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.