Bitcoin TANKED because of China?

Hey everyone, it's Michael and welcome back to Box Mining. Today, to say the least, the markets are going a little bit bananas. We got Bitcoin dropping below 8,000 and as of this moment, we're hitting 7,476. And the craziest part, just as of editing this video, Bitcoin went down a further 3% to 7,133. So that's causing a lot of fear in people. And the reason behind it, that's spreading like wildfire on the internet, is to do with China. So what we're going to talk about today is exactly what is happening on China. We got the latest announcement from the PBOC. We got rumors to dispel of raids on exchanges that we all know. And then we're going to take a look at what the broad picture is. Despite market movements downwards, there's actually a lot of positive developments as well. For one of them being the fact that the Chinese mining company, Canon, they've launched an IPO on Nasdaq right now. So ironically, mining is going up more motion. And we also have positive developments in Nucoin Algorand. So we're going to talk about how blockchain 3.0 is going to come into play and really what's making me excited about the future going forward. So anyways, guys, if you're new to this channel, everything covered here is my personal opinion, not financial advice. I make videos every week now, and I hope you can subscribe to this channel for more cryptocurrency updates of the latest insights of what's happening right now. So let's start off with the China news first. So over the past few days, we saw rumors that the Binance office, the Bitthumb office based in China, are being raided by the police. Let's just start off and dispel the rumors and say this is not true. Both Binance and Bitthumb came out to say, you know what? Let's just let rumors be rumors. We're good. Now, what is interesting, though, is that there are developments on the exchange front in China. And I think the best way to look at this is with the recent announcement from the People's Bank of China. So this announcement was published today at 4.50 p.m. in China directly by the People's Bank of China. And if you've been around in crypto, you probably know that the People's Bank of China, that's pretty much where all the negative news, all the fear comes from China. This is the biggest bank in China, and they have the authority to issue crackdowns and control monetary policy in China. Now, what exactly does this say? Now, it reiterates the 2017 point, which is that exchanges in China are not allowed. So this has been known for a while. Nothing really new here. Exchanges have been cracked down in China. There's no fiat unwrapping China no longer. No official one. Anyways, and we'll talk about the little gray markets in a sec, too. But officially speaking, from 2017 onwards, exchanges are not allowed. And any exchanges, basically, if you want to browse any exchanges that were initially of Chinese origin, it'll be IP banned in China. So you really can't use them. They're not catering to Chinese users. So take the situation of Binance. They are a crypto-to-crypto exchange. They don't touch Chinese users. And they want to be regulatory-friendly. And they've also moved their base from Shanghai to offices in Malta. So if you ever see Binance now, it's officially a Malta-based exchange. So I really want to establish that, that this is a lot more fear and fun than anything else. I think people are overplaying this raid card, maybe trying to stir up the markets. So that puts all the major kind of false rumors out of the way. The fact is that a lot of exchanges that we know, they're not under immediate threat. Now, there is some... So that's what's going on with exchanges that we know. Binance, Betham, they both explicitly said they haven't been raided. But there are exchanges in China that have been operating and dealing with Chinese clients. And those have been raided. So on the 30th of October, the exchange Bliss and B-Man, they have been raided by Shenzhen Police for dealing with cryptocurrencies' illegal trading operations. And those exchanges you've probably never heard of before. And most likely, what these exchanges are being used for is they're being used for a lot, especially for laundering money or dealing with Ponzi's. And let me be honest here. There's still a lot of that going on. And let's be honest there. There's a lot of Ponzi's and just crazy money laundering stuff going on in China. For example, if you look at the Plus Token scam, my mind is blown. It's essentially the BitConnect of China. And that just got taken down this year. And that's how big the problem is in China. So what really is affected right now are crypto exchanges that are operating illegally in China, taking on Chinese people, laundering money, dealing with Ponzi's. So picking up the pace here, the rest of the article is actually very interesting to read as well because they're patting themselves on the back. So that's what the PBOC is doing there. Saying, yeah, congratulations. We shut down cryptocurrency exchanges in 2017. We closed down this many. And these activities are deemed illegal. And you can see that tone there right now is that it's not really giving any new information. But what it's reasserting is that the 2017 ban is for reals. So what it's old news, the way to take it is that they're much more proactive now. That's really why they released the announcement. They're more proactive. And also the last line is also very interesting here too. Because what they're saying is that if servers, so if the exchange has servers overseas, that's no, no, that's not considered an overseas exchange if they take Chinese clients. So it's really just saying, yeah, if you use that loophole to go overseas and host your exchange overseas but still take on Chinese clients, no, no, no. That's not good. Next up, we have another China bit of news, which is Canaan. And this is much more positive. Canaan is a mining company from China. And they recently listed on the Nasdaq exchange. While it's the first day, they dipped a little bit below their IPO offering. What I really see here is that Chinese companies, mining companies are still going out strong. And especially what I really feel that's going to be good for the future is that if there's more companies, so more than just Bitmain, just Canaan is the biggest competitor to Bitmain. If they get more funding, more manufacturers for ASICs, that also means more decentralization for crypto. So I think that's actually a strong signal going forward that their business is going strong. They're not giving up. And especially now that mining is now no longer explicitly banning China, I see more activity on that front and overall a broadening of this whole landscape. So next up on the news, we got a pretty big announcement from Algorand. So if you guys know, I've been following this project quite a bit because it's kind of the so-called blockchain 3.0. And I'm really interested to see what it can bring to the table. So this is created by Silvio Macaulay, MIT professor, Turing award winner. So super crazy talented team. And what they're announcing right now is three things. One of them is the ability to create tokens natively on the first layer of Algorand. So token issuance we've seen is very wildly popular on Ethereum. And obviously token transfers adds up over time. And we've been thinking of scaling off chain for the longest time. What Algorand is promising right now is that this is built into layer one. So you don't have to add any networks on top of that. And it allows for very, very cheap and fast transactions. So essentially what they're saying is, yeah, you don't really need layer two to do all this functionality. They're also supporting atomic swaps now. So this is the idea of being interoperable, being able to swap out currencies on the fly without really a centralized exchange. You can go do a decentralized using that swap transactions to guarantee they're going to have tokens on the other end between chains. And I think one of the reasons why it's really exciting for me right now, especially in this space, is because new developments are coming up every day, pushing the boundaries of what we know. Essentially, in 2017, we saw so many flaws in the blockchain system. Blockchain is slow. Ethereum is slow. It's clogged up. It's broken. And now finally we have solutions being proposed. And the way I see it is it's not mutually exclusive. Everything can be melded together in the end. And I think this is why I kind of keep a tab on every development that's happening, every major development, to see if they can function and work and really bring about something. And this is kind of what's still making me excited today is because even though, yeah, right now markets are crazy, but the developments are solid and Build-O is real. And guys, before we go, I just want to say this. There's so much noise. Like recently, I've been reading crypto Twitter a lot and you see so many rumors, so much noise about crypto going up and down and people wildly swinging their emotions. At the end of the day, prices, especially short-term prices, there's so much noise going on right now. And you've got to really focus on what's important to yourself. For me, the idea of decentralization, this is going to be more important than ever because of the fact that if you look at the whole global landscape right now, with so much uncertainty, with this trade war that's going on, with whatever's going on in Hong Kong, politically it's going to be a mess. And politics will always try to control our financial freedom. That's just a given. That's always a weapon and a tool. And what's amazing about crypto is it takes that power away from politicians. The craziest thing is that the deeper you learn about what's really happening in the financial system, the more you know how broken it is. And I think that's what kind of keeps me in here every day. And I really want to ask you guys what you guys are concerned about. I mean, at the end of the day, are you concerned about what's happening in China, these short-term changes that could drastically affect the market? Or are you guys like powering through this? I really want to hear what your concerns are. Leave a comment. I hope you guys have a nice day. If you have any concerns, leave them down below. Make sure you're subscribed to this channel. See you until next time.