Bitcoin goldThe Bitcoin mania continues as a single electronic Bitcoin has now passed the price of 1 of of gold.

 

2013 Gold Maples As Low As $37.99 Over Spot at SDBullion!

Gold Maple

Bitcoin surged another 15% overnight, and briefly surpassed the price of gold at $1242 (while gold dipped to $1241):

Bitcoin gold
Source: ZH

Bitcoin’s all-time high of $1242:

Bitcoin high
Bitcoin’s 2 year parabola:

Bitcoin 2 year

Just how much higher can the mania take Bitcoin before the inevitable collapse as the “experts” claim the e-currency is now headed to $5,000?

 

sic semper tyrannis

  1. People’s perspectives about things and their views of reality are a funny thing. No offense to anyone, but the only people that have lost in secrecy over the last 2.5 years are the people that have invested in pm’s and pm equities. Hope that changes in 2014, but for now, we can’t really say a whole lot without sounding stupid. Frankly, I don’t have the balls nowadays to tell my buddies that have ridden the S+P up 40-50% that they should be in pm’s. Let’s hope next year is the year that conventional wisdom prevails.Regards.

  2. Some good points.

    “Frankly, I don’t have the balls nowadays to tell my buddies that have ridden the S+P up 40-50% that they should be in pm’s.” 

    As I’m sure they didn’t have the balls to tell you, as you rode gold up to $1900/oz. (as most of us here did), that you should be in the S&P. Point here is that if they have some good sense about them, they will look to take profits soon and place them elsewhere–as some of us in this space should have done more effectively 2.5 years ago. These types of moves in markets do NOT last forever, and I have a strong feeling the S&P will be the WRONG place to be next year. Relative over-performance has a habit of correcting itself, as does the converse.

  3. I wont be surprised if Gold and Silver prices get swept up in the vortex of Bitcoin, I’ve sold my position but this wont surprise me at all. If Bitcoin is doing this than PM’s in my opinion will most likely start climbing up in price rapidly. I may have missed the PM boat!!! I sense a similiar rising price event coming very soon for Gold n Silver on the tail of Bitcoin, bugger. $500 plus silver is actually looking more and more like a REAL possibility, maybe i should have held my position, oh well time will tell, if it does i’ll be honest and say i wished i’d of held out, so many ppl will become rather wealthy, ah regrets regrets, well anyways we’ll see….

  4. Bitcoin Passes Price of Gold
     
    I read that during Tulipmania, one individual traded his mansion (valued in $600,000 in today’s dollars) for a single tulip bulb’
    This is now considered the moment that tulips ‘jumped the shark.’
     
    Post-Housing Bubble, some folks have claimed that when Time Magazine ran that cover showing a man hugging his house – this was the very peak of the housing bubble.
     
    If exceeding the price of Gold isn’t Bitcoin’s ‘jump-the-shark moment,’ then I am just waiting to see what the trigger will be. This is all very interesting to watch from the outside looking in, but I am not going to touch Bitcoins.

  5. BTC just dropped 13% 
    Those losses in secrecy are not like losses in gold and silver.  We can take a tax loss against if selling into a PM price drop.  If someone buys BTC at $1,200 and it goes to $600, can they take a cap loss on their taxes?  Doubt it.
    Litecoin hit $40, up from $7 per unit. 
    there’s still room at the bottom.  
    Tulip-coin,  NASDAQ-coin and Techbust-coin are still available.
    Sorry 
    I can’t help being a DA sometimes. 

     Whodares. I would to completely comfortable buying silver now. If I had enough FIAT to spare I’d be backing up the truck. Trading for silver might be a possibility early next year if the GTSR stays high. It’s 62 to 1 now. If we have a subtantial drop in the DOW, dragging down PMs, the ratio could go to 70 to 1 or greater. Past recessions have produced a substantial skew in the GTSR, hitting 85 to 1 in the past decade or so. I’m not sure why this happened but it would be a terrific trading opportunity IMO. I’d be selling the silver on a price bounce to take profits as my stock of trading silver would be a good bit larger. When the ratio dropped back to 40 to 1, if that became a reality, I would rotate back to gold, a more portable wealth IMO

    • Over 20% of BTC is held by only 100 people. Ponder that when they tell you it is a “decentralized” currency. LOL.
       
      It is in a massive bubble. Red flags everywhere.

  6. How fun. A few enterprising individuals set up a new cryptocurrency. Mine the first couple million units amongst themselves. 
    Then the marketing campaign starts. Look, it went from 5 cents to 2 bucks in just a bit over a year! We’re staying put until it’s gone triple digit!
    Pyramid scheme initiated. The early miners in fact spent pennies and less for each unit, and every new buyer pushes up the price tremendously, and the early guys stay put, or only sell units to get rigs to mine even more as long as that’s profitable over outright purchase.
    Every new sheep moving into MythCoin is pushing the price up, as there is hardly any offered volume and slow mining due to barely being attractive unless you’re on free electricity (employer’s server park redundancy). 
    How much more real hard-earned money could enter the crypto realm? Perhaps 10-fold or even 100-fold. So yeah, it could go up like crazy. Don;t think I’ll join in though, or perhaps with a very small amount in an up-and-coming cryptocurrency with possible still a bit of a run to go. Pure play money. Not intending to ever pay a bill with it, as no-one currently buying BTC is. Apart from some drugs barons. For them it’s perfect. They could prop the price up all by themselves. And they don’t care. Just buy fewer and fewer BTC each time they do a $million deal. The recipient transfers from BTC received to “hard” fiat instantly. No real risk of losses upon agreed price. 

    • Max Keiser was a BTC millionaire (perhaps in units, perhaps in dollars) earlier this year. He’s Max HFT Keiser.
      BTC is not bankster-manipulated, no. But early adopters are having a field day. Such low volume, so many exchanges with varying prices… If I’d be an early adopter me and my buddies would be exchanging BTC all days long, at opportune moments. We’d have cheap BTC in hand, in qtys to swing the markets at will.

  7. It’s a mad, mad, mad-mad world! When a child programs a social website, designed for just chatter, becoming a billionaire in the process, yet he has bettered the world by a factor of 0. BTC crypto imaginary Atari digital didgets are programmed into existance, no different than online casino play money, and people become millionaire by robbing other gamblers in a online ponzi scheme, they’ve improved the world, and answered its woes by a factor of 0. However a rocket scientist probably earns (in America) only 250k/year and as a direct result, we have sattelite communications, Mars exploration, jet propulsion for travel (yes better war machines a negative) but without arguement, a single, underpaid rocket Engineer has significantly improved the world by a factor of .001. One man, measurable improvement for the planet!  We had similar entertainment relief when the NFL players were earning, what today would equivilate to a 60,000/yr. Income. I’ve seen men earn less and risk bodily injury more than they. The world has no sense of itself.

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