Bitcoin Spikes Over $3800 As Institutional Investor Interest Soars

Tyler Durden's picture

Bitcoin is now up over 45% since the fork on August 1st, notably spiking this week (to a record high over $3800) as US-North Korea tensions escalated and both Fidelity (retail) and Goldman (institutional) noted investor interest in cryptocurrencies is soaring.

Fidelity announced Wednesday that it started allowing clients to view bitcoin and other cryptocurrencies on its website, a rare move for an established institution.

Hadley Stern, senior vice president at Fidelity Labs, said "the big story is you can transfer value through software and software alone. This is a huge societal breakthrough."

 

And regardless of whether bitcoin will survive, it could be like the Napster of blockchain technology, Stern said, where it is the first of its kind but the next products, in this case Spotify and Apple Music, get better and better.

 

"I do think [cryptocurrencies] will make things, whether it's bitcoin or something else, faster and cheaper and create new products and services that we can't even imagine," Stern said.

 

While some critics are skeptical of how bitcoin is used, Stern said that banning the cryptocurrency would be like banning the web or open internet protocols.

 

"Whether governments like it or not, it's here to stay," he said.

And as we noted earlier in the week, Goldman Sachs wrote in a note that it is becoming more difficult for institutional investors to ignore Bitcoin and the cryptocurrency market.

The debate has shifted from the legitimacy of the ‘fiat of the internet’ to how fast new entrants are raising funds.

 

The hype cycle is in full effect with Bitcoin, the first, largest and most widely recognized cryptocurrency up almost 200% YTD (v 11% for the S&P 500) and a host of other emerging ‘altcoins’ growing in scope and presence (witness the growth of Ethereum).

 

Whether or not you believe in the merit of investing in cryptocurrencies (you know who you are) real dollars are at work here and warrant watching especially in light of the growing world of initial coin offerings (ICOs) and fundraising that now exceeds Internet Angel and Seed investing.

 

And with the fork out of the way, it seems that demand is having an impact...

Aditionally, as CoinTelegraph reports, Bitcoin could pass $100,000 by February 2021; a Harvard academic has said announcing Bitcoin is the first digital currency to follow Moore’s Law. In emailed comments, investor Dennis Porto said that after analyzing Bitcoin’s performance, it was the “first” currency to follow the digital technology rule.

“Moore's law specifically applied to the number of transistors on a circuit but can be applied to any digital technology," Porto wrote. "Any technology that is growing exponentially (i.e., 'following Moore's law') has a doubling time."

 

Porto makes the assertion that Bitcoin price has de facto doubled every eight months since its inception.

 

“This poses a unique opportunity for investors,” he added, something which was well-received in social media circles.

 

While multiple well-known commentators have contributed their opinions on how much one Bitcoin will cost in the next five or 10 years, $100,000 by 2021 is at the bolder end of the spectrum.

 

This week, Max Keiser repeated his faith in Bitcoin reaching $5,000 in the coming months.

While Bitcoin is surging, Bitcoin Cash is sliding, falling to 4th largest virtual currency by market cap...

 

But Ethereum - which we noted previously appeared to be acting like a World War III indicator - continues to surge well above $300...

 

 

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tmosley's picture

No facts, just assertions.

Oldbugs, ladies and gentlemen!

SILVERGEDDON's picture

tmosley, y'all are like the ADD kid with Tourettes that plugs his dick into a light socket, and hits the switch. 

Everything coming out of your mouth is pure genius - only as far as your imagination.

Pure comedy snowflake fucktard gold in the real world.

Golden Phoenix's picture

While you're talking about what's coming out of his mouth he's coming in yours. 

sirsmokum's picture

Anti BTC shills have to go to work early on saturdays.

Moar for us.

Tulips and beanie babies is all they can think about. They just can't wrap their heads around the idea of crypto.

Boomers and the like can't vision the future. They don't have one to see.

Because basiclly that is what this is all about.  The next generation seeing how bad the previous one did.  This time though we are actually doing something to make the world a better place.

Cleaning up their mess I guess you could say.

crazytechnician's picture

Triggered to fuck , that means no lambos' , and no fucking cigar either...

VD's picture

and the irony of ironies is that allegedly South Koreans are hedging North Korean WW3/EMP with.......btc!

 

buhahahaaaa

tmosley's picture

They are buying ethereum, not btc, you simpering moron.

VD's picture

they are buying both actually. what diff does it make? itz crypt0-everything!

Golden Phoenix's picture

Watching SILVERGEDDON lose his mind in realtime = PRICELESS

Anteater's picture

Beaver pelts are far more rare than bitcoin. Unlike bitcoin, beaver

pelts were considered 'currency' for barter. 35,000 beaver pelts

enter the market every year. They can't be raised commercially,

they can't be counterfeited, and there will never be 10,000,000 of

them created digitally out of the effluvium, nor chunked out of

tungsten blanks in some Chinese mint. Beaver pelts, my friend,

'only real store of value' by every metric used by goldbuggerers,

and proving the Big Lie to both BTC and PM cattle herd hysteria.

Pure momentum chasing crap shoot. Come on baby! Snake eyes!!

Raffie's picture

'Tullipz'

ROFLMAO... OMG!! YOU ARE SO FRESH!!!!!! Bet that zinger took you years to come up with.

So where are you doing stand up comedy? I don't wanna miss your FRESH COMEDY TOUR.

I'm still holding my side from laughing...... man you nailed it.....

Clock Crasher's picture

Reporter:  Now that you are rich are you going to quit your job as a truck driver?

Millionaire:  Truck Driver, I aint no truck driver, I'm a janitor. No, I just bought this truck straight cash.  I'm Rich Biatch!

 

https://www.youtube.com/watch?v=kMFJBd40Awo


FreeShitter's picture

3800 will be 5k then 10k ......glad i own a few, not even sweating it.

Clock Crasher's picture

At what price do Bitcoin holders (the mega banks and Asian alley way gamblers) convert thier multi thousand percentage gains into Precious Metals and other real assets?

5,000?

10,000?

500,000?

Just curious, let me know below.

38BWD22's picture

 

 

Interesting question.  If BTC price stays at ~$3800 or goes higher I will be buying gold with some of it.

Next stop for buying more gold would be $5000.  At $7000 - $10,000 a bit more Au.  

I will always hodl some BTC no matter where the price goes.


disagreeableness's picture

499,999.99. I wanna see McAfee eat his dick on National television 

Albertarocks's picture

I have some of both so here's my take on it.  I'll keep the very small amount of BTC I have until it shows some sign of a topping pattern.  As long as it's on a rocket ride like this there is no way of "guessing" a top and being accurate about it.  Is it going to spike to $10,000 then pull back and never see $10,000 again?  Not likely.  It should eventually settle down and begin showing signs of stability at some price way higher than the $3,800 price of today.  It's probably even going to hit $4,000 today and possibly $5,000 within two weeks (maybe even sooner).  There is no reason to sell until it demonstrates some sort of topping pattern, then stability.  I think that is months away.  Maybe years.

tmosley's picture

Institutional money is just starting to come in. Once they slow down or stop, then you can start thinking about selling, assuming another huge group doesn't start entering in the mean time (like central banks, or the general population seeking refuge from collapsing fiat currencies).

Yellow_Snow's picture

There's 7.5 billion people on the planet (and growing) - only 16 million BitCoins in existence today.  More than likely BitCoin will keep on going up.  Someday, we'll look back on $10,000, and wish we'd bought more at that cheap price...

Mustafa Kemal's picture

"At what price do Bitcoin holders (the mega banks and Asian alley way gamblers) convert thier multi thousand percentage gains into Precious Metals and other real assets?"

On the chance that you really want to know, let me first unload your quesion to this:

"At what price do Bitcoin holders convert thier multi thousand percentage gains into Precious Metals and other real assets?"

Forgetting for the moment the issue of taxes, the answer would be STFT, sell the top. That time is coming soon. But that does not mean liquidating all. For example, this surge in May June, I bought some, not alot, Au with BTC so now the coins are all profit. Next top I see, I will do it again.

Suicyco's picture

The gains become real to me at just that point. When I convert it to metals.

Not too greedy, not too early, just the right moment and I'll switch it all and be done with it. Time will tell, but that 500,000 sounds very good, here's hoping. Got time to be patient and can afford them all to go to 0.

On the other hand think of the obstinate mule who refuses to get in and keeps kicking himself all the way to those figures. We'll be hearing about tulips for years to come.

vega113's picture

The next mining reward halving is 3 years away. So, I will consider selling after the halving.

wmbz's picture

"Hadley Stern, senior vice president at Fidelity Labs, said "the big story is you can transfer value through software and software alone. This is a huge societal breakthrough."

 

That's how they see the world... Software.

As do more and more people. A huge percentage of the population would prefer a smart phone, over a friend.

tmosley's picture

You have easier access to your friends over a smartphone, even if it is making us temporarily socially retarded (VR, especially full dive VR, will rapidly change that).

Ignorance is bliss's picture

You can transfer money now with a bank account, phone app, or a Visa card. Bitcoin is just the latest investor mania. Nothing wrong with that. But it's a speculation driving the market. I'll happily ride the wave sell up and buy gold or silver before the next move downward. At least that's the plan.

loveyajimbo's picture

Some crypto(s) may be the future, if backed by gold, silver or other tangible... but unbacked Bitcoin won't be it.  When PM-backed cryptos come out with massive Sovereign gold/silver backing, independently audited, that are redeemable for physical... Bitcon will collapse and the Tulip-lemmings/pumpers like the imbecile Mosely... will howl like libturd snowflakes.

tmosley's picture

If you don't understand what "backing" means by this point, you never will.

If you can't grasp the meanings of these very basic concepts, you will continue to lose, absent dumb luck.

loveyajimbo's picture

"If you don't understand what "backing" means by this point, you never will."

So explain what is "backing" Bitcon, Tulip-clown... then explain what is backing gold and silver.

tmosley's picture

"Backing" is what you do to something that is very inexpensive to make, like a piece of paper, or an electronic entry, to give it much greater value than its market value would otherwise be. You have to be able to trade the bit of paper, or the digital entry for whatever is backing it at a set rate somewhere.

Gold and silver are not backed. Their price is set by the market, and anyone can produce gold or silver.

Crypto is the same way. They all cost approximately the same amount to make as their market value, because if they cost less, more producers would come online, and if it cost more, producers would wind down.

This is as opposed to a backed note, which only costs a few cents to make, for an arbitrary denomination. The only thing stopping more producers from coming online and driving the price of such notes back to near their production cost is the military might of the government. Try to produce a US silver certificate and men with guns will kick down your door and enslave you.

But you still won't get it, because I have explained this concept dozens of times, and have seen maybe one or two people in the peanut gallery that have understood this argument since I started making it.

RedPilledMAGAWarrior's picture

Excellent comment T Mosley, I agree 110%.

I am pretty savvy with money and I watch every dollar and I know a lot of people buying bitcoin do the same and have contributed their labor in the form of fiat for this bitcoin, and that is where the value lies, within the blockchain that cannot be touched. The network effect has already happened, the network will survive (unless the internet disappears) and the value contributed by people will not disappear, just fluctuate. Not sure how people keep equating it to intangibles when they they trade intangible fiat from bank ledgers for something you now can actually control and trade and purchase with freely 24/7.

RedDwarf's picture

It's something a lot of people here cannot grasp - that crypto currencies are in fact tied to real production costs and real offerings of utility.  The viable ones have massive amounts of labor and infrastructure and innovation behind them.  They are surging in value because they offer actual solutions ot many of the current chokepoints on human production and innovation that mainly exist due to governments and regulations.  It is something that most people on ZH should be cheering, not hating.

loveyajimbo's picture

"Gold and silver are not backed. Their price is set by the market, and anyone can produce gold or silver."

Thanks for proving that you are a low dullard.  Gold and silver are not "backed'?  LOL!!  They are both baseline MONEY... for 5000 years and yes, today...  of course they are not backed.  Wonder why China and India and Russia and many other countries are stockpiling gold in massive amounts?  But YOU are smarter than all of those guys, right, Princess?  All because of a 24 month bubble?  BTW:  Weren't you pumping Snapchat awhile ago too?

Anyone can produce gold or silver?  Sure, Sparky, sure.

tmosley's picture

Get a load of this wad of cognitive dissonance. 

GodSpeed_00's picture

Money doesn't have to be "backed" by anything. You people need to understand that. People have used cow shit and wooden sticks as money. What is important is who controls the money supply. Gold Standard has never worked, only an idiot would give his gold to a central authority for a digital crypto. You people are the lemmings for asking for that. Did you learn nothing from the history of gold backed money in the US?

BustainMovealota's picture

You are only half way there.  There are concepts around "money" you have missed.  They are called intrinisic vlaue and "store of value".  Very important economic terms when decribing any type of "money"  (Gold, silver, what ever)

divisibility, easily and securely storable,  transportable, scarcity and difficulty to counterfeit are all examples.

loveyajimbo's picture

When did I dispute that?  And tell me about the "intrinsic value" of Bitcoin. And how a new and better (backed by real stuff- like gold) crypto, would not collapse the value of most unbacked cryptos...

Did you forget "widely accepted for all goods and services?  Bitcon may be, in the distant future... but not even close now.  And how about being out of the reach of government controls or internet restrictions?  And don't give me the old BS about confiscation...

What pumpers and fanatic tulip-dudes don't seem to realize is that governments can control Bitcon anytime they wish... especially through online transactions and all coin "services" and brokerages... they have records of them all...

1.21 jigawatts's picture

ZH is sticking it in your face, Goyim PM suckers.

Blazing in BC's picture

I have a whole box of bits coins, how do I cash out?

Yellow_Snow's picture

You must have a box of fakes, sorry !

GodSpeed_00's picture

Crypto makes new highs, Zerohedge haters bitch some more about tulips. I make More gains, they make nothing. Wash, rinse, repeat until at least 2020.

Yellow_Snow's picture

Keep on stack'n the Coinz  :)

Gods's picture

http://www.gaycoin.online/

 

Get your new crypto show your pride

tmosley's picture

Or buy metals to show your level of senility.

JustPrintMoreDuh's picture

Welcome to the crackup boom