Bitcoin Spikes Above $2800 For First Time As "Japanese Buying Frenzy" Continues

Tyler Durden's picture

It appears the Japanese bought the f**king dip in Bitcoin last week, as tonight's session has seen s sudden surge in the price of the virtual currency, taking out prior record highs and topping $2800.

Additionally, Bloomberg reports, the speculative frenzy in bitcoin is spilling over into several small cryto-currency-related stocks on the Tokyo Stock Exchange.

 

But it's not just Bitcoin that is soaring, Bloomberg reports that Remixpoint Co., Infoteria Corp. and Fisco Ltd., have all seen volatile swings in their share prices after announcing businesses related to digital currencies.

Remixpoint, which has more than doubled since tying up with Peach Aviation Ltd. to let customers pay for tickets with bitcoin, fell as much as 9 percent in Tokyo on Tuesday.

 

Infoteria, up more than 50 percent in the past month, is testing ways to let shareholders vote by proxy using blockchain, bitcoin’s underlying technology. 

 

Fisco, a financial information services provider, began operating a bitcoin exchange last year and is up about 25 percent since early May.

All of these gains coincide with bitcoin’s rally, with the value of the virtual currency doubling against the U.S. dollar since early May. That has made the stocks of the these small-cap companies an attractive way for speculators to invest in cryptocurrency markets without buying them directly. That’s because investors can make bets via their brokerage accounts instead of taking risks with bitcoin exchanges, according to Naoki Murakami, a well-known day trader in Japan.

“From about a month ago when all these virtual currencies started spiking like crazy, we began seeing the so-called ‘stocks of the virtual currency bubble,”’ said Murakami, a frequent speaker at investor conferences.

 

“Not everyone is sure they can trust bitcoin exchanges. And some don’t have accounts there. That’s why they’re using the stock market to speculate.”

Another reason why these stocks can become proxies for bitcoin is due to Japan’s relatively loose listing laws, some of which require no income and a market value of as little as $10 million before a company can go public. That’s made the Tokyo Stock Exchange home to hundreds of small companies.

“It’s pure frenzy,” Murakami said.

In April, Prime Minister Shinzo Abe’s government legalized digital currencies as a form of payment and placed rules around audits and security. That lent credibility to digital currencies, leading to some Japanese companies seeking partnerships with bitcoin startups.

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bobdobolina's picture

wow much coin very bubblicious get in on it while the getting is good!

Heavy's picture

Mainstream monetary theory and practice is straightforward and honest...wait no...that's wrong...it's the exact opposite of that...

BaBaBouy's picture

Wow GOLD is also up 89... Not really but its coming...

Manthong's picture

I like crypto and the blockchain but mark my words…

Mean reversion is in the future for today’s crypto.

But its best value now is to illustrate how quickly masses of people will flee CB/Gov debt based fiat.

Ultimately, a hard, relatively stable asset will need to back the digital currency.

Until then, it may be a means of exchange and fungible but it is in no way a store of value except theoretically.

BaBaBouy's picture

Its possible BTCers will find a way to finance backing Bitcoinz with say 10 ozs of Phys GOLD Per.

This formula could possibly work, and each BTC would have a hard asset behind it. Would also be good for GOLD as a shitload would have to be bought on the open market.

Alternately, a new "BitGOLD" could be introduced doing the same thing with a Blockchain and PHYS GOLD behind it. I think its just a matter of time (year), And the paper CMX GOLD will be totally irrelevant...

J bones's picture

So back something of thin air with a real tangible asset? What are you putting your cash on the asset part? Or the thin air part?

BaBaBouy's picture

What do you think Cash Is ???

J bones's picture

Well cash is tangible but it is not a store of value. And wont be using my cash to purchase coins that arnt both. So why by bitcoin when you could just buy the real asset, gold.

J bones's picture

Im not a stock guy.
I hope it sinks to 6k like 09

Exponere Mendaces's picture

LOL

Only a complete fool would compare equities to Bitcoin.

There's no dividend, no reporting to stockholders, no stock. Its a system to send value 24/7/365 across the world. If you can't see the potential in that -- don't worry, the market already has.

That's why its trading at $2,844 right now.

Where is gold at again? LOL, lets see... $1,288

How embarrassing for you.

 

TwelveOhOne's picture

That's a dailywesterner dot com link, don't follow it people.  This is another of Xythras' team of accounts which for some reason the Tylers don't feel they should clean up.

J bones's picture

My point is that bitcoin isnt both. Its not an asset and thin air! Its a bubble full of thin air. So ill put my cash on the asset part i wouldnt buy bitcoin cause its backed by gold i would just buy gold.

After all you bitcoiners ace up the sleeve is gold is manipulated so when would you take magical bitcoins and back them by gold?

You must be feeling that bitcoin can rule all without being IDK real?

kochevnik's picture

Note that universe is 96% invisible dark matter.  The part you consider real is only 4%.  Your reality is the abberation

J bones's picture

Working
Eating
Sleeping
Pooping
Money
Those things are real and those things i depend on so seems more like 100%

kochevnik's picture

As swing trader I study how market seems.  Then usually do exact opposite

Exponere Mendaces's picture

Not real?

There are people living off of Bitcoin now.

There are Bitcoin millionaires laughing at you as you type.

Its real enough. The yields are real enough, too. But being a government captured Gold enthusiast, you don't have the stomach for something new.

And that's great -- more for me.

 

King of Ruperts Land's picture

It is not 'thin air' It is physical. You hold an actual secret key that only you know, that represents your quantity of Bitcoins. It is crypto physical.

You rely on the "bitcoin network" which is other bitcoin holders/users recognizing that your Bitcoins have value just as when holding gold you rely on others to value your gold when you want to sell it.

The Bitcoins are rare because everyone agreed on their rarity as part of the algorithm. Just as everyone agrees that gold is gold and brass is not gold, similarly everyone agrees that Bitcoins generated according to the original algorithm are Bitcoins and anything else is not.

The blockchain is the record of all the origins and transactions of all Bitcoins that exist and prevents double spending.

spdrdr's picture

Well, at least I got a tulip bulb for my investment - but it died!

King of Ruperts Land's picture

That is silly. Where would the gold be? If you want gold, hold the physical gold. Bitcoin is it own thing. You physically hold it. Like you physically hold gold.
No one "owes it to you". That is the beauty of physical gold. That is the beauty of physical Bitcoin. you hold the Bitcoin. No one "owes you " the bitcoin. You have it in your hand... only YOU. It IS physical. Crypto physical.

Get your mind around that. It does not shine and be heavy like gold, but you DO hold it in your hand exclusively, if you have generated your random number in secrecy.

You can then transfer it to someone else over electronic signals, and gold does not give you that ability. This is a type of NEW GOLD. It does not need any gold "backing". It is much rarer than gold.

blargg's picture

So they'll pay the gold holders what in exchange for this gold to back Bitcoin?

Exponere Mendaces's picture

WRONG.

But you're a long-time ZH commenter, so I'm not surprised.

When you get your head out of the sand, don't be too bowled over at the Bitcoin price in relation to Gold.

You won't like it.

 

King of Ruperts Land's picture

Bitcoin is still a small fraction of gold smarty (training) pants. It could get there though.

Bitcoin: $46,301,224,013 USD
Gold: $7,698,000,000,000 USD

King of Ruperts Land's picture

You don't get it. There is no MEAN yet because its new and is just catching on.

When it stores as much value as gold (tried and true but an old relic) it will be BC half a million$.

TheRideNeverEnds's picture

Watch as Bitcoin doubles again before you see gold go a hundred dollars higher.

Your "precious" metal is the laughing stock of the financial world; sold by grifters and only bought as an investment by fools.

Deathrips's picture

Japanese love corgis...just on that they will buy dogecoin?

Magic 8 ball tells me.

 

RIPS

Heavy's picture

there's meme's about Doges not being Corgis, agree with ya otherwise

MayIMommaDogFace2theBananaPatch's picture

Yeah, DOGE == Shiba.  

Corgis are just not the same sort of cool.

discopimp's picture

Actually the Dogecoin is based on the Japanese dog 

Shiba Inu
abyssinian's picture

Even the big boys are exchanging their soon to be worthless paper money in to cryptocurrencies... Get in now before it gets to $5000

 

Buy Ethereum! been telling everyone here get in since $50.... those who listened already 5 times their money in less than 3 months... 

 

Oswald did it's picture

$3k before the weekend is here

Euskara's picture

The name was..... Fonestar

Heavy's picture

Is it too late to steal a trademark for Fonestar tee-shirts?

Also placing buy on Dow 10,000 hats

Surging Chaos's picture

Fonestar has the last laugh now. That guy is so fucking rich. And if he continues to HODL, he will be a 0.01 percenter in no time. Bitcoin will reach six digits by the time we are in the 2020s.

zipit's picture

Smells like a blowoff top in the offing (or already here?).

tmosley's picture

Accumulation leads to frenzy leads to higher highs leads to pop leads to higher lows leads to more accumulation, and so on.

Crypto is here to stay. Bitcoin probably is too. Best to hold out some cash to buy on the next big drop, but only if you already have at least a little exposure.

stitch-rock's picture

This is the first time anyone has seen anything even close to real price discovery in our lifetime.

CJgipper's picture

I sold half my holdings tonight.  ETH all time high.  Bitcoin all time high, then went vertical.  LTC near record high......

 

I sold half and put in orders spanning a 15-30% correction.

lickspitler's picture

Mosley, glad to see you finally came round to bitcoin it took you ages. I remember you as a Bitcoin hater on TF metals.

 

Glad you gave up on that Gold to $5,000 bullshit and got with the program. 

 

King of Ruperts Land's picture

'Crypto is here to stay' Agreed, and Bitcoin is the Granddaddy. You ain't seen noth'n yet. There are only 16,362,117 of them. BUY and HOLD.

MaesterBlaester's picture

Will post significant all time high before short-term correction

Anteater's picture

SIGNS AND TRIBULATIONS FOR WHEN TO SELL, QUICKLY:

Street corner handmade signs: "We pay CASH for your gold!"

Street corner handmade signs: "We pay CASH for your house!"

ZH paid advertising spams: "Japan on Bitcoin Buying Frenzy!"

SHEEPFUKKER's picture

It's either a prelude to a cashless society or a way to protect yourself from our fiat world. Place your bets. 

King of Ruperts Land's picture

Bitcoin IS CASH. It is the ultimate CASH.

CASHLESS is debit and VISA - BITCOIN IS NOT THAT

GRDguy's picture

I'm 69; I've seen this show a few times before.

Fun to watch from the sidelines.

Just like watching a hot dice shooter in Las Vegas. 

Always glad I wasn't a participant at the table.

the edge of chaos's picture

WOW...what a safe, boring, stale life...go kill yourself....no one would care!

MANvsMACHINE's picture

He likes to watch others eat steak and lobster too. He revels in their indigestion.

CJgipper's picture

I'm playing with house money at this point.  Why in the WORLD would you want to avoid that?