Daily: Bitcoin Surges past 7000! Alt coin Bubble?

What's up everyone? My name is Michael and welcome to Box Mining Daily. Today we're going to start off with the market recap first of all. And Bitcoin is on this major rally. So it came from kind of yesterday night when I did the live stream. It started rallying towards 7,000. We do have a slight pullback. It's around 7,000 right now. But what it's doing is it's causing the alt to drop. So you do see the alt market dropping a little bit. I'm going to talk a little bit about that. I'm going to try to answer a few questions that popped up yesterday and kind of explain this whole thing that's going on. We also have the CME group. So they have announced potential future trading and listing of Bitcoins on the futures market. And this is probably one of the reasons why Bitcoin is doing its major rally. So I'll discuss everything in conjunction with this. We also have Amazon here. Amazon bought three cryptocurrency related domain names. It might not signify much. It might just signify some things related to them understanding cryptocurrencies and trying to get their foot in. Maybe that's what's happening. Then we also have cryptocurrency regulations are not really much required in Australia. So this is deemed to be declared by the Reserve Bank in Australia. And of course, lastly, the SEC has come in on celebrity endorsements on cryptocurrencies and ICOs. And that's a little bit of kind of regulation side and news side of things. So I'm going to discuss all these topics in this video. I do want to say that everything covered here is my personal opinion and not financial advice. So moving on to the market. Bitcoin is on a major rally yet again. So right now it's at $6,976. So just $30 short of $7,000 passing that. A little bit earlier, I checked a little bit earlier, it was at $7,200. So it's experiencing just a little bit of fluctuation. Of course, when you break something like $7,000, it's going to send kind of shockwaves throughout the market. It's a very big number for people. In people's minds, these round numbers, especially in U.S. dollars, they're very, very important figures. And it triggers certain emotional responses. That's why the round numbers are very important. So here, $7,000, everyone is very excited hitting this. And you just think about it. It was like $5,000, $6,000 a few days ago, really. You know, this has been a crazy, phenomenal ride. So you just see Bitcoin going straight up. If you look at that chart, it's just up. So right now, who is trading this? So we looked at this a little bit yesterday, but I do want to explain this a little bit as well. So Korea is the one that is really trading it. And you can see that Koreans are paying $7,328 for Bitcoin. So that's on BitThumb. And the reason for that is because Korea is a little bit closed off. So it's a little bit harder to do arbitrage. That is why they're willing to pay a little bit extra, just because they can't get access to this international market. And of course, that means that they're so excited for it. They have 8% of the trades right now on BitThumb. And you see the other Korean exchanges quite close as well. CoinOne is down there too. And of course, Japan is there too. I did say yesterday, it's likely possible that some Chinese people are going in on this as well. Because of course, after these exchanges got closed in China, Chinese people have been trying and scrambling to go overseas to try to trade cryptocurrency because it's no longer legal in China. The thing is, of course, VPNs exist. And as a result, it's possible for the Chinese users to go to international markets. And that's probably why Korea and Japan, they're a little bit closer to China, a little bit easier to move cryptocurrency in and out. And of course, just do the general arbitrage and help people do that. So it might be possible China wants to re-enter this market. Of course, Chinese exchanges have been very quiet recently. They've been trying to not upset people. There's some rumors that some of them are accepting fiat money. But of course, these are just rumors. So overall, in terms of actual trade volume, we definitely see Japan and Korea being major, major players here. And of course, we definitely see BitTrip, Bitfinex being one of the top ones too. So definitely the Americans. Of course, one of the major reasons why this is going up is because of the CME group. So the CME group, they're a large, huge, huge, based in New York, options trading company, and they want to list Bitcoin. By listing Bitcoin, it just gives Bitcoin such a large amount of attention and allows more people to gain access to it. You know, in my trip here to New York and the conferences here, you realize that a lot of people are just getting to know this. This is kind of the thing that I've been picking up at this conference. A lot of people are talking about, oh, what is the blockchain? What is Bitcoin? Oh, what is the Bitcoin technology? What's new about it? So it's going back to the very basics. That means that the people here are people who are kind of very new to this. They just want to understand. And a lot of them, they tend to talk into billions. See, that was a surprising thing. I just keep hearing that the units are not just millions. It's billions here. So large amounts of money, large amounts of new players with a lot of money entering this market. So this is probably one of the reasons why Bitcoin is having its crazy rally, because a lot of new players with a lot of money. Of course, this has been causing some side effects with the altcoin market too. So if you take a look at the altcoins, a lot of altcoins are dropping. So you just see like this wall of red, anything below the top 10. So even in the top 10, really. There are a few exceptions. There are some coins that are rallying right now, like EOS, maybe something like Komodo. But on general, you can see that there are some coins like Vertcoin, it dropped by 20%. Of course, ARK, 10%. So you do see pages, some pages of red here. And one of the reasons why is that people are kind of moving their money from altcoins back to Bitcoin. And we do notice that when Bitcoin is on a rally, when Bitcoin is rallying, which it has been doing for quite a few days now, the altcoins are dropping. So I think it's causing a lot of fear in the altcoin markets as well. So people are thinking, oh, altcoins dead. I see that in the chat as well. So one thing I do have to say is that Bitcoin and altcoins do have a positive correlation. So Bitcoin has been a trailblazer. It goes forward, it leads everything. And when it rallies, it does take from everything else. But what we do see is that the 90-day correlation has been positive, which means that overall, in general, in the 90-day space, when Bitcoin rises, everything rises as well. And when Bitcoin falls, everything falls too. So right now, this is why I think it's kind of good news everything is going forward. I know I personally own a lot of altcoins too. And I think it's important to just remember that Bitcoin is a trailblazer. And it's very good to be excited. Even if you're not on Bitcoin Maximus, just know that Bitcoin is the one that everyone knows. If you go on the streets and ask anyone, oh, hey, do you guys know what Ethereum is? Do you guys know what blockchain is? Yeah, they're like, uh. Do you know what IOTA is? They probably wouldn't know, but they know about Bitcoin. And Bitcoin is the gateway. It brings people in. And once they're in, I mean, just think about, that's how I got into this anyways. I learned about Bitcoin. Then I learned, oh my God, there's an altcoin market. And that's how this thing grows. The thing is, Bitcoin is the trailblazer. It is the one that leads the pack. And the more attention it gets, man, the more exciting and more people that can join this space. So Amazon just bought three domain names that are related to cryptocurrencies. So they just added Amazon cryptocurrencies, Amazon cryptocurrency, and of course, Amazon Ethereum. So what does that mean? And how can we read this? They already own Amazon Bitcoin as well, but they don't accept Bitcoin. It's important to remember that these companies, they don't want to have another hacker owning their name plus something else. It's important to remember that this might just be a protection. They know that, I think it is important to say that they now know that cryptocurrency markets are growing. And this is the topic of hot discussion. So it's kind of an acknowledgement. Yeah, we know that you're there, but we're still not adding you yet. So this is the important part. A lot of people have been waiting for Amazon to add Bitcoin as a payment method. It's possible. But the thing is, of course, they do want to consider the convenience of use and also, of course, can it bring them profit? Right now, I do don't really see Bitcoin as a major form of currency. The reason why is because transaction fees are quite expensive still. That doesn't mean it's going to be like this in the future. But just at this current point, this technology is still very primitive. That's my current view. And I still think there's a lot of issues that needs to be tackled, especially with keeping crypto safe. So in a way, Amazon is acknowledging that, you know, cryptocurrencies are out there. There's cryptocurrency interest, but they're not yet buying in. Right. They haven't announced any official Bitcoin working with Amazon or Bitcoin as a form of payment yet. So it might be to come, but they definitely know that it's there and that there's a potential demand for it. Next up, we have Australia. So they're taking a quite a different approach. We've seen a few Southeast Asian countries saying, yeah, we don't like cryptocurrencies. We don't want Bitcoin to be traded. But here, Australia is saying, yeah, you know what? It's no big deal. It's just cryptocurrencies. So they're probably a little bit more open to cryptocurrencies than anything else there. I think recently they removed the 5% GST for buying crypto. So that's one good thing. And they might be more open to it. So every country has a different approach to crypto right now. And that's important to kind of track and see what's going because it might affect how people view cryptocurrencies in their country. Because if they're affected by local laws, it's going to greatly change their attitudes to crypto. So in Australia, of course, down under, they seem to be pretty okay with it, at least for now. Lastly, the SEC has come in and said, hey, you know, guess what? Celebrity promotions of ICOs. They look a little bit sketchy to us. So we're going to issue a statement. So this statement came out and said, yeah, there's potentially unlawful things, promotions with ICOs relating to celebrities. You know, celebrities do bring a lot of attention to things. We've seen Floyd Mayweather, Paris Hilton, just talking about various ICOs. But of course, it seems like the buzz does die a little bit after they talk about it. And it's important with all ICOs to do your due diligence, do your independent research, because this is what is the only thing that's going to keep ICOs honest. So that's my last ending note on everything. I'm still in New York here for one day. And this cold Bitcoin craze just happened when I was here. So do forgive me if I haven't talked about cryptocurrencies that much. I haven't done the dailies. A lot has happened since the last daily. I'm trying to catch up with everything and bring you guys more and more news coming related to this. It's big stuff happening right now. SegWit is also on the blog. So if you guys want to catch up with the last live episode that I've been talking about, it's only like been three, four hours, so I guess that's why it's still fresh in my mind. But a lot has happened in this cryptocurrency space. And it's definitely important to look at what's going to happen in the future as well. We have one of the biggest forks in cryptocurrencies coming up. And it's going to be important that you guys know at least what is going to happen there and why it's happening. And that way, you guys are a little bit more informed of what's going to be happening. Guys, thank you guys so much for watching this episode. Remember to click that little subscribe button to subscribe to this channel and the notification bell so you get notified of live events, live streams, or new videos that comes out. Thank you guys so much for watching. See you next time. Oh, by the way, I also have an Instagram channel up. So if you guys want to catch up on what's happening with me and the latest news, check out my Instagram.