Articles

Will the government crash Bitcoin

October 8, 2019


“Is The Government Going To Crash Bitcoin?”
That’s what we’re going to talk about today.
Welcome everybody!
Today I am at a resort in Florida
where I will spend the weekend.
So yes as you can see, this is not my normal office.
But I’m spending the weekend here
with some of the world’s best traders.
We’ll talk about this another day.
Today I’m going to talk about
is the government going to crash bitcoin.
I don’t know if you’ve been following
the news recently.
But the U.S. marshals seized $54 million of Bitcoin
and they are going to auction it off.
Let me show you the news.
Let’s jump to the computer right here.
Here we go.
Here is the news. “U.S. Marshals Service to auction off $54 million in bitcoin.
Now first of all, what does it mean?
What happens when suddenly $54 million Bitcoins
are dumped into the marketplace?
Now first of all, they are being transferred
to somebody else.
So it’s not that Bitcoin is going to crash.
But seriously, I received this question
from a viewer here who asked –
“What effect does that have on Bitcoin?”
Does this mean if somebody is
massively selling Bitcoin, is it going to crash?
No it won’t.
Because think about it.
Currently, Bitcoin’s market cap is $240 Billion.
Now how much is $240 Billion?
This is “two hundred and forty thousand” million dollars.
So this is how much it is.
And right now,
the government is auctioning off $54 million.
So even if they would all hit the marketplace
at the same time,
it is only 0.02% of the overall
market cap.
So no, it will not have an effect on the market.
However, here’s a few implications.
What this means –
Let me just go back to the camera.
So what does that mean?
First of all, everybody says oh my gosh the
governments can’t touch crypto currencies.
Well if they can touch crypto currencies,
how come that the US government could seize –
$54 million?
And I believe that they have many more.
And as you know Coinbase, just in November,
handed over the names of everybody –
who has more than $20,000 worth
of cryptocurrency to the IRS.
So, so much for anonymity.
No, the government knows
how many Bitcoins you have.
And probably, it seems that they have a way to track where the money is coming from.
Because how else would they be able to seize it?
Now, what is the other implication?
Now if the government is selling it off,
it seems that they are not believing that –
crypto currencies will continue, especially Bitcoin.
It’s probably not going to double
in a week as it did in the past.
And if you look at the chart of Bitcoin here –
You will see that right now Bitcoin –
Let’s take a look at the full screen here,
and let’s take a look at the last 3 months.
I’m on a hotel Wi-Fi so probably today –
The video also doesn’t have the same quality.
It might be a little bit low resolution because –
yes, it is hotel Wi-Fi.
So here’s what happened. After we made a new
all time high in mid December –
Ever since Bitcoin have been hovering
around anywhere between –
12,500 and 17,000.
So this is where we are right now,
trapped in a sideways rain.
So we will see, but one thing’s for sure.
The attention of the media is already fizzling out.
Yes I know, there’s thousands of others.
There’s Etherium and LiteCoin
and all these others.
And as I always said, if you have money
that you want to put in the market.
Spray and Pray.
Absolutely! Buy some LiteCoin and maybe –
not only Bitcoin – crypto currencies –
and maybe they explode.
However, for me personally,
I’m more with Warren Buffett.
You know Warren Buffett recently said
just two days ago, he said –
“I can almost with certainty say that
crypto currencies will come to a bad ending”
And he says, when it happens or how –
I don’t know.
And see, don’t get me wrong,
Bitcoin or any crypto currencies –
they are not going away.
No! They are here to stay!
Absolutely!
But I don’t think that we will continue
to see these meteoric rise.
You know that people said
“Wow when Bitcoin was at 19,000 –
we’ll go up to 100,000!”
Maybe it does.
But we see that for now, Bitcoin is not
moving up as quickly as it did.
And those who bought mid December
have not experienced these dramatic gains –
that we have heard over the past
A hundred percent, a thousand percent,
two thousand percent! –
However much it is.
So anyhow, I just wanted to respond
to this question that I received.
Will the government crash bitcoin
when they dump $50 million in the marketplace?
Nooooo!
For two reasons.
First of all it is being transferred.
It is not being sold into the marketplace.
And secondly –
Keep in mind the market cap of Bitcoin
currently at $240 Billion.
And they’re only auctioning off 50 million.
By the way, if you want to participate in the auction –
all you need is a deposit of $200,000.
Yes when you deposit $200,000, you can bid on the –
$54 million that are being auctioned off.
I believe it is sometime next week.
Alright!
That’s it for today.
I’m going to enjoy
the rest of the afternoon here.
I was actually planning to film this outside.
But you know what –
It was too windy so you wouldn’t have heard
anything (making wind sound).
All this wind craziness going on.
So this is why I went into a little room that
I found here where they didn’t kick me out –
for a few minutes so that I can film this
show with you.
Anyhow, have a fantastic weekend.
And I will see you at the next show.

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