Bitcoin Tops $10,100 - Fed's Powell Says "Cryptocurrencies Just Don't Matter"

Update: Cryptocurrencies are widely bid tonight with Bitcoin over $10,150, Ether holding $475, and LiteCoin topping $100 for the first time...

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Bitcoin has now soared over 20% since Black Friday's close, topping $10,000 for the first time in history (rising from $9,000 in just 2 days)... now up over 950% year-to-date.

image courtesy of CoinTelegraph

It's been quite a year....

  • $0000 - $1000: 1789 days
  • $1000- $2000: 1271 days
  • $2000- $3000: 23 days
  • $3000- $4000: 62 days
  • $4000- $5000: 61 days
  • $5000- $6000: 8 days
  • $6000- $7000: 13 days
  • $7000- $8000: 14 days
  • $8000- $9000: 9 days
  • $9000-$10000: 2 days


Up 950% YTD...

Up over $2000 since Thanksgiving...

But for some context, we have seen two other 'Bitcoin Bubbles' before... which saw retracements and then roared to new record highs... were each of them "tulip-manias" too?

As CoinTelegraph reports, the year has been filled with major announcements that signal the widespread acceptance and growth of Bitcoin. Extensive coverage by mainstream analysts was followed by huge growth in Bitcoin hedge funds and institutional investors.

Now the launch of regulated futures markets is imminent, and Bitcoin has become the investment du jour of the financial community. Whether they love it or hate it, big bankers can’t keep their mouths shut about Bitcoin.

The attention Bitcoin has garnered from mainstream media has been astounding. Only a year ago, news would spread of a local newspaper mentioning Bitcoin, and the community would be thrilled. Now, major publications mention Bitcoin daily, and no one is surprised. Bitcoin has literally gone viral.

Further, the growth in hedge funds that invest in cryptocurrencies has exploded as well. As early as August, the news that 70 new funds could be starting was a headline. Now, the existence of 120 new or modified crypto related funds barely warrants a head nod.

Another major contributing factor for Bitcoin’s sizeable gains is the reality that Bitcoin futures will soon be traded on major regulated markets.

Two of the world’s largest futures markets, the Chicago Mercantile Exchange (CME) and the Chicago Board of Options Exchange (CBOE), will soon launch Bitcoin futures.

As adoption increases, the network is forced to keep pace. However, Bitcoin has continued to maintain a huge transaction volume as the price has increased. As shown below, the daily transaction volume is now over $2 bln.  

As transactions continue to proliferate, Bitcoin mining has become increasingly profitable as well. Miners today make $1.5 mln in fees alone, not including block rewards. As the market has increased, the mining returns have increased exponentially as well.

All this growth in adoption is not localized either. The entire global community has begun to embrace Bitcoin, from Venezuela to Zimbabwe, and from South Korea to Switzerland. The international transactions numbers have been steadily rising since Bitcoin’s inception.  

The numbers are staggering, but what is most encouraging is that the growth in markets has not been geographically localized. A simple perusal of charts from various countries around the world indicates that adoption is not localized, but global, and nearly uniform.

So what happens next?

Coinivore reports that Hong Kong cryptocurrency exchange Gatecoin’s marketing chief Thomas Glucksmann says that Bitcoin’s price is “highly undervalued” even at $10,000 per coin.

In a televised interview with Bloomberg Today, Glucksmann was asked about Bitcoin’s “fair value,” at a time when the price is nearing $10,000 – an incredible unheard of 10x gain since just this year.

When he was asked if it was “impossible” to determine Bitcoin’s fair value, Glucksmann replied:

“I would still argue that it is highly, highly undervalued. If you look at the long-term potential of the technology in the next 10, 20, 30 years, $10,000 is cheap in my opinion,” he said.

While Bitcoin is now starting to be seen in the mainstream as a store of value among retail investors, it remains a peer-to-peer decentralized electronic cryptocurrency, a fact Glucksmann pointed out. “Bitcoin is divisible up to 8 decimal places,” he said.

Finally we levae you with this...

"In the long long run, cryptocurrencies could matter. They just don't matter today."

-Fed Chair Nominee Jerome Powell


greenskeeper carl cristo Tue, 11/28/2017 - 21:07 Permalink

He sounds almost as smart as Paul 'the internet will only have a minimal impact' Krugman. Why do these people put their feet in their mouths like this? I KNOW I don't really know shit about bitcoin, so I avoid pontificating. As an aside, congrats to you annoying ass motherfuckers that have been pushing this shit for the last couple years. You were right, so savor the flavor.

In reply to by cristo

Pearson365 seek Wed, 11/29/2017 - 00:48 Permalink

Yeah thanks.  You gave me some.  It was in a wallet with Mt Gox.  I wanted to buy more when Dochen got in but my SO said no fucking way.  I should have bought anyway and just not told her I was doing it.  I did however buy pms at the 2015 bottom and that makes up for it a little.  At least those won't go to zero.

In reply to by seek

Antifaschistische greenskeeper carl Tue, 11/28/2017 - 21:45 Permalink

I hate to help the Fed out too much...but cryptos should be added to M1 Money Supply.We still add "Traveler's Checks" to M1. (does anyone use those anymore?)gift certificates are actually part of the "supply" of money since no FRN is being destroyed when exchanged for a Starbucks gift card.If there's a problem with crypto's is that the Fed won't know what value to ascribe to them.  As a blockchain fiat virtual currency, do you use the sum of all purchase prices?  What about the miners?  market cap? (i.e. ALL stock multiplied by the very last marginal transaction value [absurd])But because the crypto's are borderless, you don't really even know what M1 to add it to?  RMB, Y, $, etc...At some point, someone will want to exchange a crypto back into something of value (e.g. Ferrari, Beer, women, etc.)   The crypto in this regard gets added to the Tsunami of fiats that one day, will want to find a landing spot.It's all a very interesting dilemma.  Right now, it's like there's $200,000,000,000 in gift certificates floating around out's just that no one knows what store they'll be used at.

In reply to by greenskeeper carl

stacking12321 Mustafa Kemal Tue, 11/28/2017 - 21:55 Permalink

well donei bought 80 btc a couple years ago after it started dropping from the $1100 peakbeen HODLing ever since, with BCH and BTG dividends to booti've been deciding over the last week to wind down my business and go traveling, it will last me a good whilemaybe by the time i've spent half the bitcoin, my silver stash will have caught up - i still think it'll happen, and not selling any silver in the meantime. 

In reply to by Mustafa Kemal

joak Gaius Frakkin'… Tue, 11/28/2017 - 23:34 Permalink

Actually some cryptos like IOTA are a totally new class of asset, not really a currency, not really a stock, sth in between, acting more like a stock at the beginning and then evolving to a currency the more it succeeds. When sth like IOTA started they sold their tokens to finance themselves. The more successful they are, the more value the token. The value of the token will depend on the capacity of the team to succeed, hence to make their token a meaningful mean of exchange... that will have value for that reason

In reply to by Gaius Frakkin'…

GUS100CORRINA cristo Tue, 11/28/2017 - 21:24 Permalink

Observation: Everyone is going insane over BITCOIN performance of 950%. What I find interesting, BITCOIN has nothing over SHORT VIX etf funds. SVXY for the last two (2) years is up over a 1000%. See chart below. Note SVXY could have been bought for around $12 and sold today for $115. of this IRRATIONAL EXUBERANCE is being driven by Central Bank stupidity that will NOT END WELL for ANYONE.

In reply to by cristo

QueeroHedge GUS100CORRINA Tue, 11/28/2017 - 23:28 Permalink

Observation: youre butthurt. You had all the knowledge but you lapped up the fear from pm sellers and are now trying to justify being a zh reader with all the opportunity and an extreme aversion to banks and prjnting money but still were too 'smart' to put a paltry 1% into crypto. Youd be a millionaire today, i hope being the 'smart guy' will suffice  10-20% in crypto now cunce

In reply to by GUS100CORRINA

AlphaSeraph Grandad Grumps Tue, 11/28/2017 - 20:54 Permalink

No. Ponzi schemes promise to pay out "investment" income by luring more people to use their money to pay off earlier investors. Price discovery where no such gains are promised is not a ponzi. Yes, it's an extrodinary difference.Had you said "volatile speculation", I'd have sympathy for your position.Jamie Dimon has a bridge to sell you.

In reply to by Grandad Grumps

911bodysnatchers322 AlphaSeraph Tue, 11/28/2017 - 21:39 Permalink

The same guy who wrote the cia software that has been stealing all of your information even your dna is running all the exchanges and so the thing is, if they can take over your government by shooting your president in the head, gaslight you for decades selling drugs while pretending to fight them and using that revenue to fund defense industry proliferation of extinction level weapons around the world, then kill 3000 of your own people by flying 2 planes into 3 buildings (building 7 did not get a plane), only to cause 17 yrs of warfare and allowing now a pakistani spy ring to infiltrate congress in order to opiate-target your own veterans, almost install the most successful criminal in history as president, and then backbite over half the country by waging psychological nonlinear worldview warfare or WW3 the headgames edition on the people of the US in some kind of twisted game where the current president is an existential threat to ALL THE ABOVE, then why in Fucks sake would you invest in bitcoin when the very value is determined by a collusion of integrated computers run and managed by AI bot armies that were repurposed from their role in gaslighting and censoring and oppressing lawful people on the internet in order to win said psychological war?

I mean clearly someone has not thought this through

someone is not asking the right questions

someone is not looking at the bigger picture

and it sure as F is not me

Watch mr. robot.

They COINTEL-egraph their intentions.

I'm making popcorn for the trapdoor. If I had lots of money, I'd short bitcoin by selling bitcoin futures and watch the shit fall apart

In reply to by AlphaSeraph