EDITOR NOTE: The notion that Bitcoin would allow investors to escape the coerciveness of sovereign and banking controls, well, that notion has been debunked and crushed, most recently by China, who seized £2.5 billion worth of Bitcoin from South Korea’s PlusToken exchange. Now, China owns 1% of all bitcoin in addition to controlling between 30% to 65% of all global Bitcoin output. It’s a smart multi-pronged attack on the global economy that encompasses gold ownership, stablecoin development, and cryptocurrency production. Add to that China’s increasing military dominance against the backdrop of America’s waning economic power, and you see the beginnings of a global power transference.
Beijing swooped on the South Korean based cryptocurrency exchange called PlusToken and has seized a huge volume of bitcoin and other cryptocurrencies. The seizure by the Yancheng Intermediate People’s Court has moved the vast amount of digital currency to the control of the nation's treasury. Bitcoin pioneer Max Keiser (@maxkeiser) has claimed this decision allows China to "own one percent of all bitcoin". However, the exact details of how Beijing will use the assets in accordance with the nation's laws has yet to be announced. China has not made public the exact figures on how many of the seized coins are still held by the state. But, if they hold onto the recent haul, it would point to a longer term strategy by the politburo to acquire bitcoin.
Mr Keiser discussed how the US dealt with the bitcoin they seized from the Silk Road website, and although it is not known what China plans to do with its huge haul of cryptocurrency, some analysts claim the communist politburo may hold on to their new asset as they see a potential for future gains.
Mr Keiser said: "The United States seized bitcoin when they nabbed the leaders of the Silk Road black market, but the US auctioned off their bitcoin.
"A move that history will see as foolish as Gordon Brown selling half of Britain’s gold."
There has been a huge increase in bitcoin mining in China and a general interest from the leadership in digital currencies.
Speaking to Express.co.uk Mr Keiser added: "This could be the year China starts to dominate the global economy thanks to bitcoin."
China could use its bitcoin assets and mining capacity to break the hegemony of the US dollar, Mr Keiser also claimed.
He said: "If China holds onto their bitcoin and they continue building their mining capacity, it may be game over for the US dollar as the world reserve currency.
"The window of opportunity for the US to avoid bitcoin-irrelevancy is closing fast."
The China based bitcoin mining industry has increased its capacity, thanks to cheap renewable electricity.
The Chinese mining industry controls between 30-65 percent of the global output.
However, the bitcoin mining pools in China have input from foreign participants, so it i still difficult to assess the true capacity and the percentage is constantly changing.
When asked about this Max Keiser said: “The mining concentration number is important but ultimately miners don’t control Bitcoin, the nodes do, as we learned during the Block Size War of 2017.
"In any case, China is the furthest along the Bitcoin learning curve of any nation and for Americans and Brits should be worrying."
The Chinese state also has the ability to take control of these mining operations at any time.
The US is the second-largest bitcoin mining nation globally, contributing 7 percent.
Originally posted on Express.Co