AI is a very powerful analytical tool in the financial market, but not 100% infallible. Let’s continue the discussion of Bitcoin and KK Park of yesterday. I asked how’s the seizure of the Prince Group affected the fall of Bitcoin. They said the seizure was on October 14, and the fall of Bitcoin was on October 6.
Wrong!
It is only part of the truth and not integral truth. The seizure of Prince Group was a joint action of the US and UK. The US action was really on October 14, but the UK action was on Sep 30. A Chinese woman was convicted and there was a seizure of 61,000 BTC which worths 6 billion British Pound. At that time was the largest confiscation in the world. But just half a month later, it ranked only the second when the 127,000 BTC was seized by US and surpassed the UK action.
So, what’s happening? Is the AI like the blind man touching an elephant. No!
The first possibility is that we were talking the US action as focus, they may put aside the UK action. The second is that the woman in UK used cash to buy a house and was thus detected. May be no prove that she is from the Prince Group even may have relation. But our theme is talking about the KK Park and Bitcoin, this is the second largest within half a month and should be mentioned. At least the incident on Oct 14, broke the previous record on Sep 30. Why not mentioned? The third is that in early Sep, there is a Ming family from Chinese concerning scamming where the Chinese government sentenced 11 people to death. Maybe they mixed up or put it into that category.
Anyway, the second largest amount of Bitcoin concerning scamming should be mentioned in such a case. Now the head of Prince Group not yet arrested and the Cambodian government say they are good merchants for they run a lot of activities concerning charity and even have promotion on anti-scamming to the public. First of all, I do not ask investor to say who is right or wrong, but must mind the flow of Bitcoin, for it will affect the market. Put aside politics, aim at money market now!
In late August the AI forecasted there would be a great rise in MSTR of 573.85% in one month, now it not only has no rise but greatly fallen down. When facing uncertainty of Sino-US tariff war, and Russia has no idea to come to ceasefire, Bitcoin should act as safe haven, but it still went down. When spot gold price retreat from the top, Bitcoin should also act as safe haven, but still went down. Is it related to KK Park or Bitcoin?
China has been investigating the Prince Group since the pandemic but took no action, why the UK and US suddenly can confiscate such large amount of Bitcoin and frozen them? I asked the AI, they could not fix the right reason. It is because of the Republic of Palau, a small island country in Pacific Ocean with just 21,516 inhabitants and the area is just 459 sq km. The Prince Group built a hotel and the total investment is 4 times of the GDP of the whole country. It is situated by the side of an US military base. They do not have so many visitors or tourists to make them to do so. US afraid of them would have special mission. Therefore, US kick off this group and confiscate their Bitcoin.
So, when those frozen Bitcoin are released to the market, it would lead to a fall. Normally, in such a case, the psychological effect is more important than the actual amount of Bitcoin pushing out.
In late August, Bitcoin was expected to have a function of safe haven when there is news that China will become strict in tariff war, and at length released the sanction of rare earth, not only to US but to the whole world. Bitcoin had not gone up but went down. Now, even the meeting of Trump and Putin is postponed.
Anyway, AI is still a very powerful tool and we are waiting for AGI and ASGI which are known as super AI. What investor can do now is to upgrade your AI platform instead of upgrading your iPhone. Refer to more platforms and mind the release of the frozen Bitcoin. Now people said the seized Bitcoins may be just part or the Prince Group, there may be more not yet discovered, may be 2, 3, 5, or even 10 times, but also may be zero waiting for seizure. Who knows? When you want to know more, please refer to comments in Singapore, for they are more neutral. The Prince Group is not a listed company in Hong Kong, but have a lot of business both in HK and Singapore.