Bitcoin's Rise To Record Highs In Context

After a two-year long bear market, bitcoin came roaring back in 2016, and has been climbing ever since.

The digital currency reached a new all-time high above $4,650 on Tuesday, an increase of more than 350% year-to-date. The sheer intensity of its gains has inspired some comparisons to the digital currency's initial run-up, which ended with the collapse of bitcoin exchange Mt. Gox in early 2014, marking the end of the first bitcoin bull market.

Given bitcoin's torrid advance, analysts from Bespoke Investments attempted to put its gains in context in a chart. The results are striking: Compared with infamous asset bubbles like tech stocks in the 1990s, bitcoin has climbed much further in far less time. According to Bloomberg, “there’s almost no comparison” between bitcoin and the tech-stock bubble.  

“Bespoke Investment Group contrasted the rise in bitcoin with infamous bubbles such as the tech market in the late nineties. There’s almost no comparison. Tech stocks rose just over 1,000 percent over the entire course of their bubble, and bitcoin is already up more than twice that. Take a look.”

According to CoinTelegraph, bitcoin analysts expect the digital currency to finish the year around $5,000.

And some expect the digital currency to go much, much higher. According to the Wall Street Journal, early Snapchat investor Jeremy Liew expects Bitcoin will reach $500,000 by 2030. Security company founder and notable eccentric John McAfee believes it’ll take only three years.

Alistair Milne, a popular bitcoin analyst who has a large Twitter following, calculated earlier this month that bitcoin would already be worth more than $7,000 if the digital currency’s share of the overall crypto market would return to its pre-2017 levels. Bitcoin’s market capitalization now represents less than half of the total for the broader market crypto market, down from about 90% early this year. The drop is largely due to bitcoin rivals like Ethereum and Litecoin, which put bitcoin's YTD rise to shame.

Bitcoin has made a habit out of routinely defying its most ardent skeptics. But the shadow of Mt. Gox still looms large over the digital currency market. And the risk of another bull-market-ending catalyst like a 51% attack on the bitcoin network or another major hack at one of the more mainstream exchanges could force out the week hands, sparking another precipitous drop.

Comments

johngaltfla FreeShitter Wed, 08/30/2017 - 19:41 Permalink

Tiptoe through the window By the window, that is where I'll be Come tiptoe through the tulips with me Oh, tiptoe from the garden By the garden of the willow tree And tiptoe through the tulips with me Knee deep in flowers we'll stray We'll keep the showers away And if I kiss you in the garden, in the moonlight Will you pardon me? And tiptoe through the tulips with me Maybe it's flowers you stray will be the showers of life And when I kiss you in the garden in the moonlight Will you pardon me and tiptoe through the tulips with me? Tiny Tim knew it....way before any bubble chasers did.

In reply to by FreeShitter

tmosley lester1 Wed, 08/30/2017 - 21:29 Permalink

He, like all oldbugs, is caught in a cognative trap. One that requires a tremendous amount of willpower to overcome.Scientific training helps. But he, and probably all of the oldbugs lack that.You have to WANT to be wrong. Trial by fire is how the best ideas survive in real science. Sadly scentists themselves are mostly human, so fail their philosophy much, if not most of the time. But adhering SOME of the time is usually enough. The old fucks who won't let go of disproven shit die off soon enough.

In reply to by lester1

The Cooler King (not verified) tmosley Wed, 08/30/2017 - 22:55 Permalink

I'm not interested in your name, your address, or any names or addresses of whatever family members you may or may not have. I was only interested (on the 'kid' subject), because I believe that if you did, your attitude and behavior would be quite different. Hell ~ I'll leave you out of it for now... I'm curious, IN GENERAL, how many female bitcoin owner/commentators there are on ZH... My guess is, not that many (but I may be wrong)... My guess is, also, that there are many 'married' men here whose wives would have strung them up by the balls if they'd have taken, say, $1000 out of the checking account 2 years ago to buy bitcoins... Especially if they were raising kids.

In reply to by tmosley

webmatex The Cooler King (not verified) Thu, 08/31/2017 - 05:45 Permalink

Mrs. Webmatex agreed 4 years ago that BTC was probably a good idea, we went in 1200Eur.Ive constantly taken profit (lots) and occasionally transferred BTC to Eur solely within my account (Paymium) to trade on a price decrease (bad idea).I was going to cash out completly a month ago but my wife didn't think it was a good idea so i "stuck".Still got way more than the original 1200 but it's no big deal to gamble the rest as the BTC paid out *6.We do have 2 grown kids - really good girls!Until recently if we vacationed within europe by car my wife would INSISTwe take our silver coin stash and her jewels with us in the spare tyre!Man that stuff is tough to run around with and i swear we burn more fuel!After watching the floods in TX i saw all those floating cars and had a strange vision of some guy and a boating accident.Well, she doesn't read ZH but when she returns from family tomorrow i will relate to her this classic and mythical story from the ether of ZH history and suggest we revert to the good old cherry tree in future.I may also utter verses of Phonestar in her ear and further enlighten her to the forbidden pleasures of ZH but i doubt she will participate as she is gifted much more by intuition.Don't string me up by the balls darling! 

In reply to by The Cooler King (not verified)

SeuMadruga lester1 Wed, 08/30/2017 - 23:15 Permalink

Hahaha ! Man, what a coincidence: I uttered out loud those exactly words of your last sentence to a Peter Schiff's employee at his EuroPacBank where I had just been denied an account opening today solely because my local bank statement (provided as part of the docs required) showed several cash withdrawals from a formally constituted BitCoin exchange legally operating in my own country, as though his other companies SchiffGold and GoldMoney didn't accept crypto-currencies as payment for PM's !!!Mr. Irwin might be deeply disappointed with his phony-libertarian son...   :-(

In reply to by lester1

Silver Shield P-51 Stiletto Wed, 08/30/2017 - 19:33 Permalink

Created by the NSA in 1996 http://groups.csail.mit.edu/mac/classes/6.805/articles/money/nsamint/ns… by the CIA the same month of the financial crisis.Luring Libertarians into exposure to Anti Money Laundering and "Terrorism Financing" laws.Penalties included confiscation, Civil Asset Forfeiture, Criminal and Tax Liabilites.The EXACT tactics they used to break the centries old Private Swiss Banking...Oh and...Sold the soul and integrity of the "Truth Movement" to advance the Banksters dream to BLOCKCHAIN, trace, track and tax ALL of humanity.

In reply to by P-51 Stiletto

The Cooler King (not verified) tmosley Wed, 08/30/2017 - 21:27 Permalink

'Pretty Lady' ~ Funny u should mention it because I was actually wondering about that. So what exactly do you do when you want to 'impress' a pretty lady with your bitcoin wealth? Take her out to an expensive restaurant? Or is it Burger King & Subway? Or, do you just go straight back to your house (which is empty because it used to be full of silver, but you sold it all)?... What do you do then? sit on the floor & shop Overstock.com for some cheap furniture? Or, is is straight down to the dungeon to watch some porn & snuff films from Tor? https://99bitcoins.com/who-accepts-bitcoins-payment-companies-stores-ta… & lastly... Why the hell, with all these bitcoin click bait graphics, do they show stock footage of MINTED COINS? & moreover, why don't these 'minted coins' have 'IN SATOSHI WE TRUST' stamped on them?

In reply to by tmosley

tmosley stacking12321 Wed, 08/30/2017 - 22:35 Permalink

>silver's time will comeNo it won't. The first fusion reactors are scheduled to come online in 8 years. The first thorium reactors will come online before that by my reckoning. That means practically free energy, which means mining will be practically free. Crypto mining will automatically adjust. The amounts of metals in rock will not.PMs are DOOMED. And not just from one angle. Asteroid mining dooms them. CB dishoarding dooms them. ASI dooms them.

In reply to by stacking12321

VD (not verified) VD (not verified) Wed, 08/30/2017 - 19:58 Permalink

"In conclusion, the potential risks in electronic commerce are magnified when anonymity is present. Anonymity creates the potential for large sums of counterfeit money to go undetected by preventing identification of forged coins. Anonymity also provides an avenue for laundering money and evading taxes that is difficult to combat without resorting to escrow mechanisms. Anonymity can be provided at varying levels, but increasing the level of anonymity also increases the potential damages. It is necessary to weigh the need for anonymity with these concerns. It may well be concluded that these problems are best avoided by using a secure electronic payment system that provides privacy, but not anonymity." the NSA lays it out for you way back in 1996. hint: it goes straight to zero, after some "potential damages". you've been warned.

In reply to by VD (not verified)

dumbhandle monero Thu, 08/31/2017 - 07:20 Permalink

Monero needs more developer horsepower now. It is about to get run over by Ethereum zkSNARKS. Monero is a single use crypto. Excellent for that single use but requires high intelligence and effort to become skilled in its use. I don't think it has enough momentum. Snarks are not as good but close enough.

In reply to by monero

Txpl9421 P-51 Stiletto Wed, 08/30/2017 - 19:31 Permalink

Every morning I wake up and remove the same amount from my crypto stash. I send some to a gold dealer. I send some to my stock account. I send some to pay off the house. Every day for at least the last 130 days.

Bitcoin could drop to nothing and I would be in the black.

And every day I laugh my ass off at the sour grapes comments I see on these click bait stories.

In reply to by P-51 Stiletto