On December 6 and 7, the bitkoy rate for 40 hours jumped by 40%: passing for the first time a mark of $ 12,000. In less than two days it cost already above $ 16,000. On a number of sites (and bitkoyn is traded on 400 crypto-exchanges), the price jumped to $ 19,000, wrote The Wall Street Journal (WSJ). This phenomenal week ended with the first trading of bitcoy futures, which in the US launched the Chicago stock exchange Cboe Global Markets.
On Monday, around 6 pm Moscow time, bitkoyn cost more than $ 16,500. Since the beginning of this year it has grown by 1552%, and since the beginning of 2016, when its rapid growth began - by 3725%.
This is much more rapid growth than with other market bubbles (see chart).
True, usually bubbles begin to inflate professional players (as it was during tulip in the 1630's in the Netherlands, and during the bubble dotcom in the late 1990s), and individual investors connect to the game later. Their enthusiasm, stories about the rise of prices and fabulous earnings spread like a virus, as a psychological epidemic, increasing the price increase, notes Professor Nobel laureate Robert Schiller. Mass participation of the population usually indicates that the bubble peak is near.
Individuals began to trade bitkoynom, with their active participation, the price soared tenfold, and many professionals still shy away from this market. At the recent conference of the Association of Securities and Financial Markets in Asia in Hong Kong, only two out of 150 professional investors admitted that they are investing in crypto-currencies, Henri Arslanyan, head of financial and technological practice of PwC in China, told WSJ. Arslanian also reads a course on this topic at the University of Hong Kong, and about 30% of his students, they say, buy crypto-currencies. "Since the crypto currency is not regulated as a financial instrument, financial institutions can not open departments for trading them. This is the main reason for the rush to launch bitcoin futures, "says Jon Trici, co-publisher of the investment newsletter Fuller Treacy Money.
Grandson of American Rita Scott convinced her to invest in bitkoyn in mid-November. "I did not even know it was a piece of a coin?" - she told WSJ (bitcoin can be decoded as bit [of a] coin - "a piece of a coin"). After investing several hundred dollars, she quickly sat down and began checking the price several times a day, even playing poker at a casino in Las Vegas, where she lives. When the price approached $ 10,000, Rita's grandson sold his and her coins, earning 45% in just a few weeks. "Believe me, I did not get such pleasure from T. Rowe Price", the retiree says about her investments in the mutual funds of a large management company.
In South Korea, the cryptoloric has reached such proportions that even schoolchildren, as Prime Minister Lee Nagyon said in a disturbing tone in October, "try to make money quickly" on bitokoy. Although in September the local regulator banned ICO, and in December did not allow the launch of futures trading, Korea ranked 3rd in the world (12%) in the world by bikkoy trade (12%) after the USA (27%) and Japan (49%), according to Coinhills. But if on the crypto-exchanges of the last two countries the commission for the deal is usually 7-9%, then in Korea it can reach 23%, writes the Financial Times (FT).
"Two of my employees bought houses at the bitokoyne this year," said WSJ Brian Hoffman, general manager of the American online store OpenBazaar, who takes bitcoins. "When your friends and relatives buy cars and houses, it becomes very tempting to do it." Such stories "attract more and more new investors who, despite doubts about the real value of the investment, start participating in it partly out of jealousy, and partly - being captured by the player's excitement", described the process of inflating the Schiller bubble in the book "Irrational euphoria".
"For each mania, a paradox is characteristic, which is believed until the price increases, but which eventually provokes a collapse," recalls Trisi: during the technobum, this paradox was "profit is not important," in the 2000s "house prices can only grow ", during the Japanese miracle in the 1980s, when land and real estate prices rose to sky-high heights," the imperial palace in Tokyo really costs more than the whole of California. " The paradox for Bitcoquine Trisi believes that he can replace traditional currencies. "But it's funny," he said. - It is too volatile, energy-intensive, slow in exchange and absolutely not regulated, which does not meet the interests of consumers. Now it does not bother anyone, but that's why bitkoyn is a bubble and eventually it will burst. "
In addition, about 1,000 people control 40% of the bitcoins offer, Bloomberg Businessweek reports, they know each other and can agree on joint actions. In the securities market, this would be considered a manipulation. "And if the situation changes and these people become sellers?" - asks Trici. "Everyone thinks bitcoin is a hot investment, although it does not apply as an alternative currency. The market has become absolutely unpredictable. There is a risk of getting a lot of investment victims, "says Lee Taiki, a researcher at the Korean Financial Institute (quoted on FT).
On Monday, around 6 pm Moscow time, bitkoyn cost more than $ 16,500. Since the beginning of this year it has grown by 1552%, and since the beginning of 2016, when its rapid growth began - by 3725%.
This is much more rapid growth than with other market bubbles (see chart).
True, usually bubbles begin to inflate professional players (as it was during tulip in the 1630's in the Netherlands, and during the bubble dotcom in the late 1990s), and individual investors connect to the game later. Their enthusiasm, stories about the rise of prices and fabulous earnings spread like a virus, as a psychological epidemic, increasing the price increase, notes Professor Nobel laureate Robert Schiller. Mass participation of the population usually indicates that the bubble peak is near.
Individuals began to trade bitkoynom, with their active participation, the price soared tenfold, and many professionals still shy away from this market. At the recent conference of the Association of Securities and Financial Markets in Asia in Hong Kong, only two out of 150 professional investors admitted that they are investing in crypto-currencies, Henri Arslanyan, head of financial and technological practice of PwC in China, told WSJ. Arslanian also reads a course on this topic at the University of Hong Kong, and about 30% of his students, they say, buy crypto-currencies. "Since the crypto currency is not regulated as a financial instrument, financial institutions can not open departments for trading them. This is the main reason for the rush to launch bitcoin futures, "says Jon Trici, co-publisher of the investment newsletter Fuller Treacy Money.
Grandson of American Rita Scott convinced her to invest in bitkoyn in mid-November. "I did not even know it was a piece of a coin?" - she told WSJ (bitcoin can be decoded as bit [of a] coin - "a piece of a coin"). After investing several hundred dollars, she quickly sat down and began checking the price several times a day, even playing poker at a casino in Las Vegas, where she lives. When the price approached $ 10,000, Rita's grandson sold his and her coins, earning 45% in just a few weeks. "Believe me, I did not get such pleasure from T. Rowe Price", the retiree says about her investments in the mutual funds of a large management company.
In South Korea, the cryptoloric has reached such proportions that even schoolchildren, as Prime Minister Lee Nagyon said in a disturbing tone in October, "try to make money quickly" on bitokoy. Although in September the local regulator banned ICO, and in December did not allow the launch of futures trading, Korea ranked 3rd in the world (12%) in the world by bikkoy trade (12%) after the USA (27%) and Japan (49%), according to Coinhills. But if on the crypto-exchanges of the last two countries the commission for the deal is usually 7-9%, then in Korea it can reach 23%, writes the Financial Times (FT).
"Two of my employees bought houses at the bitokoyne this year," said WSJ Brian Hoffman, general manager of the American online store OpenBazaar, who takes bitcoins. "When your friends and relatives buy cars and houses, it becomes very tempting to do it." Such stories "attract more and more new investors who, despite doubts about the real value of the investment, start participating in it partly out of jealousy, and partly - being captured by the player's excitement", described the process of inflating the Schiller bubble in the book "Irrational euphoria".
"For each mania, a paradox is characteristic, which is believed until the price increases, but which eventually provokes a collapse," recalls Trisi: during the technobum, this paradox was "profit is not important," in the 2000s "house prices can only grow ", during the Japanese miracle in the 1980s, when land and real estate prices rose to sky-high heights," the imperial palace in Tokyo really costs more than the whole of California. " The paradox for Bitcoquine Trisi believes that he can replace traditional currencies. "But it's funny," he said. - It is too volatile, energy-intensive, slow in exchange and absolutely not regulated, which does not meet the interests of consumers. Now it does not bother anyone, but that's why bitkoyn is a bubble and eventually it will burst. "
In addition, about 1,000 people control 40% of the bitcoins offer, Bloomberg Businessweek reports, they know each other and can agree on joint actions. In the securities market, this would be considered a manipulation. "And if the situation changes and these people become sellers?" - asks Trici. "Everyone thinks bitcoin is a hot investment, although it does not apply as an alternative currency. The market has become absolutely unpredictable. There is a risk of getting a lot of investment victims, "says Lee Taiki, a researcher at the Korean Financial Institute (quoted on FT).
