Bitcoin Spikes Above $2800 For First Time As "Japanese Buying Frenzy" Continues

It appears the Japanese bought the f**king dip in Bitcoin last week, as tonight's session has seen s sudden surge in the price of the virtual currency, taking out prior record highs and topping $2800.

Additionally, Bloomberg reports, the speculative frenzy in bitcoin is spilling over into several small cryto-currency-related stocks on the Tokyo Stock Exchange.

 

But it's not just Bitcoin that is soaring, Bloomberg reports that Remixpoint Co., Infoteria Corp. and Fisco Ltd., have all seen volatile swings in their share prices after announcing businesses related to digital currencies.

Remixpoint, which has more than doubled since tying up with Peach Aviation Ltd. to let customers pay for tickets with bitcoin, fell as much as 9 percent in Tokyo on Tuesday.

 

Infoteria, up more than 50 percent in the past month, is testing ways to let shareholders vote by proxy using blockchain, bitcoin’s underlying technology. 

 

Fisco, a financial information services provider, began operating a bitcoin exchange last year and is up about 25 percent since early May.

All of these gains coincide with bitcoin’s rally, with the value of the virtual currency doubling against the U.S. dollar since early May. That has made the stocks of the these small-cap companies an attractive way for speculators to invest in cryptocurrency markets without buying them directly. That’s because investors can make bets via their brokerage accounts instead of taking risks with bitcoin exchanges, according to Naoki Murakami, a well-known day trader in Japan.

“From about a month ago when all these virtual currencies started spiking like crazy, we began seeing the so-called ‘stocks of the virtual currency bubble,”’ said Murakami, a frequent speaker at investor conferences.

 

“Not everyone is sure they can trust bitcoin exchanges. And some don’t have accounts there. That’s why they’re using the stock market to speculate.”

Another reason why these stocks can become proxies for bitcoin is due to Japan’s relatively loose listing laws, some of which require no income and a market value of as little as $10 million before a company can go public. That’s made the Tokyo Stock Exchange home to hundreds of small companies.

“It’s pure frenzy,” Murakami said.

In April, Prime Minister Shinzo Abe’s government legalized digital currencies as a form of payment and placed rules around audits and security. That lent credibility to digital currencies, leading to some Japanese companies seeking partnerships with bitcoin startups.

Comments

Manthong BaBaBouy Mon, 06/05/2017 - 23:19 Permalink

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0in;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:"Calibri","sans-serif";
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
I like crypto and the blockchain but mark my words… Mean reversion is in the future for today’s crypto. But its best value now is to illustrate how quickly masses of people will flee CB/Gov debt based fiat. Ultimately, a hard, relatively stable asset will need to back the digital currency. Until then, it may be a means of exchange and fungible but it is in no way a store of value except theoretically.

In reply to by BaBaBouy

BaBaBouy Manthong Mon, 06/05/2017 - 23:37 Permalink

Its possible BTCers will find a way to finance backing Bitcoinz with say 10 ozs of Phys GOLD Per.

This formula could possibly work, and each BTC would have a hard asset behind it. Would also be good for GOLD as a shitload would have to be bought on the open market.

Alternately, a new "BitGOLD" could be introduced doing the same thing with a Blockchain and PHYS GOLD behind it. I think its just a matter of time (year), And the paper CMX GOLD will be totally irrelevant...

In reply to by Manthong

Exponere Mendaces Art Van_Delay Tue, 06/06/2017 - 02:27 Permalink

LOLOnly a complete fool would compare equities to Bitcoin.There's no dividend, no reporting to stockholders, no stock. Its a system to send value 24/7/365 across the world. If you can't see the potential in that -- don't worry, the market already has.That's why its trading at $2,844 right now.Where is gold at again? LOL, lets see... $1,288How embarrassing for you. 

In reply to by Art Van_Delay

J bones BaBaBouy Mon, 06/05/2017 - 23:54 Permalink

My point is that bitcoin isnt both. Its not an asset and thin air! Its a bubble full of thin air. So ill put my cash on the asset part i wouldnt buy bitcoin cause its backed by gold i would just buy gold.

After all you bitcoiners ace up the sleeve is gold is manipulated so when would you take magical bitcoins and back them by gold?

You must be feeling that bitcoin can rule all without being IDK real?

In reply to by BaBaBouy

King of Ruperts Land J bones Tue, 06/06/2017 - 05:05 Permalink

It is not 'thin air' It is physical. You hold an actual secret key that only you know, that represents your quantity of Bitcoins. It is crypto physical.

You rely on the "bitcoin network" which is other bitcoin holders/users recognizing that your Bitcoins have value just as when holding gold you rely on others to value your gold when you want to sell it.

The Bitcoins are rare because everyone agreed on their rarity as part of the algorithm. Just as everyone agrees that gold is gold and brass is not gold, similarly everyone agrees that Bitcoins generated according to the original algorithm are Bitcoins and anything else is not.

The blockchain is the record of all the origins and transactions of all Bitcoins that exist and prevents double spending.

In reply to by J bones

King of Ruperts Land BaBaBouy Tue, 06/06/2017 - 04:45 Permalink

That is silly. Where would the gold be? If you want gold, hold the physical gold. Bitcoin is it own thing. You physically hold it. Like you physically hold gold.
No one "owes it to you". That is the beauty of physical gold. That is the beauty of physical Bitcoin. you hold the Bitcoin. No one "owes you " the bitcoin. You have it in your hand... only YOU. It IS physical. Crypto physical.

Get your mind around that. It does not shine and be heavy like gold, but you DO hold it in your hand exclusively, if you have generated your random number in secrecy.

You can then transfer it to someone else over electronic signals, and gold does not give you that ability. This is a type of NEW GOLD. It does not need any gold "backing". It is much rarer than gold.

In reply to by BaBaBouy

tmosley zipit Mon, 06/05/2017 - 22:56 Permalink

Accumulation leads to frenzy leads to higher highs leads to pop leads to higher lows leads to more accumulation, and so on.Crypto is here to stay. Bitcoin probably is too. Best to hold out some cash to buy on the next big drop, but only if you already have at least a little exposure.

In reply to by zipit

Anteater Mon, 06/05/2017 - 22:53 Permalink

SIGNS AND TRIBULATIONS FOR WHEN TO SELL, QUICKLY:Street corner handmade signs: "We pay CASH for your gold!"Street corner handmade signs: "We pay CASH for your house!"ZH paid advertising spams: "Japan on Bitcoin Buying Frenzy!"

GRDguy Mon, 06/05/2017 - 22:56 Permalink

I'm 69; I've seen this show a few times before.Fun to watch from the sidelines.Just like watching a hot dice shooter in Las Vegas. Always glad I wasn't a participant at the table.