Bitcoin Spikes Over $3800 As Institutional Investor Interest Soars

Bitcoin is now up over 45% since the fork on August 1st, notably spiking this week (to a record high over $3800) as US-North Korea tensions escalated and both Fidelity (retail) and Goldman (institutional) noted investor interest in cryptocurrencies is soaring.


Fidelity announced Wednesday that it started allowing clients to view bitcoin and other cryptocurrencies on its website, a rare move for an established institution.

Hadley Stern, senior vice president at Fidelity Labs, said "the big story is you can transfer value through software and software alone. This is a huge societal breakthrough."

 

And regardless of whether bitcoin will survive, it could be like the Napster of blockchain technology, Stern said, where it is the first of its kind but the next products, in this case Spotify and Apple Music, get better and better.

 

"I do think [cryptocurrencies] will make things, whether it's bitcoin or something else, faster and cheaper and create new products and services that we can't even imagine," Stern said.

 

While some critics are skeptical of how bitcoin is used, Stern said that banning the cryptocurrency would be like banning the web or open internet protocols.

 

"Whether governments like it or not, it's here to stay," he said.

And as we noted earlier in the week, Goldman Sachs wrote in a note that it is becoming more difficult for institutional investors to ignore Bitcoin and the cryptocurrency market.

The debate has shifted from the legitimacy of the ‘fiat of the internet’ to how fast new entrants are raising funds.

 

The hype cycle is in full effect with Bitcoin, the first, largest and most widely recognized cryptocurrency up almost 200% YTD (v 11% for the S&P 500) and a host of other emerging ‘altcoins’ growing in scope and presence (witness the growth of Ethereum).

 

Whether or not you believe in the merit of investing in cryptocurrencies (you know who you are) real dollars are at work here and warrant watching especially in light of the growing world of initial coin offerings (ICOs) and fundraising that now exceeds Internet Angel and Seed investing.

 

And with the fork out of the way, it seems that demand is having an impact...

Aditionally, as CoinTelegraph reports, Bitcoin could pass $100,000 by February 2021; a Harvard academic has said announcing Bitcoin is the first digital currency to follow Moore’s Law. In emailed comments, investor Dennis Porto said that after analyzing Bitcoin’s performance, it was the “first” currency to follow the digital technology rule.

“Moore's law specifically applied to the number of transistors on a circuit but can be applied to any digital technology," Porto wrote. "Any technology that is growing exponentially (i.e., 'following Moore's law') has a doubling time."

 

Porto makes the assertion that Bitcoin price has de facto doubled every eight months since its inception.

 

“This poses a unique opportunity for investors,” he added, something which was well-received in social media circles.

 

While multiple well-known commentators have contributed their opinions on how much one Bitcoin will cost in the next five or 10 years, $100,000 by 2021 is at the bolder end of the spectrum.

 

This week, Max Keiser repeated his faith in Bitcoin reaching $5,000 in the coming months.

While Bitcoin is surging, Bitcoin Cash is sliding, falling to 4th largest virtual currency by market cap...

 

But Ethereum - which we noted previously appeared to be acting like a World War III indicator - continues to surge well above $300...

 

 

Comments

ET (not verified) Sat, 08/12/2017 - 11:23 Permalink

Litecoin is the next one to go on full afterburners.The rotation from cryptocurrencies to physical gold and silver will be PHENOMENAL.

Looney ET (not verified) Sat, 08/12/2017 - 11:23 Permalink

  I don’t wanna pop anybody’s crypto-bubble, but this could be a legitimate concern. Stuxnet was designed to seek and attack very specific hardware and software used in Nuclear Plants. Is it possible that a similar virus could seek and destroy the hardware and software used for mining crypto-currencies? Delivering a self-propagating “Crypto-Stuxnet” would be much easier than the original Stuxnet – Nuclear Plants are air-gapped, but all crypto-mining devices are PERMANENTLY connected to the Internet. What could trigger such an attack? How about a raging financial crisis and a few Central Banks and Governments obsessed with killing the Cryptos? Looney

In reply to by ET (not verified)

ET (not verified) Looney Sat, 08/12/2017 - 11:28 Permalink

Cryptocurrencies are a type of pyramid scheme because there is no underlying asset for our purchase.We hope that there are ten greater fools in the future for every buyer today.Ride the bubble while it lasts and then get physical assets with the trade.

In reply to by Looney

38BWD22 ET (not verified) Sat, 08/12/2017 - 11:37 Permalink

  I stated a week or two ago that I would likely buy some gold for BTC once the price got to over $3700.  I thought it would take weeks (it was about $3100 then).  Price spiked too fast.  I'm not even back yet but may order anyway.It does feel toppy here...  Still, I will not sell all of my BTC.  If I order like I did before., my hodl-ings will be ALL GRAVY.Luck. EDIT: Yes, ET, I also think that the precious metals will get a boost once BTC has one of its crashes again. 

In reply to by ET (not verified)

Manthong 38BWD22 Sat, 08/12/2017 - 11:39 Permalink

 
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The cool thing about crypto is that it is on the same network that the government, the banks and their coders use.

In reply to by 38BWD22

83_vf_1100_c BaBaBouy Sat, 08/12/2017 - 18:16 Permalink

The mind wobbles. Kelley Bundy quote if you missed that show. People's greed and stupidity nkow no bounds. I am once again fighting with my crappy Hughesnet satellite internet and wifi printer. Technology is great when it works and makes me want to eat a .45acp when it don't. Bitcoiners had better keep a pistol handy. This does not end well for non club members.

In reply to by BaBaBouy

Manthong TahoeBilly2012 Sat, 08/12/2017 - 14:14 Permalink

 
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I do not think anybody understands how many new infrastructure bridges I can build with my little 250A stick welder and 8000 tons of yellow colored tungsten.

In reply to by TahoeBilly2012

The Cooler King (not verified) Raffie Sat, 08/12/2017 - 17:47 Permalink

"waiting on ltc to go into tripple digits, might be in the next couple months. can't wait" So then, WHAT? You can: - Sell it at a profit- NOT pay tax on your capital gain- then ~ post another comment on Zero Hedge about what IDIOTS everyone else is? EDIT: ^^^JUNK^^^ by Raffie... Quel Surprise... Raffie, you will be on here later to show us your capital gains tax payments, correct? &BTW ~ for 'folks' like you 'TRIPLE" is spelled with 3 p's, not 2... You wouldn't want people to think you were borderline illiterate would you? That would be embarrassing. For GOD's sake lad, whenever I read your comments, the last time I remember ever seeing so many misspelled words was when I watched a re-run of the movie 'IDIOCRACY'

In reply to by Raffie

Sh3epdog 38BWD22 Sat, 08/12/2017 - 18:08 Permalink

I've commented in the past that selling a btc for below 3.5k is a ripoff, 10-20k is a reasonable possibility in the next year or so with possible higher valuations longer term. It's generally a good rule never to sell all of one's holdings of a cryptocurrency, as cryptocurrencies can drop or increase so drastically that - that last 10% of one's holdings of a currency can, and often will come to be worth more than the 90% sold off if one holds that 10% into the mid to longer term. Gold, silver and land are all pretty ok stores of value to take cryptocurrency profits into (although land is perhaps a bit bubblish in most places right now imo)

In reply to by 38BWD22

ET (not verified) Oswald did it Sat, 08/12/2017 - 11:47 Permalink

The US dollar is actually backed in part by gold certificates held by the Federal Reserve with the gold bullion in the custody of the US Treasury, by US real estate and publicly traded stocks, and by the willingness of the Saudi kingdom to accept only the dollar for their oil.Foreign acceptance of the dollar also is a form of insurance from US military action.

In reply to by Oswald did it

The Cooler King (not verified) SILVERGEDDON Sat, 08/12/2017 - 17:04 Permalink

Here is the general thread http://www.zerohedge.com/news/2017-08-11/bitcoin-spikes-new-record-high… @Raffie & mosley You know? therre is REALLY a chance for BOTH OF YOU to immerse your intellects into a VALID bitcoin discussion... The invitation is out there... It was presented within the thread tree which I've linked within these comments... It's not really important (TO ME), whether either or BOTH of you continue to represent yourselves as 'CLOWNS' on the subject of bitcoin. - BadLibertarian has represented himself in an exceptional way- mosley, thus far, seems to come & go with the same capriciousness of a coked up DAYTRADER- Raffie ~ you need to up ytour game because you're just a clown thus far (with ZERO relevant inputs to your credit thus far)

In reply to by SILVERGEDDON

Manthong GodSpeed_00 Sat, 08/12/2017 - 12:29 Permalink

   FRB continually reports ….way down deep in the paperwork…. …that is has 8,000 tons Au in reserve,,,,,,,,,,, PROVE IT! …. BANKER MO’FOs   Do some research… Jonathan Swift is a good place to start……. “As when a conjurer takes a lease From Satan for a term of years, The tenant's in a dismal case, Whene'er the bloody bond appears. A baited banker thus desponds, From his own hand foresees his fall, They have his soul, who have his bonds; 'Tis like the writing on the wall.[4]”
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http://12160.info/profiles/blogs/the-run-upon-the-bankers-poem 

In reply to by GodSpeed_00

DjangoCat ET (not verified) Sat, 08/12/2017 - 12:10 Permalink

Nice to meet you ET.  Have you read the book "Confessions of an Economic Hitman"?  He was directly involved in setting up the Saudi oil for USD for TBills trade.As far as insurance against aggression goes, that would explain the demise of Saddam Hussein and Muamar Ghaddafi.  It would go a long way to understanding the current Russia Russia Russia mania, as well as the hate on for North Korea, Syria and Iran.  If you won't take my dollars, I will kill you and reduce your country to rubble.That about sums up the strength of the USD.

In reply to by ET (not verified)

PumpherDumper ET (not verified) Sat, 08/12/2017 - 12:00 Permalink

Looney,  pyramid schemes pay out dividends or commissions to entice more people to join. Bitcoin is an investment and does not pay out dividends. Returns are from capital gains. Pyramid schemes have no real business value. You can buy goods and service with bitcoins. Pyramid schemes are centralized systems. A con artist pulls the strings, collecting payments and paying out dividends. He can collapse the scheme anytime by running away with the money. Bitcoin is a decentralized system. The innovators (the early adopters are yet to happen) of bitcoin are unable to collapse the system even if they wished to.You are obviously just butthurt because you think you missed the boat.  But the truth is, you can still get in now and make out like a bandit, or you can hold and start planning your retirement.

In reply to by ET (not verified)

The Cooler King (not verified) tmosley Sat, 08/12/2017 - 16:15 Permalink

@mosley "You think that gives them power over us?" Whom do refer to in this instance as 'THEM' (I'm presuming Chinese mining farms, but correct me if I'm inaccurate). PS ~ My next question, after this, is going to have something to do with the 15.8 million wallets that you acknowledged yesterday were in existence (whether owned 'anonymous' or by way of 'pseudonym')

In reply to by tmosley

The Cooler King (not verified) tmosley Sat, 08/12/2017 - 17:32 Permalink

"I'll get back with you, or post a link in one of these threads." No, what YOU need to do is to go back to the previous tree and prove yourself to be an expert following the line of questioning. If, you are SO CORRECT, it would take 10 seconds of your time to follow that line of reasoning and offer answers that people around here could understand. BadLibertarian has done EXACTLY that thus far... (& whereby BL is NOT a clown)... In this moment, you & Raffie are still in the CLOWN pool. We left that thread tree with you 'acknowledging' that there are 15.8 million bitcoin wallets at the present moment... Within the next 6 questions I have OVER THERE, I was interested in getting your opinion as to the identities, "pseudonym or not" of those wallet holders... If this simple task is beyond you & your exquisite bitcoin knowledge, I'll understand. PS ~ It's not going to help ANYONE (especially yourself), if all u ever do is to jump on new BITCOIN threads and shill your daytrading endeavors. EVERYONE will take you more seriously if you make an honest effort to bring some clarity into the matter. If it's IMPOSSIBLE to bring some clarity into the matter, then I guess we'll all know what to do.  

In reply to by tmosley

tmosley The Cooler King (not verified) Sat, 08/12/2017 - 19:30 Permalink

>No, what YOU need to do is to go back to the previous tree and prove yourself to be an expert following the line of questioning.No thanks. It's a mess. Get your shit together.I don't really give a fuck if you think I am an "expert" or not. You ask me questions and I will answer them to the best of my ability. Talking shit is not conducive to that ends, so cut it out if you want to get serious.I don't care either way, as I am making a ton of money.

In reply to by The Cooler King (not verified)

The Cooler King (not verified) PumpherDumper Sat, 08/12/2017 - 16:10 Permalink

"Pyramid schemes have no real business value. You can buy goods and service with bitcoins." Indulge us with a "vendor" LIST if you please Note: I know that you speak the truth, but I'm just trying to HELP YOU, HELP US, by quantifying  & publishing a list of all the GOODS & SERVICES we can procure, using bitcoin, that will help the lives of the greater majority of us on an everyday basis. While you're at it, please supply a list of all the major 'GOODS & SERVICES' vendors who have NOT re-tooled their business models to accept BITCOIN (which IS NOT LEGAL TENDER), and do your best to explain "WHY?"

In reply to by PumpherDumper

ET (not verified) DjangoCat Sat, 08/12/2017 - 12:07 Permalink

The staying power of a fiat currency is dependent on the sovereign's chances of surviving war.Gold and silver do not have this problem.Cryptocurrencies have the problem of being traced and banned. Why do you think there is such an interest in blockchains and a cashless society? It is because digital transactions can be monitored closely.

In reply to by DjangoCat