Daily: Fidelity Brings Institutional Investors / Vechain's Carbon Project-Oct 17 2018

Hey everyone, it's Michael and welcome back to Box Mining. Today is Wednesday, October the 17th and we're going to take a quick look at what's happening on the cryptocurrency markets and news. We got the dust settling on USDT. We also have Bithelity Investments. They're bringing institutional customers over and made a few announcements related to that. We got Bitmain as well. Bitmain's making the news because they're might going to suffer some serious issues because they're going to face a 27.6% tariff on exports to the US. And finally, we got VeChain. They're announcing a digital low carbon ecosystem. And as always, everything covered here is my personal opinion and not financial advice. Let's take a look at the cryptocurrency markets first. So we have crypto prices kind of stabilizing after the pump that happened two days ago. It's important to remember that this pump that happened two days ago was much less of a pump for cryptocurrencies, much less Bitcoin going to the moon, but it was people fleeing USDT and Bitfinex. Because these two kind of services are related to each other, there was a suspicion and fake news being spread that, well, Binance will delist USDT and that Bitfinex is insolvent. This caused a situation where on Bitfinex exchange itself, people left and traded and bought Bitcoin up, letting prices shoot all the way up to 7,800 for Bitcoin. And this is not really seen on other exchanges like Bitcoin base. So Coinbase, the max that Bitcoin went up to was 6,800. So this was a clear case where Tether FUD really got a lot of people scared. And I really want to say to the community that was watching my video that I'm really impressed by how we identified the two kind of factors, the short-term factor about Tether being over-FUDded, over-sold. In fact, if you are panic selling Tether, you're basically losing $10 for every $100 of Tether you're sold. It was being treated at almost 90 cents to the dollar when the FUD was at its greatest. Let me just pull that chart out for you guys over here. So let me just put it one day. So, or seven days rather. So yeah, so at this point, when it was at this bottom, people were selling panic selling Tether for almost 90 cents and we saw it go down to almost 85 cents on some exchanges. So at this point, that was a clear short-term panic sell because of fake news. And then now we're to a point where we're kind of almost, almost at one at basically 3% less. So you're selling Tether at 3% discount. So in the longterm, it's a good idea to hold Bitcoin or to hold Fiat currency in your own bank. That's such a much better solution than someone having problems with exchanges. But in the short term, there's a lot of overblown drama and hysteria surrounding this. So a lot of people took advantage of this situation around two days ago to buy cheap Tether and then pretty much sell it now and slowly cash that out and sell that, which is what a lot of people are doing. And which is why this FUD is going away pretty quickly. A very similar situation happened like this last year in around April, where Tether fell down to around 80 cents yet again, same amount, but this time for a much longer time. So last year it took around two weeks to clear away the FUD, but after the FUD was over, Tether went up in price because well, people were buying the altcoins and there weren't as many stable currencies around. This year, we've seen some substantial changes where there are more stable coins like the one by Geminex or Paxos. So these alternatives are becoming more and more viable and more reputable as well. Next up on the news, we've got a lot of people excited for this, which is Fidelity Investments. They're a big fund, which brings and holds $7.2 trillion. So think about that in scale. We're in the billion dollar range for cryptocurrency market cap at $221 billion. These guys are holding trillions. It's a whole order of magnitude bigger. So my view on this is that this is a good entry point for institutions that need to learn more about cryptocurrencies. But at the end of the day, self custody is the most important. Next up, we have a bit of bad news for Bitmain, but good news for the Bitcoin ecosystem. So what's happening right now is that the UF is going to tax Bitmain exports. So they're going to leverage a 27.6% tax on Bitmain and their products. This is important because Bitmain is a huge manufacturer of Bitcoin mining equipment. And in fact, they've gained a very dominant status. So by having this tariff, this will actually give the competitors an advantage, especially competitors based in the US and other countries, for example, Bitfury. So this would actually just kind of swing the balance a little bit. And the last subject of the day is VeChain's digital low carbon ecosystem. What they're doing is that they're trying to use the blockchain and internet of things devices to record carbon emissions. So in terms of serious work, they want to record how much carbon is emitted when certain actions are done. For example, they're trying to work with car manufacturers to figure out, well, exactly how much automobiles are producing in terms of carbon and to reduce the carbon footprint. So this, the significance of this is that this is the signing between Innovation Norway, and this is actually witnessed by the King of Norway himself, and also between the Chinese Council for Promotion of International Trade. What that means is that this is a organization that's trying to push for lower carbon emissions. The way to view this is that this is a start of a new relationship to reduce carbon emissions and to get people and businesses together and to record that on the blockchain. So definitely this is a very big advancement, not just for blockchain technology, but as a solution for blockchain technology to do better for the world. Speaking of VeChain as well, a few members of my community were quite surprised at VeChain being called out for being a scam. Apparently there are some comments floating around calling VeChain a scam project. And I was sent this video as well by this YouTuber Chico Crypto, who called me being a scammer and called VeChain for being a scam project as well. So I watched this video and I laughed so hard at this point where Chico wanted to establish some sort of authority and he brought out a major player in the cryptocurrency celebrity YouTube space. Shrayvon James. He's starting to fuck with Chico Crypto. He's like, I don't really watch him every now and then I watch him, but he's like, he knows, I know he knows his technical stuff. That's right. So how do we even rationalize this? Well, we have a fair share of tribalism in cryptocurrency. If you support Mio or Elastos or VeChain, at the end of the day, actually, we are kind of one family. One thing we don't really need in the space though is incorrect information. So this is the issue I have with the videos that Chico put out about VeChain where he actually got the whole economic system, the way VeChain works wrong, how it actually has a two token system and doing due diligence is great, but only if you find the right person, if you Google them up. And here, he also found the wrong LinkedIn profile for Bin Chen. I think this is something I need to explain about Chinese people. Chinese people have a lot of the same last names. That's why it's very easy to get confused between different Chinese people. So the way to deal with this is to no longer spread this fake information. If it's fake, spot it out, make the corrections to people who are confused and focus on building and getting government leaders, government officials, the king and queens of Norway to come together to make a difference, to track carbon emissions on the blockchain and to use this technology to make a big difference. And hence, I rest my case. And that's it for today's BoxMining Daily. I hope this video helped you guys update with what's happening on the current markets. And of course, if you guys like more daily updates and news, subscribe to this channel, click that little alert button. And of course, check me out on Instagram as well. I'm trying to do a lot more mini updates on Instagram and I hope you guys can be there and connect with me there. Thank you guys so much for watching. See you next time.