tv Boom Bust RT July 6, 2021 5:30am-6:01am EDT
attack against me. rounding off our bulletin, dozens, all 5 fighters from all around canada are heading to british columbia. and that's because a heat wave. and the problem has sparked over a 100 wild fires and claimed the lives of more than 700 people. the ashes land around already it's burning and it's a couple feet of so it's like 6 feet, a wall of fire coming at you steady. ah, the that's all time off. it's a good bye from the whole team here. must go back to ground because we're going to head on over to washington dc for the latest boom,
this is amber, snow, and business show you can't afford to miss. i'm rachel blevins in washington coming up as the popularity of the world's largest crypto currencies has sort. so have the government crackdown. we'll take a look at the latest efforts to van bitcoin in china and the u. k. that japan has faith international backlash for its plan to move forward with the olympic games. we'll discuss the big money involved and some other major headlines coming from the world of sports. we have a lot to get to. so let's get started. the not a good start of the week for bit coin as the crypto currency shut, another 10 percent and fell as low as $32000.00. that's the lowest bitcoin has been in nearly 2 weeks. so what is responsible for this latest dive? well, analysts say china is expanding cracked on bitcoin,
mining is partially to blame. it's been a tough couple of weeks for the world's most popular crypto currency. this last over 20 percent in the last 6 days alone and is down 50 percent from its april peak of almost $65000.00. but still we should mention, bitcoin is still up 10 percent since the start of 2021. so let's go ahead and take a deeper look here with boom, co host and crypto analysts bend swan and chris, the i, chris see many bitcoin minds in southwest china, fish one province. one of the largest crypto currency mining bases were closed as of sunday, local authorities ordered a hall in mining in the region on friday, mid increase nationwide cracked down against crypto currency mining. how much effect is this having on the price? well, it's having quite a big impact because right now it means in the interim, effectively, one 3rd of the global crypto network processing power will be suspended in the
short term. so chinese companies fact that they coin mining pool such as will be finance and, and they've all experienced about a 20 to 24 percent plunge and their real time hash rates within the past 24 hours. and as a result, transaction in settlement times are more expensive and longer. but again, this is all temporary because we can actually take a look at the on chain data to figure out what's actually going on here. the miners are basically speculators. they hold a lot of big point on the balance sheets. so if you are a minor in china right now, and you're being told to shut down, what are you going to do? move. and regardless of the scale of your operations, you would like we need cash to finance move, and that's exactly what the jane stories telling us to get flow by minors at the highest level since march of 2020, supporting the theory that the least fell off was by chinese miners having to sell part of their holdings in order to escape this latest wave of enforcement action. it is the most likely scenario because these minors are moving otherwise of operations where just to shudder and not restart. we would also be seeing
a flood of 2nd hand mining base and ship the aftermarket as well, which we haven't. so most likely theory is that they're moving elsewhere to more crypto friendly area where there's cheap electricity. so as a result, chinese miners must also form alliances to migrate overseas to other places such as north america, malta, etc. and now ben, there's other news here as the people's bank of china is also pressuring banks and payment firms, including china, construction bank, an hourly pay, urging them to crack down harder on crypto currency trading. why are they doing that? yeah, well the goal here is actually utilize the private companies that do a lot of the digital transactions in the country to get them to be a part of this process. so as you mentioned, you know, our pays are part of that ad thing. icbc also cc b, they're all part of this, this strategy but says essentially 2 things we want. they want new investment in technology that will make those companies better able to detect cryptic or the
transactions. and they also, they being the chinese government one to see more in terms of know your customer regulation being passed and enforced by private tech companies. the other thing that we're seeing is that companies like alley pay, you're saying that they're going to go a step further than that. they're actually going to specifically look for any merchants on their platform who are involved in any kind of crypto currency transactions. and they will blacklist them as well. so listen what, what kristi just said about the miners who are moving out of the area. that is absolutely true. i think that's a natural cause and effect here. but you also have a shut down here of anybody who's involved in transactions on any level. and so there is a seems to be a very clear attempt to close them off. why is it happening? so we talked about the what? so how about the why is the why really because of the fact that the p, b o c, the people of china is planning to unveil very soon hear its own digital currency. and the chinese government is working to eliminate competition for that. they want to push out all other competitors so that they really are the only game in town. i
think that's a lot of what's happening. and christy, what about that idea that ben just said they're that they're trying to basically make room for their own digital currency? i think i was very sure the chinese authorities moving in line with the global financial regulars tightening up on digital currency training. apparently to prevent the stomach financial risk and illegal activities. but in reality, like, especially for china, it's about clamping down on currency control because that's what china fears the most massive amount of capital flowing out of china. be a big point. and they have no way of controlling or just when they're about to unveil this digital r and b. so it's not a big point like saying a cracked out on there is also the extend tags have been mentioned, ali bomb and the 10th and who own alley, bay, and we chat, both of whom got hit with these big fine. so it's a big industry overhaul to now get ready for this roll out of the arm. the digital are being which so far is not really gaining any traction at all. because a bloomberg interview found that chinese citizen showed very little interest in switching from mobile payment systems when my ali baba and $0.10,
and others openly balk at the idea of a digital r and b, which is programmable, comes with ad hoc expiration date authorities access to real time data on their financial life. so after that, mary lou form response china found that ultimately they need to lay the groundwork for a more forced kind of adoption by basically removing all the other competitors alley pay we pay am bitcoin in order to kind of funnel citizens into adopting this new digital r and b. and now ben, this crackdown isn't just hurting bitcoin, other kinds of actually taking a hit as well, including a theory m, which actually dropping below $2000.00 again what you know there? yeah, it didn't drop other all coins as well. have also draw, look, i think the main thing is because bitcoin go so it goes the rest of the market. but, but remember, a theory has gone up at a tremendous rate. even faster rate than big point has gone up this year in terms of its growth. so that's been very positive and remember a theory and ether is specifically tagged to smart contractors,
a lot of utility that's based on you theory. and so i don't think it's going to go anywhere. it might tip a little bit, it'll come back up pretty quickly. but again, i think there's an important point to all of this conversation, right, which is that we see around the world right now. a lot of countries, and i think the united states will be one of these countries, but china is certainly leading the way on this. there are a lot of countries right now that want to step up and say, look, we are the authority. we see the interest that people have in digital currency and so we're going to create our own what you have to remember about crypto currency. all of it is that crypto currency represents a transfer of wealth from the top to the people where people are able to expand wealth without the controls of government and central bank authorities. what a digital currency coming from a central bank does is it re allocates the wealth back to the top. that's what's happening to china. that's what will happen with any central government that tries to impose its own central back currency boom, but co host, encrypt analysts bend swan and christy,
you're not going to get any straighter than right there. thank you so much. a huge shift and the crypto world as finance, the world's largest crypto currency exchange has been banned from operating in the u. k. it is the latest sign of the growing crackdown on crypto markets worldwide. britain, financial conduct authorities said saturday that finance markets limited. the u. k division of buying and is not permitted to undertake any regulated activity in the u. k. from june 30th the company which already offers brits crypto training through its website must add this notice for u. k. users. due to the imposition of the requirement by the ca, finance markets limited is not currently permitted to undertake any regulated activities without the prior written consent of the f b a. so joining me now to discuss is boom, moscow can crypto analyst been swan?
r a been, let's start with the biggest question here. why did the u. k. take this step against finance right now? yeah, it seems like there's a, there's a couple of reasons for now. the regulator itself has not said why they did this. and by the way, i should mention that japan just did a similar thing as well. so, but you came to japan crack on a by. now, the reason for that though, it seems to be, if you look at kind of the timing of this as well as the statements that have been made, that it all coincide with new anti money laundering rules that have been established in the u. k. regarding crypto currency, basically any crypto currency firm is required to register with the f c a and to also provide anti money laundering. take essentially steps to prevent money laundering. so what are those steps? what more than likely it's k y c? it's no your customer rules that say nobody can open an account without proving who they are, biling and filling out certain paperwork and all of that being turned over to the government. as you know, rachel,
the crypto world doesn't lend itself to that. that's the crypto crypto currency is you're supposed to be able to open up wallets and hold tokens without having to disclose exactly who you are. it is in contradiction to what many of these regulators actually want. and that's the biggest concern with all of this evening with crypto currency is becoming more popular. is that a big exchange like this one can just be shut down by a government and that it can actually be successful. now we're seeing in el salvador that bitcoin is set to become legal tender on september 7th. and as part of that, the government is planning to give away as much as $177000000.00 in bitcoin to the public. so why is that? and how do they mean, how do they plan to make it happen? yeah, it sounds nice, doesn't $177000000.00? well actually it's not that much money when you really break down how much you're actually getting. so what the government is essentially done is a broken it down so that every single person in el salvador who opens up a wallet is able to receive $30.00 worth of big coin. that's the goal here. so
obviously lots of people equals a huge sum, but for each individual person, it's a small amount. the goal here is to get people to actually open up a bit coin, wallet to establish once they actually have one. and then they begin to be able to use that. we should mention that the alpha l. salvatore and government is making it very clear that if you already have us dollars, because for those who don't know us dollar is the national currency. you know, salvador, if you do not, if you already have your, you know, in your bank account us dollars, they're not going to convert that into big coin. they're not forcing bitcoin on the country, but they are trying to get the country to do is begin using crypto currency and begin using bitcoin specifically as legal, tender. and so the best way to do that, if you're trying to get people to use it, if you're trying to get merchants to take it, if you give everybody some and you say, go out to spend it, use it, you'd use it in some way transact with it so with less scary and you could actually have your wallet set up in about. so that's kind of the goal here, is a lot of eyes right now and exactly how this roll out is going to happen. and at
the same time, when we're talking about bitcoin, we also have to mention it's more recent, falls below $30000.00 once again. and there are some analysts who are even predicting another crypto winter as they call it. so what exactly does that mean, and do you believe that that is where bitcoin is headed? no, i don't. i don't think we're headed necessarily into a crooked a winner. so for those who don't know about 14 times since its inception, big coin has risen and then fallen to new lows and kind of goes for several months like this. it's called a crypto winter, right? a lot of times, by the way, those happen over the winter season. strange. but what's interesting about this is the last time that's happened obviously was 2017 right. big point went all way up to $20000.00 a drop down to $3000.00. it sat at 3000 and for some time before it started this new, this latest sentence that we've seen. now we're dropping again. as you mentioned, we drop below 30. we're back up above that again. the question is going to be whether or not $30000.00 is the new floor for bitcoin. and by the way, if it is,
that's pretty great for anybody who invest back to $3000.00 just 2 years ago. or is that floor going to continue to fall? does it become $20000.00? if it, if it falls all the way to 20, then you have an issue. but the issue was not long term. the issue was short term. how do you, how do you keep bitcoin moving? well you, that obviously requires investors that requires new money to come in and new users to come in. but i think overall, because as we talked about so many times with the institutional investors, it's not like watching technology is going away and big point is not going away. but the question is, where does it find its new floor? i believe that floors around 30000, we'll see what actually happened. and i know that coin is one of those that you've been falling for years. you've survived the crypto winter, all of that continue to provide coverage. so doesn't seem like there still is continuing to be more and more interest encrypted as we go along. yeah, i think there is more interest in it. but again, you know, when i try to remind people of constantly with this is that crypto currency, the value of that is not in the currency is in the technology,
the underlying technology. so when you, when you think about crypto currencies and there are so many of them out there, you have to consider the fact that different crypto currencies have different utilities and does the coin actually have a utility? if it does like, like in the theory, i'm right. if you're getting into with theory, i'm get into that and hold onto it. don't, don't get scared because you see if there was price drop a little bit because long term, if theory has enormous value through smart contracts, it's utility is usefulness is what gives it actual value. so that's why we'll see any kind of currency that has the utility usage. we'll see bill continue to rise. and certainly if there's anything we can say about the crypto world, it's never boring. that's for sure. then so on. thank you so much for your time and insight on this one. thank you. the time now for a quick break, but when we come back, japan has place to international backlash for its decision not to cancel the
olympic games this year. we'll take a look at the big money playing a role in this decision. a game go on next. will be right back after that. with me to don't to leave, you will move a new she will tell which i thought she was ready to love me because she knew she wouldn't be a little girl, but i was a nice a do me did you like to show you control the traditional moving machines,
etc. if you see the one doing the best for me was she said for me and lasted with metro. okay. she yeah, she felt i love this and this is what i need from the new new new which is the new i see executable football once he put up on that got moved up when i got it up on that got moved up and ah ah, is your media, a reflection of reality?
the welcome back. after being postponed for a year to cover $900.00 pandemic, the tokyo olympic games are set to kick off in less than a month. and just this week, it was a note that the venue that the games will allow 10000 domestic spectators. now that's despite warnings from experts who say, holding events without fans, is the, if it stops it as japan, faith several states of emergency due to outbreaks in the nation, many called for the games to be cancelled. in fact, polls in april showed 70 percent of citizens did not what the game to go ahead as plan. so why go ahead with the games?
well, there are many reasons, but a big one. you guess it, it's money. it is estimated that japan will have spent as much as $35000000000.00 to host the game on a $7500000000.00 budget and organizes even say the delay ran the budget up by 3000000000 dollars. along with that, there's huge money in global sponsorship deals and television right for the games. that hasn't always been the case. earlier i spoke with john worth time. he's the executive editor and sport at sports illustrated, an author of glory days. the summer of 984 in the 90 days that changed sports and culture forever. the book kind of, we've some of the biggest story lines of basketball candidates, hockey and boxing history with an overall arch about the 1984 olympic games. i started the conversation by asking him about the fact that some believe the 84 games could be the last with news week, even having a cover story asking, are the games dead ensure you had one individual say we got to start creating this
like a business that was peter, you, brock, you're right. i mean in the games just kind of go go through the chronology to in 72. there was a horrible terrorism attack in, in, in munich. $7060.00 would be a huge cost overruns in montreal. but canada took up 30 years for canada and called back in montreal to pay this off. 80. there was a boy, god, 84 people are thinking, this may be it for the olympic movement. and peter, you brought to look where we're not going to do what you just described going on in japan. we're not going to have a huge investment in facilities. we're going to sell sponsorships, we're going to networks against each other, make them bid on these media, right. feel the games had our profit, a surplus of i think we talk about the olympic and tokyo and know and saying this is about the athlete. said that the gymnast the rotors that should have one more chance to compete. it's all about the finance and then you can draw a direct line from, from that to 984. and how big was the television?
right. and we've seen this explode throughout sports over those last about 40 years . is that one of the big angles that actually not to say they were profitable, but they were able to, to break even and use some of that revenue for future olympic games and to compensate the people involved? yeah, with tv committee was it was a b c network that they didn't. and 9 figures which at the tie was gargantuan. it pales in comparison to what nbc, of course is saying now, but the other thing was sponsorship. then the total, the big sponsorship in 1980 games and late plaza. the previous olympics in the us was about $10000000.00 combined. peter, uber, i said, wait a 2nd, we need to fewer sponsors paid a lot more money. we're going to make it competitive. one of the very 1st b as was for beverages and coke and pepsi squared off coke b to $12000000.00. so for one beverage sponsorship from coke clips, the entire sponsorship of the previous olympic. any 1980. it is only grown since that i want to clarify again to your point exactly. now those numbers might not
seem huge by today's standard, but back then, that was huge money involved. now you also address 984 supreme court case regarding college football and television. right. and while the schools one the right to actually negotiate their own deals, there is a line and opinion of the n c. a versus board of regents decision that actually stays quote, in order to preserve the character and quality of the product, athletes must be paid and must be required to attend class and the like. why did this simple statement have such an impact? preventing athletes from being compensated for, you know, for those of almost 40 years now. yeah, this is the supreme court case in, in the summer of 84. it will have, it goes to what's, what's happened in the last few days. and it's basically gave schools the right to negotiate their own tv deals. this was not armageddon, cmc predicted, again, parallel to today that we may want to consider. but there was align if you say,
any opinion basically say, you know, these athletes need to be kept amateurs, college sports, or about amateur athletic. and that was seized upon by the n c a, and this was not a favorable ruling to the n p a. but that one line of get that one line of the opinion, the n t a seize upon for i would say 37 years and we can talk about recent events that may have appended that. but this was a supreme court decision, 84 that didn't get a lot of attention, but that would have a huge impact and the future of college sports for you know, really, really up to the present. and that's exactly what i wanted to bring it to, to the news of this way because it is that no longer relevant as we have seen, the supreme court ruling favor of athletes receiving what they say is unlimited benefits tied to education and the n c a now, pushing further into compensating the student athletes for name image and likeness writes. yeah, we hadn't, it was not just of course, that you wrote the opinion, but you had bread, cavities writing and potentially, you know, a content of any that. let's bring it on essentially like this is
a fairly narrow ruling about paying for education and laptops and other sort of education related expenses. but the door is definitely open for a broader reading in a broader challenge to the n c, a cartel to amateur. and so i think it can be very interesting to see how schools, how broad they go in terms of the educational benefits that are now on the table. but you sort of have a sense that the, you know, the, the iceberg is melting a little bit. it'll be interesting to see if we can move the ball, no pun intended, from the educational benefits to outright compensation. well, that's what i was going to bring to is with the name and image and likeness rights that has been talked about, because the anthea, that actually looks like they're going to move forward to kind of have a uniform policy on that. and that's mostly due to statewide legislation that hasn't gone to the supreme court, or they actually where do you think about the supreme court weighing in on that? so they're just saying, let's, let's take care of it now. yeah, i mean what,
what they say their public statements might be very different from their private stands. i just think that you sort of play out this model and we all understand that the revenue sport actually you, our football team it generates, you know, tens of millions of hundreds of millions of dollars. probably those are actually the ought to be compensated. i think what's going to be really interesting is just to see where these dividing points are and i think we all, yeah, most people i think a grid. i know that this is empirical. most people feel like college athletes generating revenue should be compensated. i think what people don't always grouse is how few color and narrow the subset is and there are, you know, 95 percent of college athletes aren't in revenue sports. and some of the athletes in revenue, sports are the money generators. so we talk about, we talk about naming image and likeness that we talk about compensation. and i think it's a pretty narrow band of athletes that this will, this way impact john worth offer of glory days,
the summer of 900 for the 90 days. that change sports and culture forever. thank you so much. that's all for now, you can catch boom bus on demand by downloading the portable tv app for your apple or android device. we'll see you here next time. and as always, don't forget your question more me i ah, it's been decades since the fall of spain's fascist regime,
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