Bitcoin's Shocking Volume Problem – Will It Collapse the Prices of the Crypto Markets?



Bitcoin land seized new allegations of massive volume faking on most major exchanges Tim Draper makes an incredible proposition in Argentina and Bitcoin does things we don't always like it to do two quick announcements before we jump into today's news consensus kryptos premier annual event is coming up soon it is a fantastic networking opportunity for any company involved in the cryptocurrency space or for those looking to get involved as well as fun for the enthusiasts you can get $200 off of the ticket price using the link down below also please help me spread the word about my free cryptocurrency education course and be in to win $100 worth of Bitcoin for sharing the course with your friends Twitter Google and Facebook all prohibit me from running ads to promote this content so I need your help to get the word out I'm currently running a retweet competition over on Twitter just retweet it to be in to win and tag a friend that you think may benefit from learning about crypto currencies the big story of today volume faking bit wises report about volume faking is making waves in the crypto verse coming only days after the Thai reported that 87% of volume is being faked the bitwise report builds on the previous report stating that 95 percent of the volume on unregulated exchanges is indeed fake if you have been in crypto for a while this will not surprise you but it's also not really okay that we have so internalized how normal this kind of bad behavior and bad business practices that's seeing this kind of scamming going on just kind of just another day in crypto for most of us and that's kind of weird how we've got so for the exchanges doing the volume faking have various nuances of motivation and various levels of faking when it comes down to it but it all comes back to ranking higher on websites like coin market cap in order to attract more retail investors more whale traders and of course showing that the exchange has the liquidity needed to attract recent ICO listings and thus be able to charge them those sweet sweet listing fees actual daily spot price volume is closer to two hundred and seventy million dollars not six billion dollars that is a lot of fake fake volume now all this may have you worried that oh god the doom and gloom errs are right we're all gonna die bitcoins going to zero Warren Buffett was right all of this time repent now hold your horses there guys because bit wise provided some great perspective on this matter as well as a percentage of market cap versus volume compared to gold Gold's daily percentage is 0.53 percent versus Bitcoin which is 0.3 9% which indicated that actually bitcoin is a very healthy market without all the fake volume another super interesting point is the importance of the futures markets in comparison to real volume because when we have this fakey macfay Kherson volume going on the futures markets look very insignificant but with real volume considered it turns out that the CME is doing big futures market volumes as a total percentage of the real volume of the Bitcoin markets and with backed being a futures market ticking time-bomb in terms of getting approved we will see the futures industry be a big part of the Bitcoin monetary equation it also allows us to understand why the ETF when it gets launched is going to be so significant and as a very curious addition to the volume faking it may actually be a blessing in disguise of sorts depending I guess on your perception of the Bitcoin ETF because it shows that regulated exchanges are playing by the rules it shows that the market size of regulated trading is indeed actually very significant that surveillance measures are indeed being effective that manipulation on regulated markets is not working to greatly sway markets in that in terms of the influence of overseas exchanges faking volume a good move against that kind of behavior would actually be to create a big liquid regulated product like a Bitcoin ETF still though we have no time frame for a Bitcoin ETF to be approved it could be soon it could be years as a note though bitwise has provided all of this market research that I presented here to you to the SEC as part of their conversation with the SEC about creating a Bitcoin ETF the first deadline for the bitwise ETF is on April 1st then X ETF deadline is on April 6th we're probably going to see more delays when those deadlines comes up but we could always get a big surprise anything's possible in crypto land in terms of what you and I can do to actually help the volume issues support exchanges that provide honest reporting of volume as much as we can anyway the major exchanges which are reporting fair volume make up the majority of the actual volume of Bitcoin most of these are regulated these changes are financed BitFenix Kragen bitstamp claim base bit lier Gemini it bit-bit tracks and Polonia acts now they only accounted for exchanges with more than a million dollars in daily Bitcoin volume other exchanges like liquid usually make this list but perhaps it was excluded due to most volume being in yen on liquid or for example bit panda with euros however the problem is that not all coins are available on these exchanges so inevitably you will have to use some super random shady crypto exchange to get that rare coin that you're after just try to limit your exposure to these exchanges use a Dex when possible something like ID X to grab those rare coins because the fakers when they go down probably gonna take a lot of money with them also a response to this coin market cap has come out saying that it will be making many changes to help address all of the fake volume tsunami that is currently washing over crypto land so expect some big number variations in volume coming to a coin market cap near you so what happens when all of this fake volume is cleaned up will the price of Bitcoin crash dramatically well not necessarily some exchanges faking volume does not equate to an inedibly lower price for Bitcoin although I could foresee some shocks as the data is adjusted on places like quake market cap for example because the volume is an important factor in the overall crypto industry the people are still paying around $4,000 for a Bitcoin exchanges are trading with themselves to make themselves look more important but that does not inherently mean that bitcoins market value will change because the real demand comes from the exchanges providing real volume andrey trades and one thing that bit wise has also not accounted for in all of this is the OTC market which continues to thrive but remains a place of mystery in the shadows in terms of the volume that actually happens there my stance on Bitcoin does not change because of some fakers out there trading with each other or the effects that this may have in the short-term on the market the next bull run in crypto will end up making 2017 look like the bull runs before it a tiny blip on the radar the opportunity to be investing in Bitcoin at these prices is an absolute pleasure I all select Bitcoin back at 6k I'll select Bitcoin is 7,500 and I will love Bitcoin big time if we actually break below $3,000 which I still think is unlikely to happen but depending on the shakeout so we could see you never know if you missed the last bull run well you know what welcome to the party because investing now or investing last month or investing next month will be a massive opportunity for the savvy investor onto our next story Tim Draper met personally with President Mauricio Macri of Argentina where he presented the idea that we would all present to a head of state if we had the audience with them and that was to make Bitcoin the national currency of Argentina nice one Tim quoting Tim and Draper he said I suggested he make Bitcoin a national currency and to bring in 5g and let the market figure it out and build all the roads and everything else for him Draper also went on to state that it is now a good time to adopt the technology in Argentina arguing that this will provide complete changes in banking Commerce and overall in the financial system Tim Draper also proposed a bet with the Argentine president which he explains here while riding around with the guys from La Bitcoin Etta would you like to tell us how what did you talk with well yes we we had quite a quite an ordeal I I bet him one Bitcoin against four hundred thousand pesos which I realize now is worth more than one Bitcoin today that they will be worth that my bitcoins can be worth more than the four hundred thousand pesos in a year in a different interview on the same day he also reiterated his stance that he believes bitcoin is going to earth two hundred and fifty thousand dollars in 2022 there will come a day when a country adopts Bitcoin as a recognized currency perhaps it will not replace the local fiat currency but it can act as a layer to payment option that's actually used in a mainstream way and promoted by the government or can of course back fiat issued like we have the old-school gold backed fiat that doesn't really exist anymore but more probably is that a country will start adding Bitcoin as a strategic reserve like gold the only question is which country is going to do this first PS when will Bulgaria make a move on its Bitcoin stash bulgaria back in the day confiscated more than 200,000 Bitcoin from a hacker group they have been sitting on that Bitcoin ever since hmm and finally a compelling story about the power of Bitcoin Hamas yes those guys Hamas is asking for Bitcoin donations particularly the al-qassam brigades which is the military wing of Hamas calling for those who support the Palestinian resistance forces to donate Bitcoin now lark WTF why would you bring up such an inflammatory story stick to crypto bro surely you must have another story out there lark about someone accepting Bitcoin an exchange for coffee or puppies or something not threatening something banal well look I'm sure that some cafe somewhere just started accepting cryptocurrencies great for them but I bring this story up as a point of belief in decentralization and censorship resistance because I'm sure that if you know anything about Hamas you probably have a rather negative viewpoint about who they are and what they do and most Western nations consider them a terrorist group now without going into the details of Israel's apartheid state or the injustice –is inflicted upon Gaza and the Palestinians which particularly with Gaza has functionally become the world's largest open-air prison and live human weapons testing facility nor will we of course discuss the hypocrisy of a nation which runs the terrorist drone program calling someone else a terrorist but instead instead I want to focus on this I actually think it is a good thing that Hamas is able and I want to say key word able to receive Bitcoin should someone of course feel the need to give it to them God knows why you would do that and I know I know I probably just triggered a whole lot of people before you go down to the comments section and start tearing me to pieces just think about this first section for a second because it's not actually my intention to trigger you I honestly don't like Hamas or that Hamas is receiving more funding for its military because it will only fuel violence which is something that I completely oppose which is why I also oppose the billions of dollars of American taxpayer dollars for example that go to the Israeli military to fund violence but even if it is a hard pill to swallow for many of us this is censorship resistance this is Bitcoin much like freedom of speech censorship resistance is proven by the hard cases not by the easy cases the truth is that bitcoin knows no borders it knows no religion no sanctions no sex no political ideology no human emotion bitcoin doesn't care about any of that stuff it can't it was designed not to care which stands in direct opposition to the Fiat banking world which is driven by political ideology and uses sanctions as a weapon of financial terrorism the tough reality of Bitcoin is that it will be used by people that we don't like to do things that we don't approve of and it will also be used by people we like to do nice things and to make the world a better place but to ensure that happens we have to keep it open for all uses because while some may choose to send Hamas money to buy weapons of death I choose to give to organizations like Zam Zam water which is providing clean drinking water for the people of Gaza and educating thousands of Gaza youth so these students can have a better future that's also made possible by Bitcoin anyway just my two Satoshi's you will let me know what you think about any of today's news stories down below in the comment section thank you so much for watching today's video I really really as always appreciate the time you take out your day to come over here and watch me talking about Bitcoin and cryptocurrency seriously it's a super awesome so thank you so so much if you did enjoy this video leave a thumbs up on it you can also subscribe to the channel if you are new around here and hit the notification bell down below just stay up today when I put out a new video long live the blockchain and peace out the next time

45 thoughts on “Bitcoin's Shocking Volume Problem – Will It Collapse the Prices of the Crypto Markets?”

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  2. Lark, YOU ARE inspiring and right for our show. Check us out at http://radiantcreators.com/about/ and ping us if you would like to interview. Let's Rock!

  3. I Think you would do the best crypto course anyone could ever use. Thanks for sharing. sincerely JR

  4. Thats not a bet. That's a fact, there is no probability on that statement. To be clear, the probability that 1 BTC will be lower than 400k pesos (its price right now) is equal to 0. Of course one bitcoin will be more value than that amount of pesos. We had 150% of inflation and 300% of devaluation since Macri was elected. I will more than happy if Argentina adopt BTC as legal currency, or any top 10 crypto.

  5. Wow Lark brave ending and I was afraid for a minute you would promote Israel, but yes Gaza is horrible. Thank you for telling the truth and being a good Crypto Youtuber 🙂 One of the few that remained in every turmoil of crypto. Don't send Money to Hamas People, trained and payed by Zionist netanyahu (Israel) and only used as an excuse to attack innocent people in the open air prison of Gaza. Have you looked into the fact that crypto is pushed by Zionist and Israel… I'm afraid it will not be used to help humanity rather enslave us further.. At least the price will go up but a scary future a head

  6. Nice presentation of a great example of bitcoin's censorship resistance, creating an emotions roller-coaster by starting with Hamas and ending with Zam Zam 🙂 great work man!

  7. Lark alot of those charities that go to Gaza, Israeli intelligence has shown it goes to fund terror groups. Period.

  8. Bottom line it that Hamas and other "terror" groups receiving Bitcoin or other cryptocurrencies was something that couldn't be avoided. But the same thing could be applied to fiat currency as well. However I choose to use the Bitcoin in my possession for good, that is the only thing that I can do, I can't control other people,

  9. Lark, appreciated if you can present the data page a bit longer than current 6 second please. I've just open my eyes and suddenly gone. 🙂 We are fine with the voice over during your explanation. thanks.

  10. nah, i don't believe bitcoin will ever become a common currency.. 
    Only crypto i believe are possible future currencies are stable-coins that are tied and backed by tangible assets like real gold or other precious stones and metals.

    of the non-tethered coins, i think only Stellar Lumens, Cardano and XRP have a shot at becoming a currency we can depend on. 

    Nobody really wants bitcoin to become stable.. because everyone that came to the table did so because they liked its extreme ups and downs..  once you stablelize that then most people will lose interest and go elsewhere. The same will happen to the three above, if those should stabilize,… however, those have banks up their sleeves to facilitate their adoption. So their use is possible still since they would be the most trusted.

    Invest in uncertainty and chaos and you get rich..  but currencies… true stable ones, are not much of an investment..  but they are a reliable tool.

    Imagine if someone agreed to be paid in XX of volatile bitcoin as their salary wage.. and they work their ass off and then get paid.. but then bitcoin plummets..  now that guy can't pay his bills.
    No etf is going to back it either to stable it.  i feel they will all fail.. until they leave bitcoin out of the equation.  I have zero interest in bakked and think them foolish to even consider such a notion.
    but if it does happen, then watch all bitcoins volume spill into the alt-coins, where money is still to be made.

    People want their gambling machine..  and anyone else wants stable-coins tethered to the tangible that they can believe in.
    bitcoin can't be both.

  11. For the past 5 years people doing these crypto videos, all seem like they're saying a whole lot of nothing. It's like a huge hype machine that goes nowhere.
    — Most of these dudes say something like, This is Huge! But it might not be. Who knows.
    — Unfortunately the big bankers don't want crypto, and the average people are so stuck with the norm that they're afraid to put their money into another system that they dont understand. Which makes sense. How can you expect people to jump into something as complicated as crypto. The odd and elaborate "wallets", the odd transfer system, the vast number of Alt coins, and the fact that it's a monetary system based on tech theory. How could this possiblity take off as an alternative to banks?
    — I LOVE the decentralized aspect, I Hate the fact banks are able take advantage of people like they do, and would love if Crypto took over. But it can't if it stays this complicated, and volatile.

  12. Lark, aside from the volume, what would you think about a movement for exchanges to be required to reveal their public keys so to prove they have the crypto they say they hold

  13. If institutional FOMO is ever triggered, by whatever means, we will all realise we have never seen true FOMO. The trigger will probably be a black swan event like Brexit or the impeachment of Trump or the next GFC. Hang on to your hardware wallets kids, this will get wild.

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