Bitcoin’s Berserker Run Resumes After Exchange Breaks; Novogratz Says “Not Close To The End"

Tyler Durden's picture

Bitcoin is extending its gains after the 25-minute shutdown on GDAX...

*  *  *

Mike Novogratz - self-described as the "Forrest Gump of Bitcoin" - is on the wires calling Bitcoin a "cultural revolution."

"The world is in blockchain speculative phase... not close to the end of the speculative phase"

 

Novo added that Bitcoin futures will give rise to ETFs and even broader adoption and a "sell-off after the speculative phase is complete."

 

"Cryptokitties will be a fad"

 

"It's hard to mitigate volatility risk in Bitcoin"

 

Novogratz says "banks will be slow to move into the industry and doesn't see quick adoption of Bitcoin as a currency"

 

For now he has 25% of his net worth invested in Bitcoin/Blockchain and warns investors to "be careful" in non-Bitcoin tokens.

GDAX is back up after a 25 minute 'glitch'... and Bitcoin is rebounding

*  *  *

GDAX just broke...

Additionally, Bitfinex says it is under a significant denial of service attack.

As Bitcoin tumbled $4,500 from its highs...

 

And now the giveback...Bitcoin is down $3000 from its $19,600 highs...but is still up 30% on the day

 

Bwuahahaha... $19k...on GDAX

After tagging $19,697, Bitcoin prices tumbled to $17,900...

Prices are varying dramatically across exchanges with $2000 differences.

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
  • $12000-$13000: 17 hours
  • $13000-$14000: 4 hours
  • $14000-$15000: 10 hours
  • $15000-$16000: 5 hours
  • $16000-$17000: 2 hours
  • $17000-$18000: 10 minutes
  • $18000-$19000: 3 minutes

Coinbase is struggling to keep up...

*  *  *

 

Update: $18,000, that is all!

*  *  *

Update: WTF! $17,000...

We do note that GDAX pricing appears to be at a significant premium to several other exchanges.

*  *  *

Update: Bitcoin just surpased $16,000... speechless...

*  *  *

In the last 36 hours, Bitcoin has blasted through $12,000, $13,000, $14,000, and now $15,000 levels in an unprecedented 28% surge...

With a market cap of around $250 billion, Bitcoin is bigger than Proctor & Gamble and approaching the size of Wal-Mart as the 12 biggest 'company' in the S&P 500.

As CoinTelegraqph reports, the price is likely being driven by news of the imminent launch of Bitcoin futures trading. CBOE will be launching their futures market this coming Sunday, December 10, with CME Group following on December 18. Nasdaq plans to launch futures trading in the summer of 2018 and Japan’s Tokyo Financial Exchange is preparing to launch futures trading as well.

Bloomberg has announced that brokerage firms TD Ameritrade and Ally Invest will be offering Bitcoin futures trades to their clients. Even J.P. Morgan Chase may follow suit, despite CEO Jamie Dimon’s infamous views on the digital currency.

GDAX, Coinbase’s digital currency exchange, has been leading the rally all day. The price on GDAX is currently about $500 ahead of other Western Bitcoin exchanges. The likeliest - and most bullish - explanation is that Coinbase is the easiest way for new Bitcoin investors to get involved. Consequently, when GDAX leads the charge as it has today, it probably means new “retail” investors are fueling the rally.

Meanwhile, as CoinDesk reports, Ron Paul wants to know: would you take $10,000 in bitcoin, cash or something else?

The former U.S. Congressman from Texas is currently holding a poll on his official Twitter account that asks in which form they would take $10,000 from a "wealthy person". The catch: you can't get rid of it for 10 years.

Paul – who earlier this year called for the U.S. government to "stay out" of bitcoin – put the question to his more than 650,000 followers, asking if they would take $10,000 in the form of bitcoin, dollars, gold or 10-year U.S. Treasury Bonds. The result thus far – one hour remains in the poll at press time – indicate that of the more than 70,000 responses, 54 percent expressed support for bitcoin.

Gold took the second-highest amount with 36 percent, followed by a mere 8 percent for the 10-year bonds. Just 2 percent indicated that they would take the Federal Reserve Notes if offered.

Speaking with TheStreet in October, Paul conceded that he's no expert on cryptocurrencies (back in 2014, he argued that bitcoin wasn't "true money"). That said, he voiced his support for cryptocurrency in the most recent interview, arguing that it lends credence to the emergence of alternative currencies against the U.S. dollar.

And while Bitcoin's eye-popping price movements have some observers saying the market is in bubble territory, Naval Ravikant, the co-founder of AngelList, while he's not ruling it out entirely, holds a less alarmist view.

"Money is a bubble that never pops," he said at yesterday's Token Summit II in San Francisco.

He told attendees:

"It's a consensus hallucination."

And speaking to the newfound attention to bitcoin, Ravikant said people are interested in growing the wealth that they have. With most savings accounts returning zero these days – as central banks conduct what Ravikant called their "grand money printing experiment" – the general public is looking for alternative places to store their money and watch it grow.

Bitcoin and other protocols seem to offer that, as even the less-developed cryptocurrencies are showing substantial returns.

"I think people are looking to solve their money problems," he said.

Additionally, Coindesk notes that the former chairman of the U.S. Federal Reserve, Alan Greenspan, has joined the many financial luminaries to recently criticize bitcoin's value.

Speaking to CNBCGreenspan compared bitcoin to that of an early American form of money called "Continental currency" that came into use in 1775 and had become worthless by 1782. The paper-based legal tender was used at the time of the American Revolution and was not backed by a commodity such as gold.

Noting that bitcoin will likely suffer similar fate, Greenspan said that a "significant share" of  Continental currency was still used to create "real goods and services," even though it had no ultimate worth.

He continued:

"Bitcoin is really a fascinating example of how human beings create value, and is not always rational ... It is not a rational currency in that case."

Greenspan's comments come as the value of a bitcoin is soaring beyond most expectations, having gained thousands of dollars in value in the last two days.

And in response to that...

And finally, for those calling this a "bubble" - we would humbly suggest you ain't seen nothing yet...

 

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PhysicalRealm's picture

RedDwarf sez: 'The smallest unit is called the Satoshi'
The smallest BTC unit should be called a "CIA" since they're mostly likely the ones who are really behind it all.

This is Karl Denninger on the BTC ponzi:
http://market-ticker.org/akcs-www?post=232646

RedDwarf's picture

"The smallest BTC unit should be called a "CIA" since they're mostly likely the ones who are really behind it all."

Shooting to be crowned King of the Non-Sequitor for the day or something?  WTF does that have to do with my factual answer?

In any event, who the fuck cares who is behind BTC?  I don't.  It's open source code, the cryptography math is solid regardless, and there are now competitors.  A good and transparent idea is solid no matter where it came from.  There's no 'magic' that suddenly makes this be the Federal Reserve 2.0.

Don't ever get plastic surgery, even for burns or to safe your life.  The Nazi's invented most of that, so it's bad.  Part of some long term plot I'm sure.

RedDwarf's picture

I love it when I get tons of downvotes but no actual arguments.  Proves the people doing the downvotes are butthurt because I'm right and their cognitive dissonance was triggered.

Twox2's picture

Thoughts on KD's BTC piece?

maxblockm's picture

KD knows healthcare, but not cryptocurrencies.

Dick Buttkiss's picture

Bitcoin is divisible to eight decimal points, meaning that you can buy virtually anything with it, no matter how low the price.

HungryPorkChop's picture

Its possible to own a fraction of BTC.  So you could have 0.00001 BTC which is only worth a few dollars.

However, that's why there are the secondary coins like Litecoin which is about $100.  Its works the same where you could have 0.001 LTC plus the transaction costs are less.

Bitcoin is the gold. 

Litecoin is the silver. 

ThirdWorldDude's picture

Then you must be the Queen of Sheba.

Which makes my cat Emperor of the Universe.

And we all love our SSRI-induced madness.

HillaryOdor's picture

They are divisible to 8 decimal places (currently). So the smallest unit is $16,000 * 1e-8, much less than a penny.

seek's picture

Bitcoin is highly divisible. It's not a single unit -- the single unit of a bitcoin is a satoshi (one hundred millionth of a single bitcoin (0.00000001 BTC.) The wallet software handles this automatically.

_triplesix_'s picture

Just need a pair of pliers, right?  Kind of like gold?

Buckaroo Banzai's picture

"How does one make change in Bitcoin?"

A single BitCoin is divisible to eight places. The smallest unit is called a Satoshi. One satoshi is currently worth ~$0.00016

U4 eee aaa's picture

BTC is divisible to 8 digits. They are called satoshi's. That may become the common pricing term soon when comparing dollars

Vincent Langley's picture

Bitcoin is divisible down to 8 decimal places. Programmatically all calculations are performed in satoshis using integer arithmetic (1 satoshi = 0.00000001 BTC). Source:  https://bitcoin.stackexchange.com/questions/19661/how-is-bitcoin-infinit...

jump u fuckers's picture

 Bitcoins are divisible down to 8 decimal places

nomofiat's picture

1 bitcoin = 100.000.000 satoshi.

 

You can buy 1.000.000 satoshi as well

Seeanneb's picture

Any bitcoin transaction is actually summed in satoshis. 1 bitcoin is equal to 100,000,000 satoshis so if you make a payment for 0.1 bitcoins and your wallet has 1 bitcoin, 10,000,000 satoshis go to the other party and 90,000,000 satoshis goes back to your "change" wallet. A bitcoin is used for readability.

Midas's picture

Since its inception Bitcoin has been calculated to the eighth decimal place.  If you want to sound hip you can refer to 0.00000001 as one satoshi.  It currently holds a value around one hundredth of a penny.

 

maxblockm's picture

It's digital. Divide it into digits. 

1 = .5 + .5

10 x .1 = 1

etc

moselywrong's picture

Each bitcoin can be broken into 100,000,000 satoshis, currently worth approximately .02 cents each

Vorpal1's picture

BTC is divisible to 8 decimal places. So if BTC were $10,000 a piece, like a few days ago, 0.00000001 BTC would be 0.01 cent. This divisibilty allows millions of small traders all around the world to trade miniscule amounts and still make trading profits.
Meanwhile, don't let the representers of PMs confuse the issue. Gold is a tight bunch of coalesced protons, neutrons, and electrons originally created in star collisions many eons ago. Bitcoins are electrons diffusely stored on protons and neutrons created more recently by modern technology. They are the same thing, each subject to its own subjective valuation, divisiblity, transportabilty, storage cost, etc.

RAT005's picture

My Bitcoin balance is listed to 0.0000001 Bitcoin.  That is approximately 0.01 pennies at today's value.

Spaced Out's picture

At least btc has wallets that actually work :D

ShorTed's picture

You mean like gold?  I hear ya.

Dapper Dan's picture

51% attack. Hypothetical at this point ?

Bunga Bunga's picture

I am able to spend. Why you are not? Have no BTC?

a Smudge by any other name's picture

funny thing Moze, i keep taking down profits from bitcoin but i leave a couple grand in the game. it's already paid me back. I realize i could have waited and magnified wealth but on the other side, i can't lose at this point. plus it's fun.

 

And there are two guys on this board that i only see helping people. You and Hedgeless. All you guys do is try to help people. And you are the only ones in the whole verse that does this unrelentingly. Except Earnie Hancock. Paul Snow. Catherine Bleish and her awesome husband John. The guys at AgoristHosting.net. Tarrin Lupo, Max Keiser, Gary Franchi, our buddy Morpheus, a few others but THAT'S IT.

 

The elevator has an infinity button but unfortunately it's very small.

Wrenching Away's picture

Tmosley doesn't have the best bedside manners, but I may never have bought in as early or as hard as I did without his constant badgering. For that I thank him, I am currently up over 5x on initial investment.

bwh1214's picture

Telcom 1993 the internet can't scale.

Tmosley 2017 (surprisingly) bitcoin can't scale.

https://bitcoinmagazine.com/articles/developers-release-lightning-protoc...

 

Not sure you know how innovation works, or did you just trade a bunch of bitcoin for BCash.  My video from a several months ago discusses why first mover advantage is so hard to overcome. 

http://www.themonetaryreset.com/2017/08/duane-challenge-accepted-and-wag...

You may want to trade you Bcash back in before coinbase releases those coins. 


 

 

tmosley's picture

You are hallucinating. I didn't say it CAN'T scale. I said thier network is swamped, rendering fees higher and transactions slower to the point of unusability, and they aren't implementing the world's easiest solution because it isn't a permanent solution. The patient is bleeding out and they won't use an impromptu bandage, instead deciding to wait a few months (years?) for something that may or may not work (Segwit was also supposed to fix this problem).

>bcash

I automatically assume anyone who uses this term is operating under cognitive dissonance.

I don't own any BCH. I went to cash ahead of the resolution of this Tether issue. Kept my IOTA, which more than made up for it.

blentus's picture

It's a fucking 'war' again, don't be stupid.

BCH cult (or someone else) has been doing this before when they get angry, but this time they are spending quite a bit more money trying to flood the mempool.

Just look at this chart: https://jochen-hoenicke.de/queue/#1w

Easy to spot the angry people. December 6th, 14:00. Insane amount of $3+ transactions submitted and it keeps growing. Desperate people are on the top, heh.

Then someone got their revenge by dropping BCH another 15-20%.

Almost all the mining hashpower moved to BTC because of huge BTC reward increase (plus transaction fees), so BCH got completely fucked, only 2-3% of hashing power remaining, 30+ minutes per block on average, it is again unusable. Ahaha, fucking hell - it appears to have just recovered, literally 5 minutes ago, after hours of being lost.

Big fucking babies, all of them. Although I am all for blockchain and Bitcoin technology, I am getting tired of this shit. Fuck them all.

 

tmosley's picture

Cognitive dissonance is exhausting, which is why I always outlast trolls.

blentus's picture

Please talk about outlasting invisible trolls and cognitive dissonance, while your precious BCH goes to 2.5% of hashpower and generates blocks in a random manner when actually tested for the first time. 5 blocks in 10 minutes, then no blocks for an hour. I wonder why everyone is not using BCH already.

Great work on that DAA, just shows you how capable single BCH developer is. Future is bright.

And I don't have anything against the dev, but you are so full of shit that I just enjoy pointing it out as much as I can.

shitshitshit's picture

just a stupid idea en passant: despite bifinex and tether frauds, how about imagining the blockchain might be clogged on purpose as well to give free rein to the biggest whales?

Does this seem far fetched (I know we would need to study transactions in the ledger to determine if they come from potential whales'wallets etc.)?

bob_stl's picture

Come on tulips, daddy needs a new pair of shoes!

jeff montanye's picture

nice imagery.

tulips topped out when a bulb would buy a house.  so that's $188,000.  but it was also equal to ten years labor of a skilled worker, so maybe twice that?  the speculation is that the speculation owed much to disease:  bubonic plague among the gamblers made a fatalistic "go for it" mentality more common and a tulip mosaic virus led to spectacular multicolor tulip varieties never before seen.

https://en.wikipedia.org/wiki/Tulip_mania

 

Dukes's picture

I'm inclined to believe this is the death nell for bitcoin.

 

Metoric rise.  All kinds of attention.  Chinese women probably buying en masse.  Everybody jumping on board to ride it to ???

 

When it falls, and it will, people will get "hurt" and it will spurn inevetible regulation/oversight/control.  

Enjoy the ride as the end is nigh.  

RedDwarf's picture

"I'm inclined to believe this is the death nell for bitcoin."

Unlikely.

"Metoric rise.  All kinds of attention.  Chinese women probably buying en masse.  Everybody jumping on board to ride it to ???"

It needs to go to $100,000 per BTC just to even rate as a significant world currency, and likely several times that.  In the currency markets a valuation of several trillion dollars is normal.

"When it falls, and it will, people will get "hurt" and it will spurn inevetible regulation/oversight/control."

They can pass all the regulations they want it doesn't matter since they cannot enforce them effectively.  The most they can do is hinder conversion to and from fiat to bitcoin by shutting down the exchanges.

As for it falling, sure there is likely a major correction coming.  50% or so is quite likely.  That will be the time to buy with both hands.

Buckaroo Banzai's picture

"As for it falling, sure there is likely a major correction coming.  50% or so is quite likely.  That will be the time to buy with both hands."

Still have buy orders in at ~$8300. It's going to take a 60% retrace from the ATH to get that order filled. Starting to think that might not ever happen.

quadraspleen's picture

I think it will happen. I think sub 5k prices are possible when the wankers start trying to pump'n'dump it. Right before it goes back on its way to >$100k

silverserfer's picture

bitcoin is a an apperratus that is really good at wealth transfer from anyone. currency inflows are bringing up the price and for anyone to make any money fom this, someone else has to lose that amount. People love to gamble and bitcoin is the place to be right now for them. Not me.

Dick Buttkiss's picture

If you place Bitcoin in the context of the value of all government fiat currencies presently in circulation — i.e., if Bitcoin were to replace them as the world's money, once all fiat wound up in the graveyard of all its predecessors — then dividing the current number of Bitcoins in circulation (~12,500,000) by approximately $75,000,000,000,000 ($75T) results in a Bitcoin price of $6,000,000 ($6M).

Sure, Bitcoin could eventually give way to Ethereum and/or a number of other cryptos over time, but you get the idea, i.e., that the cryptocurrency revolution is just getting warmed up and that what it portends for the nation state as we know it (hasta la vista, baby) and thus civilization as we know (hello, freedom!) is almost beyond comprehension.

Meanwhile, and as always, the state can kiss my ass.

ZH Snob's picture

and all that hoopla can be avoided with a simple HODL.

freedogger's picture

Interesting. People that could probably by a tulip back then what about ten thousand, maybe a hundred thousand? There aren't enough bitcoins in circulation for every millionaire in the world to even by half of one.