need volitility.  Intelligent investors avoid volitility.  Speculators gamble.  

Would you like another card, sir?  The drinks are free.

Fri, 02/28/2014 - 22:45 | 4492449 Cabreado
Cabreado's picture

edit... posted wrong place... sorry....

Sat, 03/01/2014 - 00:51 | 4492643 UrbanMiner
UrbanMiner's picture

Intelligent investors have proper allocation for things like speculation, it's not black and white.

Fri, 02/28/2014 - 22:01 | 4492366 medium giraffe
medium giraffe's picture

"Is volatility a scary thing for you?"


Volatility? Lol, no, volatility is great, means greater market participation, trends are more likely to develop, and you don't have to sit a watch a whole load of boring sideways crap.  Losing your fucking shirt to an 'investment' that crashed from 1250 per to just shy of 100 since December is scary.  Like GOING TO ZERO scary.  Fuuuuuuck that. 

Fri, 02/28/2014 - 23:02 | 4492495 holmes
holmes's picture

A good investor knows the difference between volatility and theft

Sat, 03/01/2014 - 08:37 | 4492972 negative rates
negative rates's picture

It does not worry me, but your life's end is just a few shorts years away, i'll keep you posted my troubled friend.

Fri, 02/28/2014 - 20:19 | 4492040 walküre
walküre's picture

Ugh. Is there no end to your promo? Your family is looking at you for losing them all their money in Gox when you were playing with Litecoin all along.

Fri, 02/28/2014 - 20:33 | 4492098 fonestar
fonestar's picture

Yeah well who cares about them.  The point is that Bitcoin continues its hyperdeflationary ascent towards bitvalhalla.

Fri, 02/28/2014 - 21:34 | 4492287 BlackChicken
BlackChicken's picture


I thought it was languishing with spurts of volatility after having a 50% decline in accepted valuation.

I must have missed something, sorry.

Fri, 02/28/2014 - 21:55 | 4492346 johnQpublic
johnQpublic's picture

i'm a silver bug

note however, that silver is down more than 50% from its 2011 high


though i dont want fonestars bitcoin, i would take his friendship because he has a sense of humor and commitment to his ideals and idiology

he has grown on me.

Sat, 03/01/2014 - 01:41 | 4492690 gtb
gtb's picture

He can be rather funny...when he's not being annoying.

Fri, 02/28/2014 - 20:29 | 4492082 rubiconsolutions
rubiconsolutions's picture

fonestar = 319

Fri, 02/28/2014 - 21:10 | 4492226 knukles
knukles's picture

+ bazillion   


Fri, 02/28/2014 - 20:37 | 4492114 nmewn
nmewn's picture

Sooo, ummm, do you work for Fortress "Investments" or the mysterious, unseen Satoshi or the encrypted-and-as-secure-as-in-your-hands Mt.Goop that came up missing 850,000 BitCoins?

Inquiring minds want to know ;-)

Fri, 02/28/2014 - 20:39 | 4492120 fonestar
fonestar's picture

There are inquiring minds here?

Fri, 02/28/2014 - 20:53 | 4492175 nmewn
nmewn's picture

Well yeah, I'm always interested in pump & dump and ponzi schemes, that suck in millions of people.

I just expose them, not participate in them.

Sat, 03/01/2014 - 08:42 | 4492975 negative rates
negative rates's picture

See, you got on the wrong boat, and yours is sinking in the red sea of ink moron!

Fri, 02/28/2014 - 21:47 | 4492322 caShOnlY
caShOnlY's picture

fonestar, I'm starting to believe your the polyp that was removed from Bernanke's colon. 

Sat, 03/01/2014 - 05:37 | 4492854 FinalEvent
FinalEvent's picture

Choochoo, I just bought, again.

BTFD bitches

Fri, 02/28/2014 - 20:11 | 4492006 Pheonyte
Pheonyte's picture

Granola munching hippies like that guy should be saving their quarters to do their laundry instead of wasting them on bitcoins.

Sat, 03/01/2014 - 00:56 | 4492649 icanhasbailout
icanhasbailout's picture

they've been rehypothegoxed!

Fri, 02/28/2014 - 20:00 | 4491949 fonestar
fonestar's picture

Yeah Fonestar, where did the money go?


Who knows?  Who cares?

Fri, 02/28/2014 - 20:02 | 4491963 Occident Mortal
Occident Mortal's picture

Exactly Bitcoin is so 2013.

Fri, 02/28/2014 - 20:05 | 4491975 Maximilien Robe...
Maximilien Robespierre's picture

I don't.  That's for sure, I just wanted to summon Fonestar first on a Friday night ZH bitcoin thread.  Thats all.  So I can tell my kids someday. 

Fri, 02/28/2014 - 20:07 | 4491981 fonestar
fonestar's picture

One day you will tell your virtual grandkids that you were in contact with the great investor and philosophator fonestar.

Fri, 02/28/2014 - 20:13 | 4492017 Silveramada
Silveramada's picture

dude, give us a fucking break with this nonsense...

Fri, 02/28/2014 - 20:17 | 4492032 fonestar
fonestar's picture

not a fucking chance

Fri, 02/28/2014 - 20:20 | 4492052 negative rates
negative rates's picture

Just keep junkin him, he's already got the record.

Fri, 02/28/2014 - 20:25 | 4492070 fonestar
fonestar's picture all goes into the junk bin for the statue.

Fri, 02/28/2014 - 20:49 | 4492149 RevRex
RevRex's picture

Do you lube up before you Mount Gox?

Fri, 02/28/2014 - 20:51 | 4492161 fonestar
fonestar's picture

What are some other major Bitcoin exchanges?  Name some.

Fri, 02/28/2014 - 20:56 | 4492184 nmewn
nmewn's picture

What are people buying BitCoin at on them...just north of 500 bucks?

Down from a thousand.

Yeah, stahbileteeee.

Fri, 02/28/2014 - 22:56 | 4492482 Mike Hunt III
Mike Hunt III's picture

Unstable as hell. But it was like $150 just a few months ago. Many bitcoin ers have enjoyed the instability.

Sat, 03/01/2014 - 09:46 | 4493025 nmewn
nmewn's picture

Sure thing.

But the mass marketing campaign of the mysterious Satoshi and his new paradigm of "laborless money" was just a little tooooo over the top for me. So, they chewed through gigawatts of energy while proclaiming themselves to be "enviromentalists" and alternately said they were fighting the greed & theft of bankers while the poor still can't afford them and at the end of the day, it ends like all crazes that came before it.

A wonderful display of Pet Rocks, Chia Pets and Cabbage Patch dolls that sit in a "virtual closet" somewhere that somebody made a buck off of.

Sat, 03/01/2014 - 00:36 | 4492627 tmosley
tmosley's picture

>Says the guy whose wealth is assigned a dollar value on the COMEX.

Glass houses, etc.

Sat, 03/01/2014 - 09:57 | 4493040 nmewn
nmewn's picture

My wealth hasn't collapsed 50% in fiat terms and there is a reason you rarely find me on a gold thread pumping (like some horny poodle on a strange guests leg) it doesn't need to be pumped and I'm not selling anything T.

You wanna feed the beast, pay the commish and spend your life chasing the next big thing, thats you not me, just don't piss on my leg and tell me its raining.

Fri, 02/28/2014 - 21:01 | 4492199 RevRex
RevRex's picture

That's  what I figured, you often Moung Gox, but you don't lube up. You self hating moes are always so surly.....nothing 'gay" about you fruitloops

Fri, 02/28/2014 - 23:54 | 4492572 MEAN BUSINESS

Virtex. Just added LTC.

Fri, 02/28/2014 - 20:51 | 4492163 eurogold
eurogold's picture

Fonestar can't get enough of himself here. Total douchebag.

Fri, 02/28/2014 - 20:05 | 4491978 fonestar
fonestar's picture

How would you know moron?  Bitcoin will hopefully finish 2014 in the five figures.

Fri, 02/28/2014 - 20:09 | 4491993 RafterManFMJ
RafterManFMJ's picture

Now that Madoff has closed his fund, under duress, I need a new rathole to pour my currency down.

BitCon, you're a lifesaver.

Fri, 02/28/2014 - 20:47 | 4492146 fonestar
fonestar's picture

While Bitcoin, (the protocol and currency) are fine and secure, there is still going to be great opportunities for scammers, thieves and cybercriminals with Bitcoin.

Fri, 02/28/2014 - 21:41 | 4492306 BlackChicken
BlackChicken's picture

Your future is secure.

Sat, 03/01/2014 - 08:43 | 4492978 negative rates
negative rates's picture

His future is unreal.

Sat, 03/01/2014 - 05:41 | 4492858 FinalEvent
FinalEvent's picture

Just watch the hashingpower go up.

Price is just a detail.

Trust in bitcoin is not expressed in price but in hashing power.

Since there are more and more people mining (see graph) you  can conclude that trust is going up.

This smackdown is just a nice buying opportunity.


Mon, 03/03/2014 - 03:22 | 4500541 MeelionDollerBogus
MeelionDollerBogus's picture then you'll love bitcoin at $5.76 just like it was 2014 Feb 28 at 6pm GMT.

Blue trontrike loves Anacott Bits.

Fri, 02/28/2014 - 20:19 | 4492045 MeMongo
MeMongo's picture

Five fingers maybe, as in you may be truly FISTED by years end:-). 

Fri, 02/28/2014 - 20:21 | 4492057 negative rates
negative rates's picture

Yea, more hopeium.

Fri, 02/28/2014 - 20:22 | 4492063 quasimodo
quasimodo's picture

LMAO......good one! What a fucking putz.

Here's is your five figures. 

$12.35 and half cent, right where gas will be per gallon EOY2014.

Fri, 02/28/2014 - 20:26 | 4492072 fonestar
fonestar's picture

Hoping for $10,000 and the losers on Zerohedge still won't have a fucking clue why.  Too fucking stupid to understand anything.

Fri, 02/28/2014 - 20:31 | 4492088 Citxmech
Citxmech's picture

Self professed claims regarding one's I.Q. won't turn a loser invetment into a good one - doesn't matter how "smart" you are.

Fri, 02/28/2014 - 20:36 | 4492105 fonestar
fonestar's picture

Bitcoin has massively outperformed every other asset class since its release in the wild.  Because the lot of you is too fucking stupid to understand why that is doesn't mean everyone else is.

Fri, 02/28/2014 - 21:12 | 4492229 akak
akak's picture

Foneystar has massively outtrolled every other ass since his release from the cyberwild.

Fri, 02/28/2014 - 21:31 | 4492282 Al Capowned
Al Capowned's picture

So true ,as much as I love zerohedge , the comment section is fucking clueless to the potential of bitcoin

Sat, 03/01/2014 - 00:07 | 4492587 medium giraffe
medium giraffe's picture

I'm no fan of fiat, but let's examine the facts.


In order to facilitate the use of coins and notes, I require:

A pocket (in a shirt, jacket or good pair of trousers that I own)


In order to utilise Bitcoins I require:


A computer

An internet connection

Unrestricted access across privately owned networks

An electronic wallet


Things I was unable to buy in the real world with Bitcoin:

Weekly shopping




Bus ticket





Sat, 03/01/2014 - 08:09 | 4492943 TheHound73
TheHound73's picture

Patience, grasshopper.  What did you expect? Somebody boots up the bitcoin network and everybody instantly drops everything they were doing in order to setup Bitcoin Point-of-Sale?  It's happening slowly.  And yes, Sherlock, Bitcoin is a digital currency.  Everything in the requirements list is also true for PayPal or other online payment methods.  I spend Bitcoins using my cellphone at restaurants in my area and I've bought airline tickets with them.

Fri, 02/28/2014 - 21:55 | 4492348 lotsoffun
lotsoffun's picture

fones - you are rolling baby!  show them your birth certificate and your college records. 

some of these guys are starting to mumble that you might actually be mr. ZERO big bad bama himself.


Fri, 02/28/2014 - 22:07 | 4492380 Spigot
Spigot's picture

After a great deal of research I finally decided to convert almost all of my BTC into fiat and await the final capitulation wash out down to 400, or even 300. My basis on my stash was 200. I cashed out enough when it was in the 800-850 range to pay back my original investment. I only had to cash in 25% of the BTC to get flat. The remaining 75% were at basis of 0 in fiat, since they were my profit. I sold almost all of them, recently, at between 570-590. My gain was 200% profit in fiat terms, within 6 months. Starting 3-7 of March I expect to see the final tossing in of the towel and a rapid drop to 300-400. Once this consolidates I will go back in strongly. During these consolidations fiat price has bounced and collapsed by 20-40% (or more) in 2-3 weeks time frames. So, playing this right I can pull more fiat and more BTC into my till over the next 4-6 weeks. Ultimately I will be holding BTC for the run up to 3000-4000. At that point, I will be pleased to use some of those profits to eliminate debt, buy tangibles, etc.

Sat, 03/01/2014 - 05:44 | 4492860 FinalEvent
FinalEvent's picture

funny, you will loose in the end.

Bitcoin is not a FIAT game.

If you're in it for the FIAT you don't get it.

Sat, 03/01/2014 - 10:49 | 4493158 Spigot
Spigot's picture

It's not a game. BTC is a means. It is a means to transact. I am using the willingness of BTC owners to exchange BTC for fiat, and fiat for BTC. My goal is to get more BTC and more fiat. The fiat I will use to pay obligations which are denominated in fiat until I owe no more obligations. The BTC is a long term invesstment. Sorry if that offends you, however that is what makes a market.

If I own 1.000 BTC I own more that 6.99 billion people in the world, so no I will not be a loser. Every time I buy BTC I put a bit of it into a wallet that I will not trade. Over time that little pile will become a large pile. Then I will have more than 6.9999 billion people.

I will use some to buy tangible and productive assets.

Sat, 03/01/2014 - 11:16 | 4493248 Maximilien Robe...
Maximilien Robespierre's picture

"It's not a game."

EVERYTHING is a game.  For the last 200,000 years humans have been creating fantasies for one another to rationalize our existence and purpose.  Primarily for one to put the other one in a state of submission for the other.  Submission can be obtained through force or through ideological belief, like Religion, Government doctrine, constitutions.  The more elaborate, believable and intricate the game, the greater the number of humans in submission to the game/ideology. 

Putting GPU's to work mining bitcoins by solving hashes to assemble a never-ending blockchain of bitcoin transactions is no different than Keynesian or Austrian philosophy, Christianity or Buddhism all with its mountains of propaganda and proof that it's the best. 

Its a sales pitch to rally people to do shit for someone else.




Fri, 02/28/2014 - 21:48 | 4492321 countryboy42
countryboy42's picture

Ok fonehome, here is the bet. I build custom rifles. If Bitcon goes to 10,000 USD or higher at the end of 2014, I will build you a rifle of your choice. Any caliber, and reciever, any barrel, any stock. Skys the limit(must be an earth based part, no sci-fi). If it does not, you no longer post about bitcon, or refer to your self(vs) in the the third party. Bet accepted?

Sat, 03/01/2014 - 05:46 | 4492862 FinalEvent
FinalEvent's picture

Does it also count for me?

Please please please.


Sat, 03/01/2014 - 08:47 | 4492982 negative rates
negative rates's picture

Your still in trouble circus man, now you're looking a bit more like "Booker T" to me. But that okay, cause the result is the same in the end as the boat you were on. Should I get the plank ready for you to walk? Or can you swim to saftey from that island over younder?? 

Fri, 02/28/2014 - 20:28 | 4492078 sleigher
sleigher's picture

I agree that long term bitcoin has a chance at going high.  No Way will it be in 2014.  

Do NOT follow this link or you will be banned from the site!