Bitcoin Explodes Above $14,000 - Korean PM Fears "Serious Pathological Phenomena"

Well that escalated quickly...

Just a few hours ago, Bitcoin surged above $13,000 and now, on notable volume, it has reached the stunning $14,000 level... up 20% today...

The real surge began at 1715ET...

For those keeping track, this is how long it has taken the cryptocurrency to cross the key psychological levels:

  • $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
  • $10000-$11000: 1 day
  • $11000-$12000: 6 days
  • $12,000-$13,000: 17 hours
  • $13,000-$14,000: 4 hours

As Bitcoin has soared, it appears traders have sold other cyrptocurrencies to chase it as Ether has dropped in sync..

One of the regions in the world with the most active Bitcoin community is South Korea where so many Koreans have embraced bitcoin that the prime minister recently warned that cryptocurrencies might corrupt the nation’s youth.

As Bloomberg reports, while neighboring Japan hosts more transactions by some measures, Korea punches far above its weight: In the 24-hour period through Wednesday evening in Seoul, about 21 percent of the world’s bitcoin trades on fee-charging venues involved the Korean won, according to Coinmarketcap.com. The country accounts for about 1.9 percent of the world economy.

As Korean policy makers grow increasingly worried that the mania has gone too far, the nation could become a focus for bitcoin traders around the world. Korea’s top financial watchdog, which briefly roiled cryptocurrency markets with its ban on initial coin offerings in September, said this week that it has “grave concerns” about overheated speculation and has formed a task force with other government bodies to increase supervision.

While it’s unclear what measures will emerge from Korea’s cryptocurrency task force, the government seems intent on acting. The tax authority is considering a levy on cryptocurrency trading gains, Yonhap News reported on Tuesday, while Prime Minister Lee Nak-yon warned last month that cryptocurrencies could become gateways to pyramid schemes and other illicit activity if left unchecked.

“If we let things continue, I feel some serious pathological phenomena could occur,” Lee said.

Bitcoin’s stateless status appeals to some Koreans who’ve grown wary of keeping their savings in a country that shares a border with Kim Jong Un’s increasingly belligerent regime in North Korea, according to Kwak Keumjoo, professor of psychology at Seoul National University.

“People want to take comfort in something outside and beyond the country,” Kwak said.

Finally, we note that growth continues as Coinbase CEO today noted they currently have 220 customer service reps and will add 400 next year:

"it's very difficult to keep up with the user influx."

As CoinTelegraph reports, since ChinaRussia, and a few others cracked down hard on Bitcoin, it has been relatively quiet on the regulations front as Bitcoin has continued to soar unbridled. However, the head scratching on how to regulate continues.

The next fear, for Former Fortress Hedge Fund Manager Michael Novogratz, is that Bitcoin’s continued rise and prominence in the mainstream media could reawaken the regulation beast.

However, Novogratz still feels that Bitcoin is difficult to regulate and it will be hard for governments to make an impact immediately. Novogratz, who has been outspoken on Bitcoin for some time now, claiming it could be a bubble, but one to profit from has his concerns now.

"I've got concerns that if price movements go higher, we're going to get more regulation," Novogratz said.

 

“But I think it's hard to shut down. ... I don't think that's a probability."

 

"One of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous," he added.

 

"I could legitimately see Bitcoin go $13,000, $14,000, $20,000, $25,000 and see somebody balk."

Novogratz adds:

"We're in a speculative frenzy. Period. Stop. How long can it go? Who knows," Novogratz said. "What's interesting about this is it's global."

Another reason that Bitcoin has hit such heights must also be attributed to it finding its identity. Many were scratching their heads as to what Bitcoin is - a currency or an asset - but recent changes have set it straight.

"Bitcoin is winning out as digital gold," Novogratz explained.

 

"I don't think it's going to be a currency... Nothing that volatile is going to be a currency."

Comments

overbet SILVERGEDDON Wed, 12/06/2017 - 18:06 Permalink

tmosley  overbet Sep 30, 2017 2:40 PM One BTC sold for $4340.   UPDATE: $13990.003.4 ounces of gold bought at @1280.   UPDATE: $1,275.80 http://www.zerohedge.com/news/2017-09-30/meanwhile-bitcoin-soars-40-pos… http://www.zerohedge.com/news/2017-09-30/meanwhile-bitcoin-soars-40-pos… No way Im buying 4600 its gonna crash. No way Im buying 8000 thats crazy. No fucking way Im buying 10k Im stacking sliver. 

In reply to by SILVERGEDDON

zorba THE GREEK Bud Dry Wed, 12/06/2017 - 19:39 Permalink

I believe the whole Bitcoin phenomena has been taken over by a few uber wealthy elites and it is now  orchestrated to get people to sell their gold and silver in order for the gold manipulators to buy cheap PMs to cover their Long running shorts because they know the PMs are about to break out. Sell Bitcoin and buy silver. That will be the killer trade of the decade. Anyway you look at it, Bitcoin is smoke and mirrors and PMs are the real deal, at a bargain price, might I add. Maybe I am old school because I want to be able to see and touch my money. P.S...I sleep like a baby every night. 

In reply to by Bud Dry

overbet zorba THE GREEK Wed, 12/06/2017 - 19:58 Permalink

"PMs are about to break out." First of all. LOL Second, I keep hearing the same shit like this and btc has to crash and day after day month after month year after year.....youre wrong. One day it might break out one day btc might crash. In your mind will that make you correct? If one day out of thousands you get it right and the other thousands you got it wrong?

In reply to by zorba THE GREEK

overbet zorba THE GREEK Wed, 12/06/2017 - 21:03 Permalink

No offense Zorba it's just a broken record. Every article pms are gonna breakout and btc is gonna crash. I am just curious if those of you in that boat will feel vindicated if you are ever right. How right would you have to be? BTC was gonna crash since $1-2k now its 14k if it crashes to $5k and gold rallies to 1320 would that do it?You realize that if gold was ripping like this there would be a just as intellegent crowd hating. Its a God damn mineral. It comes out of the ground how can you justify these prices? In markets being right too soon is the same as wrong and thus far the btc haters have all been wrong. Ive been long gold eagles and some shitty silver eagles, pretty maples and bars for years. Its like watching paint dry with opportunity cost kicker. Worst performing assets Ive ever bought. The silver is like an overpriced sandbag, but you keep the faith. Your day may come. In the meantime I prefer returns. 

In reply to by zorba THE GREEK

zorba THE GREEK overbet Wed, 12/06/2017 - 21:07 Permalink

You prefer your returns, then go for it. I started buying gold at $300 and silver at $4. I am retired 7 years now, so I may be in a different situation than you. If gold went back to $300 and silver to $4, I still can survive even without the $3200 a month that my wife and I now get from SS. Risk factors are different for different age groups. I wish you well, but I am never going to sell gold and silver to buy something as volatile as Bitcoin. 

In reply to by overbet

38BWD22 sodbuster Thu, 12/07/2017 - 00:02 Permalink

  A few weeks ago, I stopped buying BTC.  $6950 was my last purchase (highest price and a pretty small amount).Starting in 2016 I started buying gold with BTC.  It was not a moneymaker.Until 2017, especially the past few weeks!  NOW I can get lots of Au for just ONE BTC (approx 10 oz).  And I have done so (not today, but recently at lower BTC prices such as $6350, $6400, $9300, $11,100 and (last night) $12,500 or so).  Should have waited until today, LOL.  Maybe I'll sell a "schnitzel" of BTC again tomorrow.2017 will show the fat gains, and the IRS will get a nice check from me for those capital gains.*   *   *My personal opinion is that BTC has become more dangerous.  I cannot recommend at buying at current prices ($13,700 or so last I checked).BTC market cap: $226 billion.  Ah, seems high, but, yes, compared to other assets out there, maybe not.  But, those other assets are REAL.  Hmm.Gold is much more a bargain, but if I am wrong and BTC goes to $50,000 by Easter (2018)?  Then I will have been shown to be wrong, and would just have to settle for my current nice gains (in US$ value of gold). But, I will hang on to some BTC to keep me reading these BTC ZH threads. * * Even if it all ends in tears, which now I think it will.

In reply to by sodbuster

in4mayshun overbet Wed, 12/06/2017 - 22:35 Permalink

Holding Bitcoin is like sitting at the gambling tables 24/7. Sure a lot of money could be made- but you could lose your ass in a blink of an eye; a very energy-draining and stressful investment strategy. Now holding gold and silver, I don't worry at all. At today's valuations, there's not much down side- only up and sooner or later physics will win out.

In reply to by overbet

RAT005 Stackers Wed, 12/06/2017 - 20:52 Permalink

I agree with your perspective of the numbers but there is nothing unique about Bitcoin that can't be copied by Bitmoney, Bitcurrency, iCoin, etc.As a transaction vehicle it's very interesting because it is outside fiat and Swift but those are currency benefits, not money benefits.  Bitcoin costs about $1,000/coin to mine right now and it has no other inherint value.  Gold and Silve and other genuine commodities cannot be copied.Bitcoin is fun to watch, and I even have about $200 worth, but I'm not expecting a good ending.

In reply to by Stackers

Sir Edge Hugh_Jorgan Wed, 12/06/2017 - 18:42 Permalink

 "“If we let things continue, I feel some serious pathological phenomena could occur""   Yes like the final death of the Federal Reserve System... Be Still My Heart...  Not a minute too soon... People watching TV are missing out on the real drama...  The world is coming apart at the seems... IN REAL TIME...  Edgey... 

In reply to by Hugh_Jorgan

BallAndChained Hugh_Jorgan Wed, 12/06/2017 - 22:16 Permalink

Panic BUY!If you don't buy NOW, you will be crying and begging for a chain of NOTHINGNESS soon!Today a chain of NOTHINGNESS buys a car.Next week a chain of NOTHINGNESS buys a house.Next month a chain of NOTHINGNESS buys an entire city.Next year a chain of NOTHINGNESS buys an entire country.If you don't buy now, you will be sorry when all your friends own a country and you don't.Soon a chain of NOTHINGNESS can buy the entire planet Earth, and the geniuses holding imaginary tokens will be bidding up the price of Mars, Venus, Jupiter.

In reply to by Hugh_Jorgan

Luc X. Ifer silverserfer Wed, 12/06/2017 - 18:16 Permalink

Well, Ethereum is in free fall collapsing - completly oposite to the reference BTC and other top alts. Warning and advice - get out of it's shit ASAP

https://www.worldcoinindex.com/coin/ethereum

The 1st real life application deployed on the Ethereum Blockchain managed to almost collapse it and now the proof is in that the for long mentioned scalability issues are for real and not only hate.

https://techcrunch.com/2017/12/03/people-have-spent-over-1m-buying-virt…

[The game is run via a set of 5 Ethereum smart contracts written by AxiomZen, and users interact with it via their own Ethereum address. Right now the easiest way to do that is by using the Chrome extension MetaMask which gives you the ability to send and receive Ethereum directly in your browser. You then would navigate to the CryptoKitties site which is essentially an interface to interact with their smart contracts so you can buy sell and breed kittens.

Right now about 15% of all Ethereum network traffic is dedicated to the game, making it the most popular smart contract on the network. For reference, number two with about 8% of network transactions is EtherDelta, the popular decentralized token exchange.

This traffic is making it hard to play CryptoKitties, and a lot of transactions (like buying and selling cats) are taking longer than usual to process and needing multiple attempts.

Due to network congestion, we are increasing the birthing fee from 0.001 ETH to 0.002 ETH. This will ensure your kittens are born on time! The extra is needed to incentivize miners to add birthing txs to the chain. Long-term solution will be explored very soon!

— CryptoKitties (@CryptoKitties) December 3, 2017

Not only is this making it hard to play the game, but this scaling issue is a real concern for the Ethereum network in general. If one viral game that hasn’t even spread beyond the tech world can slow down the network, what happens when the blockchain expands to real world applications?]

In reply to by silverserfer

Luc X. Ifer Luc X. Ifer Wed, 12/06/2017 - 18:22 Permalink

The Next CryptoKitties? The Blockchain Might Not Be Ready

[But the insanely viral trading game running on ethereum was most often cited, not as a success, but as an example of industry challenges. As put forward by developers and entrepreneurs, the world's second-largest blockchain just isn't ready to handle the buying, trading and mating of the crypto felines en masse.

As the panels proved, though, the problem is bigger than ethereum and CryptoKitties alone.

Scaling issues also influenced Earn.com's decision to create a token this year, and onstage, CEO Balaji Srinivasan spoke to a "philosophical split" in approaches to bitcoin that led to the decision.

Brian Hoffman, CEO of OB1, the startup that manages the e-commerce platform OpenBazaar, struck a similar chord in a talk in which he announced his company's plans to launch a token that will be used in conjunction with bitcoin.]

https://www.coindesk.com/token-summit-scaling-cryptokitties/

In reply to by Luc X. Ifer