Bitcoin Explodes Above $14,000 - Korean PM Fears "Serious Pathological Phenomena"

Tyler Durden's picture

Well that escalated quickly...

Just a few hours ago, Bitcoin surged above $13,000 and now, on notable volume, it has reached the stunning $14,000 level... up 20% today...

The real surge began at 1715ET...

For those keeping track, this is how long it has taken the cryptocurrency to cross the key psychological levels:

  • $0000 - $1000: 1789 days
  • $1000- $2000: 1271 days
  • $2000- $3000: 23 days
  • $3000- $4000: 62 days
  • $4000- $5000: 61 days
  • $5000- $6000: 8 days
  • $6000- $7000: 13 days
  • $7000- $8000: 14 days
  • $8000- $9000: 9 days
  • $9000-$10000: 2 days
  • $10000-$11000: 1 day
  • $11000-$12000: 6 days
  • $12,000-$13,000: 17 hours
  • $13,000-$14,000: 4 hours

As Bitcoin has soared, it appears traders have sold other cyrptocurrencies to chase it as Ether has dropped in sync..

One of the regions in the world with the most active Bitcoin community is South Korea where so many Koreans have embraced bitcoin that the prime minister recently warned that cryptocurrencies might corrupt the nation’s youth.

As Bloomberg reports, while neighboring Japan hosts more transactions by some measures, Korea punches far above its weight: In the 24-hour period through Wednesday evening in Seoul, about 21 percent of the world’s bitcoin trades on fee-charging venues involved the Korean won, according to Coinmarketcap.com. The country accounts for about 1.9 percent of the world economy.

As Korean policy makers grow increasingly worried that the mania has gone too far, the nation could become a focus for bitcoin traders around the world. Korea’s top financial watchdog, which briefly roiled cryptocurrency markets with its ban on initial coin offerings in September, said this week that it has “grave concerns” about overheated speculation and has formed a task force with other government bodies to increase supervision.

While it’s unclear what measures will emerge from Korea’s cryptocurrency task force, the government seems intent on acting. The tax authority is considering a levy on cryptocurrency trading gains, Yonhap News reported on Tuesday, while Prime Minister Lee Nak-yon warned last month that cryptocurrencies could become gateways to pyramid schemes and other illicit activity if left unchecked.

“If we let things continue, I feel some serious pathological phenomena could occur,” Lee said.

Bitcoin’s stateless status appeals to some Koreans who’ve grown wary of keeping their savings in a country that shares a border with Kim Jong Un’s increasingly belligerent regime in North Korea, according to Kwak Keumjoo, professor of psychology at Seoul National University.

“People want to take comfort in something outside and beyond the country,” Kwak said.

Finally, we note that growth continues as Coinbase CEO today noted they currently have 220 customer service reps and will add 400 next year:

"it's very difficult to keep up with the user influx."

As CoinTelegraph reports, since ChinaRussia, and a few others cracked down hard on Bitcoin, it has been relatively quiet on the regulations front as Bitcoin has continued to soar unbridled. However, the head scratching on how to regulate continues.

The next fear, for Former Fortress Hedge Fund Manager Michael Novogratz, is that Bitcoin’s continued rise and prominence in the mainstream media could reawaken the regulation beast.

However, Novogratz still feels that Bitcoin is difficult to regulate and it will be hard for governments to make an impact immediately. Novogratz, who has been outspoken on Bitcoin for some time now, claiming it could be a bubble, but one to profit from has his concerns now.

"I've got concerns that if price movements go higher, we're going to get more regulation," Novogratz said.

 

“But I think it's hard to shut down. ... I don't think that's a probability."

 

"One of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous," he added.

 

"I could legitimately see Bitcoin go $13,000, $14,000, $20,000, $25,000 and see somebody balk."

Novogratz adds:

"We're in a speculative frenzy. Period. Stop. How long can it go? Who knows," Novogratz said. "What's interesting about this is it's global."

Another reason that Bitcoin has hit such heights must also be attributed to it finding its identity. Many were scratching their heads as to what Bitcoin is - a currency or an asset - but recent changes have set it straight.

"Bitcoin is winning out as digital gold," Novogratz explained.

 

"I don't think it's going to be a currency... Nothing that volatile is going to be a currency."

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seek's picture

Even ignoring the network transation limits -- most exchanges either won't be operating or you'll hit the USD transaction limits. You don't even have to be a whale, at this point half a bitcoin will hit the weekly limit for new coinbase users, as an example.

Even under higehr limits someone with a few dozen BTC will need the greater portion of a year to liquidate on US exchanges.

freedogger's picture

Maybe once we are in we'll never want to trade back out to the worthless fiat.

css1971's picture

In the near future I'm going to link to this post as an "I told you so". ;-)

FredGSanford.'s picture

It’s gonna crash.

restelle's picture

If ya can't physically crack skulls with it, it ain't money. 

restelle's picture

Money get back
I'm all right Jack
Keep your hands off my stack.

Yellow_Snow's picture

Rec'd hold your BTC through this Wave 3... ($19,886 est.)

  ( personally - I will HODL on, just cus I'm in so cheap )

Rex Andrus's picture

Kwak is korean for quack

NIRP Diggler's picture

What will Bitcoin futures market do to price?

Yellow_Snow's picture

Very positive for the next year or two...

Davidduke2000's picture

not much, because there are real traders of the real bitcoins not futures. however I suspect since it's not centralized system, we will see exchanges running away with people's money and not caring about getting sued, the court will tell the investors it's their fault they got carried away, but since most trades are now for money laundering nobody is going to make a sound but will have assassins going after the exchanges owners.

Pearson365's picture

 If bitcoin is really equivalent to gold then we are in the midst of a global monetary crisis and it's proven by the rise in bitcoin. Good luck with the outcome.

affirmed_78's picture

Ever seen a chart of internet adoption?  Well we're currently in the early stages of BTC adoption.

FreeEarCandy's picture

 

1-Not many people sell their goods and service for bitcoin, so it isn't a currency. 

2-One cannot buy bitcoins unless they use a currency that is actually functional. Hence, Bitcoin cannot survive without other currencies plowing their value into the bitcoin system. 

The value of a bitcoin is based solely on the supply and demand of that which has no intrinsic value, usefulness, and/or tangible quality. 

Several points of misinformation.

Bitcoin holders claim no one controls bitcoin, but the supply is indeed controlled and thus its value escalates faster. This was done on purpose, and where there is a purpose there is the intention to control.  

Some bitcoin holders claim Bitcoin will correct or put an end to central banking cartels. This will never happen as long as bitcoin requires the value of other currencies to be plowed into the bitcoin system. Like a parasite, if it kills the host it feeds from it will also die.

Some claim that governments can't control bitcoin. I believe this is incorrect. Government can control bitcoin because Bitcoin needs the value and usefulness of other currencies to generate the value and usefulness that Bitcoin does not have as a stand alone currency. Moreover, bitcoin does not employ a police force, nor does it have a standing army to protect it from those that seek to destroy. 

No government will stand by and watch, as some digital scheme threatens its economic stability. 

Bitcoin is artificially flavored currency that sells itself for real money, like ever whore selling fake love does.

 

 

buttmusk's picture

governments can easily ban companies from processing crypto cashouts to fiat. that was the same thing that killed online poker

Surrealist's picture

Nonsense satire like this is becoming less ridiculous by the day... 

Experts predict Bitcoin will usher in a one world currency and one world government

https://www.aussieadvocate.com/2017/11/30/experts-predict-bitcoin-will-usher-one-world-currency-one-world-government/ 

MagicMoney's picture

It is nonsense because BTC can't be a global currency. The blockchain won't allow it. Understand the blockchain technology.

For BTC to work as a global currency it will have to rely "LESS" on the blockchain. Why? Because the blockchain isn't very good at handling more and more transactions. So the original selling point of BTC blockchain is actually its negative as a currency.

I would compare BTC to like an open source project. It won't be as good as shareware. It will be buggy, glitchy, and not as effective. This is what rings with me with BTC.

Kefeer's picture

BitCOiN and its corresponding tech, block chain, is one piece of the puzzle.  BitCOiN gives us a clue that we are very close to the debt bomb implosion.

Davidduke2000's picture
Another question about the safety of cryptocurrency transactions was raised this Wednesday. Clients of a major Las Vegas bitcoin exchange Bittrex say they can’t withdraw their money and the company doesn’t explain why.

The clients of Bittrex, which processes about $1 billion of cryptocurrency payments per day, are angry about the delays, Business Insider reports

They claim to have verification problems but get close to no feedback from Bittrex about the situation.


One of Bittrex users, who asked the media to call him only by his middle name, commented on the problem.
New identification procedures are being implemented to comply with the US anti-fraud banking regulations.

“Bittrex has two levels of verification. Basic Verification, which I completed, but it said it could not find any public record to match what I entered. Then [it] gives you the option to submit what they call Enhanced Verification where you have to submit Gov ID, Passport, Selfie, etc. I, in turn, did this, but that one also failed, saying 'Name Mismatch Error.' To top it off, they do not provide any settings page to correctly make the name change if [there] truly is a name mismatch,” he said.

“The next step is for you to submit a support ticket, which I then completed. My support ticket was opened on November 6 with not a single response from anyone at Bitrrex. This is going on for almost 30 days now. I updated the ticket many times to no avail," he added.

Another user complained that when he made the deposit, no verification was required.

“Support doesn't work at all, I don't sleep at night because of that, when I put money there nobody asked about verification! And now my money is blocked," he said.

 
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DC Beastie Boy's picture

Well I just had to verify to withdraw $500 in Alts, seriously. You have to give an ID and face pic. If you have a government ID you’re already scanned.

tmosley's picture

They wanted me to do that to withdraw $150 worth. Total BS. Not worth my time to pursue though. Chalk it up as another cryptsy if it goes dark.

freedogger's picture

That exchange seems legit, just backed up the wazoo with regulatory compliance. Its a symptom of the desire to get in on the game.

Nature_Boy_Wooooo's picture

No-coiners are extremely concerned about the well being of Bitcoiners for some odd reason.

Kefeer's picture

I have none of them (wish I did) and I know when I see something nefarious, but I believe this will continue to keep rising, for there is a purpose for all that is happening.  So for those that can get in and ride to $50K - great!  However it would be smart to trade some of it in and transfer it into GOLD and SILVER, FOOD, FUEL and LEAD - these will be needed when the new system is implemented.  Seems at the speed we are headed; it might be just 2 years or less away.

 

Certainly in 10 years from now, the United States and the World will be unrecognizable.  Twenty years ago, I looked forward to the future and now I fear for the future of our nation and world.  At the same time I also know these things are suppose to happen and I take great comfort knowing that the God who laid His life down for mine, not only cares for me personally, but cares for many others as well and is in total control over Satan.

Yellow_Snow's picture

They need to worry about themselves...  Gold and Silver Daily Charts are falling apart...

Gold: MACD with bearish crossover and RSI just broke below 50 (bearish)  Both strong SELL SIGNALS

 

ToSoft4Truth's picture

#awesome you guys all caught the wave and are millionaires. 

Davidduke2000's picture

nobody on zerohedge has any bitcoins, it's all hot air.

seek's picture

lol, you can go back at look at archived posts and see the actual tranactions between old school hedgies and look them up on the blockchain.

There's plenty of people on ZH with BTC. I have little doubt a few of them are in the 7 figure club or higher.

e_goldstein's picture

I lost all mine in a terrible power surge accident.

Wicked Old People's picture

Article points this out but, reiterating, BTC is up $2600 in the last 24 hrs. Don't see how 'futures' products only open 6 hrs will be able to mimick actual BTC in a never-stops-trading world . . . oh well . . .

Ankhenaten2's picture

Buy fastbrick robotics listed on the asx(Australian stock exchange with ticker: FBR )

THEY have the patented first robotic bricklaying robot that can build a house in a day: https://www.fbr.com.au
Davidduke2000's picture

I would not touch any stock market with a hundred foot pole

ToSoft4Truth's picture

How can we buy one and put it into service? 

Kefeer's picture

The "Deep State" is and has always been behind this.  Just preparing people for the future of currency - all digital.  They will keep the hype up and up, then attack it from all sides, then bring to to nothing and bring out their new and "safe" digital currency backed by "fill in the blank"; you know "the one you can trust": - wink wink.

Meanwhile the large institutions and top 1% are stockpiling that shiny looking stuff.  Transitional metal to use in the interim between the old system and the installation of the new and "better" digital system.

Lost in translation's picture

This ^

BTC = Beta test for a One World Currency.

Beast System 666

NoBillsOfCredit's picture

Bullshit, no mark of the beast required unlike gvt. Fiat transactions.

Pearson365's picture
Traders at top bitcoin exchange claim they have no access to their money

https://www.rt.com/business/412109-bitcoin-exchange-money-stuck/

Yellow_Snow's picture

That happened to me at Bittrex, I'm one of those that had funds 'frozen' there. 

I began a lawsuit and filed a SEC complaint against them...  and they eventually backed down. 

I don't trust them at all...  trading is good but get your coinz off that exchange  !!!

Anopheles's picture

Of course they have no access to their "money".

Exchanges are NOT BANKS.   The only way they can pay out funds is when people inject new cash into the system.  No new cash = no payouts.   That's why they are called exchanges. 

The entire bitcoin system has zero liquidity and zero cash reserves.   To get payouts, requires greater fools to put NEW CASH into the system. 

This is the very definition of a ponzi.  They pay out existing "investors" with cash injected by NEW "investors". 

maxblockm's picture

Bittrex is not the top exchange, Bitfinex is. Also, google Bittrex tether scam. Warning signs are there, just like they were for Tulving and Northwest Territorial Mint.

Silver Savior's picture

Zzzzz Zzzzzzzzzz. I am putting everything in XRP, Dogecoin, Stellar, and EOS. It's not worth becoming the greater fool in Bitcoin.  I still have all my silver and gold. Very proud of that point. There is no way I an selling any of them for any of this. 

The weak hands should have some great prices on ten ounce bars right about now I will be all over that. Remember that while lofty in value, crypto is a distraction.  It's only worth is how much silver or gold one buys with it before crypto is illiquid.

Brazen Heist's picture

There will be a pullback, followed by a higher high.

$20K not too far off.

Bitcoin is digital gold at this stage.

Sucks to be a central banker right now, watching this unfold.

FreeEarCandy's picture

The value of bitcoin is directly pegged to the growth of foolishness. A fool is fooled into trading their widely useful currency for an instrument that suffers paralysis in terms of exchange of goods and services (i.e.bitcoin). The first fool can only be redeemed if they find a bigger fool willing to buy the said paralysis for a greater sum of useful currency. Only when the world runs short of greater fools will the value of bitcoin fall.

Hence, the intrinsic value of a bitcoin is the amount of foolishness it takes to support it.