"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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RedDwarf's picture

Gresham's Law which states that bad money drives out the good, only holds in the context of a powerful State (government) being able to convince or force the people to accept said bad money at equal valuation to the good.  The opposite, Thier's Law, applies when the people reject the bad money or the state fails.

We're not yet at the stage of good money driving out the bad, but it will happen and when it does you will see the good money go up dramatically in valuation and the bad money become worthless.

MickV's picture

Too expensive as a "currency" for common man. It's clearly a speculative bubble.

silverer's picture

Not too expensive at all. Now you need less Bitcoin to buy your TV set. Bitcoin simply gets divided down into smaller fractions to the value you require to deal with. It's being measured in dollars to determine it's worth, which in itself doesn't say much, because the dollar is just another non-existent digital currency. It's a video game of zeroes and ones. However, you are right about it being a speculative bubble. Holding it over time clearly represents a risk, just like holding dollars over time, because we have already seen its relative value vary considerably.

Exponere Mendaces's picture

Gold is priced in dollars.

I don't see you harping on how Gold price is a "problem".

But it isn't about Gold, is it -- its about how Bitcoin is kicking its ass.

And maybe, that dark deep fear that creeps up on you at night is the realization that one asset can replace another.

Good luck with your government-captured rounds.

 

kochevnik's picture

Fiat currency also denotes debt which does not exist, but the note induces debt servitude upon the borrower, unless the borrorwer is a small circle Jew jerk.  So you claim that contracts are invalid, because ideas are not real?  Maybe you are not real?  Maybe we are in a big hologram or the Matrix?  So only hoard gold?

Ink Pusher's picture

Proving that extreme stupidity is not only contagious but also exponential.

Exponere Mendaces's picture

Proving that ZH commenters are salty and usually really out of touch.

 

Ink Pusher's picture

I will stack my solid physical bullion against your hot air filled cypto any day. If you can't handle ZH , then Fuck Off Eh !

 

silverer's picture

Let's see if it finds the price that corrects the dollar back to the 1913 issue date, as the dollar right now is only worth about $0.09 from when it was issued. Bitcoin is showing you what gold would do if it was not manipulated using paper unicorn contracts. The only problem with Bitcoin is that it doesn't exist in any tangible form. Even if gold went to zero, you'd still have something you can make things out of that you could see, feel, touch, and that would last forever.

Exponere Mendaces's picture

LOL

Here we go again.

Another salty metals holder that can't wrap their head around the rise in price of Bitcoin.

You still think a lump of inert matter on your shelf is superior? Its electrons too, silly.

Don't sweat it, your non-participation means more Bitcoin for me, lol

 

kochevnik's picture

Title to your house is not real.  Love is not tangible.  Contracts are not real.  Ideas are not tangible.  Fire is only a process.  Life is only a transition between equilibrium and death.  Crimea River

conraddobler's picture

Buy now or be priced out FOREVER!!!

Exalt's picture

Best value proposition universe.

Arrest Hillary's picture

"The farmers and the cowboys should be friends !" .... bit coin and gold are not enemies ?

MickV's picture

How can it be a "currency" when 1 coin is $2-3K? It is an investment, not a "currency". Does "Bitcoin" have any inherent value other than faith (like the Dollar)?

Arrest Hillary's picture

You can divide it into smaller units ?

MickV's picture

So if you want to buy something with Bitcoin for $10 you pay @ 1/200 Bitcoin? Forgive my ignorance...

Dangerclose's picture

Yes, but more like 1/300 as I write this. Its like Weimar inflation but in reverse!

Debtpool's picture

Yes, just like for $10 you pay 35.22 Turkish Lira

Dangerclose's picture

You have been a member of this site for 7 years and 12 weeks and you still ask a question like that?

MickV's picture

So explain it to me. How is this not merely a speculative bubble, and the digitization of "money". Is it "money" (a store of value) or an "investment"?

Dangerclose's picture

Its not a speculative bubble but a paradigm shift. It can be and is both a store of value (finite supply) and therefore a good investment.

Stinkytofu's picture

please, can someone tell me (actually explain, not just downvote!)

 

how can it be finite if anybody can create a new bitcoun, bitcoin, batcoin, etc?

 

Dangerclose's picture

The Bitcoin program is set that only 21 million coins will ever be created.

Stinkytofu's picture

sure, maybe only 21 million bitcoins. but what about the 20-30 million each of the other 10000 kryptokurrencies? infinite supply of currencies, so infinite supply of crytpo coins.

Dangerclose's picture

Uhhh.......Don't buy them? (Infinitely creatable coins will just make the finite ones look better.)

Ink Pusher's picture

What'cha gonna do when I go and buy a warehouse full of quantum computers and keep mining until the market is flooded with worthless code?

Crypto is 100% bullshit. Finite Supply my Ass ! Code generation is Endless.

tmosley's picture

It's both. Like gold used to be, really. Just like buying and holding gold when we had a gold standard was an investment in humanity (you would put labor into the system and refrain from consuming goods produced by the system, allowing your labor to be used to fuel capital investment, increase efficiency, and thus lower the gold cost of goods), bitcoin is both money and an investment in the blockchain--digital architecture where new services are being implemented to both replace older, more expensive ones, and where new services that have never before existed are emerging.

tmosley's picture

It has value as a means of transaction without regard to government regulations/currency controls and the numerous and mostly unexplored uses of the blockchain.

It's a whole new world. These new technologies will eventually take over most of the roles of governments, and then governments will simply disappear. Obsolete.

Dangerclose's picture

How can the USD be currency when it is worth 100 trillion Zimbawean dollars?

Which currency has the "problem"?

OK, now lets go back to BTC being worth $3000 USD. Again what currency has the "problem"?

Get my point?

Wild Theories's picture

does any fiat currency have any inherent value other than faith?

Silver Savior's picture

Ummm probably not but that's ok. Long it anyway. If it does not matter to other people then it does not matter to me. lol.

Debtpool's picture

Lay off the Twinkies there, Fat John Goodman.

RedDwarf's picture

"How can it be a "currency" when 1 coin is $2-3K?"

Each 'coin' is divisible into 100,000,000 units.  The standard actual 'coins' used in most applications is the mBTC and uBTC, which is a thousandth and a milionth of a bitcoin respectively.  You do know that we used to have thousand dollar bills right?

"It is an investment, not a "currency""

First off those are not mutually exclusive terms.  Secondly you're just flatly wrong.  It is used as a currency all the time now.

"Does "Bitcoin" have any inherent value other than faith (like the Dollar)?"

The dollar is backed by guns.  You are required at the barrel of a gun to pay your taxes in dollars, and to accept payment in dollars.  That is what 'legal tender for all debts public and private' means.  The 'faith' is a form of Stockholm Syndrome.  You do not understand what fiat currency really is if you do not understand this basic fact.

As for 'inherent value', that is a delusional statement.  Nothing has 'inherent value'.  Value is the utility a person ascribes to something.  It is a relationship.  It is different for every human because every person values different things differently.  It's why we need markets.  It's why we trade.  If I buy a pen from you for $1, I valued that pen more than the $1 and you valued the $1 more than the pen otherwise no trade would have taken place.  After the trade we are both happier.  That is what is meant by win-win.  This is econ 101.

As for it only having value based on 'faith', that is a gross simplification.  Bitcoin provides a utility to people and thus has value to them.  To say it is just 'faith' is you demeaning and dismising their value systems.  It's arrogant and foolish.  Furthermore in the end everyone in a free market (meaning absent the threat of force like with fiat currency) decides upon the price of something.  Price discovery is one of the great things we get from free markets.  In other words the price of ANYTHING is 'faith' if you're going to dumb it down.

Exalt's picture

You could buy it for as many reasons as you like, but I don't feel like $3,000 is what it's worth. Is that really what is costs to mine it, by cost averaging? Probably not... Sure the price can keep going to the moon, but it's natural price could be much much lower than $3,000. If you want to play in that traffic and find out how deep this rabbit hole goes, go for it. I just don't see crypto in it's current form becoming legal tender, but I do think government can't wait to re-issue fiat as their own crypto coin. They'll just reboot the infinite money game online and obliterate privacy entirely. So for that reason, I say that Bitcoin is a speculative (intangible) alternative investment, just like gold and silver. All hats welcome in this ring of fire. That said, to all the converts of BTC and ETH, do you really think that governments will tolerate a growing currency over which they have no control? Just. not. going. to. happen. You don't waltz in and take away governments favourite toy, eat their lunch and think you're going to be the one who has the last laugh because muh technology. This isn't a game of who has the most advanced or sensible currency, unfortunately. Crypto is a fun alternative right now. So have fun while it lasts, but don't be surprised to see these disappear or severely neutered.

FreeShitter's picture

Bitcoiners and goldbuggers living together, mass hysteria

williambanzai7's picture

I have a bitcoin...
Martin Luther Crypto

illuminatus's picture

Bitcoin bitcheez!

Fourth Horseman's picture

Pure frenzy? No, just fools buying electroons mined out of thin air.

The comcept of blockchain was a kike funded operation to sell the concept of cashless society to the masses. They couldn't do this any other way and when you lose your cash, you WILL lose all of your privacy, freedom and security as well. Those fools who are buying into this scheme are hastening the demise.

Do not delude yourselves for one minute that if this takes off that this will not be brought under total control of the .gov.
Remember, exchanges are the choke point and they WILL be controlled eventually.

Exponere Mendaces's picture

Sooooo salty.

We get it, you trusted the government-captured Gold market to sustain you, and that is barely reaching the $1,300 mark while Bitcoin is at $2,910.

Of course, you harp on how "they" will control it, and how nobody should invest in Bitcoin.

Pretty sad, and really transparent commentary on your non-performing portfolio.

 

 

Oldwood's picture

I sense we live in a world where we are all under control and those avenues that "appear" as escape routes from this control are but only more control venues. Money, "currency" represents a claim on wealth and everything we have seen indicates a drive to convert all assets into these currencies, which in my mind simply makes assets more easily TRANSFERED. Now that all forms of money have been converted into gambling chips, the world's wealth now lies on the table, just waiting for the slight of hand to remove it. 

The value for us in these many currencies is their liquidity, our ability to spend them, which also makes it more difficult to hold. I watch as my paper dollars evaporate, which gives cause to chase returns in the more "lucrative" casinos. The simple fact that we see crypto rising in value this violently tells us that it exists in an unstable environment. Something that burns in the gambler's veins, regardless of how much they profess the need for "certainty". 

If we knew our future for certain, there would be NO casino. The profit is derived from the belief in certainty in an uncertain world. These beliefs are like all others, and are completely based upon the unknowable. 

One thing is for certain. While wealth can be created through productive efforts, NO wealth is created by speculation as it is a TRANSFER of wealth, and for each big winner there will be many more losers, which translates into a loser society, a poorer society. But the gambler's persist in believing that they will be able to transfer the accumulated wealth of the casino owners to their more deserving pockets, while completely ignoring how it was that the casino owners acquired their wealth in the first place.

Control through manipulation. We claim to desire freedom and accountability yet pursue unearned income as the path.

Dangerclose's picture

......and they WILL be controlled eventually.

Sure just like ISIS and the drug users and everyone else in contempt of government......the government is soooooooo efficient! Good luck with that one.

Arrest Hillary's picture

False dichotomy .... talking people out of gold .... is harder than talking people into liking niggers .... don't forget, the monkey hammer boys are probably into bit coin and gold .... any snake in the wood pile they can fuck ?

Silver Savior's picture

Yep that's the way to do it. I don't see how anything else would be better. It's good to take some crypto off the table and turn it into the good stuff. I did and basically now I am just playing with market money. Either win or lose it does not matter but the chance is for real.

syzygysus's picture

It appears to me that BTC has problems that are exponentially getting worse as the price goes parabolic. One could be the average confirmation time. It has spiked to 2,250 minutes. Can someone explain how this isn't a problem? I would think a newer faster crypto would overtake the old man...leaving BTC (the turtle) plodding behind. Is it too slow and getting worse as the demand/price spikes?

https://blockchain.info/charts/avg-confirmation-time

 

If at $2800 the confirmation is 2,250 minutes... 37.5 hours

 

at $1,000,000 would confirmation be 700,000 minutes?   or...11,666 hours or 486 years?

 
Think about just the humble price of $100,000.  That's 1166 hours or 48 years...

Arrest Hillary's picture

Your check is in the mail ?

tmosley's picture

This issue will be resolved in the fork on August 1st.