Daily: Chinese Billionaire calls NEO, QTUM, Binance Scams | BlockStream "Issued Assets"

Hey guys and welcome to Box Mining Daily where I keep you guys up to date on what's happening on cryptocurrency news and the markets. Today there's a little bit of drama coming out of China. So billionaire investor Li Xiaolai, he had this massive tirade rant about Chinese cryptocurrencies calling them all scams. But unfortunately he didn't check if he was being secretly filmed or not. So more on that in today's episode. We also have a new report coming out of the European Parliament detailing virtual currencies. It's not really much there but it does describe some good uses and application for cryptocurrencies. If you like daily updates, smash up that like button and click the subscribe button to this channel. And of course as a disclaimer, everything covered here is my personal opinion and not financial advice. So let's start off with the cryptocurrency markets. And as you can see, there's not much really happening in terms of the top 10 coins in terms of market movement. It's pretty much stagnant. It seems like these days cryptocurrency just moves in jumps. Very big vertical jumps up or jumps down. And today, well, nothing really significant is happening on that front. In terms of cryptocurrency news and developments, there's one article I forgot to mention. This happened on July the 2nd. And this is an announcement from Blockstream. So what they're doing is they're introducing something called issue assets and they're using that on the Liquid platform. So what does this all mean? It means that you can issue assets just like the ERC-20 token but on Bitcoin. You've probably heard of this before. There's something called Counterparty that was introduced to Bitcoin to allow you to create your own assets and your own ICOs. But this is now on the Liquid sidechain. So the difference here is that Liquid is a Blockstream sidechain. So it's not on Bitcoin. And also because it's on a sidechain, it won't be affected by Bitcoin transaction costs. Well, it won't be affected as much because it only needs to broadcast that transaction once in a while. So unlike Counterparty where transactions could cost almost up to $50 to $100 depending on Bitcoin's current transaction fees, this will be much less. There's also one extra thing in issued assets where when you send a transaction, the token that's being sent is private. So it's a little bit different from sending ERC-20 tokens, which is completely transparent. So that's kind of the added advantage. And the other being that it's on Bitcoin, so it has the most hash power protecting its transactions, although it's on a sidechain. So now that Bitcoin can issue its own shitcoin, does that mean it's going to take away from Ethereum's thunder? I don't really think so just yet because Ethereum has such a head start. And also because Ethereum's ERC-20 tokens can be slightly modified. I see this Bitcoin version of issued assets, rather Blockstream's issued assets. I see this as something that would probably tokenize some assets in the future, but it won't be as crazy as Ethereum. Next up, talking about token issuance. We have Mainframe launching their token on Binance today. It's been a crazy while, right? And full disclaimer, I did participate in the Mainframe ICO. The point of Mainframe is that it allows unstoppable and private communications. The reason why it's unstoppable is because the token is used to incentivize new nodes on the network that will relay messages. And because there's an encryption involved, it allows these messages to be sent privately. It was very amusing watching the launch of this token, especially when it launched on Binance because the price fluctuated a lot. And my take home from this is that I learned a lot about how this current market is still very difficult to evaluate the value of a token. The fact that the price can vary by almost 100% on the launch hour goes to show that there's so much speculation in this space still. So this is something that you have to be very careful of if you're deciding to purchase any cryptocurrency. It is definitely extremely, extremely, extremely volatile. Next up, we have a document issued by the European Parliament about virtual currencies. This is kind of in line with every government in the world trying to find what the hell and defining what the hell cryptocurrencies are. Here, the European Parliament did definitely stress the value of cryptocurrencies. The fact that you can send currencies, especially across borders with minimal fees. And the fact that it is transparent and safe as long as you hold your private keys and you keep them away from hackers. They did stress, of course, that this whole market is very volatile. And there's still a long way in terms of replacing government-issued currencies, which I do view as true. Right now, in terms of crypto, there's definitely a lot of speculation and there's a lot of unknowns involved in terms of how it can replace traditional currency. The paper also has some of the issues with virtual currencies, such as tax evasion, maybe illicit currency trading or transfer of value. But that being said, they are trying to call for a global approach to cryptocurrencies. Because without a global approach, you're going to have something like this, which is Malta. The Malta government has passed three laws that include blockchain technology and provides a legal framework to deal with cryptocurrencies. This is why all these exchanges, for example, Binance, OKEx, they're rushing to Malta because there is a framework that's established and can be used to govern cryptocurrencies. The major issue right now is because it's in a gray zone for a lot of other countries, it's very hard to create a foundation or infrastructure. And this is why Binance is moving there and saying, OK, you know what, there is an inventory structure there. Let's abide by the laws. We can follow these laws. We can be compliant and not risk regulatory changes in the future. So what I see here is that if a country is not crypto friendly, just like India, we've seen and discussed this yesterday, how India's RBI tried to block the bank accounts of various cryptocurrency exchanges and services. These exchanges will just move elsewhere. And just to follow up with yesterday's discussion, we have a lot of people replying to say, you know what, cryptocurrency trading is very active in India, especially with peer to peer trading. The fact is, if you ban centralized exchanges, well, people can just trade it with person or with cash. So this technology is definitely unstoppable. And the governments who create new laws in a regulatory framework, they'll be the first ones that everything rushes to. So for those who are in India, I have to say this. Definitely it's a time to fight for your right to trade cryptocurrencies in India. And lastly, the drama of the day, this guy, Li Xiaolai is a really big name in China, probably not as much in the West. But in China, his word matters a lot because he was a very early investor in Bitcoin. And he ran a lot of these ICO websites, namely ICO Age, which unfortunately got banned during the China crypto ICO ban last year. But now he's on a whole total tirade and a rant. So he started calling out Quantum, NIO, and even Binance as scams. It's kind of hilarious to just kind of read and watch this. It's a 30, actually 50 minute long rant here. And he kind of disses everyone in the cryptocurrency world. This is definitely going to make it very, very unpopular in China. But it also sheds a light to this kind of infighting, this kind of inner circle fighting and war. So I'd definitely like to hear what your opinions on that. I definitely feel like it's kind of amusing to watch. And it's amusing to see all the angles of the story. So I'd love to hear what you think in the comment section below. And that's it for today's news. Remember to hit the like and subscribe button. And I'll see you in the next update tomorrow.