Tai Zen: What’s up, guys! This is Tai Zen. I got my buddy JW here with me. He doesn’t want to be on the camera but he’s gonna be asking me questions.
I’m making this video from Moze Burrito. I got me a big fat burrito here. This is Moze Burrito in Boston Massachusetts.
So I’ve been getting a ton of questions from all my close friends and people on YouTube and online because the price of Bitcoin is running up, it just broke $470 as I’m making this video. The price of Ethereum is dropping and people are panicking and people are rushing to get into or get out of trades. So what’s your first question?
JW: What the hell is going on with Ethereum?
Tai Zen: So everybody including Mr. JW here wants to know what’s going on with the Ethereum.
JW: I either want to buy more, I want to just sell everything.
Tai Zen: So, You got to understand what’s happening in the markets. What do you buy Ethereum with? We buy with Bitcoin. So let’s just say that each one of these is an Ether, I’m going to speak in terms of Bitcoins, that’s what you have to buy Ethers with.
Remember how you always ask me why do you always make your videos and talk in terms of Bitcoin and not in terms of US dollars? Because if you buy it with Bitcoins, you got to think, in my opinion, other people like Leonfu.com, he thinks in terms of dollars but I’m buying the Ethers with Bitcoin.
In my previous price prediction for Ethereum, I had it, I can’t remember what the entry was, but I said that if it falls below 18.5 million a bit, somewhere around the low of 18.5 mils a bit. You need to start thinking about getting out and for sure if it breaks below 16 and a half mil a bit, you’ve got to get out, because you can always get back in when the price of the Ethereum goes back up.
At the time that I made that video, in that price prediction, I did not anticipate that the price of Bitcoin was going to shoot up that quick. Because Bitcoin has been pretty stable around $420, $415, $425, $430, the low $400 and now it’s shooting up to almost $500, and now that it broke $470, that’s a huge number.
Because once it breaks another small resistance level and once it breaks above that, it is for sure if it breaks above $500, it’s going up. Or at least nothing’s for sure, but there’s a very high probability that it’s going to move up.
So what happened was I do not anticipate that the price of Bitcoin was going to shoot up that quick and that fast. Because of that, whenever the price of Bitcoin goes up, the price of Ethereum goes down. At the time I made the video, it was worth around 20 or 22 mils a bit, and now it’s down to like 16 and a half mil a bit.
So we took like 25% drop in the price of Ethereum because the price of Bitcoin shoot up from $425 to $470 and it’s on track to go up higher based on the charts. There’re several reasons why the price of Ethereum is falling temporarily, one is because if the price of Bitcoin goes up, you don’t need that many Bitcoins to buy the same amount of Ether, the same Ether doesn’t require that much anymore.
If that will happen it’s not really a big deal to me anyway, it’s not a bad thing. Now the second thing is that whenever people see that and they don’t understand that the reason why Ethereum going down is that the price of Bitcoin is going up. They panic and they freak out and they go and dump their Ethereum and they sell it.
So the first reason is that Bitcoin is going up, so it lowers the price of the number of Bitcoins you need to buy the same amount of Ethereum, that’s one. Number two is that people panic and they don’t understand that conversion. Because of that, they think oh it’s going down, so I’m going to sell.
So guess what happens when everybody starts selling? The price goes down, so that’s the second reason. The third reason that the price is going down is that recently a couple of days ago Vitalik Buterin, the inventor of the Ethereum, guess what he tweeted? He tweeted that he unloaded 25% of his Ethereum. That’s not a good sign, keep in mind that he has so many Ethers that it doesn’t really matter.
It’s like saying that Bill Gates just sold you know 50 million dollars-worth of Microsoft stock. It’s not what a matter of you should or should not do, that’s up to him, that’s his business. But if I was the creator of Ethereum, and I know that everybody’s watching my move, I would not announce to the world that I just unloaded 25% of my Ethers.
Now keep in mind that he’s a young kid, in his mind, 25% of his Ethers is not a big deal because he has a bunch of it. That’s just like I said like if Bill Gates said that he just sold 10 million dollars worth of Microsoft stock, he can do that every day for the next 20 years and it wouldn’t matter, because he has that many shares of Microsoft’s stock, he has that much money in Microsoft stock.
So when somebody owns that many Ethers, selling 25% of it means nothing. If he said that I’m gonna cash out 100% of my Ethers and I’m quitting, that would mean something. But to do that it doesn’t mean anything because he has so many and the people that don’t know that he has a bunch of Ethers.
People that are investing in it might have 100, 200 Ethers, 1.000, 10.000 Ethers, this guy has millions. Selling 25% of it means absolutely nothing to the market. You can retire off of 2 or 3 percent of his Ethers.
I don’t know exactly how many he has, but the guy has a bunch, he’s the inventor of it. Of course, he’s gonna allocate a big portion for himself and the other guys that created it when they started, it makes sense.
JW: So is this a buying opportunity now or is it going lower.
Tai Zen: I said in my previous video that if it breaks the low of the 18.5 mils a bit, and the 16.5 mils a bit, you want to wait for the price to come back up and when it reaches back up to that same entry that I put that was a good entry, then you get back in. Because if you get in now, you don’t know how much lower is gonna go, it can go lower, it can go from 15 and a half mil a bit down to 10 mils a bit.
So you went to comes back up to that level wherewith an ideal entry then you get back in. Because if it’s gonna go up and go to the 50 mils a bit I, had anticipated then you can still catch it at 22, 23 mils bits and ride it all the way up to 50 mils a bit, and you still make a good return. Do you see what I’m saying? So those are the 3 reasons.
One is that the price of Bitcoin is going up. Number two we got panicked sellers that don’t understand how Cryptocurrencies work and just like when you buy stocks, it’s like the stock against the US dollars or you trading Forex, it’s the Euro currency against the US dollar, it’s the Canadian dollar against the US dollar or the Pound against the US dollar, people can think in terms of 2 units.
But when you trade Ethereum, you have to consider Ethereum (the Ethers), the Bitcoin and the US dollar, so when there are 3 units of conversion involved, there’s tricky for the human brain to understand that. So that’s the second reason.
The third reason is that I believe that is because Vitalik, the inventor of the Ethereum, announced that he unloaded, he cashed out 25% of his holdings, of the Ethers that he owned and people don’t realize that he owns a lot of it and that 25% means nothing.
JW: Now you think a lot of these people cashing out, people that got in around 30 mils a bit, are just taking a hit?
Tai Zen: Which brings us up to the fourth reason, I was going to mention that. The fourth reason is that the people that got in late, around 25, 28, 30, 32, 33, they got in when the price’s been going down, and they’re hurting so bad that they just surrender, they tap out. Then here’s the fifth reason and the final reason, then we got to finish the burritos, so that way you can eat your burritos too.
This is the fifth reason why the price of Ethereum is falling is because they see that there are people that are out as short-term traders, we’re long term traders, so investor is holding for the long term, we’re talking about months and years, where there are people are just in and out within a few days or within just a couple of days or a couple of weeks.
So when they see that Ethereum is going down and Bitcoin is going up, guess what they’re going to do with their Ethereum? These people don’t care what the technology does, they have absolutely no concern what Ethereum is, what it does or how it’s going to change the world. They don’t care, they just want to see something that’s moving.
The short-term traders they’re gonna unload and get rid of their Ethereum convert it to Bitcoins and move over to the Bitcoin mark and start trading a Bitcoin market because it’s more volatile now because it’s moving.
JW: Or go into under Poloniex and sell it on margin. And they can do two 2.5 times.
Tai Zen: So there’re a lot of things that they can do, but those are the five main reasons that I believe is causing the price of Ethereum fall. So thanks for watching this video, guys. We’re to get back to our burritos and hopefully, that makes some kind of sense.
Like I said my previous video if the price of Ethereum falls below 16.5 mil a bit, which it has, you’ve got to get out. So I don’t want you guys to think that I make Ethereum videos or Cryptocurrency videos to pump anything.
I also tell you guys where the exit points are at. So make sure that you guys get out and when the price of it goes back up again, you can always get back in. Don’t let your account bleed out further than it needs to.
Thanks for watching this video guys, if you guys like it, give me a thumbs up. You guys don’t like it, give me a thumbs down. And make sure you subscribe to my channel and I’m going to go back to Moze Burritos with my boy here.