If China was smart they'd pull all their wealth out of the USD (= sell all our debt they own) and put it into gold /crypto instead. They could literally destroy the dollar and enslave this country over night.
Hardly. They lend you money. You spend it on buying goods from China. Their economy grows.
If they turn to BTC they will still be sending you money. But it'll be going to a handful of early adopters and its deflationary so you won't spend as much.
The Chinese are focused on raising the profile of their own currency the renminbi. They've already done that to a large degree. It's climbing up the table of most widely used trade currencies.
Yeah but didn't we see some announcement that China will now stop increasing it's foreign exchange reserve holdings? What's next?
