Bitcoin hits another record high in march towards $20,000

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Bitcoin hits another record high in march towards $20,000

Gertrude Chavez-Dreyfuss

 

A collection of Bitcoin (virtual currency) tokens are displayed in this picture illustration taken December 8, 2017. REUTERS/Benoit Tessier/Illustration

 

NEW YORK (Reuters) - Virtual currency bitcoin hit another all-time peak on Tuesday, two days after the launch of the first ever bitcoin futures on a U.S. exchange and ahead of the start of another futures contract next week, as investors grew optimistic that the $20,000-mark is within reach.

 

On Sunday, Chicago-based derivatives exchange Cboe Global Markets (CBOE.O) launched bitcoin futures, enabling investors to get exposure to the currency via a large, regulated exchange.

 

The CME Group (CME.O) is expected to launch its futures contract on Dec. 17.

 

“We’re going to see bitcoin emerge as a payment network,” said Trevor Koverko, chief executive officer of Polymath, a securities token platform.

 

“Currently bitcoin is being used as a speculative asset and store of value. But as scaling solutions...emerge, bitcoin’s utility dramatically increases along with its price,” Koverko said.

 

Bitcoin, the world's biggest and best-known cryptocurrency, was quoted at $17,310 on the Luxembourg-based Bitstamp

exchange BTC=BTSP, up 5.1 percent on the day. Earlier on Tuesday bitcoin hit a record high of $17,428.42, registering a roughly 20-fold increase in its price for the year as it drew in millions of new investors.

 

A Reuters technical analysis that measures the ups and downs in trading prices, known as waves, showed bullish momentum for bitcoin.

 

The technical analysis suggests an extension of a wave, which could mean that bitcoin would easily surge above the psychologically important level of $20,000, according to the Reuters analysis.

 

”It’s remarkable how back in November $10,000 seemed like a psychological end-of-year target,“ said Lukman Otunuga, research analyst at FXTM. ”With the current gravity-defying bullish momentum, it may be no surprise if bitcoin concludes 2017 on $20,000.

 

But as bitcoin set a new record, digital currency exchange operators Coinbase and Bitfinex reported problems with service through their websites on Tuesday, frustrating traders seeking to cash in on the latest surge in the value of bitcoin and other cryptocurrencies.

Cboe Global Markets Inc127.62

 

The newly launched one-month bitcoin futures on the Cboe Futures Exchange were slightly tepid, with prices generally steady and volumes about a third of those seen on Monday. Bitcoin futures maturing in January XBTF8 were at $18,450, with just 1,416 contracts traded as of late afternoon in New York, compared with 3,956 contracts on the first day.

 

A total of $26.4 million was notionally traded so far on Tuesday, compared with around $73 million on Monday.

 

“The trading volume was huge yesterday as bitcoin price fluctuated in a wide range over the weekend,” said Park Nok-sun, a cryptocurrency analyst at NH Investment and Securities in Seoul.

 

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“Now that the exchange price is relatively calm, it is obvious for futures trading volume to fall.”

 

While market participants are still heavily divided over the digital currency’s utility, value and safety, they expect the futures contract to offer a legitimate means for institutions to bet on bitcoin. Some investors even expect the futures will offer markets an easier means to take short positions on the cryptocurrency.

 

The futures are cash-settled contracts based on the auction price of bitcoin in U.S. dollars on the Gemini Exchange, which is owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss.

 

Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Dahee Kim in Seoul; Editing by Leslie Adler

 

-- © Copyright Reuters 2017-12-13

[Thaijack2014]

I thought I understood enough about my favourite crypto currency Bitcoin... this new aspect of bitcoin futures is still very unclear to me. I don't know how it works and what it does and what influence it has on the bitcoinprice. I watched YouTube videos about it, but somehow I fel asleep after watching 5 minutes and have to watch the video all over again....

But anyway, in my humble opinion: the more people get somehow involved with Bitcoin, especially on a stock exchange, Wallstreet etc... the faster it will go up in price.

In june I expected the bitcoin to go to 6000 Dollar by December... it is nearly triple that amount. For the end of 2018 I expect it to be around 100.000 Dollar... but hey...that's me... most likely I'm totally wrong, like I was this year...

Edited December 13, 2017 by Thaijack2014
spelling

[wolf81]

3 hours ago, Thaijack2014 said:

I thought I understood enough about my favourite crypto currency Bitcoin... this new aspect of bitcoin futures is still very unclear to me. I don't know how it works and what it does and what influence it has on the bitcoinprice. ...

I think the main point about Bitcoin Futures is to allow other people to start trading Bitcoin without needing to setup wallets and the like, which might scare non-tech people.

Edited December 13, 2017 by wolf81

[SiSePuede419]

Besides illegal drugs and kiddie porn, what else can you buy with these?

 

Rent?  No.

 

Utilities?  No.

 

Gas?  No.

 

Big C?  No.

 

Restaurants?  No.

 

Airfare?  No.

 

Visa?  No.

 

Oh.  I see. ?

[speedtripler]

On 13/12/2017 at 1:53 PM, SiSePuede419 said:

Besides illegal drugs and kiddie porn, what else can you buy with these?

 

Rent?  No.

 

Utilities?  No.

 

Gas?  No.

 

Big C?  No.

 

Restaurants?  No.

 

Airfare?  No.

 

Visa?  No.

 

Oh.  I see. ?

Can you buy any of those things with gold bars? (just wondering) 

[speedtripler]

 

Btc is crashing upwards! 

[sirineou]

On 12/12/2017 at 9:15 PM, Thaijack2014 said:

I thought I understood enough about my favourite crypto currency Bitcoin... this new aspect of bitcoin futures is still very unclear to me. I don't know how it works and what it does and what influence it has on the bitcoinprice. I watched YouTube videos about it, but somehow I fel asleep after watching 5 minutes and have to watch the video all over again....

But anyway, in my humble opinion: the more people get somehow involved with Bitcoin, especially on a stock exchange, Wallstreet etc... the faster it will go up in price.

In june I expected the bitcoin to go to 6000 Dollar by December... it is nearly triple that amount. For the end of 2018 I expect it to be around 100.000 Dollar... but hey...that's me... most likely I'm totally wrong, like I was this year...

I is simple, Bitcoin trading is based on the greater fool theory  where one thinks

"yes it is foolish to pay that price for it but there is a greater fool  out there that will pay more"

and hope you are not the "Greatest fool"

Simply a Tulip Mania https://en.wikipedia.org/wiki/Tulip_mania

Edited December 17, 2017 by sirineou

[wolf81]

I think for the coming year at least, Bitcoin will only become more valuable. Could a crash come? Perhaps. Already Bitcoin dealt with some crashes in the past. In the end, each time it did become more valuable.

 

So what is the wise thing to do? I would suggest to buy some Bitcoin. Perhaps get at least 1.3 Bitcoin or so, that would be about 20.000 USD right now. As the value of Bitcoin increases, remove some of your investment slowly to remove the risk. So perhaps in 4 months your Bitcoin investment would be worth 30.000 USD, if so, sell a little bit for maybe 5000 USD. do this 3 more times afterwards. In the end you will probably have 1 Bitcoin left and all your investment back. From then on, if Bitcoin only increases more in value, as James Altucher and some other people predict, you might be lucky and become a millionaire in 2020. And if not? Well, you have your investment back anyway. So the losses wouldn't be too great.

 

If you plan to buy Bitcoin, I would advise you to keep the private key of your wallet somewhere safe. Perhaps by using a hardware wallet like the Ledger Nano S or perhaps a paper wallet. Some exchanges have been hacked in the past and you wouldn't want to take the same risk. 

Edited December 17, 2017 by wolf81

[speedtripler]

33 minutes ago, sirineou said:

I is simple, Bitcoin trading is based on the greater fool theory  where one thinks

"yes it is foolish to pay that price for it but there is a greater fool  out there that will pay more"

and hope you are not the "Greatest fool"

Simply a Tulip Mania https://en.wikipedia.org/wiki/Tulip_mania

Tulips are not durable, not scarce, not programmable, not fungible, not verifiable, not divisible, and hard to transfer. But tell me more about your analogy...

[sirineou]

4 minutes ago, speedtripler said:

Tulips are not durable, not scarce, not programmable, not fungible, not verifiable, not divisible, and hard to transfer. But tell me more about your analogy...

What you are saying is true.

   Obviously when given a choice between the two, in today's markets, Bitcoin would be easier to trade, but both "birds of a feather" though one might say that  when the bubble bursts  , at least in the tulip version, one will have some very expensive pretty flowers where in Bitcoin you have nothing

Google "Tulip Mania"

It is a classic "Bubble" story teached at every first year economics course, also a trues story that demonstrates the "Greater fool theory". 

Easy to google "Tulip mania"  plenty of material on the subject.

What we must remember is that in order to appreciate a profit there must be a buyer "The greater fool", and that at some point of the meteoric rise of bitcoin there will be profit taking ,

  As the difference between the "Ask price" (price paid when bought ) and the  "Bid price" (price a buyer is willing to pay) diverge the stampede towards the bottom will start in an effort to  obtain as much profit as possible or limit loss .

With stocks there might be a "bottom" set at realistic company valuations , but IMO in Bitcoin" there is no bottom because it is a Fiat currency and there is no bottom.

And though all (or most) currencies are Fiat currencies, national  currencies are backed by a central bank , and represent a representation national wealth or worth, where bitcoin is not ,  

    Profit taking is inevitable, all it will take will be some event to say "Booo" and startle the herd.

 So the question is how long does one "let it run" on the roulette table. 

[jesimps]

"So the question is how long does one "let it run" on the roulette table."

 

I'd have thought that was the business of the crypto investor.

 

Cryptos are like any other investment in that they're a gamble. I'm sure all the millions of people who invest in it realise this and know the risks. I don't think you'll hear many of those who've gone from rags to riches pulling it to piecers like you people seem to enjoy doing.

 

You'll get reckless people betting on stocks, forex, football pools, horse-racing, two flies walking up a wall etc, just as you'll get cautious people putting in money. 

 

In the end it's down to the individual to choose what sort of investing he wants to do and it's up to him to do the necessary investigations to see if it's worth it or not.

 

Just like the Brexiteers, they don't want to be patronised by people who'd like to make their decisions for them.

 

I think it's jealosy from people who think they've missed the bus or who aren't computer savvy enough to take part. There's still plenty of time to get in, go for it!

[Thaijack2014]

On 13-12-2017 at 1:53 PM, SiSePuede419 said:

Besides illegal drugs and kiddie porn, what else can you buy with these?

 

Rent?  No.

 

Utilities?  No.

 

Gas?  No.

 

Big C?  No.

 

Restaurants?  No.

 

Airfare?  No.

 

Visa?  No.

 

Oh.  I see. ?

And all of these things you can do with gold, right? Plus sending 20.000 Dollar worth of gold to the other side of the world via internet?

[steven100]

Does anyone want to buy 100 bitcoins ....

[Thaijack2014]

One thing I would like to say to the bubble and tulip thinkers, also to the people who wonder what they can buy with bitcoin... There is more to it then just buy and hold. In fact, I don't do it. 

I know several companies where people invest in Bitcoin and one of these is USI TECH, a software company that develops succesfull software for forex trading and is already many years on the market.

This year this company started to sell bitcoin packets, each 50 Euro worth. I don't go into the details, but the formula is so succesfull, that there are now between 500.000 and 600.000 members. If you count other companies where people invest with bitcoin, my guess is that there are at least half a million or more bitcoin being used in that way.

So you can speak of a bubble, but if 1 million people bought bitcoin, I think it can't really lose much of value. These Bitcoin are in a system and not being sold off, just because someone says boo. They are generating profit and increasing in value as they do so.

There are a number of people who just buy and keep bitcoin and I will do that too with around 1/3 of my profits... the other 2/3 goes to fiat currency and to some other alt.coins which have or are increasing in value.

 

There is no bubble. Bitcoin is just at the beginning of becoming gold nr. 2. In the early days gold has been used in coins and people payed bills with it. Now it is so valuable that it is not being used anymore as means of payment. It was replaced by banknotes and now gold is replaced by a promise of governments and central banks, with no substantial value behind it.

 

The whole cryptocurrency is just starting and has a long way to go. Bitcoin 20.000 Dollar? It's nothing compared to what it will be in the future. I believe it will hit 100.000 Dollar somewhere in 2018.

Edited December 19, 2017 by Thaijack2014

[speedtripler]

3 hours ago, Thaijack2014 said:

One thing I would like to say to the bubble and tulip thinkers, also to the people who wonder what they can buy with bitcoin... There is more to it then just buy and hold. In fact, I don't do it. 

I know several companies where people invest in Bitcoin and one of these is USI TECH, a software company that develops succesfull software for forex trading and is already many years on the market.

This year this company started to sell bitcoin packets, each 50 Euro worth. I don't go into the details, but the formula is so succesfull, that there are now between 500.000 and 600.000 members. If you count other companies where people invest with bitcoin, my guess is that there are at least half a million or more bitcoin being used in that way.

So you can speak of a bubble, but if 1 million people bought bitcoin, I think it can't really lose much of value. These Bitcoin are in a system and not being sold off, just because someone says boo. They are generating profit and increasing in value as they do so.

There are a number of people who just buy and keep bitcoin and I will do that too with around 1/3 of my profits... the other 2/3 goes to fiat currency and to some other alt.coins which have or are increasing in value.

 

There is no bubble. Bitcoin is just at the beginning of becoming gold nr. 2. In the early days gold has been used in coins and people payed bills with it. Now it is so valuable that it is not being used anymore as means of payment. It was replaced by banknotes and now gold is replaced by a promise of governments and central banks, with no substantial value behind it.

 

The whole cryptocurrency is just starting and has a long way to go. Bitcoin 20.000 Dollar? It's nothing compared to what it will be in the future. I believe it will hit 100.000 Dollar somewhere in 2018.

Some people take longer to catch on than others, it's just natural that smart people adopt new technologies first and they're usually not the age group demographic on Thaivisa (no offence) 

 

 

[Thaijack2014]

49 minutes ago, speedtripler said:

Some people take longer to catch on than others, it's just natural that smart people adopt new technologies first and they're usually not the age group demographic on Thaivisa (no offence) 

 

 

Thanks for the video! Many of my thoughts are expressed here... wish I would be as well spoken.... :)