bitcoin USDAfter soaring in the aftermath of the Cyprus depositors confiscation, Bitcoin has gone parabolic, up over 50% in the past 48 hours to $150…and has subsequently showed signs of a bursting bubble, as it has crashed to $120 this afternoon.

Notice that Bitcoin has returned nearly a 20 bagger in under a year:

bitcoin USD

This morning we looked into whether there was any good method to short Bitcoin…but it appears the bubble has already popped, as viewed on the 1 day chart:

bitcoin collapse

And a longer term chart courtesy Max Keiser:

bitcoin

An intra-day swing from $115 to $150 and back to $120 again.  

One day a similar exponential move will occur in gold and silver as fiat currencies burn and enter their final melt-down.

 

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    • Im shocked you can think to do that. Its the shorters that are preventing our metals doing what they should. Now that bitcoin is doing what gold and silver should be you want to short it? Be fair mate.

    • You can profit handsomely by not buying any and when the price drops you made out like a bandit. People will never learn that you can not have something with nothing.

    • “People will never learn that you can not have something with nothing.”
       
      Indeed.  This is the foundation of the entire fiat experiment… something, as in goods and services… for nothing, as in fiat that has no backing and costs about 4 cents to whip up out of thin air.  That’s for the paper & ink variety.  I’m sure that the computer bit version is much less than that… and worth every bit, too.
       

    • @RocketsRedGlare:  You make a great point that many new to investing don’t understand.  You know this, but for others:  Short selling is a valuable part of a normally functioning market.  It greatly helps the process of “price discovery.”  It helps shine a light on investments that have problems and as a result, helps keep company execs behind those investments honest.
       
      Shorting isn’t the problem.  Abuse of naked shorting is the problem — both at the CRIMEX and in the stock market.  There are big differences between stock and commodities/futures markets when it comes to shorting regulations.  If a brokerage (or whomever) shorting on a stock exchange can’t come up with the borrowed shares in order to “sell” them short and they can’t secure said shares within the time frame demanded following their account being credited with the dollar value of sold phantom shares, there should be severe  consequences.  The current “Reg SHO” list process is a total joke.
       
      Over on commodities/futures exchanges, we’ve got to get back to a system where short sellers of significant size need to put up a significant percent of the underlying commodity (or whatever) being sold short.
       
       

    • So you want to short bitcoin? I found a way. You can create and buy options by signing up on this site. Also, you can trade bitcoin against all the other alternate currencies out there. Below is a link, with my referral ID, all the referral does is give me a little piece of the fee that you pay on each transaction, and if you don’t use it, the site gets 100% of the fee.
       
       
       https://vircurex.com/welcome/index?referral_id=747-10009

    • Nowhere because no one who is really important has lost their ass in it yet.  Once they do, the bought and paid for politicians will be all over it.

    • @Ed_B:  Generally speaking, your point has a lot of truth to it and there are many fine examples like the Madoff ponzi.  But Bitcoin has a total market capitalization of about a billion bucks.  It’s just not a big deal right now.  It has, however, laid the stepping stones down to become much larger, and that’s why US regulators (I mean, tax authorities and those that care about execution of capital controls ;-) ) just started taking a look at it.

    • Yes, I understand that BitCoin is small in the financial scheme of things but do not see that as an obstacle to intervention.  Cyprus is small too but it seems to have been quite a focal point for world attention lately.
       
      I also have the thought that TPTB are very much into the philosophy of “leave no stone unturned” in their quest for ultimate financial and political power.  I agree that it is not a high priority for them at this time but it is on their radar now.

  1. So Bitcoin crashes right after everybody has heard about what a great investment it is?
    This sure sounds a lot like the Housing Bubble!
     
    History doesn’t actually repeat itself, but it does indeed rhyme…

  2. I just bought 1 at 100 on monday, I see this as an unmanipulated market as weak hands who got in early in the US under $10 cash out. i expect to see heavy buying and higher prices later this evening as people in japan andthen europe wake up to the lower price. I see the morning time zones with the weaker national currencies being the strongest times for bit coin, and as the morning arrives in the US, we’ll see a sell off of weak hands who got in early. i full expect to see massive swings in price based on who is awake and how solid that time zones national currencies are or if the threat of bank runs exists. Or i could be completly wrong and the whole thing is a cia scheme to screw us over yet again. either way this is a brand new idea and am excited about its potential.

    • If people in Japan and Europe understood Bitcoin and how it was undervalued, then they should also be flooding into silver which currently is much more affordable. – Keep Stacking : )

  3. This is pretty loopy since this is supposed to be a digital currency that is immune to outside manipulation.  What happened to the peple who bought a load of BC at $140.  With a value increase of 1,000%, increasing from $12 a BC to 120 or so, what separates this digicurrency from any other bubble related value model?   If someone agreed to buy silver with his BC150 this AM and now their BC wallet is almost 20% less, how does that purchase take place when the BC millionaire is down substantially. Silver went down a few percentage points. BC dropped by 20% or so The silver sells takes BC in exchange. What happens if BC drops back to BC100
    At least my freakin’ FIAT is still worth something and buying silver in the none digital world is reasonable normal.
    Nothing against bubble–ated currencies and big swings in values.  Heck, the swings of the last 3 months in PMs are nothng less than heart wrenching but when BC does the manipulation lambada I am more than a bit (coin) suspicious.

    • One thing to think about there is capital gains. Being a crypto currency the history of each coin SHOULD be mapped for perpetuity – to confirm it isn’t fake. Ergo when someone spends their bitcoins (or extinguishes them by selling them) there should be a capital gains footprint there for some government to latch onto. But hey, I guess they figured it out eh? Bitcoin is the one way that we can beat the government.. LMAO!

    • My favorite comment from the Bit Coiners is that it is “sophisticated software that cannot be hacked”.  Yeah.  How long will all that sophisticated public domain software last against a determined Stuxnet attack?  Seconds?  Less?  Rest assured that when TPTB want BitCoin to go bye-bye, it will.  POOF!!

  4. As I said before, it is all speculative mania, and people like kaiser call it some safe store of wealth.. The likely result was to be throngs of europeans drinking the bitcoin koolaid putting their last couple thousand dollars in it.. And getting their asses nailed to the wall after getting raped by the EU. You can bet your ass more than a few noobs are crying now.
    p.s. I’m now selling my new crypto currency dwayne coin if anyone wants in.

    • I’m with ya, brother.  As things becomes less and less physical, they become more and more easily manipulated and stolen.  I would imagine that the banksters are just slavering over the mere thought of an all-digital monetary system.

    • If Banksters are so smart and powerfull, they likely plan many years into the future and already own controlling shares of bitcoin (can you think of anyone?). I do like the Idea of bitcoin but currently is not readily accessible, nor natural or feel like anything more than you’re taking part in a clever experiment. I don’t see bitcoin working out in the long term. It seems too easy to take down, ignore and not trust. Unless is was impressed upon the masses. 

  5. Whoever the “secret person” is that created the bitcoin will be the one who will profit most from it during its fall.I think MK might know the guy.
    Why would anyone think this is a long term storage of wealth? There is no proof of ownership,and if the power goes out your broke!
    And as far as being impervious to manipulation,any wealthy entity(big banks,fed,treasury,cia) could easily accumulate bit’s over time and dump them to kill its value to protect the “real” fiat dollars. Its like the metals markets except bit is just an idea!
    Anything that can survive a fire is money to me,
    Stack on and be calm.
    Bulli

  6. If we assume that the impending implosion of the current world fiat systems is by design c/- the WWCCBC (World Wide Criminal Central Banking Cartel), and that their plan is to introduce an all-new worldwide digital currency, then it makes sense that they would already have the system in place. It’s not like everything is just going to crash, and the bankers will be scrambling for a plan B. They are intelligent psychopathic criminals. THEY DO HAVE A PLAN, and it’s NOT Plan B – it’s PLAN A!
     
    So what will the new currency be?
     
    It is so screamingly obvious that BitCon is the beta test for the new currency – so obvious that we don’t see it. If you wanted to rule the world, wouldn’t you do this? Why hasn’t it been done before? Because of technology constraints, which have all but now disappeared.

    • @Speros:  The production of bitcoins are not controllable by a single government or organization.  Thus, it is most assuredly NOT the system the WWCCBC (uhg, more acronyms) are using as a model.   The powers that be are not as mysterious as your speculations warrant.  They’re actually telling us pretty much what they have in mind and how they’re going to do it.   There’s a range of options they’re considering and they openly discuss these options in IMF, BIS and think tank publications.  A global digital currency system is part of their long-term game plan — just not Bitcoin.

    • FW – I appreciate your comments, however I would make the further point that the Bitcoin software was created by someone, and if we don’t know who that someone is, then we also don’t know whether there is any secret agenda behind it.
       
      I have started reading up on Bitcoin, and agree that it is an ingenious system, no doubt superior to the incumbent banking and currency exchange systems in many ways.
       
      What I can’t agree on is the idea that because it is a distributed system with no central control authority, no dedicated servers etc, that it cannot be compromised in some way. It’s very architecture is practically begging for a genius software developer to introduce a trojan to a single endpoint, with the capability to replicate itself to all endpoints and compromise the system universally. The nature of software hacking is such that if something like what i have suggested can be even contemplated, then it can be done. And who better to do that than the mysterious author of the software?

    • Amen Speros-I thought I was the only one with this line of thinking and reasoning.  It is obvious to me what is at play here and it should be to everyone else.  One world digital currency and no one knows who it came from.  With so many entities having the capability to merely throw a switch and kill the internet, it doesn’t take long to figure out that this is a trap.  They know things are crumbling at an accelerated rate and knew long ago that it would turn this way so why not have your new system in place to pick up where the rest left off and capture it all.  It’s just like our current market-great until it’s not.  Good luck to you all as I fear this will not turn out well for most.  No coincidences

    • Speros@  Conspiracies are everywhere, but not everything is best understood by employing a conspiratorial framework of analysis — and when conspiratorial analysis is employed, it’s our duty to be very rigorous with our logic.  Frankly, the argument you’re making has large holes.   
       
      You posit (1) that we have a mystery developer who might have an agenda.  Add to that the possibility of that the developer is, (2) doing something directly in service to the interests of the powers that be or might actually be a member of the powers that be class.
       
      With ya so far…
       
      Now, you also add (3) the possibility that elements within the bitcon network might be compromised by hacking, and #3 is actually your strongest argument. 
       
      I say to 1, 2 and 3, so what?  Let’s deal with #3 first.
       
      Hacking the system would involve two types of outcomes for the hacker:  hurting the system in one way or another (e.g., stealing bitcoin wallet contents, expunging records, etc.) or, having the ability to create your own bitcoin without going through the arduous processor power intensive “mining” of the algorithm creating bitcoins.  You’ll notice that none of these hacking efforts does jack to further the interests of some outside government body or other group set on controlling money supply and the general population as a result (which is exactly what the current Fed/Treasury fiat system does to a high degree in the United States political economy).  Hacking wouldn’t support any effort by the powers that be other than if they wish to kill or marginalize bitcoin.  The implication of your argument that the powers that be would use bitcoin to gain some measure of control over the creation of the currency, and in turn, control over society, doesn’t jive with the nature of the technology.
       
      As for #1 and #2, the way the system is designed makes it impossible to control in total by a government.  In order for the powers that be to benefit from a digital currency system, they will need to influence or control it.  They simply can’t do that with bitcoin other than regulate points into and out of the bitcoin system as it pertains to use of the currency OUTSIDE of the network.  Using bitcoin to buy something online involves a person exiting bitcoin at that point of purchase with an internet-based merchant.  That’s the primary point at which the powers that be – governments serving the powers that be, etc. — will be able to interact with bitcoin.
       
      The main exception under your #1 and #2 involve the developer building in elements (back door) to the system that can be accessed by the powers that be.  But to what end?  Creating more bitcoin for themselves would have interest to TPTB.  Attacking enemies by stripping them of bitcoin would have many in TPTB excited.  But just how does that rise to the level of social control the powers that be seek (and have in the current system)?  It doesn’t.  And heck, those actions and others you can imagine would actually undermine confidence in the system.
       
      Look, I know why this theory is so appealing.  We are indeed facing a digital currency future and the powers that be want to have the control such a system would generate.  But the only thing bitcoin can do to help that reality coming into being is by bitcoin’s example leading more and more people to be familiar with digital currencies such that when and if the TPTB go for a digital currency system, the public will have an easier time accepting it.  
       

    • “The nature of software hacking is such that if something like what i have suggested can be even contemplated, then it can be done. And who better to do that than the mysterious author of the software?”
       
      Indeed.  Not only that but how do we know that this individual did not craft a tiny trap door in the bit coin system that only s/he knows about?  Would make for a helluva retirement plan… just tap as needed!
       

  7. Reading these comments I can see that most of you are as ignorant of Bitcoin as the masses are of PMs. When I tell my friends about how I’ve already taken more out of Bitcoin than I’ve invested, and I still have Bitcoins to spare, they respond the same way all of you are responding. They put it down, and refuse to acknowledge the REAL profits that people are making.
    To those that claim Bitcoin has no value, you are wrong. There is value in providing people an alternative to keeping their wealth in a banking system which just wants to steal it from them. There is value in risking your own money, when most are not yet willing to, in order to support that alternative, and to make that alternative system more robust.
    PMs are simply not an option for some people. Cypriots (and soon all EU citizens) cannot cross borders with PMs without having them confiscated. They can however transfer wealth into bitcoin, cross the border, then transfer that wealth directly into the local currency – whatever that may be.
    Whether you like it or not, Bitcoin is the enemy of your enemy. It cannot be controlled or “shut-down” as easily as many of you seem to think. Sure it could be negatively affected by some governmental interference, but isn’t that what’s been happening in PMs for 3 decades now?!

  8. I’ve been in silver since $14/oz and Bitcoin since $20/BTC.  Both are still great buys! 

    In all honesty though, you need a technical background to understand how bitcoin really works.  You also cannot compare Bitcoin to Silver.  One is a currency and the other is money.  Bitcoin is to facilitate instant transfer of wealth, it’s not intended to be a store of value.  Silver is a store of value but if you want to transfer it, it will take days, weeks and maybe months to do that at a high price.

    Both silver and bitcoin play a major role in my portfolio.  Physical silver will survive the US Dollar collapse and I believe bitcoin will too.

  9. Bitcoin – the tulip mania for the 21st century. I don’t want to see honest hard working people lose their money when they’ve gone to the trouble of trying to protect it, but Bitcoin is not the answer people. It is just the latest incarnation of the financial cancer that’s eating the world.
     
    People want to disparage silver and say “well how’s your silver doing” when Bitcoin is up 140%. I seem to remember it also crashed to ZERO and don’t talk to me about software bugs – it’s perfect software right? So they say. If you also want to talk about silver’s volatility, then WTF is 50% gain in 48 hours called? A smooth ride?
     
    I’m calling bu11sh!t to Bitcoin.

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