"It's Pure Frenzy" - Bitcoin Extends Overnight Gains, Rises 200% Year-To-Date

More Japanese exuberance overnight (as USDJPY and Nikkei stumbled hard) sent Bitcoin to fresh record highs, blowing through $2800 and nearing $2900 this morning - now up 200% year-to-date.

It seems the momentum trade has caught the eye of Mrs. Watanabe...

But as we noted overnight, 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.


Notveryamused Jim Sampson Tue, 06/06/2017 - 12:10 Permalink

You think Bitcoin is good, you could of invested in the next 10 blockchains by market capitalisation on 01/01/17 and been up over 1800% YTD.


(As stunning as BTC gains have been, it's one of the worst blockchain investments you could make. You could choose any 4 projects at random in the top 10 any time in the last two years and your average returns would outperform Bitcoin.)

In reply to by Jim Sampson

Exponere Mendaces Notveryamused Tue, 06/06/2017 - 12:53 Permalink

Yeah, and you fail to mention that the "top" coins are illiquid on most exchanges and have the utility of a rotten piece of cabbage.The only one getting the true "bubble" treatment is ETH, and that's because the pumper devs did a big roadshow in China to get all the gamblers into the fold.Also, you cut-and-paste your posts, totally original.What a clown. 

In reply to by Notveryamused

Notveryamused Exponere Mendaces Tue, 06/06/2017 - 13:23 Permalink

I posted this same point once in one other ZH Bitcoin article as it's still very relevant.

The top ten blockchain projects have valuations of at least $500 million and are doing $10 million+ daily volume. Which is more than liquid for most individual investors.

In the top 20 you have Augur which will offer decentralised, globally accessible prediction markets in a few months. Maidsafe which is creating a decentralised internet (information is split up into chunks, encrypted and stored in a decentralised network.) BitShares has currency stable blockchain based assets like BitUSD and BitGold which have been functioning well for over two years. BTS and others have a decentralised exchange meaning you can trade projects with no third party or government interference. They have things like DPOS which lets shareholders direct new coins to development, marketing and other - so decentralised anonymous companies. GameCredits offers a game store with hundreds of games that undercuts google play and still gives game developers more money too. You have blockchains that offer truly private transactions & communications. Then of course Ethereum as you mentioned has smart contracts. Gambling with open source code, so no cheating, accessible in any jurisdiction and no third party holds the funds already operational on EDG and VSL. Ethereum debit cards launching in August that let you pay in a range of tokens & you stay in control of your funds and spending parameters, not a third party or bank. Steem is like Reddit but you're paid for popular posts. GNT still in development but will allow decentralised processing & rendering so the next Toy Story can be made by a teenager in his living room. So a wide range of blockchain based applications some already with a great deal of utility & a lot of potential. I like BTC too just pointing out blockchains will disintermediate a range of business models and their returns have been outperforming BTC which has been struggling to scale and has significantly reduced utility with $1 transaction fees as far as micro-payments are concerned especially.

In reply to by Exponere Mendaces

Exponere Mendaces Notveryamused Tue, 06/06/2017 - 17:50 Permalink

The only coin you mentioned that has anything in the way of trading volume is ETH.And you fucking know it.They are in their own little mini-bubble, so go ahead and encourage people to throw money there - it will accelerate the cycle, which is fine by me.I know the difference between a true store of value and a pumped compute-coin with a massive attack surface. Just wait until the next "oopsie" where someone finds yet-another-vulnerability in the ETH protocol or implementation.Its been highly entertaining watching the ETH devs scramble after every error. Even the BTC devs have been pointing out their mistakes, its so bad.LOL

In reply to by Notveryamused

Notveryamused Exponere Mendaces Tue, 06/06/2017 - 19:13 Permalink

Not sure how much volume you need to get involved? 75% of the top 20 projects are doing more daily volume than Bitcoin was at the beginning of last year. https://coinmarketcap.com/historical/20160501/

I agree ETH won't replace BTC as a store of value, too many moving parts, bugs not to mention the DAO rollback. It is the platform of choice though for ICO's and smart contract applications are just getting started so it could grow bigger than BTC in value but as a platform.

LTC is largely a BTC clone but in that sense it's code is trusted and they are successfully scaling, recently adding Segwit and possibly Lightning transactions soon, so that's a store of value hedge for me if BTC can't agree on a scaling approach.

The other projects aren't necessarily a threat to BTC but they focus on a wide range of additional blockchain applications that reduce costs, while increasing privacy, transparency and potential market size. Yes it's clearly bubbly, but a lot of these projects have a bright future and many are releasing completely new apps in the next few months, so even though the currency blockchains like BTC have been around for a while, it's still early days, year 1 or 2 for apps that could re-shape business.

In reply to by Exponere Mendaces

OverTheHedge Xibalba Tue, 06/06/2017 - 10:40 Permalink

Hey, I could have invested in Vancouver property, almost as good as bitcoin, and if the market crashed, at least I would have had somewhere to stay when I visit.Bitcoin is even MOAR volatile, and if it crashes, I can't even park my car on it. Well done you for taking a punt on something hugely volatile, UNLIKE gold, and making out like a bandit. Just don't go expecting me to piss away my cash on bitcoin at $3,000. Fonestar was right inasmuch as it has gone through the roof. Ah, if only he was here to say "I told you so!"

In reply to by Xibalba

Haus-Targaryen magnetosphere Tue, 06/06/2017 - 08:38 Permalink

2013.Same exact shit as today!"Its a new paradigm" "The future of money is here" "Better get in now or be priced out forever" and just like last time there was no fundamental capital market issue which caused the spike and when a few large players pulled out their cash simultaneously which slowed down teh blockchain and everyone was executing sell orders and getting them filled 40% lower. People put in life savings and got wiped out. I love the cryptos.  This spike has proven to me there are legs to this.  No fucking way I'm buying a top. Sorry. 

In reply to by magnetosphere

tmosley Haus-Targaryen Tue, 06/06/2017 - 09:10 Permalink

Pretty much everyone who ever bought silver has lost purchasing power. When you say "I'm only down 10%", you are measuring your gains/loss in dollar terms, but the dollar buys half as much now than when you bought that first oz.And FYI, I'm one of those people. I didn't buy at the tippy-top, but I did make a regular monthly purchase that month in the $40's.

In reply to by Haus-Targaryen

quadraspleen wulf Tue, 06/06/2017 - 09:30 Permalink

here we go...BTC tardsyawn(g)oldtardsyawnElectricityyawnTPTB will cut it offyawnStore of valueyawnReal thingsyawnI really don't get what it is with BTC and ZH..I get that cryptos are a marmite bet (UK thing) but jeez guys..Live and let live..If someone wants to put cash into BTC, why the fuck shouldn't they without having to come here and listen to the bullshit bandied around whenever BTC goes up or down? It really does sound like the lady doth protest too much sometimes...

In reply to by wulf

Exponere Mendaces quadraspleen Tue, 06/06/2017 - 12:50 Permalink

You want to know why?Because every old fart on this forum has been banging the precious metals gong for so long, that the barest MENTION of another system makes them go into a pitched fury about how its all bullshit.This is "Fight Club" after all.So, we push back and take no prisoners. The (g)oldsters get all mad that they have to think for a second, so then all the salty responses come flowing in. They have had run of the ZH forums for a long time - and that era is slowly coming to a close.Wake up dinosaurs, time to flee the tar pits before the bitcoin financial meteor incinerates your world. 

In reply to by quadraspleen

kochevnik wulf Tue, 06/06/2017 - 09:53 Permalink

useless mathematical calculationsYour computer is a Von Neumann architecture.  So how do you use the Internet?  Smoke signals? Did you know your dollar is not even based upon consistent maths, but counterfeiting and fraud?Exhanges are exactly that.  a place to buy and sell.  When you change money abroad do you then make a tent outside on the sidewalk and live in it?

In reply to by wulf