China is added again every single time we turn on the news we hear about China China tariffs China trade talks China this China that fact of the matter is ladies and gentlemen China is the number two economy in the world surpassing some of the u.s. as counterparts in fact a couple of years ago it really was just kind of like alright you know China is great China's great but now what's happening is that they are catching up and they've actually caught up fairly well you know what's really interesting about this is that when you're at the top you're the top dog you know I'm talking about the US specifically there really is a sense of complacency and almost a sense of arrogance on the part of anybody who is on the top of the heap and over time that competitiveness erodes because people get very complacent and that's exactly what's happening right here in 2019 you know you turn on the TV and all you hear about is how we are doing leverages and trade talks and trying to put China in its place by you know accusing them of this and that the reality is that they've caught up and they've caught up big time and I say this because if you take a look at the evidence it's clearly stated that this is not like how it was back in 2001 2008 2009 the average GDP for China's growth for the last 10 years has been over 6% far outpacing the US and in the West and the Western countries developed countries GDP combined and what's interesting here is that you know if you take a look at their GDP growth it's been bonkers now whether that is manipulated by the government or whether it's not it's besides the point whether that's that whether China is our trade enemy or trade partner it's besides the point politics aside and you know tribalism aside it's quite clear that the u.s. now has an equal economic partner or enemy coming up I look at it as an opportunity now looking at the crypto space he we take a look at the recent icos and how crypto really developed in the last couple of years a lot of those were Chinese tokens or Asian took it's not Chinese tokens I mean alarm came from Singapore we had some from Japan there a bunch of them from from China and if you actually think about it that was just a mirror reflection of what is to come and if you're paying attention to both sides of the fence here US and the Western countries specifically the US obviously and the Chinese and parts of Europe you can begin to see where this is heading towards now this article is actually from Bloomberg it came out I believe a couple hours ago and this is a very interesting topic that I really want to share with all of you because if you're paying close attention to you know some of the macro pictures you could you can begin to understand what's gonna happen the next 2-3 years when everybody talks about ETFs they always talk about you know new products new development new tech but if you turn on the spigot the financial spigot what I call it you're gonna actually create a timeline a very very accurate timeline of when this rally will start now I'm not saying that we're gonna rally tomorrow I'm not saying that I'm predicting we're gonna rally tomorrow but what I am saying is that history tends to repeat itself over and over again and that's the reason why I like to share with you guys these insights because it's something that is beyond just hope a hope that crypto markets are gonna take off tomorrow for no good reason right you know you hear it all the time people are saying that the crypto market is gonna take off tomorrow because you know we went up 20 percent or something but there's no fundamental basis with it alright so this article really talks about this idea of margin loans and easier regulations now for those you guys who have been trading in the market solution myself for a very long time you understand that regulation is probably the most important part of trading and also of investing and the reason is very simple regulations create major pettings and problems for anybody who wants to speculate pure and simple the government wants to stop speculate they can do it on a dime if you have the government against you there's no way that this market can become free crypto markets really became free because they really was a very poor site oversights and also poor regulations on on on everybody and that's the reason why it was truly a free market and still is in many cases when the SEC decided to come in and crack the crank crack down on this you began to see some of the effects of that so you know in in retrospect what I'm really saying is that if the government's begin to ease regulations in any capacity it starts to pave the way for some sort of movement in the market I don't know this article specifically is dealing with the crypto mark not the crypto market the equity market basically what's happening is Beijing and Hong Kong are kind of like at odds right now in terms of who's gonna be the big dog in the equity market specifically the stock exchanges in the past Hong Kong has been the go-to area where everybody begins to list IPOs you know money if you think of Alibaba as an example right where the IPO in Hong Kong and then they they went ahead and did a dual listing in the u.s. so Beijing needs to assert itself as the premier you know capital market where Shanghai and Beijing are going to be part of that process Shanghai is technically the financial capital of China and if you think about it for a second Hong Kong has been there for a very long time to have it back on the mainland will be very good so as a result Beijing what they've been doing is creating a new framework for a new tech stock exchange very similar to what you have in the US aka the Nasdaq and what that's done is that it's actually allowed more margin loans it's made and easier for firms to buy stocks and open up the futures and option markets to foreign investors so now basically what this means is that there's gonna be more money pouring into China in the upcoming years as the financial markets begin to get a little bit more open now basically what's happening here is that if you take a look at the Chinese equity exchange volumes and also the overall liquidity you can see that we actually did have movement back in 2014 all the way to mid 2015 this was actually that we call the China commodities boom and the China boom that we had back in back at that time and if you were trading in that time like I was myself you would have made some very crazy gains and the reason why was because they basically were marketing it to the public the government was actually marketing this quite heavily into equities unfortunately the you know the bubble popped and then everything went down the tubes now what's happening here is that president GP champagne here basically started to relax more of these regulations and since he's the big dog now in China he can basically do whatever it takes to get that money back into the mainland what's interesting here is that you take a look at IPO again Shanghai they basically are gonna make it super easy to go ahead and list and not really vet those entries they're actually lifting a lot of the penalties of listing for example the 10% daily trading limit that applies mainly to Shanghai and Shenzhen exchanges and also the first five training days won't have any cap or floor and therefore there'll be a limit of 20% there's basically a bunch of little small rules that are in place that they're going to be left over now also the idea is that they're actually lifting the margin call rules and you're gonna be allowed to put more collateral in besides cash in other words you can basically put up your Ferrari if you wanted to and they're gonna lower the requirements for riskier assets and to encourage brokerages to invest in stocks and exchange funds on top of that they're actually going to expand the what they call the qualified foreign institutional investor program basically is going to allow offshore funds to trade more types of futures and options as well as stock listings in the Beijing based on the national equities exchange in quotations it's very similar to like the Nasdaq and basically what's gonna happen here is that they're gonna try to bring back that demand now every time I read these type of articles I always think about the implications of this in the overall crypto space and also in the equity market specifically if we're gonna have another run like we did back in 14 and 16:15 we're definitely gonna have a running crypto almost I can almost I want to say guarantee it but I can almost predict it well and the reason why is quite simple back in 2014 and 2015 the public the Chinese market was exposed to this idea of short-term trading and equities and stocks and all this other stuff and a lot of it was actually promoted by the government through various media sources and what happened was you got a lot of retail coming in since then basically it's gone down real estate has been more of the go-to financial asset class that people tend to gravitate towards and crypto obviously being real so brand new attracted quite a bit of Asian investors specifically now how this is gonna play out it's gonna be quite interesting because if you think about it for a second if a lot of the money is getting its flown in into these exchanges and specifically into China it's only a matter of time before they begin to open the floodgates up for crypto and that it's gonna bode very well for anything that is a Chinese token Chinese crypto and even crypto itself because just like we had here in the US a lot of investors are gonna look at this and say hey you know let me FOMO into some of these coins if you take a look at the time line the bull market really started around 15 we had a 15 16 blowout and then it kind of moved towards 1617 really so the peak that we had in the equity market in China was around 2015 coincidentally it was the exact same time that the crypto market took off right afterwards so putting two and two together I know it's kind of like a causation correlation type of conversation but if you think about it for a minute if you were someone who made Bank boatloads of money in the equity market and all of a sudden you saw cryptocurrencies Bitcoin at 200 bucks and you wanted to ride the next wave it almost makes perfect sense that you wouldn't move that money over to crypto now if the Chinese stock market takes off like I think it would and if we have a banner year for emerging market specifically such as like Mexico South Africa Russia Brazil any of those with exceptions of Turkey Indonesia and Argentina there's a very very high chance that the bull market for crypto will probably start right after the bull market in China now I do hope that this actually ends up being that way if I put the timeline and we take a look at what happened in 14 and 15 now take a look at this graph real quick if I put the timeline here around 2030 13 15 and 16 it usually ends at the peak so that means that crypto needs to kind of fall a little lower before we have the money coming coming back so a lot of this really is a fascinating story it's a fascinating story of capital allocations and it's a fascinating story of capital movement I'm gonna definitely be watching out for this and I'll definitely update everyone on the implications of this also I want to mention that there's going to be take a look at tax pit for anybody who's interested in doing your taxes I did a video before about that but if you're gonna be trading this year and you're definitely need a tax program take a look at tax bit it's one of the best programs out there right now for trying to consolidate multiple cryptocurrency traits our guys crypto but out have a great day the 2018 tax season has officially begun tax bit automates your entire tax filing process by linking up with your exchanges and wallets running your transactions through their tax engine 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25 thoughts on “Why CHINA is the NEXT CRYPTO BUBBLE BLOWER”

  1. So … it seems like what you are trying to say is that the Crypto market is going to tank even further … again.

  2. The

    Be warned China is a house of cards and when the global economy cracks China is going to get hit hard.

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  4. communist / ALL „centrally directed/lead“ economies/nations will FAIL! (see Sovjet union, Japan, Venezuela, etc.)

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