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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dasein211's picture

Coinbase keeps the coins in cold storage until they are transferred. That’s hard to hack. It does definitely slow down the transfer times but keeps the coins safer.

Laowei Gweilo's picture

which exchange or even if it's exchanges or some other part of it is sort of besides the point (didn't mean to single out coinbase per se.)

my point is, if there is a serious future hack that results in any serious downward movement (or worse, a massive crash), my bet is on it being a CIA false flag =p

Azannoth's picture

You had me going there for a second.. but than again I already lost my portfolio investing in Silver miners and got no change to spare

coaltar's picture

I just don't understand why you'd want bitcoin instead of gold? Maybe I'm just a stupid 22 year old, but I'd take the PMs any day. Don't get me wrong, bitcoin might make your rich while PMs will hold their value... I just suppose I don't care to ride the gamble to the moon. I'll kick myself later :^)

ThirteenthFloor's picture

If you want to move 15 million dollars from US of A to Hungry overnight unseen and unreported, you can now easily with 1000 bitcoins.

Beats all too heavy gold or under the stained underwear of Marilyn Monroe as Sam Giacana used to do.

Budnacho's picture

"Unseen and Unreported"...congrats, you just explained WHY it will be shut down. 

ThirteenthFloor's picture

My point exactly. I imagine some novels, princes and banksters are relocating as I write. We live in a crime infested system, and those driving up bitcoin are not the likes of grandma smith, uncle wu, or junior jones.

call a spade a spade's picture

Quick question.....

 

How will it be shut down?

sessinpo's picture

Budnacho

"Unseen and Unreported"...congrats, you just explained WHY it will be shut down

----'----

Yea right, just as regulators have approved it for the CME and NASDAQ.

 

 

 

kochevnik's picture

$5 metal detector answers question

kochevnik's picture

$5 metal detector answers question

maxblockm's picture

"Hold their value"?

1 oz gold did equal 1 BTC for a while.

now 14 oz gold = 1 BTC.

Not holding value.

Diversify.

Buy .1 BTC or .001 at least.

jeff montanye's picture

well there isn't a moore's law of gold mining, i don't think, and it's hard to hack a bar of gold like nicehash just announced with bitcoins.

also there don't seem to be many barriers to entry.  

11b40's picture

Really?  Like all the other skeptics, he tells us it will crash.  Like all the other skeptics, he does not tell us when, or from what level, it will crash.

 

In the long run, we are all dead.

tion's picture

Francisco d'Anconia is soooo underrated.

greenskeeper carl's picture

Ya. I actually do like that dude, but thats pointless. Do I think bitcoin is THE FUTURE OF MONEY worldwide? No, but I gamnbled on it a little bit anyways becasue I think itsgoing to run higher before it pops. If I lose, no big deal. But him and others have been calling for its imminent demise since it was sub 1000, and are now saying the same thing. The smart ones on this board, IMO, are DCRB and seek, for recognizing what was happening early and sellng enough now that they get what they put in back plus a nice profit no matter what happens next week or next year. THATS smart, not calling it a bubble all the way up, then inevitably crowing about how they were right, everyone else was wrong, even though it took them years of being wrong, and missing out on a shitload of money, to get there.

AlaricBalth's picture

Enjoyed your article John Galt. Your Hunt Bros reference brought back memories.

kochevnik's picture

ONly human labor is genuine to the Marxist

MFL5591's picture

Laugabale fraud is what we are watching by the New York Zionist criminal scum.  9 days of complete and utter criminal theft in the precisous metal markets give way to a $14,000 price for something that has no value.  

wise_owl_says...'s picture

that is how uber wealthy like it. for sheeples to continue to put hard earned wages into a void (USD not working anymore). they continue to pilfer real tangible gold, silver (cheapest asset on planet comparable to everything else-they will siphon it up in a jew york second, if you sell it.) , fine art, good land, antiquities, archeological artifacts, and fine gems. THAT is where real power lies. not in tron land. BTW, tron land will be utilized by uber wealthy that control all servers, to have sheeple turn on each other (an emoji subconscious signal?) at their convenience.

Endgame Napoleon's picture

No, it is like the article says: The people who have any money to save (less than half of Americans) are looking for a better way to save it. They probably feel uneasy about the current, underlying economic dynamics in the real-world economy of mass underemployment, unreported by the MSM just like this Bitcoin phenomena. If you listen to the MSM, you would not even know this was happening, and yet, the general public is apparently still buying a ton of BTC. It also shows how irrelevant the MSM fake news is.

dark fiber's picture

General public.  Read impressionable idiots impulse buying something they know nothing about from the convenience of their living room and courtesy of their e-banking account.  When this bitch comes down, these idiots will be swamping the forums and demanding more internet regulation to protect them from their stupidity.  Because they are victims and not too stupid to deserve to live.

Lorca's Novena's picture

Right but yet wrong... How exactly does buttcoin have no resemblance to the economy? It is an instrument of monetary transfer is it not? I can be paid for my labor via buttcoin correct?

 

But yes, it is ALL a fraud

Buck Johnson's picture

I can't wait for the other coins to shoot up, almost about to buy bytecoin in a few days.

 

wise_owl_says...'s picture

'satoshi' (see eye aye op) who giveth algos... will taketh away. extortion, taxes and fees will be levied in one form or another. paid $6.00 fee to move $300.00 in BTC recently (not including exchange fees). it has become an uber wealthy mans tool now. i got out at $6,000.00 thinking it was ridiculous at that level. dealing with e(-6) decimals for everyday use while paying e(-4) fees. worse than ATM. sheeples is so....  

BarkingCat's picture

Yeah, I just saw that too from Sweden that is leading the Bitcoin cash fork pumping Bitcoin by saying that it's a peer-to-peer monetary system and is that you can simply give someone your money from phone to phone without an intermediary. What a load of horseshit. All the transactions have to be process by the miners, for which they take a fee. Bitcoin isn't money and it isn't the currency. It is a digital token with no intrinsic value. If you got to enjoy the ride and get up before it crashes. Someone will end up holding the bag. Hopefully I'm smart enough to get out before that moment.

maxblockm's picture

There's no such thing as "intrinsic value." Things have intrinsic properties. All value is relative. The intrinsic properties of gold and silver make them valuable. The intrinsic properties of BTC makes it valuable.

Muslimania's picture

Bitcoin got HACKED last night....for about $50 MILLION.

AND IT AIN'T COMIN' BACK!

maxblockm's picture

Remember Tulving, Northwest Territorial Mint, Bullion Direct, Mulligan Mint, and all the other metals dealers that went bankrupt?

Those are metals exchanges.

If they got "hacked" does that mean gold and silver are worthless?

Just because crytocurrency exchanges get hacked, does not mean that the currencies themselves got hacked.

BarkingCat's picture

I would not call speculation in Bitcoin a fraud. Fraud is when something is presented to the people as something that's it is not.

Bitcoin is very easy for people to see what it is.

The speculation Bitcoins is pure greed and/or stupidity.

I will admit that I have joined the ranks of people who are speculating in Bitcoin, however I have no delusion as to it's real worth of nothing, so my participation falls into the greed category. 

If Bitcoin crashes before I get out, I will not blame anyone but myself for the loss.  I walked into this game with my eyes wide open.

deth's picture

Crypto currencies transmit value across time and space. Why do people keep writing that it has no value? That function, by itself, is is demonstrably valuable.

Another amusing observation - gold bugs, who correctly identified the current destruction of money, appear to be missing part of the grand finale. And all because they believe crypto is fiat while ignoring it's free market behavior - which stands out defiantly from all other (non) markets.

Badsamm's picture

What does that “real economy” look like?

NumberNone's picture

It will be a problem as that is money that cannot be used by the financial institutions and their money multipliers.  $100BB in Bitcoin value is $1Trillion in loans that the banks cannot make interest on and is viewed as out of circulation.  

This is a bigger threat than gold as it's global and now viewed as a way to store wealth that does not involve giving money to banks.  This will not be tolerated.  

esum's picture

NO NO NO 

THE FED NOTES ARE A FRAUD.....

IF DOLLARS WERE CONVERTED INTO BITCOIN (DOLLARS DIVIDED BY BITCOIN) = $57000/BITCOIN

so million bucks... doubt itbut $27000 is not so unrealistic...

and besides the banks an others are trying to figure out how to fuckit or join it...

ONLY THE FED IS THE REAL LOSER HERE... right baron R...

i guess the globalist cocksuckers dont have eonough paper, swaps and offsets to hammer pm and bitcoin at the same time... and jack up the stock market... the market will collapse and then we will see if "investors" in stocks or bitcoin buyers are the greater fool

look at the multiples and then look at congress circle jerk putting dreamers ahead of US citizens.... not tax cut/govt shutdown... no salt deduction.... who in their right mind thnks corps are coming back to the ussa banana republic .... a sucker play if there ever was one... come abck so we can really fuck you good... sure... 

Ink Pusher's picture

"Speculating in Bitcoin is just another financial fraud."

The reason why all of the scumbag-motherfucking-filth on this planet are engaged balls deep in the process of opening up futures exchanges for it.

ReturnOfDaMac's picture

"Bitcoin going to a $1 million dollars is fine because Bitcoin has no resemblance to the real economy" - neither do stocks.  Doesn't keep me from buying both though!

TheReplacement's picture

Bitcoin very much resembles the real economy.  The real economy is manipulated from top to bottom using fiat currencies and people are getting pretty sick and tired of YOU statist assholes doing that so they are jumping ship and getting the fuck out. 

 

 

swif_siqol's picture

Dear slave, can't you see the dollar catching on fire when it spins around that fast?

I can see the it sparkling already (so do central bankers)

sessinpo's picture

Actually, bitcoin is a reflection of the future collapse of the US dollar. That is resemblance to the economy. $150 a barrel oil won't mattervas much if you converted to an asset that is appreciating to match the depreciatung dollar. 

deth's picture

e. iguana,

Congratulations, that's got to be the most upvotes I've seen you get. You've made a good point or two over the years, I just can't remember them mixed with all the garbage. I think slamming block chain may your best bet for popularity.

Me, I'll stick with bullion as money and cheer block chain as currency. Greenspan is against bitcoin, hahaha. Whoda thought?

"reserve notes die, derivatives fly, the Greenspan put was a ruse
sending loaded arms to idle hands with nothing left to lose"

You're a reptile, but you're cute, please keep writing.

Golden Showers's picture

Doesn't the word "economy" come from Greek Oikos, Oikou, the noun for house, or household?

There's lots of kinds of houses / economies. There's the gambling "house", the whore house, the crack house, the shit house, the brick house, the White House, the poor house, the nut house, Run's house, tea house, bath house, hot house, green house, play house, wheel house, light house, coffee house, fun house, steak house, Little house on the prarie farm house, ware house, house of cards, glass house, round house, road house and astrological house. You name it. The idiom is trenchant. Oh, lest I forget ale house. I'd just kick myself for that shit. Economy and house are inseperable.

What is the real economy?

I say Nature.

I'd like to see what a biologist would say regarding the parabolic explosion of the value of bitcoin compared to say, a virus... like the Bubonic Plague. That's kind of what I think about when I see this shit. Something so teeny tiny gets up in your program and multiplies until it eats you to death and turns you into a bloody pulp.

Now that's Nature's house. And why? Because you didn't wash your fucking hands and threw your shit in the gutter out your fucking window onto the sidewalk. And I call that, affectionately, Shitcoin, Bitches!

This motherfucker looks more like an auto-immune disease than a fucking investment to me. Reminds me of James Cahn in Rollerball for some reason compared with the remake with LL Cool J.

Peace.

Aw Yeah's picture

Mine says: I was there for Bit Coin Mania, and all I got was this lousy t-shirt.

Arnold's picture

I think it was Tmos or maybe Fonestar that prodded me into buying one.
What a pain in the ass it was .
Around $600, plus many hours of my time if I remember correctly.
Have had no urge to do more.

Arnold's picture

I don't need property in the South Seas to plant my Tulips.

Thoresen's picture

Read 'The madness of crowds.'
It's Tulipmania all over again.

Arnold's picture

I'll have to look, but I think I have had my copy of 'Popular Disillusions' since the early eighties.