MGT Capital Investments Inc. (MGTI)

[Imperial Whazoo]

My opinion on the effects of the controls imposed on new issuance of ICOs in china? MGTI will benefit. The following is my reasoning. Follow along.

Like I said before: shutting down new ICO activity inside of the country that is doing 70% of the bitcoin mining does not shut down the bitcoin exchanges or the bitcoin mines. In fact, it actually refocuses the monies that were going into altcoins back into the pre-existing system. As such, the value of the coinage that currently exists in not reduced by limitations imposed in a portion of the overall system.

Here is a mental exercise.

Visualize the flow of value in the crypto world as though it is a valve & pipe system.

Prior to the Chinese limitation on the issuance of new ICOs, there were innumerable open valves through which new "coinage" could be injected into the valve & pipe system. Now, after the Chinese ICO decision, the system diagram has to be modified to a state where the injection points in part of the system have been shut down.

What had been happening was this: there was unlimited increasing volume of unmanaged inflows. After the Chinese ICO limits, there are fewer inflows from uncontrolled input points that were located in the part of the valve & pipe system that contained 70% of the volume flowing in the system.

As a pragmatic reality, since the removal of the input points is only in 70% of the system, and since systems are adaptive, it follows that the net effect of the closure of inputs in 70% of the system is not going to eliminate dilution in the system as a whole.


Rule of thumb applied here: if the area of which the 70% consists can be controlled, then the managers of that 70% area can increase the benefits they can obtain from the 70% they control. Chicoms control "capitalism" inside the Chinese economy.... a small set of controlling families own the wealth inside China. Since bitcoin is a new source of vast wealth, controlling the bitcoin industry is a necessity to whatever power is on top in that economy at this time.

The problem from MGTI's point of view is this:
given that there is no way for any entity to control the entire valve & pipe system (at this time), and given that control has been expressed inside 70% of the system, what impact will come out of this action in the remainder (30%) of the system?

The mindset of the chinese authorities has been uncloaked. Any camo previously worn by the Chinese parties has now been laid aside. A control exp[ressed over 70% of the system is not going to limit the events happening in the uncontrolled 30%. The 30% will express itself. Simple as that.

Net net: IMHO it is to MGTI's benefit that control over 70% has been imposed.

The overall system will adapt and, as a practical matter, MGTI is positioned to leverage this by being in place at the outset of the adaptation that is going to happen as the entire system adjusts to the changes impose in 70% of the system.

MFTI will benefit if it successfully delivers mining in the uncontrolled portion of the system.

Thats the big "IF".

If MGTI is actually going to build out mining in the US, which is in the 30% that is not under control of the Chinese, then the benefit to parties risking involvement in MGTI is going to be an exponential upside move.

There is every reason to think, until there is concrete evidence to the contrary, that it is irrelevent whether the parties involved in MGTI and UAHC are scam artists. A scam artist is a person looking to maximize their wealth. They are willing to be crooked if that is required, but on their baseline, a scam artist is predisposed to leverage a situation to maximize the outcomes that benefit them.

As such, it follows that these guys, even as scam artists, are going to milk this puppy for everything they can, and building out infrastructure is the ticket (now that China has imposed controls on the 70%). MGTI was pre-positioned by being in place prior to the imposition of controls. They are thus the best positioned stock out there for leveraging the growth in the 30% of the system that the Chinese do not control.

Thats my take. I could be wrong, but thats my gut feeling on the events that have recently happened.

Imperial Whazoo