0 sats \ 2 replies \ @Solomonsatoshi 3 Oct \ parent \ on: Retirement Plan to Sell 8% of Your Stack PA Jeff Ross bitcoin
Have you studied The Opium Wars?
Britain forced itself upon China and by using Hong Kong as a base for banking gained entry and control over trade in China. China suffered more than a century of humiliation and only in recent decades have reached a degree of development and capacity to respond to the reality of western imperialism. One aspect of a logical response will be to understand the potency of monetary hegemony- control of trade payments- and China clearly does understand that ability to make (and sanction) international trade payments is highly strategic - it after all perhaps the wests most potent strategic lever- having been applied to Iran and Russia- and yet Iran and Russia are now still functional economies - more than that able to invade and attack the wests allies and associates, with Chinas support in trade and trade payments.
China is the largest trading economy in the world- there are few if any nations that can afford not to trade with China- it is inevitable that China - like every predecessor in history to have held such a dominant trade position, will gain monetary dominance.
Its not so much a matter of whether they want to, than that they must.
The west with its growing insolvency cannot continue to provision a credible global trade payments protocol- unless you were to consider Bitcoin, which (unfortunately) China is not and will not!
I know Ray Dalio thinks China will likely be the next superpower. In his book he talks pretty candid about how the US might want to preempt an attack on China before they get too powerful. One could argue that that is already happening through economic actions.
What makes BTC special is that it isn't tied to any state. Its working well and is continuing to grow. Nation states will come to realize why they need bitcoin in time. Even if China demands you buy in their currency, doesn't mean you need to hold onto the sh$tcoin. When you need Yuan to buy something, swap it with your BTC reserve.
Are you arguing that China is going to destroy bitcoin somehow? You know how many times they've banned it right?
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No I am not arguing China is going to destroy Bitcoin.
I am saying that as the USD declines in value from being ceaselessly debased to enable chronic trade deficits and fiscal deficits Chinese currency will be increasingly predominant in trade...as China now dominates global trade in manufactured goods and commodities.
As China increasingly dominates global liquidity their natural hostility to Bitcoin will negatively affect its value.
Ultimately a currency must have value as a MoE and SoV- Bitcoin is still largely ineffective as a MoE- even western governments have effectively obstructed its use in that role to a significant extent.
Bitcoin has been a very strong SoV to date but medium- long term faces real challenges as China rises and USA sinks.
Bitcoin has been shifted even in the west where it has been tolerated (but with significant obstruction around use as a MoE) toward being largely seen and used as a speculative commodity, not a currency. That is a real problem, even before you consider Chinas constant rise.
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