PayPal Co-Founder, Bitcoin Investor Thiel Says Bitcoin Could Be Chinese ‘Weapon’
(finance.yahoo.com)
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From 2011 - 2017 before any of the halving events China was the largest miner of bitcoins. Their dirt cheap electricity and access to GPU manufacturing facilities put them in this position and they took full advantage of it.
This is one of the main reasons that mining pools were created. Without a pool, even with a basement full of antminers, no one could compete with the warehouses in China.
People who do not know the history of btc are at risk to get the rug pulled from under them.
The largest holder of BTC is the CCP. The US gov also holds millions of coins from their raid and seizure of the silk road.
This is not financial advise.
Personally I suspect that BTC will be used as the second strike to completely economically destroy the upper middle class of the USA. A limited hangout to dethrone the USD for a short time before transitioning to a digital yuan.
First the dollar will lose its reserve status. Inflation will spike and btc will rocket more, it will be near irresistible for the public not to join in. We're talking hundreds of thousands of dollars.
Then BTC will be crashed, and with it nearly all of the wealth of the US upper middle class will be transferred to China/ abroad.
The CCP strategy generally is to turn a feature into a flaw. This is likely their plan with BTC. BTC is distributed, which is one of it's main features, but that also means that if it is attacked it is basically defenseless, that is the planned flaw.
This can only happen if people panic sell, but what would they sell too? With inflation in USD the crypto prices will skyrocket anyway and there's no way to figure out the real price of Bitcoin, except for the few things you can buy with it, which is luxury stuff like Teslas or Lamborghini's.
I mean it could happen, but that requires people to panic sell into digital yuan, what sane American would do that? especially after seeing what happened to the crashed dollar, and what happened to your savings after trusting the government.
Some people will panic sell, then the government buys those coins up cheap. Causing the price to go up again. This is why you hold.
This can happen if a large enough holder strategically uses their holdings to cause a cascade of deleveraging events. Many people are in on margin and don't have an option to sell if the call from the manager comes in.
Lets be completely honest about the holdings of BTC - the CCP was BTC mining champs from 11-17, they were the most likely culprit in mtgox hack, and the most likely culprit in the recent ledger hack. They have coins.
You are right though, there will be no where to jump to. Their intention isn't to allow americans or westerners to buy into the digital yuan. Their intention is to break us.