Bitcoin Explodes Above $3000 To Record Highs

Despite the ongoing demise of Bitcoin Cash (down another 13% today) since the fork 4 days ago, cryptocurrencies are surging higher this morning with Bitcoin up 12% to a new record high at $3230.

CoinTelegraph reports that various experts and developers including Paxos principal architect Jimmy Song have noted earlier this week, Bitcoin price is likely rising due to the imminence of SegWit activation.

Since the mining community has already agreed to activate SegWit via Bitcoin Improvement Proposal BIP 91 and 141, the original SegWit proposal, SegWit is likely to be activated on the Bitcoin network by Aug. 14.

As the abovementioned date approaches, Bitcoin is expected to continuously increase in value, establishing new all-time highs.

And indeed it is...

Why is SegWit pushing Bitcoin price up? The debate between the mining community and Bitcoin developers regarding the activation of SegWit has delayed scaling in Bitcoin for years. The first attempt to scale the network which was presented at the Hong Kong roundtable consensus event failed and it took over a full year since then for the Bitcoin industry, mining community and developers to come to a consensus to activate SegWit. More importantly, the activation of SegWit marks the first major milestone in Bitcoin in terms of scaling, as Bitcoin has continuously operated within the 1 MB block size limit established by Bitcoin creator Satoshi Nakamoto upon its launch in 2009. SegWit will also establish the infrastructure necessary for two-layer solutions such as Lightning Network to operate. The implementation of Lightning Network and other solutions including TumbleBit will further scale the Bitcoin network by enabling micropayments and applications that were not possible before.

Notably the 'value' of Bitcoin Cash has collapsed relative to Bitcoin since its 'birth'... (Bitcoin Cash is now trading near record lows)

Another driving factor of Bitcoin price is rising demand from institutional investors. This week, CBOE, the largest options exchange in the US announced that it will integrate Bitcoin futures contracts and options on its trading platform by partnering with regulated Bitcoin exchange Gemini.

Additionally, CoinTelegraph notes that the public's interest in virtual currencies has sparked a boom for hedge funds with crypto exposure...

“Hedge funds with crypto exposure "exploding," tweets economist and investor Tuur Demeester.

According to his quoting a related article, over 70 such funds are now being in the pipeline.

The linked article includes a comment by Arthur Bell manager Corey McLaughlin who says: 

“I’ve been in the hedge fund space since 1998, and I’ve never seen anything like it in volume of launches in a particular area. It’s just crazy.”

The market will likely continue to call for increasing numbers as the funds continue to outperform other market spaces.

With the massive rise in values, hedge fund managers are seeing the need for new funds that link to cryptocurrencies and the public is calling for such funds. A recent revealed the number of such new funds, totaling nearly 70.


Newbie lurker bwh1214 Sat, 08/05/2017 - 11:44 Permalink

I work in the criminal justice system and in a preliminary hearing yesterday on human trafficking/ pimping case.....testimony included that the prostitutes would purchase Vanilla Visa cards or Bitcoin to give to the pimp.

Found that interesting.

So if it is good enough for 'folks' that generally deal 100% in cash, surely I can trust it.

In reply to by bwh1214

BurningBetty TahoeBilly2012 Sat, 08/05/2017 - 17:44 Permalink

The reason you can use TA on BTC is because the price isn't manipulated with endless amounts of paper as gold is. TBC is a freefloating mechanism driven by real emotional people where there is limited supply. All markets are broken. BTC is the only market that reflects real price discovery because it is not centrally controlled. Still not sure whether the CBs really despise crypto-currencies or love them.

In reply to by TahoeBilly2012

tmosley The Management Sat, 08/05/2017 - 13:19 Permalink

They can't manipulate BTC the way they manipulate gold unless they shut down every exchange except one or two that they maintained control over, as they have with gold. Buying would drive up the price (a LOT), which would only drive more interest and when they tried to dump it, it wouldn't fall nearly as much as it did. Also, such transactions could be seen in the blockchain, and real "insider" analysis of the event would be available to all within minutes. It would only feed the mania.Yes, it will fuck the central bankers. They are obsolete and on the way out. Some are just now starting to realize it.

In reply to by The Management

Stackers tmosley Sat, 08/05/2017 - 13:43 Permalink

Tmosley, thats not true. Any government on the planet could easily build a mining farm with enough computing hash power to take over 60% of total blockchain processing and take over the bitcoin blockchain at will. Bitcoin only works as long as the bitcoin blockchain processing remains spread out and distributed.

In reply to by tmosley

tmosley Stackers Sat, 08/05/2017 - 13:57 Permalink

>Easily build a mining farmTrue.>with enough computing has power to take over 60%...and take over the bitcoin blockchain at willFalse.I don't think you understand the magnitude of these mining operations. Further, such an increase in hashing power on the network would quickly be noticed and traced. Further, irregularities in the block production are traceable. If they hijacked the network and tried to shut it down, it would just be a very expensive hardfork and the market would continue using the other chain. A method of blacklisting hostile miners would come into existance very quickly.Basically, they would spend a half a trillion dollars to disrupt the network for maybe a week.

In reply to by Stackers

Jubal Early (not verified) tmosley Sat, 08/05/2017 - 14:10 Permalink

"Basically, they would spend a half a trillion dollars to disrupt the network for maybe a week."

The biggest liar on ZH makes a load of assertions but doesn't provide a link to back it up.  tmosely is the proverbial fountain of bitcoin bullshit.

In reply to by tmosley

Mr. Universe tmosley Sat, 08/05/2017 - 18:56 Permalink


However, in some cases, ad hominem attacks can be non-fallacious; i.e., if the attack on the character of the person is directly tackling the argument itself. For example, if the truth of the argument relies on the truthfulness of the person making the argument—rather than known facts—then pointing out that the person has previously lied is not a fallacious argument.

In reply to by tmosley

King of Ruperts Land tmosley Sat, 08/05/2017 - 15:00 Permalink

The mining being widely distributed is an assumption for bitcoin to be secure against double spend attacks. All those "altcoins" that just copy the Bitcoin algorithm are not secure against double spend attacks because there hash power is a fly speck compared to all those bitcoin rigs out there.

Litecoin uses a memory intensive algorithm different from bit coin rigs so that all that bitcoin mining power cannot attack it. Lite coin can coexist with bitcoin. It was supposed to be immune from ASICS so everyone could run it on a GPU or graphics cards. Bitmain has recently come out with an ASIC mining rig that blows the socks off any previous graphics card performance. Look at the shoot up of hash power.

Note: A coin that everyone could mine is a noble goal. building mining chips as cheap as nichrome wire and using them in baseboard heaters would be the extreme of that concept. Then power would not be wasted mining. People in cold climates would just get coins when heating their house.

Ether is an experimental testbed. Which all coins are to some degree. Ether much much more so.

All these coins may be a fad like tulips.

Physical Silver coins in circulation and electronic credit/debt cards representing promises to pay in silver dollars backed by algorithms using a chain of digital signatures might have characteristics better than purely E-cash.

In reply to by tmosley

tmosley Yellow_Snow Sat, 08/05/2017 - 14:01 Permalink

Incorrect. Futures markets will have to link into the "physical" bitcoin ecosystem for arbitrage, or the price won't be considered valid. No more so than a game of Monopoly sets the price for Atlantic City real estate.They would have to shut down all the other exchanges first. The market is too free to effectively manipulate. Like playing whack-a-mole, but with 1000 holes, and that's just for bitcoin.

In reply to by Yellow_Snow

Jubal Early (not verified) tmosley Sat, 08/05/2017 - 14:23 Permalink

Bitcoin jesus spewing more bullshit.Exchanges are allready netting transactions otherwise the "currency" would have collapsed long ago.  The exchanges have free use of a customers BTC until it is withdrawn, so they can do plain old shorts by using plain old fractional reserve lending. 

In reply to by tmosley

tmosley Jubal Early (not verified) Sat, 08/05/2017 - 14:39 Permalink

Yes, exchanges can do lots of things. But there are a lot of them, and they are mostly transparent, so the market can see when fuckery is about.It's like how excited all the goldbugs were when the SGE opened. But then it turned out to be the same old shit. If 1000 gold exchanges had opened, each fully redeemable, then market forces would destroy the COMEX. That is the situation any wannabe bitcoin manipulators face.People of limited imaginations simply can't comprehend the power of truly free markets. It takes a LONG time for things to get as bad as they have in the gold and silver markets.

In reply to by Jubal Early (not verified)

Jubal Early (not verified) tmosley Sat, 08/05/2017 - 14:54 Permalink

"People of limited imaginations simply can't comprehend the power of truly free markets. It takes a LONG time for things to get as bad as they have in the gold and silver markets."

Bitcoin jesus has spoken.  Sheeple simply cannot comprehend the power of the god of cryptos who is going to slay all market manipulators.

In reply to by tmosley

Jubal Early (not verified) GodSpeed_00 Sat, 08/05/2017 - 16:01 Permalink

Their reserves are visible, but are their "short sales"?  If coinbase have 1000 BTC in their own wallet, owed to private parties that will not need those BTC immediately, they can sell those BTC in any fashion they deem appropriate to short the BTC market, or they can convert to a fiat currency, or even gold, and even earn interest.Fractional reserve lending would imply that the BTC lent out to other customers would return to the coinbase wallet and could then be lent out again.  If there were some kind of a cartel of exchanges this effect could be amplified.I will be the first to concede that I am no crypto expert.  I rarely read the pdf's or the blogs.  I am however a long time IT professional who also has been dabbling in financial markets for decades.  I do know a thing or two.

In reply to by GodSpeed_00

OpenThePodBayDoorHAL GodSpeed_00 Sat, 08/05/2017 - 18:00 Permalink

Um, back to 101 class please.Futures markets operate at 100:1 leverage, that's the entire point. So back to tmosely's point above (not him, again) yes the futures exchange would hold Bitcoin. Visible on the ledger. 1 BTC for a 100 BTC contract.And riddle me this: to make this contraption scale AT ALL they had to carve transaction signatures off. They talk about "off-chain" activities to solve a wide variety of real-world usage and throughput problems. OK, I'll bite, that stuff can be "off-chain". Then WTF is the point of the "immutable" chain in the first place? We already have a world of problems with "off-chain" stuff in real world banking: shadow banking, insolvent counterparties, fraud, confiscation. IF THE STUFF IS NOT 100% ON THE CHAIN THEN WHAT IS THE POINT OF THE CHAIN? YOU'RE JUST TRUSTING A COMPLETELY DIFFERENT SET OF HUMANS.And for you monetary geniuses who think Bitcoin is the great new money, no soup for you. Ask someone who actually knows 1 or 2 things about money: over centuries the best and preferred quality is STABILITY AGAINST THE REAL WORLD COST OF GOODS AND SERVICES. Not hyper-inflationary (Zimbabwe). And NOT HYPER-DEFLATIONARY (BTC). Ok so we're all going to spend BTC? But why would I ever part with one? (While you're doing your 101 homework look up the term Gresham's Law).Just to repeat: I think BTC can go up, way up. But the investment thesis is "it's going up because it's going up", not because it's the great new Magic Internet Monetary System.You're welcome.

In reply to by GodSpeed_00

Advoc8tr BaBaBouy Sat, 08/05/2017 - 21:31 Permalink

There are already crypto currencies with physical gold backing ... the issue always comes back to trusted 3rd parties.  The only way to "back" a crypto with gold is to entrust someone to store the gold and enforce and manage the backing.  BTC is better WITHOUT gold backing.  If you locked its price to gold then the fake paper markets for gold would enable the price suppression of BTC ... the opposite of the desired result which would be for BTC to "rescue" gold from manipulation and allow its price in fiat to appreciate inversely to the prevailing monetary inflation as BTC can and does.

In reply to by BaBaBouy

Doom Porn Star Newbie lurker Sat, 08/05/2017 - 19:48 Permalink

How much testimony have you taken in the case about those millions of phony accounts generated at Wells Fargo?What is going on over at Wells Fargo?  Human Trafficing?   Terrorist Financing?   Election Tampering?   Drug money laundering?   Identity theft?Wells Fargo is running a vast criminal enterprise with operatives on literally tens of thousands of street corners in hundreds of cities all over the United States at this very moment.  Go look for the signs over their cribs with their 'stage coach' gang symbol and name emblazoned over it: WELLS FARGO  After you are done interviewing street walkers how about their favorite choice of gift cards, you go get to work and focus like a laser on this singlular and ongoing criminal enterprise whose activities are effecting the lives of millions of people all over the nation right now as I speak..

In reply to by Newbie lurker

Raffie tmosley Sat, 08/05/2017 - 12:48 Permalink

The data and videos I see says LTC is still faster then BTC and cheper transactions.Also being used more for everyday purchases. LTC being adpoted by lots of Crypto ATM's on a global scale.Some indicate LTC should be about %25 value of BTC because of how many coins there will be (84 million) total.If you notice BTC is GOLD colored and LTC is SILVER colored. Odd huh? LOLSo will hold for a few months and decide to stay of BTC again. Once LTC does spike I will convert back to BTC so I will have more.

In reply to by tmosley