China, China, China What are they trying to do they have been driving the markets crazy for the last three weeks or almost a month now? Just bad news after bad news after bad news Driving all kinds of FU

D right "Fear, Uncertainty, and Doubt" Everybody's wondering what they're going to do I mean they've kind of come out and said what they're gonna do right first They said they're banning all ICO's no more new ICO's coming out the markets crashed on that news But then the market started to recover and just as they are coming back China comes out with more bad news kicks the market back down and says now we're gonna ban all Bitcoin exchanges All the exchanges have to shut down Now they're coming on saying that the executives of these companies can't even leave the country right now all the dirt do their investigations Now there's rumors that they're possibly gonna shut down all the mining really Are they gonna go that far I mean think about it if they feel the need to shut down Bitcoin all the mining I Think that's a good indicator I think that shows the technology works I think that shows that they're threatened and really it builds on the reasons why people buy Bitcoin in the first place now history shows that China has a Big-time track record of doing things like this overreacting clamping down too hard, but then lightening up right so we have to understand history Too so we can understand the future right, so let's look at a couple of examples of how this happened so between 2013 and 2015 margin lending in China grew almost 800 percent in just two years

That growth led to all these scammers and fraudsters coming out and so what did China do? They came in they cracked down They just been banned all brokerages no more margin lending And they lost almost 50% of the market within three months So sounds kind of familiar right that was fast 50% of the market in three months But in the in the Bitcoin market we lost a few billion dollars This lost two trillion dollars of value two trillion dollars But again history shows us that these regulations don't last long, and they don't don't stunt the growth in the long term So they have a short-term effect, but in the long-term They make them better so going back to this to the margin lending The lending market had grown from 2003 to 2010 and it had grown 250% to a 1 trillion market from 2003 to 2010, it was from 2010 to 2013 is where 800%, so they put a stop to it And they put these regulations in and then over the next couple years it grew back 80 percent since the crackdown Okay, that's one example another example of what China did is in their peer-to-peer lending from 2010 to 2014 peer-to-peer lending? grew from 50 platforms to over 1500 platforms loans grew to $17 billion dollars on those lending platforms Then regulators stopped in put a clamp to it slowed everything down But it didn't stop it It slowed it down and stunted his growth But then it came back, and it came roaring back way bigger and faster than ever was now there's over 4000 peer-to-peer lending platforms out there They're doing a $120 billion in loans, so it was $17 billion when they put the crack down and stopped it

Once they put the framework, the regulatory framework around it it's allowed to grow It's almost more than doubled the amount of platforms and the lending has come from $17 billion to $120 billion dollars now Lately China has come out Also the latest rumor says that China is gonna stop mining now to me That sounds way too far-fetched, and it sounds crazy now You have to understand China first of all is that? China controls in the country, so China is a communist country so anything in the country They basically control right so in China They control over 65% of all the Bitcoin mining So when you control the mining that means you control the network if you can control more than 50 % You control the network because the network has to have a consensus it all has to agree that that Transaction is true So if you can control the majority you control the networks They have 65% So Russia came out just three weeks ago And said they're going to spend over $100 million dollars on Mining Bitcoin they said that what they wanted to do is they wanted to compete with China they want to capture 30% of the Bitcoin mining power So where we're at now is we have governments China and Russia publicly stating that they're fighting over power control over the Bitcoin mining So you think but you think China's gonna give that up? They're just gonna ban it They're gonna kick everybody out of the country There's no way There's no way they're gonna do that there's no way they're gonna give up control and again We have to look at history

so if we look at what China does with gold? so China has more gold mined out of their country than anywhere else in the world They allow anybody come on over, come mine Gold set up your mining facilities right , people go there cheap labor people set up mines but guess what? China doesn't allow any of that gold to leave the country, so you can come and you can mine gold But you can't take it out the country you have to sell it all to us And so what China has been doing is they've been the largest producer, and they've been accumulating their gold, right? I'm sure you guys know that China has so much cash They don't know to do with it They've loaned billions, and maybe trillions to the United States They don't know if they're ever gonna get that back They don't know where they're gonna put their money so in looking to put it anywhere So they've been accumulating gold they've actually been the largest accumulator of gold over the last several years There's lots of rumors about them trying to relaunch their currency as a gold-backed currency And they and some people think they could even take over the world reserve status like the US dollar has right now So, maybe just maybe they want to take the same approach with Bitcoin mining Maybe they want to allow Bitcoin mining to happen because they can control it But maybe the bitcoins can't be sold on the market just like they do with gold maybe they have to control all the Bitcoin So if you have government Russia and China which are not exactly friends, fighting over the mining power China's not going to give that up we can look at what they already do with gold And it's pretty easy to see that they might take the same approach, now I'm not trying to say that I'm not trying to tell the future I'm trying to study history I believe history shows us the future all right so Like I said if we understand China if we understand that regulations haven't been the deathblow to any industry Think about this so China is a communist country Did you know that Facebook and Google are illegal in China? They can't access Google because they're afraid of what they might search But it certainly hasn't stopped Facebook or Google from being the largest Internet companies in the entire world it hasn't stopped them And so if you understand what they do with regulations if you understand that then by themselves banning anything is not the death Blow like I said before they're really only about less than 10 percent of the total market anyway You can look at what they've done with gold how their accumulated Accumulating it and buying it from all the producers and say maybe they're gonna apply the same tactic to Bitcoin And then like I said they have so much money that they don't know what to do with it That's why they're trying to put it into real assets, and so there's no way they're gonna leave this money on the sidelines They're going to be in this game one way or another so to summarize My point is that the entire market is way overreacting to China They're way overreacting I don't think it's gonna be as bad I think China's gonna put in regulations that are gonna actually make things better in the long run And even if they get out all together which is not gonna happen But even if they did there's such a small percentage of the entire world that it's not really going to matter just like with Facebook and Google so one of the best advice that you can get in any kind of investing is Contrarian investing and that means that you're buying when people are selling, and you're selling when people are buying think about this The markets don't move on news

They move on sentiment, ok so when the when the news came out three weeks ago on Bitcoin, and China going to stop all I ICO's and the market crashed, and then the market came back up, But did the news change? no the news was still there, They didn't come out and say they're gonna change their mind But people viewed it differently they felt about it differently so they started buying again, so the markets aren't going to move on news They're gonna move on sentiment so they're overreacting right now And it's a great opportunity for us to get in By when people are selling, buy when there's fear in the streets, now is the time, so That that's my point for today Hope that makes sense to you go ahead subscribe to these videos to get more like this like It leave us some comments and some feedback we'd love to hear from you You