Bitcoin Soars Over $1700 - 2017's Best-Performing Currency

Tyler Durden's picture

Bitcoin is now up for 16 of the last 18 days, soaring over 50% in the last month and up almost 90% in 2017 - making its the year's best performing currency.

There appears to be no specitic catalyst for today's move as the surge in Japanese interest (as we detailed here) and news that Russia is considering, like Japan just did, to allow cryptocurrencies as a legal payment method are outweighing fears over 'hard forks', SEC rejections, and Chinese crackdowns.

 

One wonders whether this 'spurious' correlation has anything to do with Bitcoin's rise - as Venezuela's black market Bolivar plunges into hyperinflationary collapse, non-fiat currencies are bid...

We summarized the ongoing bitcoin frenzy as follows last week: "just as the Chinese bubble frenzy in bitcoin is fading, it may be replaced with a new one, in which thousands of Mrs. Watanabe traders shift their attention away from the FX market and toward digital currencies" and added that "If the transition is seamless, there is no telling just how far this particular bubble can grow."

Five days later and $250 dollar higher, we are observing first hand how accurate this prediction may have been, although like last week, we have no way of telling how long this particular mania phase will last.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
FreeShitter's picture

Something the dirty jooz cant fuck with atm.

FreeShitter's picture

I said ATM....obviously its higher.

ZH Snob's picture

if nothing else, it is psychologically uplifting to watch my BTC rise every day instead of obsessing over my PMs going in the opposite direction.

DeadFred's picture

That chart engenders optimism that this time it's different and the trajectory is really, really heading to the moon. What could possibly happen to a chart like that?

Haus-Targaryen's picture

BTC: Either explodes to 13k or back down to 750 or so. 

Bolivar: lol 

BullyDog's picture

The big difference between the @phonystars and the PM bulls is that eventually when the inevitable "And its gone" happens.

There will be nothing left to soak up salty tears for the bitcoiners.   Where as if PM goes to 0 (which it never could) at least you have some physical metal to make into stuff.

 

Gilnut's picture

The REAL risk to BTC is the fact that hackers are demanding payment in BTC.  At some point Big Brother is going to step in and regulate, at which point BTC drops like a lead zeppelin (see what I did there)  LOL.  THAT's the real risk.

business as stusual's picture

What??????????????????? So according to your logic the Fed Gov. should have stepped in and done something whenever a plane got hijacked, or a person kidnapped or taken hostage for ransom?

Manthong's picture

I have nothing against crypto currencies, but how do you spell “bubble”?

FrozenGoodz's picture

How much is it worth when the power goes out?

Gilnut's picture

Wow, did you read my comment ass-backwards.  Nowhere in my comment did I say GovCo SHOULD do anything, I'm saying they WILL.  Difference.

1stepcloser's picture

The real risk is government (all types) hate competition.  They either confiscate or make it illegal to redeem your bitcoin and Alt-coins..  Thus sending them to Zero

therover's picture

Well we know what happened when Keith Moon (some say John Entwhistle) said Jimmy Page's new band would fall like a lead zeppelin...LED ZEPPELIN !

BTW....I am a PM stacker because I can see it, feel it and convert it easily if need be. Not sure those obsure Amish farmers I buy fresh produce from would take BTC at this point...but they may in the future. They are a resourceful bunch.

SolidAssets's picture

she was a waitress in a cocktail bar now she owns a jet... http://bit.ly/2jdTzrM

Mustafa Kemal's picture

false dichotomies are not required or helpful. You can have BOTH.  We do and are enjoying the rise in the crypto market while enjoying the fact that we have a PMs to balance it out. 

business as stusual's picture

13,000 by April of 2018. I will wager 10 oz. of silver, any takers?

Mustafa Kemal's picture

 

Ill take that bet. Easy.

Hedging 160$ againts the unpleasantries of making 100K profit on my BTC. Yes, I would do that.

MFL5591's picture

Bitcoin $1700, Gold and Silver pushedlower by the Tribe!

FreeShitter's picture

I own all three and more...but since 2011 the banks have cornered gold in the meantime BTC is making me some money.

achmachat's picture

Calling it currency is ok, as it's used for transactions.
As long as you don't call it "money"... 

0hedgehog's picture

Why not? They call dollars money and they are pretty much cyber digits at this point, not even worth the paper they are not printed on....to quote Gerald Celente.

achmachat's picture

calling the currency known as Federal Reserve Notes "money" is just as wrong. One criterea for money is "store of value" which clearly does not apply to Federal Reserve Notes.

toknormal's picture

Bitcoin is 'money' by any definition you care to offer.

For a start it's a far better store of value than metals since it's equally limited in supply but far more liquid.

It's also demonstrated to have been so in practice - over nearly a decade now - whereas metals have demonstrated their complete uselessness as a store of value during a period that they were basically handed an open goal in the form of a massive worldwide central bank printing spree.

Sir SpeaksALot's picture

bitcoin is much MORE limited in supply. metals comparing to bitcoin are unlitmited.

 

Thought Processor's picture

 

 

Gold and Silver are vehicles for insurance as currencies with no liabilities attached (physical only).  In the event of a real unraveling (think 2008 if the gov. did not intervene) physical gold and silver would go thru the roof.

 

The whole blockchain universe is emerging and in it's infancy still at this point.  But clearly this is the future in terms of a new construct for "medium of exchange, or value exchange."  Banks should be both interested and scared because if this realm develops as it should, you won't need a bank or any other middle man for that matter.  Ethereum is creating an entire ecosystem built upon the block exchange and decentralized architecture.  The organizations created using Ethereum (or similar blockchain design) will fundamentally operate differently from most organizations we are familiar with now.  And they may offer ways to inrease efficiency many fold.  

 

Faster, better, smarter.  This whole realm will likely impact every business eventually, much like the internet itself.  

 

I would be interested to hear opinions from others on here who are knowledgable about the blockchain sector, both BTC as well as the Alt. coins.  I know there are many here who have been following the area for quite some time.  

 

Anyone like to add what they think about how this is all developing?

 

 

Mustafa Kemal's picture

What you say is correct. Look also at Ripple, Litecoin, Dash, and Monero. Those have made me some serious bank in the last few weeks. 

IMO; the surge in cryptos is a combination of Venezuela, China, the tensions rising through the world and the uncertainties associated with Trump. You can also throw in the Shangha Cooperative and the looming collapse of the petrodollar and possibly the euro soon. When combined wtih the fact that more systems are coming up and more countries are acknowledging them, I think that the investor world has really just recently had their eyes opened to them. Expecially tbe BTC ETH put them on the stawk radar. Now that many have seen them rise dramatically they now see that some profit may be had, some real profit. So, it may be a bit of a bubble today, and I am cautious against it, but I think that the prices today are still very low. Still time to get in.

 

Ive been trickle buying for a year, and recently the wife has stopped bugging me about my wasting our funds. 

Thought Processor's picture

 

I agree, the capital flight out of certain countries you've listed above is fueling much of this.  And apparently Japan also now that they are easing restrictions on it there.

 

Ethereum is the most interesting so far to me as I can see what the potential of the entire system might be, as it has the potential to automate a lot of things in a decentralized and secure manner.  A lot of different block chains being developed for diff. purposes now though.  Early days, I agree.  We're still in the wild west stage.

therover's picture

Sorry....if something can be created out of nothing then the supply is unlimited. The limit on this stuff is arbitrary and defined by humans....DANGER.

I'll take the laws of physics over a human at this point.

Pseudonymous's picture

That's just ignorant. Are you insisting that for something to be limited and valuable it must comprise of something physical? What then of every idea, knowledge, invention, information, art, etc. that only exists in someone's head or data storage? Do you not concede that such things can be limited and valuable? Do you not see that among the infinite number of possible such things a few have value for humans?

Mustafa Kemal's picture

".if something can be created out of nothing "

Try making a BTC out of nothing. I would like to see that

Txpl9421's picture

I use it to buy physcial gold and silver.  On a very regular basis.

I don't care if it is call bull shit money.  That bullshit money is worth 10 more ounces of silver per coin this week.

 

anarcode's picture

The new rules make precious metals less money than bitcoin.

Transisto's picture

Natural selection will be based on thinking $5000 #bitcoin is too expensive VS knowing 80B is small for a global monetary system.

Txpl9421's picture

Are you going to use the "what if an emp happens" argument.

Because we are all fucked if that happens.  Your gold ain't gonna buy you food that doesn't exist.

Manthong's picture

 

"Currency?"

 

.. just as much as the electrons backed by paper facsimiles in wide use today

HRClinton's picture

TPTB want a cashless world. They like Blockchain more than Gold.

Fight, join or stay out of the way.

ClassicCommodity's picture

Bitcoin is a tool. Think of it as a tool,rather than the old skool definitions of money/currency.

noface's picture

Something something...but muh gold...muh silver...not real money.

 

How's that sand taste?

Appreciated Chelsea Clinton's picture

Your salt levels are so tangible.

new game's picture

no thanks, but an indicator of fear of gov.org doing a reach around...

Seasmoke's picture

Amazing. Gold. Silver Down 16 of last 18 days. Bitcoin is being used against them !!!!

toknormal's picture

Not amazing at all.

Bitcoin is growing in value for exactly the same reasons as gold did in the days of 'physical' markets - it supports a monetary function as a bearer token.

Metals have a slight problem travelling through wires and are therefore illiquid in modern markets. Their monetary function (the basis for their so called 'intrinsic value' which is actually not intrinsic at all, it was monetary) is broken which is why trading in metals has split into two dysfunctional descendent markets:

• a paper market that's unlimited in supply
• a physical market that's illiquid

These are no longer reconcilable but up until 2009 there was no alternative. No electronic token that could fulfil the role that metals did in physical markets, which was to support the exchange of 2 attributes of the trade:

• ownership
• posession

Post 2009, there is indeed such an asset and that's why Bitcoin is growing while metals are tanking during a period in history that should have seen them soar against a background of a 5-fold expansion of the monetary base.

0hedgehog's picture

"it supports a monetary function as a bearer token"

 

Ya, as long as the electricity/internet keep working and as long as the public's faith in it exists. The public is easily led.

toknormal's picture

There's far more 'public faith' in Bitcoin as a store of value than there is in Gold.

As for 'electricity', Bitcoin is designed for when it's on, not off. Kind of makes sense don't you think ? (Otherwise I suggest you invest in flour & water, not shiny metals).

What's more, it's decentralised which means as long as there's a single light bulb left on somewhere in the world, the asset will survive.

There will also be bitcoin nodes in space just in case that one goes out as well ;) https://bitcoinmagazine.com/articles/interview-jeff-garzik-bitcoin-space...

Txpl9421's picture

And if electricity or the internet go away tomorrow, what are you going to use for money next month?

Its a trick question.

Unless you have a store room full of virgins, nothing you have is going to be bartered for the food that is left.  You gold and silver will be sitting in your safe, along side my trezor and ledger.

Placerville's picture

This movement is called "Getting the fuck out of the .GOV system"

Decentralized is the way. Young people get it.

I still think you need to own all three. G,S,BTC.