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Bitcoin Soars To 14-Month Highs As Major Exchange Eases Access For Chinese

Tyler Durden's picture




 

Bitcoin, at $444, is now up over 100% since we suggested, in early September, it would become the conduit for Chinese capital outflows following China's crackdown on capital controls. This afternoon's sudden BIS-induced plunge, taking the virtual currency down $50, has been entirely retraced and more as BTCC (China's leading Bitcoin Exchange) announced it will now accept direct deposits (making it significantly easier for Chinese to rotate their Yuan deposits into the virtual currency and out of the potential clutches of capital controlling communists).

 

As BTCC details,

Recent bitcoin price increases have reignited enthusiasm in buying bitcoin. BTCC is confident this trend will continue. As such, we are pleased to announce that we now accept direct deposits.

 

Customers now need only log in, click on “Account,” then “Fund,” and then select the “Bank Deposit” option to fund their BTCC accounts through their bank accounts. All customers who have Chinese bank accounts will be able to make direct deposits through ATM transfers or online banking.

And adds, even more crucially...

BTCC will stop accepting customer deposits through agents on November 15.

Which appeared to provide further dip-buying impetus to the recovery off the day's earlier mysterious plunge...

 

Lifting BTC to $444 highs, more than double the September levels when we suggested it. Notice the rally is on rapidly increasingly volumes also (as word spreads and ease of access is enabled)...

 

As we noted previously, this is the validation that, just as predicted here two months ago, bitcoin has become the go-to asset class for millions of Chinese savers seeking to quietly and under the radar transfer funds from point A to point B, whatever that may be, in the process circumventing the recently expanded governmental capital controls:

While he didn’t provide any concrete numbers, he did comment last week on what was driving the adoption. “Some Chinese traders are expressing a view on the CNY exchange rate after the last devaluation and you have interest by mainland speculators to move to other assets after the stock market fallout,” he explained in an interview with Bitcoin Magazine.

Which again brings us back to our conclusion from two months ago:

... if a few hundred million Chinese decide that the time has come to use bitcoin as the capital controls bypassing currency of choice, and decide to invest even a tiny fraction of the $22 trillion in Chinese deposits in bitcoin (whose total market cap at last check was just over $3 billion), sit back and watch as we witness the second coming of the bitcoin bubble, one which could make the previous all time highs in the digital currency, seems like a low print.

As of this moment, the total value of bitcoin is up from the $3 billion two months ago to a little over $5 billion. That means the ratio of Chinese deposits (at around $22 trillion) to bitcoin, is down to a far more "conservative" 4,400x.

And now, again, imagine what could happen if these same Chinese depositors realize they have been lied about the non-performing loans "backing" their deposits and that instead of the official 1.5% bad debt ratio, the real number is really far greater, somewhere in the 20% ballpark as we will show shortly, suggesting major deposit impairments are no longer the stuff of Cypriot nightmares but just the thing hundreds of millions of Chinese depositors have to look forward to, and that they have just two possible choices to avoid said impairment: reallocating their savings into bitcoin or, of course, gold.

*  *  *

How will the Chinese regulators and government react to this? Especially as the volumes are start to become relevant.

 

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Wed, 11/04/2015 - 01:04 | 6747417 Grave
Grave's picture

starting to look like a proper bitcoin bullrun :D

Wed, 11/04/2015 - 01:05 | 6747422 Neil Patrick Harris
Neil Patrick Harris's picture

C'mon China, start buying litecoin.

Wed, 11/04/2015 - 01:07 | 6747427 Grave
Grave's picture

man if this goes full bull like 2013, alts will follow and amplify profits even more :)

i've loaded up on bunch, expecting at least one to go 100x (viacoin is my personal candidate)

Wed, 11/04/2015 - 01:11 | 6747440 Neil Patrick Harris
Neil Patrick Harris's picture

We're nearing the record for longest streak of weekly net gains.

Wed, 11/04/2015 - 07:44 | 6747858 VinceFostersGhost
VinceFostersGhost's picture

 

 

Stop the room from spinning......I think I'm gonna hurl.

 

http://www.zerohedge.com/news/2015-11-03/bitcoin-suddenly-plunges

 

Bitcoins are air....thus the turbulence.

Wed, 11/04/2015 - 07:47 | 6747878 Squid-puppets a...
Squid-puppets a-go-go's picture

who are these idiots putting capital into bitcoin when the coffin is open, the vampire is asleep before us and we have a wooden stake in our hands?

Comex down to 150k oz ($170mill) with paper claims-phys just shy of 300 to 1

check it out

 

Wed, 11/04/2015 - 08:28 | 6747961 SoilMyselfRotten
SoilMyselfRotten's picture

Thought this was interesting. The Web Bot predicted that soon after BTC hit 408+(in Nov) that silver would have a massive rally. Considering the prediction came when BTC was in mid 200's recently, that's impressive. Here's hoping.

 

http://sgtreport.com/2015/11/web-bots-the-coming-silver-price-rise/

Wed, 11/04/2015 - 08:59 | 6748039 ShorTed
ShorTed's picture

How much of this gain is us front-running each other?

Wed, 11/04/2015 - 11:01 | 6748557 coinhead
coinhead's picture

fonestar is still up in your shit!... or in this shit!...or fonestar is shit! 

SATOSHI WE LOVE YOU!!!

Wed, 11/04/2015 - 10:09 | 6748285 TheCanadianAustrian
TheCanadianAustrian's picture

That's not a valid comparison. The units aren't equal. You have to compare the market caps. Otherwise it's like if 1 ounce of gold were the same price of 1 ton of iron, and calling it "parity".

Wed, 11/04/2015 - 01:13 | 6747447 38BWD22
38BWD22's picture

 

 

Huh, I thought I was smart this morning to buy some gold with BTC at $410 earlier (3 Nov).  

Well, I guess not so much.  BTC is now at $444.  ounce.me

Good thing I still have a fistful of BTC left.

Wed, 11/04/2015 - 01:27 | 6747486 BadLibertarian
BadLibertarian's picture

I like viacoin as well. I'm new to alts, so that's going to be my first purchase.

Wed, 11/04/2015 - 01:40 | 6747520 Grave
Grave's picture

just put up limit order bids, they will get filled with a bit of patience, there's plenty on bittrex right now :)

although subsidy halving is coming in a couple of weeks, that means daily supply will be cut by 50% (not to mention 85% of total supply is already distributed)

Wed, 11/04/2015 - 02:11 | 6747580 JustUsChickensHere
JustUsChickensHere's picture

The halving is not in 'a couple of weeks'  ... try to be precise. A bit over 37 weeks at the moment.

Ref: http://bitcoinclock.com/

Wed, 11/04/2015 - 02:23 | 6747603 Grave
Grave's picture

viacoin halving ;)

Wed, 11/04/2015 - 04:01 | 6747690 BadLibertarian
BadLibertarian's picture

That's exactly what I did. Took a few hours to fill my complete order in chunks, but I don't think I walked the price up too much doing it.

Bittrex is pretty cool. It took me a few minutes to figure it out, but wow - very intuitive after that. I never realized there were so many alt coins you could trade.

Wed, 11/04/2015 - 04:57 | 6747726 Vylahkinnen
Vylahkinnen's picture

Hey Tyler - what's with this Russian freight plane that crashed in South Sudan - 40 dead - passengers were mostly Russians?

Wed, 11/04/2015 - 04:59 | 6747729 Vylahkinnen
Vylahkinnen's picture

Russian Cargo Plane crashed in South Sudan - maybe 40 dead

https://www.rt.com/news/320710-antonov-plane-crash-landing/

 

Wed, 11/04/2015 - 07:23 | 6747843 FlacoGee
FlacoGee's picture

Quote, "The plane was owned by the local Allied Services air carrier, he added."

I find it strange you said "Russian Cargo Plane".    When a Boeing that is owned by a cargo company in some African shithole crashes do you say, "American Jet crashes"?

Wed, 11/04/2015 - 01:03 | 6747418 Boris Alatovkrap
Boris Alatovkrap's picture

Bitcoin is soaring? This is quick bring attention of Chinese political class!

Wed, 11/04/2015 - 03:21 | 6747660 A Nanny Moose
A Nanny Moose's picture

You look different. New hairdo?

Wed, 11/04/2015 - 07:25 | 6747849 nmewn
nmewn's picture

I'm sure Vice Public Security Minister Meng Qingfeng will get right on it...lol...afterall, an attack on the states monopoly of currency is an attack on the state itself, is it not? ;-)

Wed, 11/04/2015 - 04:17 | 6747533 Grave
Grave's picture

wait for openbazaar release, its ebay killer
(decentralized contracting platform that enables two or more parties to trade anything, with bitcoin payments)

Wed, 11/04/2015 - 13:45 | 6749294 Bunga Bunga
Bunga Bunga's picture

... and no fuckin' fees.

Wed, 11/04/2015 - 01:03 | 6747420 Haole
Haole's picture

Well...

BTC, BTChez

Wed, 11/04/2015 - 03:22 | 6747661 A Nanny Moose
A Nanny Moose's picture

Ah c wut ya did thar.

Wed, 11/04/2015 - 01:16 | 6747460 NoBillsOfCredit
NoBillsOfCredit's picture

Silver is another choice. Why do writers always do an incomplete job?

Wed, 11/04/2015 - 05:45 | 6747758 Squid-puppets a...
Squid-puppets a-go-go's picture

you mean, Why do writers always do an incomplete j~

Wed, 11/04/2015 - 07:46 | 6747877 VinceFostersGhost
VinceFostersGhost's picture

 

 

Crazy silver bastards.....I use be one of them.

 

In a small way.....I suppose I still am.

Wed, 11/04/2015 - 01:17 | 6747464 arbwhore
arbwhore's picture

Chinese finally net buying gold again tonight after several nights of net shorting.

Wed, 11/04/2015 - 01:32 | 6747501 Treason Season
Treason Season's picture

Linky? TIA

Wed, 11/04/2015 - 01:59 | 6747557 Illuminatig
Illuminatig's picture

Take a look at Ethereum (the evolution of Bitcoin). Microsoft and big banks are already all over the tech.

Wed, 11/04/2015 - 02:42 | 6747621 Grave
Grave's picture

thats the "zune" of cryptocurrencies haha

Wed, 11/04/2015 - 04:19 | 6747704 15horses1donkey
15horses1donkey's picture

Hey, if your interested, I could do with help creating the Zero Hedge of cryptocurrencies. http://zhc0.com

 

Wed, 11/04/2015 - 22:14 | 6751867 SILVERGEDDON
SILVERGEDDON's picture

15horses1donkey.

IF ZERO HEDGE HAD A FUCKING CURRENCY OF IT'S OWN, IT WOULD BE MINTED IN INCORRUPTABLE NON HYPOTHECATED NON DERIVATIVE NON MARGIN ABLE SILVER OR GOLD.

Jesus, fucking kids these days. You all think technology is a miracle. All it is is electrons that can be made to go poof any fucking minute now.
Crypto currency is just a fancy name for digital fractional reserve banking - without the reserve, or the bank.

If I blew up your phone right now, you would look like a cow at the slaughterhouse just at the moment the bolt gun goes off - " How could you do this to me ? What'll I do now ? "
Improvise. Adapt. Overcome. Triumph over adversity.
And, transform your idea into minting a fucking physical coin out of noble metals, with Tyler's permission before he copyright lawyers your ass into bankruptcy.

Wed, 11/04/2015 - 10:12 | 6748309 TheCanadianAustrian
TheCanadianAustrian's picture

Take a look at HD DVD, the evolution of Blu Ray!

 

Mon, 11/16/2015 - 02:28 | 6798598 coolguy43
coolguy43's picture

Bit Coin is really hard to predict. I take chinese classes online skypea at http://preply.com/en/chinese-by-skype said the investment may not be worth it.

Mon, 11/16/2015 - 02:28 | 6798599 coolguy43
coolguy43's picture

Bit Coin is really hard to predict. I take chinese classes online skypea at http://preply.com/en/chinese-by-skype said the investment may not be worth it.

Wed, 11/04/2015 - 02:26 | 6747605 83_vf_1100_c
83_vf_1100_c's picture

Fuck! Now the BCers will never shut up.

Wed, 11/04/2015 - 07:00 | 6747807 xrxs
xrxs's picture

Sorry, no time to talk, to busy counting all of the commas.

Wed, 11/04/2015 - 10:03 | 6748271 fiftybagger
fiftybagger's picture

Why should they?  They were proven right, and you were proven wrong.

 

Silver For The People

The Bitcoin Channel

Wed, 11/04/2015 - 02:36 | 6747615 mijev
mijev's picture

The big boys are going to try and step on this over the next few hours and I'm pretty sure they have some big guns at their disposal. As far as volatility goes this could be fun to watch.

Wed, 11/04/2015 - 03:10 | 6747639 Kirk2NCC1701
Kirk2NCC1701's picture

Not opposed to BTC or crypto-currencies, but I am skeptical of them.

Don't trust anything with an electronic trail, no matter what the techno-geeks claim.  If they're wrong, it's not their ass on the line.

I'd use it for fun or legal stuff, where I want to keep non-Gov people in the dark for reasons of privacy.  E.g. besides using Cash and PM, I'd use Crypto as non-reportable and non-traceable liquid assets, to protect them from Opportunistic Predators (ex-GF, ex-wife, ex-anything and their lawyers).  It simply raises the cost of the Litigation & Discovery process, to the point where they give up or become reasonable human beings.

Wed, 11/04/2015 - 07:19 | 6747835 herkomilchen
herkomilchen's picture

Don't trust anything with an electronic trail

Understood.  Bitcoin is v1.0 technology.  Look for v2.0 / bitcoin's successor to address this.  Amazing technology is in the pipeline.

 

Wed, 11/04/2015 - 07:42 | 6747873 crazytechnician
crazytechnician's picture

Sorry your wrong there - bitcoin must have been in development for 20+ years , nothing is going to supercede it for the foreseable future. Whoever designed it seemed to have covered all the angles.

Wed, 11/04/2015 - 13:14 | 6749139 herkomilchen
herkomilchen's picture

Sorry, you're wrong there.  Bitcoin is an amazing innovation introducing groundbreaking concepts coupled with good-old-fashioned incentive balancing found in free markets.  But it failed to address the exquisitely painful verifyability vs. anonymity problem.

No complaints, happy for what we got.  But the next generation of cryptocurrency technology builds on top of bitcoin's innovations and also provides anonymity.  Then and only then will you see bitcoin rip the faces off of fiat currencies and not look back.

Wed, 11/04/2015 - 13:53 | 6749287 crazytechnician
crazytechnician's picture

bitcoin is as anonymous as it's user wants to be. There is a huge online dark drugs market using bitcoin and Tor , nobody can track who they are or where they are.

Also , perhaps you fail to acknowledge that "currency" is just the first "app" of the bitcoin blockchain. New apps are being built right now which allow stocks , titles , insurance , shares , property , bonds and commodities to be traded over the blockchain in realtime , the blockchain itself becomes the clearing house and totally removes all counterparty risk at the same time. If you take away the transparency and go dark then it will be impossible to use bitcoin blockchain for anything else apart from dark currency , thus you restrict it's use to just a single application - currency - this would be a bit like saying you can only use the internet for a single use only to send email before web browsers skype google facebook ZH you name it came along and also run over the internet , blockchain will be the same there are a million other apps waiting to be written that will use bitcoin's blockchain.

Wed, 11/04/2015 - 15:05 | 6749612 herkomilchen
herkomilchen's picture

You're naive if you think pseudonymity = anonymity.  You may not be familiar with the power of big data analysis and the resources governments can bring to bear and wealth of data at their fingertips enabling them to associate pseudonymous bitcoin accounts with names.

It is for property transfers just as much as money transfers that anonymity is valued.  Knowing who holds stocks, titles, property, and commodities, and who is transferring them to whom, is no less sensitive information than who holds how much money and is transferring it to whom.  What matters is the fact that an individual unambiguously owns something.  A blockchain with integrated anonymity does that just fine, thank you very much.

And if you are dead set on identifying yourself, i.e. you see particular value in it, an anonymous holder of money or property can authoritatively identify himself to the entire world with the press of a button.  Identified transfers are just a superset of anonymous transfers.

Wed, 11/04/2015 - 16:17 | 6749950 crazytechnician
crazytechnician's picture

Have you ever created a bitcoin wallet ? It's a random private key , totally impossible to know where it's physical location is , you cannot physically locate it because the balance data in that wallet is  not held in a single location it's mirrored across thousands of computers located all over the planet.  You clearly  have absolutely no idea how bitcoin wallets function.

Fri, 11/06/2015 - 14:27 | 6755202 herkomilchen
herkomilchen's picture

I think you're a freedom lover, so please do me a favor and don't go get arrested for buying some "no-no" item with bitcoin thinking you're anonymous.  Right now you're stuck in the mathematical theoretical world.  Humans use bitcoin in the real world.

The blockchain affords a detailed picture of every satoshi transferred - time and address.  The Feds have staggering amounts of real world data including records of to and from mailing addresses of every package and letter sent.  Cell phone movement location tracking of every person.  Not to mention all credit card and bank transactions.  And any Internet connection data they'd like to capture and mine.  They have all this data and more and have all kinds of analysis techniques to figure things out (http://orbilu.uni.lu/handle/10993/18679).

Individually, none of these data may be useful or damning.  But if you intersect them all intelligently a clear picture of who people are and what they are doing emerges.  A picture easy to intersect with bitcoin addresses not otherwise identifiable.  Then whatever bitcoin addresses do get identified can be leveraged to identify other addresses on the chain.

Google the subject.  There is a lot of info out there on it.  For your own sake, I hope you expand your awareness of how easily bitcoin address pseudonymity is stripped away when one also has at hand all the other data that humans spew off while using bitcoin revealing who they are what they are up to just by doing ordinary things that seem harmless.

Wed, 11/04/2015 - 03:56 | 6747689 shitco.in
shitco.in's picture

Lol at the "BIS induced plunge"...

What actually happened?

The bulls had been pushing to margin call the shorts on BitFinex for weeks now, and finally cleared up a large portion of them around $400. 

https://bfxdata.com/swapstats/btc.php

This gave us the fuel to pop through $400 the first time. 

The drop was just traders taking profit, then the organic buying resumed. 

Come on ZH. If you're gonna pump btc, get the facts right. 

Wed, 11/04/2015 - 06:50 | 6747800 mijev
mijev's picture

The bigger question is where it will be one day, one month from now. Hindsight is a helluva lot easier than trying to predict where things land.

Wed, 11/04/2015 - 04:10 | 6747699 katchum
katchum's picture

This looks like a trap.

Wed, 11/04/2015 - 07:59 | 6747889 Arnold
Arnold's picture

Smells like a trap.

Tastes like a trap.

 

Must be a trap.

Wed, 11/04/2015 - 04:55 | 6747724 Balvan
Balvan's picture

Don't get fooled by this pump (willy bot 2.0 most likely), price was in low $200s for months and now suddenly people start buying like crazy for no apparent reason, yeah right. This was orchestrated by only couple of individuals or entities.

When it crashes, minority will take profits and majority who bought into this fake rally will end up holding the bag as usual.

I doubt price will be above $250 by the year's end.

Wed, 11/04/2015 - 05:00 | 6747730 PaperWillBurn
PaperWillBurn's picture

I doubt it will be below $2,500

 

Rally is drawing big attention.

 

"The Economist" gave a buy signal to the big boys. 

Wed, 11/04/2015 - 06:45 | 6747789 Balvan
Balvan's picture

When you see it on front pages in news media, it's already too late to buy, top is near.

Also, when ZHers turn bullish on something, you know crash is inevitable.

Wed, 11/04/2015 - 07:44 | 6747874 crazytechnician
crazytechnician's picture

Heard the same story when it crashed from 2 dollars down to 25 cents. There were plenty of 'bagholders' then too.

Wed, 11/04/2015 - 04:55 | 6747725 Robert.Paulson
Robert.Paulson's picture

N0 C01NZ, N0 Gl0RY!

https://i.imgur.com/ZVUJFdI.jpg

Wed, 11/04/2015 - 07:18 | 6747827 Wow72
Wow72's picture

 

The higher it goes the more incentive there is to short it and hack it!  Maybe it will get a real life test.  Secure digital "money"? Think about that folks.

Wed, 11/04/2015 - 07:16 | 6747829 herkomilchen
herkomilchen's picture

sit back and watch as we witness the second coming of the bitcoin bubble

This is an inane comment from someone so bitterly used to talking about goosed fiat "market" gyrations he can't give up the lingo or the mindset.

Speaking of this rise in bitcoin's price as a bubble makes as much sense as talking about a gold price bubble if gold spiked in response to capital controls.  Or talking of a horseless carriage bubble back in 1910.

A rise in price is not a bubble if it is not driven by speculators.  A rise in price because of mounting consumer demand for an increasingly valued good or service is just that.

Wed, 11/04/2015 - 12:28 | 6748921 Anopheles
Anopheles's picture

This rise IS becasue of consumer speculators.   If the value was falling, what do you think would happen to demand? 

Wed, 11/04/2015 - 07:20 | 6747830 Latitude25
Latitude25's picture

Don't worry it's not market manipulation even though every other market is.  It's the incredible inherent value of bitcoin.  It's now the reliable contrary investment to pet rocks.

Wed, 11/04/2015 - 07:45 | 6747851 Wow72
Wow72's picture

Oh ya a few days in the spotlight after being dumped and its as good as gold? We wonder why no one wants to go near the market because there are no rational thoughts anymore?  Im sure it will never crash AGAIN.  Kryptonite really.  Good luck working the "bugs" out.  Someone please short it and hack it and wipe the smile of these Aholes faces?

AND really its anonymous to use...and I have a bunch of bridges that are about to go up for sale too if anyone is interested, CHEAP because they are in great need of repair, the more this gets pushed the more Im convinced our gold is gone. We have no leg to stand on, therefore Bitcoin? We are fucked.  Imagine the eastern world thinking gold is worthless? Im laughing, only in America would people chase a digital coin?

Wed, 11/04/2015 - 07:46 | 6747876 crazytechnician
crazytechnician's picture

"Someone please short it and hack it and wipe the smile of these Aholes faces?"

Just thrown your rattle of of the Pram ? According to you Flat Earth guys it has already been hacked ....

Wed, 11/04/2015 - 07:58 | 6747886 Wow72
Wow72's picture

Look,  at this point Im agruing the other side, Im open to Bitcoin, but holy shit this thing is just being born, I think everyone needs to calm down abit? The hype that builds is ridiculous?  Bring things into persective, if you want to put some throw away money in it fine?  Why dont you explain what makes it Kryptonite?

Wed, 11/04/2015 - 08:29 | 6747966 Latitude25
Latitude25's picture

Dude.  That's fonestar there you're debating with.  Logic does not apply.  Save your key strokes for a relevant foe.

Wed, 11/04/2015 - 08:09 | 6747884 Wow72
Wow72's picture

Digital coin and Paper Money, theres a difference? Ones more secure? One has more freedom, Really?

 

Digital Coin/  NOT =  /work/  NOT =  /money

Gold = Work = Money

Bitcoin has some proven to do.

Doesnt fit well in the "money" equation?

Asians will use it as a "transfer" not a "store"

Wed, 11/04/2015 - 07:50 | 6747880 Panic Mode
Panic Mode's picture

Next target is $666

Wed, 11/04/2015 - 08:02 | 6747895 Arnold
Arnold's picture

Might as well let it gain value before we take it away from you.

 

--ChiCom Central

Wed, 11/04/2015 - 08:02 | 6747897 crazytechnician
crazytechnician's picture

Already smashed it next stop 500 then parity with GOLD.

Wed, 11/04/2015 - 08:06 | 6747905 Wow72
Wow72's picture

If what you say is true, then governent is pushing this??? SAFE?

Wed, 11/04/2015 - 08:51 | 6748017 crazytechnician
crazytechnician's picture

Nope , it's called DEMAND. Only 3500 coins per day are mined .... And that drops to 1750 per day next year. Think about it.

Wed, 11/04/2015 - 09:25 | 6748075 Wow72
Wow72's picture

I thought about it.... DIGITAL COINS MINED.... LIKE  A VIDEO GAME FANTASY?  Might want to get out and look around yourself?  There still are trees out there.  But wait there is a limit, unlike the FED HAS? Maybe they are learning from their mistakes? Ya know what I bet I could get my hand on some minecraft coin while its still cheap too.  Please move away from the gaming console its ruining you.

Wed, 11/04/2015 - 09:33 | 6748133 crazytechnician
crazytechnician's picture

Yeah , just like your online banking , CC and ATM , air traffic control systems , telephone network , signalling systems , commodity exchanges are all just gaming consoles right ? Wake up , it's all DATA , aka information - information that is capable of transmitting VALUE over a network. Try thinking a little harder.

Wed, 11/04/2015 - 16:49 | 6750091 Wow72
Wow72's picture

Its all B.S. to me at this point.  I see it as nothing more than a minecraft wet dream? Ya its all just gaming consoles, EXACTLY

Wed, 11/04/2015 - 12:35 | 6748949 Grave
Grave's picture

its not really mining, its called like that because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground

what happens in reality is a process of adding transaction records to bitcoin's public ledger of past transactions called blockchain, using complex mathematical algorithms

Wed, 11/04/2015 - 08:03 | 6747899 taopraxis
taopraxis's picture

You know what? I'm not interested in Bitcoin and I'm never going to be interested and it is not because I am old or a tech tyro. I was configuring peer-to-peer computer networks thirty years ago but, today, I do not even own a cell phone. Why? Simple...I don't like to talk on the phone.

I dislike hype, especially when I think that hype is a cover for bankster fraud. Gold is the central bank's weakness so they've invented countless forms of ersatz gold to comfort those who are wisely skeptical about the integrity of their ersatz money.

Bitcoins are supposedly "mined" on computers? Mined? You mean like *gold* mining? High tech term, this "mining" concept?

Seriously, this has Wall Street's dirty fingerprints all over it. I want absolutely no part of it and I do not plan to comment on it ever again. I'm simply going to ignore it the same way I ignore other wonderful modern conveniences, like student debt, mortgage debt, margin debt, car loans/leases and a life of servitude.

 

Wed, 11/04/2015 - 08:41 | 6747931 Wow72
Wow72's picture

Exactly, its like being lured to a mouse trap with cheese. You would think after a few hundered years of doing it the mice would learn?  but NO.....   Its all about gold and balance which there is none of either left.

Wed, 11/04/2015 - 10:17 | 6748340 ultraticum
ultraticum's picture

Perhaps this one little book will enlighten those BTC haters who spew inane things like "it's a government invention", etc:  http://www.amazon.com/Digital-Gold-Bitcoin-Millionaires-Reinvent/dp/0062...

 

 

Wed, 11/04/2015 - 08:32 | 6747972 blabam
blabam's picture

Pro tip: don't spout your opinion after you state that you are not interested (uninformed).

Wed, 11/04/2015 - 08:54 | 6748025 crazytechnician
crazytechnician's picture

If you hate is so much then why are you even commenting , surely you must have better things to do with your time ?

Wed, 11/04/2015 - 08:13 | 6747915 Flying Wombat
Flying Wombat's picture

The prospects for how massive Chinese capitali flight's impact might PROVE to be... Yeah, that would be one heck of a show.  But sadly, there proabably will be a Chinese government response at some point.  Regardless, early days in this move?

Wed, 11/04/2015 - 08:34 | 6747975 blabam
blabam's picture

If history is an indication, early days. 

Wed, 11/04/2015 - 08:14 | 6747925 Silver Shield
Silver Shield's picture

#Banksters wet Dream is digital money.
Bitcoin is their test tube baby.
Bernanke, Yellen, Blythe Masters, Bill Gates, JP Morgan, Citicoin all love BitCon.
Silver is their archenem since the Crime of 1873.

Wed, 11/04/2015 - 08:29 | 6747967 Wow72
Wow72's picture

Thats all that needs to be said, GOOD LUCK TO THE REST OF YOU.

Wed, 11/04/2015 - 12:44 | 6748981 Grave
Grave's picture

you do realize the debtfiat you're using is already "digital", in the sense most of it is stored in banksters databases

bitcoin is their worst nightmare, because it takes away their ability to create unlimited amounts out of thin air as necessary for their criminal schemes

its also the worst nightmare of tyrannical governments because it takes away their ability to impose rules on users and also cannot be destroyed by attacking central point of control

Wed, 11/04/2015 - 08:41 | 6747996 SSRI Junkie
SSRI Junkie's picture

the thieves in wash dc/wall street will create a bitcoin (et al) etf so they can manipulate those prices like they do with pm's (or have they already done so?)...

Wed, 11/04/2015 - 09:06 | 6748053 Seasmoke
Seasmoke's picture

Holy shit. U just read the comments. And I swear I just woke up and it's 2013. Scary déjà vu. I mean I'm pretty sure the comments are the exact word for word that I read in 2013.

FYI Bitcoin went from $400 to over $1100. I woke up one morning after reading I believe this same article. Decided to buy 6 @ $550 because I was bored. The thing shot up and down like a fire hose. Landed on $1100 one day when coin base had a no commission day. Said that's my signal. And got out for at the top. Better to be lucky than good. Of course I follow bitcoin every day. I'm curious. All the way back below $200. I could have bought there. I wanted to. But I didnt. I don't like how I noticed that the price of Gold and Bitcoin started to move in opposite directions on 2015. I don't remember that being so in 2013. So I stay away this time.

Wed, 11/04/2015 - 09:10 | 6748063 Wow72
Wow72's picture

Thanks for the 1st hand account.

Wed, 11/04/2015 - 09:42 | 6748164 crazytechnician
crazytechnician's picture

It's already "crashed" 5 times now . When it tops out this time it could touch 3500$ then crash back down to around 800 , the naysayers will be out again in force "bitcoin's crashed , bitcoin's crashed told you so" - until it makes another epic rally and smashes 10k , it will repeat these cycles until it find stability this could easily be 5 or 6 digits by then. It's gonna be a wild ride that's for sure.

Wed, 11/04/2015 - 10:08 | 6748292 fiftybagger
fiftybagger's picture

It's called a bull market.

Wed, 11/04/2015 - 10:11 | 6748304 Anopheles
Anopheles's picture

Which is followed by a bear market. 

Wed, 11/04/2015 - 11:17 | 6748623 crazytechnician
crazytechnician's picture

Which may not be for another century.

Wed, 11/04/2015 - 11:13 | 6748600 xrxs
xrxs's picture

If it crashes to 800, I will have 'only' quadrupled my money.  I will cry into my champagne.

Wed, 11/04/2015 - 09:40 | 6748158 NoWayJose
NoWayJose's picture

My, what a tempting piece of Cheese I see. Something smells funny though. But the Cheese! Just let me step over this metal bar. I'm almost there. What about this metal metal plate? I don't like the looks of that. But the Cheese! I want it! SNAP!

Anyone think the Chinese government is going to let this continue?

Wed, 11/04/2015 - 09:44 | 6748171 crazytechnician
crazytechnician's picture

Considering it's a global decentralised payment network I don't think they have much say in the matter.

Wed, 11/04/2015 - 10:09 | 6748296 Anopheles
Anopheles's picture

The governemnt simply makes it illegal to buy bitcoin.   Then they excecute a few people who break the rules just to let the people know they're serious. 

 

 

Wed, 11/04/2015 - 10:15 | 6748332 fiftybagger
fiftybagger's picture

Good luck with that.

Wed, 11/04/2015 - 10:20 | 6748353 ultraticum
ultraticum's picture

I'll bet you wear your seat belt 'cause your gooberment say so, not because it just might be a good idea?  Do you support criminal-fiat because your gooberment say so, or because you think it's a good idea?

Wed, 11/04/2015 - 11:18 | 6748602 crazytechnician
crazytechnician's picture

It's illegal to use drugs as well , guess what that does ? It makes them even more expensive and still extremely widely available .. I suppose you actually beleive in the governments fake war on drugs as well ?

Wed, 11/04/2015 - 12:20 | 6748888 Anopheles
Anopheles's picture

Do you think it raises the WORLDWIDE price making something illegal in one country, while legal in the rest of the world? 

 

Wed, 11/04/2015 - 13:00 | 6749078 crazytechnician
crazytechnician's picture

You mean a premium ? Well considering cocaine is 50th the price in columbia compared to somewhere like sweden then that may well happen with bitcoin. Generally making something illegal puts it into the public spotlight. If governments don't want bitcoin then they should just keep quite about it. However the bigger picture is that when the banks begin to fail unless these governments can put something better than bitcoin on the table then bitcoin is going to supercede or begin to actually underpin government fiat like gold used to. There is one thing governments are not very good at and that is agreeing with something. Imagine global governments sitting down and try to create a new currency. They would be squabbling for decades. Meanwhile bitcoin just keeps trunking along , block by block , regardless.

Wed, 11/04/2015 - 10:58 | 6748536 Pseudonymous
Pseudonymous's picture

<- Blockchain
<- Bloke Chen
Which one would you use to circumvent capital controls?

Wed, 11/04/2015 - 12:44 | 6748900 Anopheles
Anopheles's picture

All's wonderful as long as bitcoin is rising. 

What happens when bitcoin drops 10% or 20% in a day and you haven't cashed out your $250,000 becasue the exchanges limit daily redemptions?  How do you get your "lost" money back? 

Exchanges charge 1% or so to cash bitcoin, that's $2,500   Where Mr. Chen charges a couple hundred dollars.  

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