Is Tether (USDT) A Scam? Bitfinex Collusion, Bitcoin Parabolic, Trading With Conviction – CMTV Ep89

what’s up guys this is Carl Thomas with coin mastery TV make sure you hit that subscribe button hit the notification bell be notified for all the breaking daily news updates through new to the channel welcome we are talking about how to capitalize on the biggest financial revolution of our lifetimes by making better more informed or profitable decisions today what we’re talking about is the weekend recap and what’s coming this week very interesting stuff as oh it’s there’s there’s truly no no lack of energy in the crypto markets so we’re going to talk a little bit about Bitcoin we’re gonna go through some all coins I want to spend some time talking about what’s going on with tether because a lot of people seem to be very concerned rightly so and confused so I want to just walk through this hopefully paint a good picture give you a couple thoughts I’ve had about it and I think that this will be an unfolding thing well let’s get the discussion going especially for people that don’t really know what’s going on talk a little bit about neo and how that relates to this state of crypto which i think is really helpful and really important for you guys as you start making your picture this is going to continue to be a very important topic over the next two months yeah and so and then we’re gonna end off with strategies or one strategy in particular that I think will help refresh the the investor trader mindset no matter where you are I think that this is just a really important thing to dial in so lots of good lots of good stuff together so today we’re talking let’s just kick it off once we broke through this 8,000 we had a little bit of resistance coming but you know as we look through that a bit of consolidation so to speak I mean you can see a very small triangle right there and then BOOM we had a you can see this volume spike right here and it totally just just took off I think this was yesterday sometime in the mid day or so and as you can see now it is just skyrocketing so you can remember last week when we talked if I take this back and I scroll off back to the one day just looking at coin bases charts right now as you go parabolic the the daily gains the percentages will usually stay in line with what they’ve been give or take but the the number amount the dollar amount will go up faster meaning the higher we go the bigger the jumps will be in real dollar terms like that it might be five percent five percent five percent but that’s the nature of compounding is it it gets as it gets steeper those numbers get bigger but the percentage changes stay the same the reason why this happens geometric growth of systems there’s so many people signing up for new accounts buying bitcoins there’s no money coming in the growth is accounting for that 5% right that’s just the way the curves work so we’re gonna continue to see this and like I mentioned last week I think we’re gonna continue to see this for up and up for a while right the the big asterisk on that which is kind of what we’re gonna talk about with tether is if there is some sort of singular event that drives massive fiour through the market it could be a huge hack it could be tether being a complete sham it could be the u.s. crackdown or whatever there may be a big pullback before we really go to the next real big levels Leon 15 20,000 mayhap we may go there first and then there’s a big pullback but there will be something I personally do not think it’s going to be all very long winter I think it’ll be like there will be a pullback at some point but then we’ll shoot right back up and then then it’s real like you know that’s some people are gonna start mortgaging their houses if they haven’t already and that’s when it gets really sketchy but also very profitable so keep that in mind all right my personal opinion like we talked last week at 9500 right around there I mean that’s kind of arbitrary but that’s you know loosely speaking I I’m gonna keep a majority of my crypto in crypto it’s just that I’m going to start to look at how I can get really strict about risk mitigation do I put in stop losses do i consolidate my portfolio so that I don’t have like 25 different coins that I gotta try to outmaneuver all at once looking at what my levels would be like what am i buying what’s my profit levels tax harvesting all sorts of stuff so by no means am I like getting out but all right I’m gonna sit in the sidelines I think that that’s just that’s dumb right you can’t tie a market but I do think that as we get higher in this parabolic shape you got to be just got to start playing that game it can’t be all growth aggressive neck bit more more MORE because that’s how you end up just eating and eating your losses on in a big way so moral a story for last few days increasing pricing kind of low volume but overall like that’s just what the nature of a parabolic curve looks like so keeping an eye on this and being smart about it now we flip over to the altcoin markets you know I think the big all coin winners this this weekend really have been power ledger which we’ll discuss a little bit and neo which also had an incredible weekend huge gains bit quints I believe they had a big rebrand which is one of the reasons why they’re doing so well and those are the ones that I was really looking at this looks like was its poet maybe it had a huge gain but those are the three that I saw had the biggest runs similarly on bit tricks it’s kind of the same story you know you could just see these things acidic had a little bit of a run I’m not really sure about what you know Club coin and myrrh I know mercury was a newer coin but who knows with all that so one thing we’re going to talk about a little bit is what drove a lot of this volume is rumors and news and how it’s just getting more and more leveraged this is this is not new to crypto if you are new to crypto relatively new to crypto since January rumors and news have always played probably the biggest role in sentiment which is what this entire market is driven off of Bar None let’s see it’s the only thing that really matters when you’re talking about you know pricing and crypto but now the nature there’s some more people there’s so much more money there’s so much more news outlets there’s some more people on Twitter there’s some more telegram groups the best stuff can circulate so fast that you see these these huge spikes faster than ever especially on the on the new and/or low cap coins meaning that they will have larger increases in price if they catch that that new cycle whether or not it’s real news or fake news is kind of it’s found out after the fact but that’s that’s really what’s happening because and we’ll get into that in a second so all the coins are interesting now remember guys last week we talked about is there’s there are one thing in in markets is that everybody’s looking for a pattern everybody’s always trying to be like well when this happens I know that this happens right the so that you can create some sort of system or algorithm or model that gets predictable gains now second there’s a pattern in any market it will arbitrage yourself out that’s the nature of markets but one thing we’re noticing is that beyond the markets is that whenever there’s a huge dopamine related event whether it be Bitcoin versus Bitcoin cash whether it be Bitcoin hitting 8,000 whatever you will see the dopamine flow other places so once we hit 8,000 we saw the dopamine flow back to the altcoins dopamine meaning attention of all the people in crypto we saw some huge gains over here now we’re back to Bitcoin where we’re seeing another big run-up 8250 give or take and that is one of the patterns that I I’m seeing over and over and over and I think that anybody watching this market from the outside that’s one of the things they notice as well is they say wow this is just this is completely driven by how people feel so it’s it’s something to keep in mind it’s something that you can use to to gauge where the action will be next so anytime you see a huge run in Bitcoin as soon as it starts to pause realize that the actions gonna be something like probably in altcoins right and then you just see which which all coin is gonna get the take the bait first cool all right great I think that the more important piece of this is let’s talk about what’s going on with tether this is a this seems continues to be a very big issue in the crypto community and for rightly so I mean if this is all true which it very well it very it could be it it’s a big deal I don’t think it’s as big a deal as I don’t think it’s apocalyptic right it’s not like the the world is going to collapse in crypto but it is a big deal for for obviously leveraged reasons if you don’t understand what’s going on okay so there’s this guy or girl I don’t know maybe the guy or girl anonymous bit for next who is worth at least perusing maybe following it who is for the last six months or so bill a very compelling conspiracy theory or case I should say it may be not even a conspiracy theory around BitFenix which is one of the biggest exchanges out there and tether which is a which many of you guys see it’s like a crypto that’s supposedly one to one backed to the US dollar meaning every every tether is redeemable for one dollar that’s how that’s what’s pegged it – there’s it shouldn’t fluctuate at all and the long and short of this is that BitFenix and tether have colluded on some level so that they’re printing tethers without having anything to back it up and that printed money allows for huge margin funding and massive price buoyancy in use mostly in the Bitcoin markets alright so back in I think March a lot of banks US banks specifically stopped doing business with Biffen acts for whatever reasons coincidentally at that same time BitFenix partnered with us tether and all of a sudden that is when tethers market cap got started to go through the roof and it started to fund all of it Phoenix’s margin lending because they couldn’t get US banks to margin lend it themselves do zooms and so the Phoenix needed money they couldn’t get it from banks so they went to tether and said hey if you can give us tethered dollars which are pegged to quote-unquote pegged to one dollar that’s going to allow us to keep doing this margin funding margin funding meanings you borrow money to make a big bet on price going up or down that’s what that’s what drives a big piece of the crypto markets so the big debate here is one is there collusion between BitFenix and tether to is tether backed by real money or is it just made up it like is it and just printed like you can just print dollars is that what’s going on here and you can imagine the implications of both of these are pretty big now there’s I’ll give bit for next credit where credit is due the PERT who else a he’s a guy this is assuming guy has done his research and he’s presented his case with plenty of evidence that’s compelling and if you look at you can look at the blockchain explore for tether and you can see even in the month of November November I mean there’s like 20 million 20 million 30 million 30 20 millionth I mean this is hundreds of millions of dollars being issued from the tether Central Reserve or whatever you call it over to BitFenix but BitFenix and tether cannot produce a verified audit that proves that they have all this money in the bank they can’t prove that they actually have these dollar reserves so are they just making it up is this just fake funny money that’s allowing people to go out and buy Bitcoin on margin that doesn’t really exist all right and then it just that the cycle continues through all of that and if you really want to get into it go check out what Biff next is written he’s written some blog posts with tons of evidence and data about it and check out BFX data if you want to get into the margin funding you can go and you can see the different rates and you can see how like the supply of money of margin funds and you can see how much is being issued at any given moment and it’s not just BitFenix right I mean you’re tethered dollars you can see on bit tricks there’s all these different tall tethered exchanges there’s you go on bananas same thing like it’s it’s really everywhere as this de facto currency now so that’s what’s going on and the evidence is pretty compelling but there’s something shady going on and I think that if I was on a jury for something like this I would be you know it seems to me like hey BitFenix why don’t you just proved or tether like just show us the money and this lis over and they’re not doing that and that that’s when you’re like guys what’s the problem here I mean there’s there’s so much ammo against you they say they’re gonna put out some sort of audit BitFenix said this we’ll see but I do think that it’s it’s it’s worth checking this out however yesterday I tweeted about how this is the kind of thing like I’m not losing sleep over this I’m not going to bed and being like oh man when if this is all BS the bit coin and crypto markets are done and the reason why is one you know 675 million dollars I mean that’s a that’s a lot of money in a two hundred fifty billion dollar market cap what do you call it asset class now these are all multiplied so a markup of tether maybe six hundred seventy five million right now but you add that up into all the margin lending you add that up into the velocity of money the way one dollar can can often equate to like ten dollars of overall market cap just the way if one dollar is recycled eight times for example the money supply can be eight times bigger than that one dog that’s how the that’s how traditional central bank governments work okay one two m1 m2 money supplies so that’s that’s actually got a bigger impact than just 675 so that’s one piece but I think that the bigger piece is that the issue isn’t that this is a broken system if the issue is that there’s fraud being done right now in other words if worst case scenario if find out if the Nexen tether are colluding in some way and they find out the tether doesn’t have isn’t backed theoretically tethered just as like you’re right we we messed up maybe there’s criminal charges or whatever but if they went and got somebody to put up seven hundred million dollars for them and back at all one to one and they agree to do the audits and everything else the problem would be gone and I’m not saying it’s that simple I’m not saying that it should happen but this isn’t like it’s not like finding out that there’s something that’s irreversible you can’t come back from this is just pointing to the fact that we are the value of Bitcoin may or may not be inflated because of this really criminal activity if it turns out to be that you know I don’t condone that but right as a crypto investor as a crypto traitor there are only so many things that I can think about on any given day as it relates to the future of this of the market of of the asset class of everything and I think something like this well it is a big deal and it’s definitely important to make sure that this sort of thing is not proliferated and people are not getting taken advantage of through wash trading I don’t think that this is the apocalypse if this all ends up being true I think that the crypto could bounce back from this quickly because there’ll be something that will replace it there’s enough new money coming in that will offset that like Oh crypto doesn’t work anymore you know crypto is not worth anything this is all this is all BS I think that the price of Bitcoin could take a hit but there’s so much demand for Bitcoin right now and I think we would come back and when I look at things that could really cripple the price for a long time this to me just isn’t it isn’t a big enough deal I think something like the united states government banning bitcoin and i know you can’t ban it but you can shut down exchanges that would be a big deal that would that would be like serious because that would stop the a lot of the demands coming in and it would put us into like a very long term regrowth cycle it’s something like this i don’t know i think it may end up being true but i’m just of all the things that could look a crush bitcoin i’m not convinced that this is the one and because of that reason you know you just can’t fill your mind with with stuff that isn’t like a massive threat it’s good to know about it but that’s what’s going on so let’s keep obviously watch this ads unfolds i would definitely encourage you guys to read through this he’s got he’s got some really good blog post he’s done his research like give him a lot of credit and i have a feeling he might be right it’s the the real question is like is it going to kill Bitcoin for longer than a couple of weeks no my opinion too are there better things for you to worry about if you want to make money in crypto and the answer is yes at least for me and that’s that’s the clock is ticking like we do not have years and years of the kind of gains that you’re gonna see in this market like every day you got a naked ass is you know what are you focusing on and like they say scared money don’t make money so that’s what that’s where I’m coming from on that now let’s talk kind of along these same lines all right gets a little bit of a shift like I mentioned the awkward markets talk about neo had a big weekend let’s pull neo up and I’m a scroll out you could see neo had an enormous run all the way from 36 to 62 as almost they almost doubled in in BTC pairings and one of the you know it’s had a bit of a sell-off and continues to have a bit of a sell-off and I don’t have this is not the entire story I know that there’s a lot more to this right think did Phil maybe listing them and there’s all these rumors but from what I could tell it started from the tweet with this picture that was in Chinese that basically said there’s there’s a big announcement coming in three days and this was the start of all these other pieces of news about I CEOs coming out and China opening up their doors again and things getting better and better for something like neo and this really started to drive a lot of this volume I mean think about this this is a I think it’s a billion dollar currency and it’s a bolt it doubled like a billion dollars you see here crypto currencies knee of two-bit 2.5 million so it was it was 1.25 billion give or take and I want the 2.5 billion in a matter of a day and there’s obviously more to it than just one tweet or whatever it may be but that’s pretty crazy now as it shot up based on rumors and whatever other news like the more the exchanges and the icos and they’re gonna release all this new this new private exchange and China was gonna really embrace it all there was a post that came out that really just took neo down and it laid out all these red flags about here’s all here’s the things that you need to look at that makes neo look really sketchy and this is not the only thing obviously but you know this came out on the 18th and you can start to see that the price of neo started to go down again I know that there’s more to this I’m not saying that this these are the exactly factors but this is all this is all just stories it’s perception it’s it’s it’s time fake news it is just I mean maybe it is but it’s it’s people waking up and going on Twitter and telegram and read it and just seeing what they want to believe and and buying as much as they possibly can and then one person writes an article about this and this thing went viral so fast I saw up in every single reddit thread chatroom Twitter everywhere and that drove in enormous amount of fear and then he’s got all these people that were rebutting it which true even more attention to neo and as this whole thing just unfolded you just saw the price start to go down and down now the reason why this is a big deal unless there is some much bigger force going on but from everything I could tell this was really the main driver this news cycle this doubled a 1.2 billion dollar asset on just news and perception and the reason why this matters to you guys is that like I was mentioning we are in this phase I’m not back going back to the Bitcoin chart we are in the parabolic phase there is no disputing that when you zoom out this is starting to get very very vertical the more vertical it gets the more you are going to see these huge runs and these huge drops and that can happen on massive assets classes the idea that you can double a 1.2 billion dollar asset like that off of a couple pieces of news and then also drop it based on another piece of news assuming that this truly is the the big piece of this whole cycle that is insane to me and what that really means is that when you that as this gets more parabolic as this gets steeper and steeper it doesn’t matter what coin you own it doesn’t matter how much you believe in it you got a real eye the taking profits in this at this point in the market is the smartest thing you can possibly do if it goes up thirty percent in one day I don’t care if you believe that that coin is going to be highlighted on the president’s Twitter account if Elin must gonna tweet about it and if Bill Gates is gonna endorse it all in the same day if I don’t care if you anything you have to learn to just take profits no matter how much you believe in something because that’s where we’re at this is just gonna get more and more ridiculous on these pumps and they’re gonna happen they’re gonna continue to happen over and over take your profits keep some coins in the auth coins especially if you like the yellow coin but that’s that’s the byproduct of this the stakes are high the information moves fast and people are as things get more competitive which they are now people will they want reasons to buy and sell they want it they don’t want to miss it again so I’ll leave it at that for everybody who’s gonna who knows more about this I get it there is a there’s a bigger picture here but from everything I could research this is this series of events drove a majority of this of this cycle which is insane to me like that’s crazy now similarly let’s go back Power ledger has crushed it recently let me be the first to say congratulations to everybody who invest in a paralyzer I did not invest in paralyzer it it had a like actually and the ICO they were having a hard time and like they didn’t raise enough money and they end up giving out bonus tokens after the fact so kind of hurt the early investors so the whole thing had a I don’t know it didn’t rub me in the right way that being said it ended up being a very good investment thus far for people so for anybody who did invest in it who believed in it hats off to you that’s awesome and I think the same thing is happening here where the you’re getting all these rooms like there’s this thing about the Australian Government’s giving an eight million dollar grant what people don’t realize is that when government gives a grant of eight million dollars and there’s like 15 different parties involved each party’s gonna get maybe 200 thousand dollars and that money is gonna be deployed for five years and you know it’s like it’s never as good as the headline and this is coming from somebody who I used to get tech grants my other than name it’s not what like the headlines are for the newspaper but you know people read headlines and crypto that’s that’s what it is so they’re driving a lot you know the whole Elon Musk thing I get it and by no means am I trying to bad-mouth paralyzer well I think it’s a cool idea I hope it does really well I think could be an amazing project but this is a really good example where you’re holding on to it and you may be like all right cool this this thing’s on fire it’s never gonna slow down everything’s going to keep going up because it’s gonna revolutionize the solar industry in the world this is a really good example take out your initial investment take your profits keep the rise to power ledger if you believe in it but but go for it the other piece that I want to bring up is a tweet from crypto compounding I want our profits to single great advisors and credit fine a trade that you’re absolutely confident about move ton of money and put find a trade that you are absolutely confident about and move a ton of money in it because that’s how big investors do it gratitude that’s how big investor’s do it okay and I wrote back when it comes to making real money in the markets conviction is is greater than analysis this is a controversial thing and it’s certainly not a blanket statement but this is something that I firmly am starting to believe in so first of all congratulations on making this trade I think it’s really important to keep coming back to this idea where if you are presented with like 25 different charts or 15 different options and and they’re like well you know here’s a trendline and and here’s the triangle and here’s the the fibonacci and here’s the thing it’s great information to have but it’s very difficult to make a high ROI decision when you have a lot of options there’s a famous study where in a grocery store I believe it’s jars of jelly or cookies or something where they have one table that has two options and they have one table that has 15 options and the table of 15 options gets five or six times the number of customers and the table with two options sells three times as much jelly so the options get the eyeballs but the the decisions are what makes them money and that is very true and when you look at investors when you look at traders when you look at gamblers Pro gamblers whether it be poker players or even some pro you know believe it or not but Pro blackjack players where there’s not very many of them but they all they all have this same mindset where they do not have 45 different things on their plate that they’re trying to do a little bit here a little bit there a little bit there they focus on one singular trade they do everything they possibly can to make that a winner but do all the best research they possibly can to get the best price they can timing everything and they buy that one trade now and then they scalp the profits and go from there but having that conviction and having that patience if you want to make like real money if from a mindset standpoint that is the name of the game and it’s hard because it feels like you’re going putting all your eggs in one basket but you also realized that you kind of have to but there’s also a lot you can do to make that risk profile go way down so if you do if you research power less you’re a ton and you go in-depth and you talk to a team and you’re in their telegram group and slack and you you you you fully believe in it and you have very good reasons and if your stop-loss is in place and you understand what you’re doing it is often much better to go after one trade scalp it when you make the profits get your original stack back and build your portfolio that way as opposed to being like alright well we put three percent power ledger three percent and that’s three percent net but it’s harder to do this or it’s more work I should say but it it’s how people will make the most amount of money so I just want to give a shout out to this I think it’s scary to a lot of people and for the most part I think that the only reason to do this is if you are willing to commit the time and energy required to go and do all the research and nobody’s gonna do it for you I’ll tell you that right now but if you are willing to do that and you put enough money and that’s how that’s how things can go Big Z coins a good example for for me like there’s a few coins last week that some most profitable weeks of my life and it’s because it was a three month play and I slowly built my position and I accumulated and because I did the research and I believed in it and even if I was I told people I was like oh yeah Zeke coin Z coin like if you if you don’t do all the research yourself you’re like oh yeah Carter that’s cool like what else you got any portfolio what’s the hot thing I’m sitting out like oh well z coins cool yeah that’s cool what else you got but like that one trade went up 40 percent and it was big enough position like 40 percent is a huge amount and I think the same is true when you have something that you can research that does have a position and I think that you start looking through all coins if you just pick four or five of them that you believe in and just do deep dives on them and then ask yourself which of these are is the one or the two that I would be willing to that’s the lowest risk highest reward and that’s this is more this is getting to advanced stuff it’s higher risk high reward but like I said I’m I didn’t I didn’t get in the crypto to get average returns that means I’m willing to also put in the work to make it happen and I think a lot of you are too so I want to share everything that I’m doing that you’re doing and I just open up open up the doors obviously this isn’t financial advice I got up I get started saying that a little more but you know make your own decisions but so it goes in the meantime we will keep an eye on the prize watch this thing just continue to to crush it I will see you guys later peace out

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.