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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floosy's picture

Trust.

Which is more than FRNs have backing them right now

mwave1008's picture

Actually is exactly like end of 2013 , BTC topped sometime next week and then in 10days it halved , also Gold started the decline in October eand ended the decline 15th dec started at 1400 and ended at around 1200 (looking very similar doesn't it ?) . History Rhymes guys .......

GooseShtepping Moron's picture

Meanwhile, not a single stich of real wealth has been created, no goods produced, no services performed. This speculative frenzy is nothing but pure multiple expansion, pure inflation. At least the gold rushes of the past did produce some actual gold, but this Bitcoin mania is digital fool's gold: a headlong rush into nothingness.

achilles5008's picture

Great line GSM

 

"a headlong rush into nothingness"

 

Kind of describes life.

floosy's picture

Not true.

NVidia and AMD have sold a lot of graphics cards and bitmain have sold a lot of antminers

So technically speaking the crypro surge has stimulated whole electronics industries and their supporting industries. Amongst others.

Juliette's picture

And countless megawatt hours of electricity have been sold, and the coal for generating it ...

Thom Paine's picture

so there has been expended massive amounts of energy that has provided nothing to the planet. 

Not food, water, infrastructure, buildings, health, transport - just imaginary things.

And of course that means resources have been diverted away from things that provide to the planet.

People do understand economics 101?

11b40's picture

It is just a currency, but one that does not depreciate.  What is the value of the dollars in your pocket?  Nothing more than the value of the ;aper, until they are put into use.  Cryptos are being used, and the uses are being expanded by the day.  If I buy a truck for my business with BTC it produces the same results as if I bought it with Yen, Rubles, or Dollars.

tmosley's picture

The bitcoin network IS infrastructure.

Your word thinking regarding "nothingness" is ineffectual navel gazing. Stop that shit.

freedogger's picture

Don't discount the largest network of computing power on earth so quickly. 

herkomilchen's picture

Plenty of hard-working, productive sellers of goods accept Bitcoin.  Some on their front page.  Others like Amazon and Starbucks, you need to use a gift card and money-changers as interfaces, but so what.  Every buyer of Bitcoin has had to productively earn the fiat he's using to buy it.  Bitcoin delivers superior value to its users by virtue of it not being inflated and manipulated by the Fed.

tmosley's picture

>Meanwhile, not a single stich of real wealth has been created, no goods produced, no services performed.

That's wrong though. Entire industries have sprung up around bitcoin. Industries that won't disappear when BTC fails.

Spaced Out's picture

"when it fails"?

But, you said it was failing 2 months ago when you bailed.

And you said it was "dead" just a week ago....

Get a clue fella!

tmosley's picture

^---Pets.com investor right here.

"It hasn't failed yet!"

Hahaha.

ludwigvmises's picture

Do we really need a new article daily cheerleading every $1,000 move? Let the dumb mainstream bubble media do that, we should be smarter here.

shitshitshit's picture

it's too fast evey 1000 now.

Let's cheer up every 10k from now on eh

AUD's picture

I'm looking every hour just to see how crazy!

11b40's picture

Is this still a financial blog?  Is there anything more spectacular going on in the world of finance?

Thom Paine's picture

Bitcoin reaching an asymptote.

Where the upward movement accelerates the closer it gets....$4 trillion by Christmas.

You all going to be trillionaires.

Because it is different this time.

Spaced Out's picture

I bet you wish you'd bought some btc now, instead of reading the dictionary.

truthalwayswinsout's picture

Stupid.com is too small for these morons. StupidStupidStupd.com is about right

Thom Paine's picture

Hint.

The first one out the door wins.

He who panics first panics best.

Hey wait I am wrong, now is  a great time to buy.

Buy in now everybody, don't miss out.

11b40's picture

I think this is the same cut & paste post I saw at BTC $1K, 2K, 4K, 5k, 7.5k, 9k, 10k, 11k, 12k, 14k.

Spaced Out's picture

"The first one out the door wins"

Timing is everything.

"He who panics first panics best."

Unless you buy a shitalgo coin in your panic, like Mosley, then you lose everything (and deserve to) :(

"now is  a great time to buy"

Quite possibly, but taking profits every now and then is an excellent idea, just in case :D

You don't own bitcoin, just guessing :D

 

 

Yellow_Snow's picture

WAVE 3, Bitchez  !!!

rphb's picture

It is hillarious that 54% prefer to get 10 grand in bitcoin compared to only 36% in gold. In 10 years the gold is still there, and likely worth a lot more. But Bitcoin, to simply call it a bubble will be an insult, it is a mania beyond imagination. And everyone knows that a mania cannot last a decade.

But that is what is so sad with investment sentiment in the west, we have been taught to chase what is rising, not what have good fundamentals. And as such, this hyper speculative asset, seems a lot more compelling then the safety in gold.

Bittards used to say that Bitcoin was digital gold, and claimed that like gold it was a good store of value. But now everyone is just chasing the Moon. Here's a hint, no matter how high you jump, the Moon is just too far away, and everything that goes up, must come down.

EddieLomax's picture

Bitcoin is going to be the metaphor of the times when we look back.

Which is ironic since its the central bank madness that really has done all the damage and caused the vast stampedes that will destroy a lot of productive capital.

But as a metaphor its hard not to see the total lunacy here.  More electricity than the population of Ireland is being consumed just handling a tiny number of transactions with a blockchain already at 150Gb, this technology would fall over flat trying to compete with VISA in Luxemburg, let alone go global.

The other coins do show some promise, the bitcoin cash sounds better.  I'm still pesemistic here, bitcoin is too expensive to mine vs its utility already.  But if there is a crypto currency that is cheap to run, scales up massively and is secure and hits massive valuation then why would governments+central banks adopt it and thus bless the black economy?

Why not just create an official crypto currency under their own control and make illegal the use of any other as fraud?  Just yesterday 62 million dollars of bitcoin for example were stolen, how many other coins have been used to buy illegal goods?  Handling stolen goods is a crime.

All this is stored in the block chain, if I tried to spend money stolen in a large bank robbery the government would be onto me if the numbered notes were discovered, the same will be for cryptocurrencies but even worse since it is easy to check!  Thus the legal tool to destroy the viability of any cryptocurrency is built into its central feature.

 

Based on that crypto-currencies appear to be weapons of capital destruction waiting to go off.  Putting my money where my mouth is here, going to short them myself, the instrument for that is the one people stampede into - gold, silver, precious metals.  Bonds look a mugs game, stocks could be good too but bubblicious today.

11b40's picture

Go for it Eddie.  Short the hell out of it.  Use a lot of leverage, too, so you can max out your short profits.

 

Good luck.

Crazy Or Not's picture

BTC is racing its way to fully unstable thats for sure, 18, 19, 20 trigger amounts for cash outs to trend / run.
Collapse is only one Govt. anouncement away.

Juliette's picture

I will make huge profits with BTC now and cash out later ... then I can buy all the yellow shimmering pet rocks I want and fondle them and talk to them.

Pol Pot's picture

Ron Paul set up the wrong question...$10 k is not enough to be life changing..so most people would see 10K as a gift and nothing more..and therefore perceive no risk in loosing it...so why not gamble on taking something that everyone expects to be worth a million. But if he asked the question another way....."Your rich uncle is leaving you $1,000,000 in a trust you can not touch for ten years....and wants to know if want gold, cash, bitcoin, or bonds".... the answers would be very different. Now there is risk in losing...so people will take that into account and think with their heads and not their greed.

Juliette's picture

But BTC is for speculation only ... If I wanted to store my wealth I would chose gold. But I want to multiply it and not store it.

kochevnik's picture

Bitcoin hashes from maths persist forever, even when your gold has evaporated into photons

GoatHollow's picture

Um---- The "Satoshi White Paper", laying out the invention of Bitcoin was published in 2008.  In 3 weeks...... That will be 10 years.

matagorda's picture

Here's a link to the android apps for cryptocurrencies --https://play.google.com/store/apps/details?id=de.schildbach.wallet&hl=en... Have fun!  Finally the end to the masturbatory cellphone culture.  Every single one of these self-absorbed morons walking around with their nose in a cellphone is going to get wiped out by their own short-circuiting brains.  Woody Allen predicted it in sleeper with the orgasmatron.  At least the government should tax it already!

buttmusk's picture

cmon give us your best shot lets see 100% move up in a day. you can do it fools

kochevnik's picture

IOTA did that.  You are slow

iamrefreshed's picture

Yeah but you couldn't cash out because that option on the exchange was "suspended".

reginald's picture

Has anyone purchased an ordinary good with BTC?

Juliette's picture

Not yet. I will wait for more profits to accumulate and then cash out to buy a rental house.

reginald's picture

Has anyone purchased an ordinary good with BTC?

Yellow_Snow's picture

Gold down to $1257  (-$8.2)

Gold charts falling apart...

MACD and RSI -SELL SIGNALS  !!!

KARMA Calling  !!!

Thom Paine's picture

are you really that stupid?

Why would the Fed and BIS, Central Banks spend so much effort in keeping gold under control, but not give a toss about bitcoin.

You will know bitcoin is worthwhile only when the TPTB start to crash it like gold. In the meantime it is just a toy.

In fact the TPTB are probably rubbing their hands, trying to get as much money as possible into this roach hotel.

tmosley's picture

Because the Fed and other central banks are bloated bureaucracies that only know how to fight the last war.

Fireman's picture

It's a shakeout. Get the dummies to dump their real and suck them into the fake. Who do you think is actually buying up all the loose metal at these bargain basement prices? The same BIG money behind the Blipcoin stampede.