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."

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
RaoulDuke66's picture

Who'd have thought that video game coins would be worth so much? I'll maybe see if I can cash in all the coins I mined from playing Super Mario.

Dude-dude's picture

Ha ha ha ha ha....  That's so stupid.

Thethingreenline's picture

TTGL so pumped! So.d stupid mining shares, bought all BTC and up almost 30% in days!
Sold mum’s stupid GM and GE stock had for years and moved into BTC. TTGL doesn’t see BTC pulling back until 19500, but just a blip!
Enjoy!

TTGL

venturen's picture

so I buy a bitcoin for $1 and you buy it for $10k ....and we have 2 bitcoins worth $20k?

venturen's picture

we can all stop working....free money for all!

Nature_Boy_Wooooo's picture

Not all of us. You need to go to work because you did not buy any Bitcoin.

Life is like a game of poker, you can't have winners without losers.

 

buttmusk's picture

you aren't a winner until you sell your btc to someone else. willingness of greater fools are the only ones propping this up

Nature_Boy_Wooooo's picture

That is pure speculation.

You have no idea what people's motivations are to buy Bitcoin. Not everyone lives in a fallout shelter, a lot of people have real world use for crypto.

 

 

buttmusk's picture

very very few are actually transacting in it. find me someone who is living off bitcoin without any link in the chain requiring a conversion to fiat currency, buyer or seller

Silver Savior's picture

I just buy crypto to buy gold because Trump is evil and I want to hedge against him.

Silver Savior's picture

I heard that since you gotten into crypto you dropped a few hours off your work week at Walmart. Way to go! lol.

cheech_wizard's picture

Interesting graph on bitcoin energy consumption...

https://digiconomist.net/bitcoin-energy-consumption

Bitcoin's electricity consumption as a percentage of the world's electricity consumption - 0.14%

Standard Disclaimer: I can't wait until Al Gore chimes in that mining bitcoin is fucking up the world's carbon emissions,

 

 

Nature_Boy_Wooooo's picture

Who cares. Nothing about Bitcoin should appeal to liberals but they are still buying the shit out of it. If there is one thing we know without a doubt is that liberals are the greediest two face pieces of shit on this planet and they will watch the planet burn as long as they get some money.

CashMcCall's picture

Why settle for chump change... Time to add some Rocket Fuel and a lighted match to the old portfolio... XBT futures begins trading on Dec 10th... See you in the pits. Wear your asbestos uniform. 

BeerMe's picture

I really missed this one.

TheMayor's picture

ALL GOVERNMENTS SHOULD BAN THIS IMMEDIATELY, NOW!!!

Davidduke2000's picture

why, who appointed you protector of the millennials, if they want to lose their money why stop them. they are starting their lives it will be a good lesson to learn early on by losing their student loans on bitcoin.

CashMcCall's picture

They would love to. In 100 short years under the protective watch of the FED, the quasi Gov empowered overseers, the dollar has lost 99% of its buying power. The Bitcoin has no government bureaucrat assuring its value goes to nothing in your lifetime. Just make damn sure you are wearing your Gov mandated Obama peckerhead hat should you get on a bicycle. 

taketheredpill's picture

 

 

If it can't be regulated it will not be allowed.  Governments will not allow tax avoidance on purchases, hidden wealth, capital gains they can't get a slice of etc.

So they can shut down ecommerce in bitcoin for US companies.  And they can shut down or handcuff exchanges that operate in the US.  Article nails it that volatility may come when crypto butts heads with Governments.

Maybe a longer term buying opportunity when (not if) that happens.  BTC will still be usefull as digital gold for lots of other countries.

Just need to make sure btc is held in a wallet not an exchange.

 

Sabibaby's picture

The dollar is dieing, there will be wars. no ability to cuff crypto-currency holders, wealth is changing like it has in the past. 

buttmusk's picture

it amazes me that people want to make corporations more powerful than governments. since when have corporations ever had the best interest of the public? sure government is far from perfect these days but there's nothing that would suggest anyone would be better off without government. in fact more likely way worse off. you won't be afforded any protections when dealing with corporations in that case.

CashMcCall's picture

America has two great slavery movements of which they should be ashamed. One is the African Slave Trade. The other is empowering IRS to be the Slavemaster of all Americans by Citizenship. Over the years they have embarked on a systematic assassination of freedom. They have eviscerated the 4th Amendment. They stormtroop Citizens at night waking them at gunpoint as they did to Tex Moncrief. For mere money which would normally be just a civil infraction, they criminalize all of it. IRS is the vision of a Hitler wet dream. An organization whose singular purpose is to punish the productive.

Bitcoin is pure capitalism which always finds a way to true freedom from the Socialist Oppressor. The best Defence to rid yourself of IRS is expatriation. All Americans with a net worth of $10 million should have an expat plan in place. 

 

BTC Wallet is invisible and transactions are untraceable. Another name for it is PRIVACY.

Two Theives and a Liar's picture

...and the third is the family court system!

wisebastard's picture

$50 million hack today and it rallies?...i mean for fuck shake just a rumor of a hack would cause JP Morgan of Goldman Sachs to sell off, somebody is full of shit here

aloha_snakbar's picture

Good for them, I say. If I have noticed nothing else while perusing these endless crypto articles on ZH...it is that all of the crypto fans seem to exhibit varying degrees of 'cognitive disability'. Literally, I think the only way that most of the crypto fans accumulate any wealth is if someone gives it to them; in that sense, I think BitCon is like welfare for stupid people.

Sabibaby's picture

some of of have been holding gold/silver, AMZ, APL, HAL you name it. Nobody puts all their eggs in one basic. If you'vew been around here long enough you know what to do...

Ms No's picture

One thing I have noticed is how sure many seem to be exactly how this is going to work out, when in reality nobody has any damn clue how this is going to work out, except maybe for similar historical examples, that ended extremely badly.  In a couple ways it might be unprecedented but not in the way they are probably thinking.

 

buttmusk's picture

the government honeypot angle that I posted earlier would make a lot of sense. they soak up all the excess liquidity to head off future inflationary pressure in the real economy from all the failed qe experiments to destroy it when they announce it is decrypted

 

it will also kill the trust of the population in decentralized currencies not backed by government.

CashMcCall's picture

In that case here is a shovel. Now go out and make an honest living. 

Golden Phoenix's picture

From the first trade at about $.002 Bitcoin is literally almost a 7,000,000 bagger. Meanwhile all you've made is pattycakes of your own shit.

shortonoil's picture

I've got a tulip here that I will let go for ???BC.

USA USA's picture

Gee that's original....

Davidduke2000's picture

seeing a lot of resistance on bitcoin, the buying is subsiding slowly, it dropped to almost $13000 then went back up, but I used to see a lot of green now it is mixed, whomever was buying accumulated the desired numbers invisible coins.

CashMcCall's picture

Oh and your US Dollar isn't invisible... as it approaches the limit of Zero?

disagreeableness's picture

BUY AND TRADE ON A DECENTRALIZED EXCHANGE. KEEP YOUR SHIT. STAY AWAY FROM BITTREX, BITFINEX, THE LOT. GET YOUR ASS TO BITSHARES COMPLETELY ANONYMOUS, ABSOLUTLEY SECURE 0LATFORM (DEX). DON'T BE A DOUSCHKNOZZLE. THIS IS FOR REAL. Or just keep posting your fucking angst.

 

razorthin's picture

When Amazon accepts it, is it game over?  I mean, when folks can start spending coin in large quanities, won't that fuel real, massive inflation?  It is currency, afterall, and can be spent in Satoshi fractional units.  This looks like an awful lot of money might be chasing limited goods.

MagicMoney's picture

You are correct. Bitcoin doesn't add anything to the pot. It will be the transfer of purchasing power. The problem with Bitcoin it is not useful as a currency. I see it as unlikely that Bitcoin will compete for transactions. More likely people will sell their BTC for national currency then spend the money. It is an asset. Not a currency.

Silver Savior's picture

But gold and silver is very expensive on Amazon. Even one constitutional silver quarter is $8 or more compared to $4.50 on eBay. I would rather see eBay take Bitcoin. Amazon sucks for metals.

Sabibaby's picture

MONERO MONERO MONERO MONERO MONERO MONERO

Ms No's picture

This has been so incredible and so damn insane.  I hope people got most of their ass out because this is level five scary at this point.  I don't want to hear people bitching that they are destroyed when this implodes.  I can't remember seeing anything like this in my life.  It's literally the most manic dumb shit ever.

 

 

Jackagain's picture

I don't own any Bitcoin, but I expect it to go up through mid-2018. It will get really scarry until then with a lot of fake corrections. I do own 6 GBTC shares. 

CashMcCall's picture

Why do you freaking care? Why all the hyperconcern. The total value of Bitcoin is negligible if it dropped to 1 cent in value tomorrow. You and your level 5 socialist hyperconcern.  

Ms No's picture

Why did people care about Tulips and various other contrived bubbles, because they destroy everything that's why.  What will the carnage justify?  Making holding gold illegal again and any other alternative currency?  Plenty of reasons to worry.  Anybody who thinks that the banks aren't behind this are completely shitting themselves.  They could have squashed it like a bug from the start.  They have nearly complete control over markets and commodity movements in this country.  Saying that they couldn't stop this (they never really tried) is the same as saying that the CIA couldn't shut down ISIS' website.  People believed that shit too.  It's concerning because it could be an indication that the may pull the rug on everything.  They also created this when they needed to dilute the gold market.  I'm sure it's all a coincidence and they just couldn't catch that "Asian creator" and stop any of this from going down. 

Shit, I just realized that now I'm happy it's going to happen.  Popcorn... carry on.

 

AurorusBorealus's picture

I think that they should change the name of this site to Bitcoinhedge.  Please stop with the 24/7 coverage of virtual money.  Will you be covering crises in the economies of massive multiplayer online roleplaying games next?  Should I buy or sell my unique World of Warcraft gear?  Is there a bubble building in the Diablo II auction house?

ron_struct's picture

Yeah, 'pathological' like Koreans selling stocks to buy Bitcoin!

Jackagain's picture

The reason Bitcoin is not going down is because the holders are not selling. If they need money, 2 Bitcoins will buy a new car.