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

dumbhandle Aug 13, 2017 9:49 AM Permalink

Bitcoin is slow and managed by psychopaths.  Google Blockstream AXA PWC DCG Luke Jr. to start your research. The better developers without the psychosis moved to Ethereum and the product shows. Bitcoin has momentum, security, and installed base, but that is it. Ethereum has that and more, much more.

dumbhandle Aug 13, 2017 8:03 AM Permalink

Bitcoin is slow and managed by psychopaths.  Google Blockstream AXA PWC DCG Luke Jr. to start your research. The better developers without the psychosis moved to Ethereum and tbe product shows. Bitcoin has momentum, security, and installed base, but that is it. Ethereum has that and more, much more.

JFK (not verified) Aug 13, 2017 7:48 AM Permalink

I've been following closely since it hit $900 a few years ago. That's when I thought about jumping in but the arbitrage gap to buy online was enormous and I wasn't comfortable meeting a guy in an alley locally to do a transaction. Today I would be. Even so how much currency do you want to allocate to this highly volatile trade that could crash 20% instantly? I probably would have bought a nominal amount. As an aside there should be an options exchange setup.

Leaving aside all the technical and potentially legal reasons why there may be vulnerability to this young form of currency, it seems to me the single greatest risk to Bitcoin values is the creation of a better Bitcoin.

As soon as a better crypto tech comes along and gains acceptance there will literally be no need for Bitcoin. And how hard will that be?

aol>MySpace>FB>Instagram

Napster>iTunes>Spotify

Til then enjoy your speculator paper gains Bitcoiners but consider the inherent risks in holding on. The pirates of the world who are wharehousing their booty in this clever digital vault will flee to the next crypto tech just as fast.

DelusionsCrowded Aug 13, 2017 3:23 AM Permalink

What happens if the Gov's introduce their own Blockchain currancy called the New Dollar ? And set a conversion price to bitcoin etc .

I wonder who's buying Bitcoins at 4000$ each ?
This keeps the Sheeple Dreams away from Gold . In 100 years time gold will still be gold , unchanged un-corroded unrepentant .

wattie Aug 12, 2017 9:02 PM Permalink

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Silver Savior Aug 12, 2017 8:12 PM Permalink

I have to say though I think precious metals are going to have the last laugh and right out of nowhere. I just have that gut feeling. Like when precious metals will get a revaluation when the dollar finally folds.

Silver Savior Aug 12, 2017 7:47 PM Permalink

I think at this point people's only regret is not getting in on it. Who doesn't like money from thin air? It's not like you have hang onto it. Trade it for precious metals on Provident or JM Bullion. It all spends the same. lol. One air dollar or one air crypto. It's a free for all!

To Infinity An… Aug 12, 2017 7:00 PM Permalink

It's hard to imagine people are so excited for a gimmick that keeps absolute track of every transaction.  This is the last thing I would want to gain traction. (yet I'm told it will give us freedom from government, yeah...) Doesn't anyone else think it's a bit suspicious that Goldman Sucks and the other bloodsuckers are starting to pump this shit.Good luck people.

GotGalt Aug 12, 2017 6:07 PM Permalink

I wish I had bought bitcoin when the first ardent supporters were commenting on it at ZH.  I got in relatively late (very high 3 digits price), but better late than never though.  I did buy some ethereum at $40 though.  I actually swapped some bitcoin for dash and monero early on, that move is not working out so well monetarily but oh well.  Recently got into a bit of litecoin in the low $40s.  For now that is it for me.  Will hodl and see how things develop in the next few years ahead.

tropicthunder Aug 12, 2017 5:28 PM Permalink

Gold is simply being left in the dust here. Those fucking gold miners and bullion bankster shysters better rig the gold price DRAMATICALLY HIGHER this fall otherwise their lustrious product is going to continue to lose interest and captial to BTC. I said one week ago friday that once $3000 broke that it was going to be a watershed for BTC and I still say we ain't see nothin' yet... 

Robert A. Heinlein Aug 12, 2017 3:11 PM Permalink

Generation changes always have their detractor. This is no different. These are not going away. They are going mainstream. I missed a few great opportuintes over the years because I could not see how they would work.  Google is a prime example for me.  This is one I'm not and have not let go by.  Looking out 10 years.  Where will this be?  I think I know.  Major money is starting to pour in. Spend a few hours doing DD to understand why.  I get it.  

Ink Pusher Aug 12, 2017 2:56 PM Permalink

Crypto-currency is going to be the finest ever historical example of a bankster led coordinated hostile takeover in real time.None of the miners or exchanges big or bad enough to survive what's coming. None of them will want to stop it anyway...The limited few at the top of the crypto tofu chain will become ultra-billionaires when they sell out to the banksters and walk away.One can never underestimate the inherent and insatiable greed of mortal man   

TeddyBear Aug 12, 2017 2:51 PM Permalink

Bitcoin is definitely a Ponzi scheme. I sold all of mine at a healthy profit. I think everyone should get out. Only leave in what you're willing to lose. Bitcoin is only worth what other people are willing to pay you for it. Mr. New York City has his finger on the button that will shut down or at least Jam all transactions. And that would  hurt who I guess North Korea and China the most. I guess also Venezuela. Don't think it can be shot down? How about all of the. Gov computers sending $1 back and forth a million times a second. That should gum up the works pretty well right? And don't fall for that lie that there was a limited number of Bitcoin. We have now seen Bitcoin cash. Next will come Bitcoin cash to and Bitcoin Cash 3 and infinity. There is an unlimited Supply there is no limited Supply. It is therefore a Ponzi scheme. Sell all and sit on your hands.It's bear time folks!!! 

RedDwarf TeddyBear Aug 12, 2017 3:31 PM Permalink

"Bitcoin is definitely a Ponzi scheme."Simply factually false."Bitcoin is only worth what other people are wiling to pay you for it."That's true of everything."And don't fall for that lie that there wasa  limited number of bitcoin.  We now have Bitcoin cash."Which is now a different blockchain and a different currency with it's own price.  It is not bitcoin, it is a competing currency.

In reply to by TeddyBear

RedPilledMAGAWarrior Aug 12, 2017 2:14 PM Permalink

Very tempting to take some of these tulips off the table right now as we approach $4K... however, I see the rest of August extremely bullish for all crypto... what are u guys here doing, hold 80% sell 20% of stash right now?

U4 eee aaa Aug 12, 2017 1:46 PM Permalink

Hello Fed, I'd like you to meet Mr. Swan. You can call him by his first name......Black

Yellen must be filling her pants right now. Oh wait, she already does that. She must be fillinger her pants right now

Txpl9421 Aug 12, 2017 1:26 PM Permalink

I bought my first BTC at $86. It's worth 44 times that now.

That makes listening to the idiots talking about EMPs and Phyz a little easier.

Exponere Mendaces Aug 12, 2017 12:41 PM Permalink

Its so funny, whenever Bitcoin makes a new high, the same old retired retards come out with their canes, shaking them and yelling "tulips", "beanie babies" and "EMP".These stupid old fossils just can't stand to see a new asset class be born. If they can't understand it, then it MUST be evil, right?What the everloving fuck. Its okay grandpa, your children know about Bitcoin and they'll be using it to pay for your assisted living expenses, while the staff steal your gold rounds from your pockets.This rally is just part of the overall adoption wave, and you will absolutely shit yourselves when the "knee" of the tech adoption curve kicks in.But keep on telling us how Bitcoin, an asset that has endured endless attacks in its short 8 year history, is "dead" or going to just "go away". What a bunch of fucking clueless bluehair dumbshits. 

VD (not verified) U4 eee aaa Aug 12, 2017 1:56 PM Permalink

i used similar argument when the tech bubble was being blown, during that internet boom; you know, the one with all them computers (smart phones weren't prime time just yet). remember that? i was actually quite prescient too, esp when all those AOL "investors" were screaming at me how i was just a stupid kid, bc "everybody needs to get online, even you!" poor schlubs got hosed. same as it ever was.... history rhyming all the time.

In reply to by U4 eee aaa

GodSpeed_00 VD (not verified) Aug 12, 2017 1:09 PM Permalink

lol can a Tulip be used to send a Billion dollars in value anywhere in the world in minutes? Can a tulip run a service like AirBNB without human intervention? Can you register a birth on a tulip? Is a tulip a decentrlized, verifiable ledger? lol you idiots are hilarious!

In reply to by VD (not verified)

VD (not verified) GodSpeed_00 Aug 12, 2017 1:44 PM Permalink

people still plant tulips. they're pretty. some nice ones at certain b&b's sprouting up soon. but a crypto "currency" this volatile and this ripe for deep state meddling with these parabolic moves is screaming DANGER. if you can't appreciate that, then you deserve what's a'comin'. plenty of excuses were made in tulip mania too. well reasononed ones. i predict this ends in disaster. esp for those buying at 500 and above. time will tell. i'm ultimately agnostic.

In reply to by GodSpeed_00

lester1 Aug 12, 2017 12:35 PM Permalink

Governments cannot stop Bitcoin. If they try and shut it down people will just shift to Litecoins or something else. Stopping cryptocurrencies can only happen if they shut down the internet.  Had the Fed just kept intetest rates at historical 4-5% people would have been happy parking their money in a CD. SNow you can make 4-5% in a day with Bitcoin. The Fed fucked themselves.