Topic: [2017-11-03]Chinese Bitcoin Miners Are Obsessed With the Illusion of Controlling (Read 1488 times)

Xiao Lei, a financial analyst, released an article yesterday with the title: The manipulator of Bitcoin finally emerge after China ban Bitcoin exchanges. Xiao offers a new perspective to look at the BCH/BCC and the upcoming fork in November. Essentially the story points out that USA or institutional investors are trying to seize control of the pricing of Bitcoin for the next round of currency war. However, Chinese miners are not aware of the conspiracy and still obsessed with their control over the hashing power. The “story”, more like a conspiracy theory itself, soon captures the attention of bitcoiners. The controversy is heating up after it is recommended on Baidu Baijia, a wemedia channel of Baidu.


He quote from Henry Alfred Kissinger:

“Control oil and you control nations; control food and you control the people.”
But I didn’t find the source of the third part: “Control the coinage rights and you control the world.”, which is the basis of his inference.

Last June, the market value of bitcoin was around 10 billion USD and now is getting close to 120 billion USD. Xiao compares the rise of bitcoin with Maotai, the best known white wine in China. Stock price of Moutai is getting close to 100 USD per share, making its market value around 100 billion USD. But it’s growth in 2017 has been dwarfed by the rise of Bitcoin. He said:

“If the current trending continues, one day you will find that holders of bitcoin and those who do not own bitcoin may be two totally different classes.”
Just like gold, the supply of Bitcoin is known and not subject to government backing. The valuation of bitcoin is the reflection of existing fiats, which make it the natural enemy of government-backed markets unless it could be controlled.

“If a country could ride the horse of bitcoin at will, then bitcoin would become the nuclear weapon in a new currency war, which has been discovered by Japan and USA long time ago.”
Bitcoin, like gold, has caused a great deal of trouble for the government to develop the sovereign currency and has since begun to act as a tool in the game of financial sovereignty. When the U.S. dollar uses gold and oil to consolidate its dominance globally, other sovereign currencies can only become subordinated to the U.S. dollar. The opponent to overthrow USD can’t be another dollar. It must be something new.

“In order to curb China’s growing influence in the bitcoin ecosystem, the Bitcoin core development team has made very serious moves. But the community is a loose organization and Core’s move doesn’t attract much attention. As a result, the core members of China bitcoin community is still obsessed with the illusion of having control over hashrate. They don’t even know what is going on at the moment.”
Xiao Lei believes that the western community are afraid of the growing influence of China in Bitcoin. Taking down exchanges is just the first step. What USA wants to control is neither the hashrate nor the dev team. They just want to control the pricing of Bitcoin. Once the pricing of bitcoin is in the pocket, then it will wields its influence in every aspect of the world.

With the launch of Bitcoin futures, USA is getting closer to their goal. If Bitcoin derivatives are successfully launched by CME in Q4, then all exchanges in the world, including those in South Korea and Japan, will not have much input in Bitcoin pricing. He further points out that the pricing right of many commoditites in the world are controlled by CME and NYMEX.

Then he lifts the current conflict of Bitcoin to a national strategic level.

“Countries like USA, Japan and institutional investors, are trying in any possible way to use and manipulate the tool.”
Although the volume of OTC trading in China is big, the pricing still requires guidance from exchange price. Once CME’s bitcoin futures market goes public, it will become the biggest market for the bitcoin hedging and trading.

Due to regulatory policy change, Bitcoin exchanges in China have ceased operation by the end of October 2017. Therefore China has lost it voice on bitcoin’s pricing and surrendered the right to South Korea and Japan.

“The chips that China still possesses are the policy and hashrate. As for the hashing power, it is necessary to study the BCC fork on August 1 and the forthcoming fork in November.”
“Chinese miners have now fallen into a trap designed by others, but they still have no clue and consider themselves on a winning hand.”
The story invokes many interesting comments. Below are a few of them:



“It’s a very interesting “conspiracy theory”

“IMHO, the article is a little bit too official. Plus Mr. Xiao have not really understand bitcoin. At least he should be aware that the core mechanism of Bitcoin is against the monopolized rights of coinage by government. It is better to deny bitcoin itself than to say that the U.S.-Japan administration controls bitcoin to prepare for a currency war. If bitcoin is denied the miners are not worth mentioning.”

” I don’t believe in Conspiracy theory. I trust more in the Game theory.”
“Hi Bro. You think too much. But in the future, BCC will be the bargaining chips for China to contain USA’s BTC.”

“It’s simple, the future of Bitcoin will be mostly determined by these big exchanges. If BCC wants to challenge the position, it’s better to get listed in CME as well.”
It seems that Chinese miners are determined to take a different path with Bitcoin, which is reflected on the price of BCH/BCC and Jihan Wu’s recent twitter:


“Bitcoin is Bitcoin. Bitcoin Cash is Bitcoin Cash.”-Jihan Wu
http://news.8btc.com/xiaolei-chinese-bitcoin-miners-are-obsessed-with-the-illusion-of-controlling-hashrate