Answering Crypto Eri_huge story!!!



grunts well I hope in living the life according to the way you want to live it your you happy are you bent on yes or he being kind to your family and friends you being time to everyone and your animals and just trying to make this world a better place crypto Irie simply requests just to comment on a video that you did and a couple of stories which you know she was talking about from Japan's point of view which I found really interesting I really I have sacred area really enjoyed your video really really good and I was unaware of just how big is SBI was and what they were doing particularly in the US market and I think this is a huge story so so really well done for getting all this information out I loved I loved the way you went through the all the information you know really you know really um you know very distinctly and basically followed it through so but I think this is a huge dark story because this is really going to be where the institutional money comes in and it's going to be absolutely big so the story that crypto area found was finance magnets blockchain startup temple and gets into an agreement to buy us broker-dealer and it's also aligned with SBI which apparently as crypto area says you know one of the biggest plays in the Japanese market so please watch that and please do support no crypto area as a subscriber her information is just fantastic really so what crypto area wanted me to comment or in order to play the video and and then we'll just comment on that we're busy so we've just got this video which I'm playing or what you can play at the same time here we go what happened they're not very good at this sort of thing I mean commenting on what I'm crypto area was saying this paragraph here template to utilize the acquired firms capability to create a turnkey solution for the initial issuance and secondary trading of the icos as unregistered Private Securities and that's important unregistered private securities as I said before I believe cryptocurrencies are securities timberlands proprietary technology combined with liquid in capitals ATS will provide ICO investors with the first of its kind platform for the sale and secondary trading of digital tokens so this is pretty amazing actually they're going to be registered in the u.s. obviously with this broker u.s. regulated also regulated by Thins rum and also they'll have is done documentation in place which is documentation for swaps and derivatives which basically every player in the market the buys and sells crypto currencies and derivatives needs to actually sits on is the documentation between themselves and the exchange so from a fund manager I need to sell sorry I need to sign is the documentation to be able to trade and deal on the exchange and the exchange also needs to sign that to trade and deal with the counterparty being the fund manager or the big financial manager or them the investment manager so this is really big because this platform basically a turnkey solution is basically an overall solution for the issuance of icos and also for the secondary trading of I SEOs so basically put your initial issuance of I cos of course which is considered the primary market where they will be considered an unregistered because they wouldn't have been going they wouldn't have gone through the regulator's as being registered and they'll be traded as private securities but they will be treated as securities that's the key word here also once they go on to the secondary market the secondary market is weird spine so the DI CEO or buy and sell that the crypto currency basically it's not then called an IC o—- it's just called cryptocurrency on the secondary market like you're buying silver and bananas or buy and sell it on BitFenix and that sort of thing so initially the IC o—- is called a primary issue so if the primary means first first when it's an ICO you might buy it before you know it comes under market where you might wait and the secondary trading which is when it's on the market that's why it's called primary no different to the equity market you have a primary issuance you know you might buy it before it trades in the market and no different to the bond market where you call it a primary insurance so the primary issuance is the ICO the initial issuance primary and the secondary trading is just your buying and selling the cryptocurrency but what's important here is security is an unregistered private securities now I believe all cryptocurrency are securities in terms of financial markets and again I'm not looking the legal definition or anything like that in terms of financial markets as security is you basically buy and similar security on a third party exchange or even over-the-counter where you're buying and selling one party makes a profit in one party makes a loss in it's subject to risk that's pretty much what a security is now as far as I'm concerned what the SEC came out with the guy from the corporate finance area fed his name William someone he was saying that Bitcoin and Entering were not securities because they were basically decentralized technology that has absolute bumpkin as far as I'm concerned it is completely irrelevant to what our securities and what what isn't a security whether something is decentralized in their eyes or not is completely irrelevant in anyway there's argument to say that bitcoin is not decentralized in the sense that it has a centralized problem with the miners for major miners will actually transact and basically authorize their transactions in some sense that's not centralized and we can put other cryptocurrencies that are almost centralized like eos with all their problems on the administration side and the foundation side but look that's beside the point the cryptocurrency technology has nothing to do with a cryptocurrency trading on the secondary market okay once we get to the second Marcus it becomes a security by virtue of a buyer and a seller the buy or sell at a price on exchange or over-the-counter they are subject to profit or loss and it's done over an exchange ie a third party it is a security and I don't care what the SEC that guy said because he is just totally wrong you know the fact that he's saying that you know it means that you know some of the technologies decentralized it's completely irrelevant honestly it really is completely irrelevant so this this is B because what this means is these guys are going to offer a platform for the institutional guys basically they're going to be completely registered with the US regulators they're going to have is this in place which for the professional market these tourism basically and in an agreement between the derivatives and swap agreement and it basically includes derivatives which you know a derivatives of their derivation of the underlying physical security so it'd be like Bitcoin futures or ripple futures or FM futures where you can buy and sell derivatives on margin and you can buy and sell derivatives on margin and you can basically traded against the underlying physical contract so for example you can trade Bitcoin futures on the exchange and then you can go to the crypto currency exchange and buy or sell physical Bitcoin the coin and you can actually arbitrage the two or you can swap one for the other and make money one way or the other so you know there's quite a bit you can do there and and the same with ripple and the same with um you know it's room or anything else so they put on the futures exchange now the video with the futures exchange is a professional investor you know whether it's a hedge fund manager or a trader or whatever you can get a very large position on you get a very large position on against the underlying physical asset but they don't need the whole cash flow to say they want to buy a ten million dollar position in bit in Bitcoin they don't physically need ten million dollars to go to the physical cryptocurrency exchange where you need to have ten million dollars in terms of the futures exchange you only need say a tenth of that you might need a million dollar deposit and then you've got to keep paying margin but you can get you know ten million dollar worth of exposure with a much smaller deposit and a much smaller margin so the way futures work is you open up the futures account with the exchange like this one and you basically put in in a deposit and you basically get margin you know intraday margin all day long so basically if the market moves against you you've got to top it up and most big international international players or investment fund managers or traders will basically have enough deposit to be able to absorb the margins you know which are basically in today movements within where the the the crypto the underlying crypto price news the difference with futures which are called derivatives essentially you can keep you know buying and selling them and and essentially there's no limit of supply okay that's the key so there's no limit of supply on futures so the exchange just keeps basically you know you can buy and sell as much as you want on the exchange and you've got credit risk to the exchange or settlement risk to the exchange the big international fund managers will have credit risk or settlement or risk to the exchange but the key is in the physical crypto currency market as you know there is supply issues so obviously you know the total issue in the circulating issue and so what could happen is there could be on the derivatives exchange Bitcoin futures which are derivatives you know big investors or fund managers could continue to sell sell sell sell and before they know it they've sold more than the 21 million outstanding physical Bitcoin bitcoin coins if you want to call it that and there could be a scramble to close out the positions and that's what you find there'll be a squeeze because there won't be enough of the physical Assaf to offset the short two rivers position you see what I'm saying now with the futures market you can actually have physical delivery of the coins or you can have margin delivery of cash you can have delivery with cash or physical delivery of coins I need to have a look at that with the Bitcoin futures of physical delivery or they're just you know you just pay out the cash on expiry they do expire in three months and I think it's around the fifteenth of the month so I've got to check that out but I will come back to you on that I'm not sure with its physical delivery I don't think it is but I'll have to check but certainly the futures market can actually affect the physical market of Bitcoin and generally the futures market will dictate the price of the physical market generally but as I said when there's a squeeze and too many futures have been sold at the derivative level you'll often get a squeeze on the physical level so you've got two different markets okay the physical market which is the cryptocurrency market for Bitcoin and a theramin that sort of thing and you've got the derivatives market which is a limit you know it's it's an unlimited market don't just keep issuing you can keep buying as many futures as you want or selling as many futures you want but obviously on the physical market there is a cat – what's with the circulating issue isn't how much money how much circulating as you can get your hands on so I hope that makes sense so often when you're trading you know if you're trading the underlying physical coins you should really be watching the futures at the same time on the derivatives market because the futures can actually dictate where the price is going on the physical side so as you can understand if they're selling futures you know in large you know large positions on the futures exchange that eventually will flow through to the physical market but in saying that as well as I said it can only happen so far because as I said before the physical market being the cryptocurrency physical Margeaux will only have a set supply and eventually there'll be a ricochet effect like we've seen even in this market that you can only keep selling the so far shorting you know shorting a Bitcoin futures position until eventually the physical supply runs out so it is a good idea to to watch the futures market if you're a trader particularly on the crypto currency exchanges but anyway look well done crypto area for that story huge story because basically this means that the market is going to be very very ready the institutional trader and I have to tell you that crypto areas right the banks that she's mentioned that you know they are the largest banks in Japan but also Japan I don't know whether people realize japan's what the second large is fixed interest bond market in the world and also they're one of the largest traders of u.s. yen you know they're very big traders in foreign exchange and obviously they've you know basically they love the cryptocurrency market as well so it's going to be it's going to be pretty huge i should imagine so thanks for calling out crypto area and please you know everyone my subscribers i'd love it if you gave crypto Arry bit of a boost on the subscription side i think i think the story is fantastic it and beloved him loving to see get some support she does a really good job so thanks guys i hope you're all looking out yourself please be well look out for each other life is really short and i look forward to talking to you another day thank you

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