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Bitcoin Fever has taken hold across the world, the worse example appears to be in the US where FOMO players have pushed it on some exchanges as high as $19,500 (GDAX) where as more conventional (yes I did say that) exchanges saw $17,000. That is one problem; Price discovery, the South Korean PM sees it as much worse.

Bitcoin Halloween

Bitcoin : The best of times or the worst of times?

Keep in mind $BTC began just months ago under $4,000, days ago under $12000 and the cryptocurrency began the year below $1,000 but continues to rise despite warnings of a dangerous bubble by many. The latest rush is just weeks before the launch of Bitcoin futures on two exchanges, including the world's largest futures exchange, CME.

Market sceptics warn Bitcoin is a tiptoe through the tulips, a bubble similar to the tulips and dotcom boom. On the other side are what have been called crypto evangilsts where the rising in price is due to Bitcoin crossing into the financial mainstream.

Financial regulators themselves have a range of views on digital currencies. It is estimated around 3,600 new bitcoins are created, or mined a day. There are said to be aproximantly 16.5 million now in circulation from a maximum limit of 21 million.

South Korean Prime Minister Lee Nak-yon warned last month that cryptocurrencies could lead to a devatating disaster for society and lead to pyramid schemes and other illicit activity if left unchecked Bloomberg reported.

South Korea Bitcoin

South Korea has a particualrly aggressive dose of Bitcoin fever with activity way above their population as the chart shows.

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

Whatever your take be very very careful on what you do, buy or sell and understand price discovery and be aware of your counterparty risk. If you are not sure, take a walk and wait for the fever to correct itself either way.

Source: TradersCommunity. Bloomberg

 

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