"It's Pure Frenzy" - Bitcoin Extends Overnight Gains, Rises 200% Year-To-Date

Tyler Durden's picture

More Japanese exuberance overnight (as USDJPY and Nikkei stumbled hard) sent Bitcoin to fresh record highs, blowing through $2800 and nearing $2900 this morning - now up 200% year-to-date.

It seems the momentum trade has caught the eye of Mrs. Watanabe...

But as we noted overnight, 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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GlassHouse101's picture

Don't hold your breath, friend. . . there's 1.4 Quadrillian bad currency going into 100 Billion Good currency.

tmosley's picture

That is why you should have exposure. Your point is why you should not be anywhere close to all-in.

My currency portfolio is currently 9% crypto, 91% USD. Waiting on a pullback. If I don't get one, there are several interesting ICOs on blockchain-based companies that I am looking at.

Exponere Mendaces's picture

You can't even do math correctly.

But that's par for the course - ETH developers are known for their horrible mistakes.

Remember that error that took down 75% of the ETH nodes in the network? The devs had to scramble off stage from their China roadshow to fix it -- fucking classic.

 

WhosJohnGalt's picture

Ah, our bitter BTC shill is back at it again today.

What he forgets to include in his anti-ETH shilling, is that over BTC's 8+ years its nodes have ALSO been DoS, spammed, and attacked to the point that a large part of them were knocked offline for periods of time.

That's all part of the process though. When there's lots of money involved, those kinds of attacks are expected. How the team behind the project addresses the issues is what any investors worth their salt would be paying attention to.

As far as I can tell, BTC recovered just fine after its own attacks and so has ETH.

But since you're ideologically married to BTC, you convenitnaly ommit the facts so as to mislead people. And that's the definition of a scumbag shill.

Exponere Mendaces's picture

Its okay Galty-boy.

If you're in ETH, please, by all means... keep it!

I do love how you're minimizing all of ETH's problems like they've been "done before". How about that $14 million dollar error that Quadriga made? Isn't it funny that you can craft a "smart" contract that leaves you penniless? It certainly amused me.

And that was after the DAO problem, where a "contract as law" used the language to give someone money, only to be forked-back by the dictator-in-chief Vitalik.

You can have ETH, including its dubious ethical compass about changing the goalposts when someone finds a loophole.

 

King of Ruperts Land's picture

Best thing for Bitcoin would be if all the fiddlers and messers and blockchain is the "be all end all" people leave Bitcoin alone and move over to mess about exclusively with Etherium and other "developers" coins.

I am getting comfortable with the idea that Bitcoins best use is the ultimate high value storage coin.. the "digital gold"

RedDwarf's picture

"there's 1.4 Quadrillian bad currency going into 100 Billion Good currency."

I'll be stealing that line for my use.  You said in one sentence what I've been saying in paragraphs.  Nicely put.

People forget that Gresham's Law only applies in the context where the State can convince and force people to accept the bad money as equal to good money.  Once the bad money and/or the State fails, the reverse of Gresham's Law, Thiers Law, takes effect.

The other mistake a lot of people on ZH make is believing only gold and silver can be good money.  They see crypto currencies as scams, or having no value, etc.  I think they will be proven wrong.  Crypto currencies done correctly are I believe forms of good money.  So they will go much higher as bad money fails.

tmosley's picture

It is bubblicious, but it IS an ACTUAL new paradigm.

This bubble will be like the last one and the one before that, etc. Higher highs and higher lows.

Just get some exposure and wait for the gaps to fill to get in big.

GodHelpAmerica's picture

This is the issue I have. Dilution through new and superior cryptocurrencies, and this process is indefinite...

Russia is looking to develop its own version of ETH.

https://www.bloomberg.com/news/articles/2017-06-06/putin-eyes-bitcoin-ri...

Exponere Mendaces's picture

Canada made their own E-Coin system a couple of years back.

Utter failure.

Just because a sovereign state backs it, doesn't mean it will succeed.

usernobit33's picture

Nah, Monero, the only truly fungible digital cash!

Exponere Mendaces's picture

LOL

Yeah, keep pumping it. I'm sure Vitalik appreciates you fluffing him at the conferences.

Hey, lets look at the mempool shall we?

http://bitcointicker.co/networkstats/

Shit, look at that transactions graph - totally free and clear.... what backlog? Oh right, LIES are the currency of ETH pumpers.

 

EddieLomax's picture

Tulips at least give you something that looks nice

Exponere Mendaces's picture

Found the oldster!

Always the old people with the "tulips" remark.

Its because they don't do their research to realize that we've been through this price pattern before. A real "bubble" crashes to zero. Bitcoin has been declared "dead" 129 times.

But the old farts don't listen, because they haven't cleaned out their ears in a while. I bet they have some pretty gross wax buildup in there... LOL

 

tmosley's picture

People don't understand the difference between things whose supply increase exponentially and things with a hard cap as to the numbers. Making that comparison is foolish.

This is much more like the Railroad bubble and the Internet bubble. Both were real new paradigms, both had people go crazy with greed and fail to do their research, both POPPED, and in both cases the best companies survived and ate up the space to make their investors ultra-rich.

kochevnik's picture

Railroads were funded by banksters, hence another fiat debt bubble.  Bticoin is being inflated indeirectly due to the USD bubble.  Calling bitcoin a bubble uses false evidence

CJgipper's picture

I don't care who's funding it, I'm taking the money.  Don't fight the banks.

RedDwarf's picture

"Tulips at least give you something that looks nice"

Tulips are not fungible.  BitCoins are.

Tulips are not durable.  BitCons are.

Tulips are not limited in quantity.  BitCoins are.

Tulips are not divisible.  BitCons are.

In other words, tulips have almost none of the properties expected of sound money while bitcons do.  Comparing these things just reveals that you are ignorant if not downright stupid.

NoDebt's picture

"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."

Let that sink in for a moment.

 

tmosley's picture

New decentralized exchanges will start coming online in the next 6 months. Trustless, private, and functional.

What will you complain about then?

As it is, all you have to do today is buy it and transfer it to your own wallet. The Asians will get used to this over time, and they will abandon those secondary investments in favor of the coin itself, and investments in companies built directly on the blockchain.

Was thinking about investing in the ICO of a decentralized exchange, but it is run by Muslims in Algeria, and I don't do business with Muslims. My loss, perhaps.

CJgipper's picture

Never do business with Muslims or chinese unless you're holding the gun.

 

I've never had a decent experience with dither.

CJgipper's picture

Yeah, they still haven't figured out that the stocks are manipulated and the actual crypto isn't.

Exponere Mendaces's picture

You are surprised that exchanges have problems?

They engage the legacy banking system. Some are completely flaky operations held together with baling wire and spit. Others are regulated and vetted.

Its like any other rapidly-moving space in technology. You have the bigger trusted players, and the smaller cowboys trying to eke out a buck in trading fees.

So what?

It isn't like we're depending on a government-captured asset like Gold to fuel our futures.

Only idiots would do that....

 

Stinkytofu's picture

i was sinking about this "....due to Japan’s relatively loose listing laws, some of which require no income and...."

mmmmm.....unicorn farts!

TwelveOhOne's picture

Sounds a lot like what Jim Cramer said about Bitcoin earlier today, that the only reason to purchase it is if you're a big company hit by the WannaCry ransom virus, as the only way to pay to get your files unlocked is via Bitcoin.

Nothing about its superior features compared to cash, gold, Western Union, credit cards, etc.

When I read the quote you referenced, I subvocalized back that the middle sentence is so easy to get around -- just click "Sign Up" or "Create Account" and give the exchange generally far less information than is necessary to open a bank account, or a brokerage account -- both of which are fairly simple.

It's like they're trying to make this look far more complex and dangerous than it really is.  Their actions will delay adoption -- not halt or reverse it.

tmosley's picture

Some gaps need to be filled here. Absent a widespread move by the Asians to start abandoning their currency/bond markets for BTC, there are some big gaps in that chart that need to be filled. I will be keeping some cash on hand for $1800 and $1200.

CJgipper's picture

1200 will never happen again.  You MAY be able to buy at 1800 if you keep an order open

tmosley's picture

Don't be so sure. Never though I would have to opportunity to buy at $200 during the last peak, but there it was. If it makes a base higher than that, I won't feel bad about moving the rest of the way in. Or maybe use that cash for some other coins.

echoes's picture

I usually dont recommend this, but if it actually went back to down to 1K, i'd go bonkers with the credit cards.

Pickleton's picture

LOL, yeah, that's stability right there. Gonna replace the dollar any minute now.

tmosley's picture

Your currency is collapsing. You just don't realize it yet.

Bill of Rights's picture

Ya Only Gold and Silver were to do that...oh wait.

GlassHouse101's picture

Silver will out-pace crypto's eventually, after they are un-rigged. You want to be in crypto's AND silver.

tmosley's picture

Only when Odoacer marches through the unmanned gates, into the emperor's palace, and beheads him on the spot.

The snake won't let go until it is dead. Maybe not even then. Have to cut it apart to get it to release. By then, it could all be moot.

Catullus's picture

This is totally not like Beanie Babies

Dilluminati's picture

longaberger baskets value, a true basket case!

http://www.dispatch.com/news/20170328/longaberger-basket-building-forecl...

People are f0cking stupid, this is malinvestment and a true ponzi.  Damn near funny.

silverer's picture

Right. But you would have done well to cash out your Beanies at the peak, and buy physical gold.

nathan1234's picture

Going by their Yen , their stock markets and going by Bitcoin is the same for a Japanese.

And temporary loss of memeory of what happened to their stock market in Dec 1989 and the Nikkei at 38,000.

A fool and his money are always parted

LOL- Am sure to be down voted by anyone holding and advocating bitcoin

 

 

Arrest Hillary's picture

I'm going to down vote you for being so fucking sensitive ?

Exponere Mendaces's picture

Oh you silly bastard.

Bitcoin veterans know and expect a large rise followed by a fall.

This is the fourth time a major rally has happened, and we're more than aware of what the consequences are.

This means that we've adjusted our trading plans accordingly, knowing that the lows will be above the prior all-time highs from the last time it did this.

But keep on blathering about how everyone will be "caught unaware"... its really funny, you act like no one trading Bitcoin has a memory or charts to look at.

 

nathan1234's picture

Using profanity does not make you right.

You are welcome to put your money where your mouth is so long as it is your money

When you play cyber games you get cyber droned.

 

Exponere Mendaces's picture

LOL

"cyber droned"

oh man, oh... oh hell, I'm having trouble breathing from laughing so hard... oh man...

Please, go on... hahahahahaha

 

Ink Pusher's picture

You silly bastards are getting set up for the biggest fall, and when it comes I will not be sympathetic. Bitcoin is hot air, and hot air always blows away on the wind.

Arrest Hillary's picture

Good money drives out the bad ?

GlassHouse101's picture

Yep.  Crypto digital currency > Fiat digital currency.

Arrest Hillary's picture

If 1% of bitcoin profits go into gold .... the monkey hammer boys are gonna be busy ?

silverer's picture

Yep. My thoughts as well on that. Let's everyone ride the Bitcoin to the top of that big hill, then get the thrill of watching the dollar blow away as everyone cashes out and buys gold with it. That thought must keep the central banksters up at night.