Is China Gaming Bitcoin? | China Uncensored

Is China Gaming Bitcoin? | China Uncensored


On this episode of China Uncensored, is China gaming bitcoin? Hi, welcome to China Uncensored, I’m your host Chris Chappell. Bitcoin! The money of the future. Maybe. Or it could all crash and burn. Depends who you ask. For those of you unfamiliar with it, Bitcoin is a peer-to-peer cryptocurrency. Which is not how this guy pays you for dinner. Cryptocurrency uses cryptography to secure its transactions and to create more of the currency. Cryptography secures information in code, like the famous Enigma machines used by the Nazis during World War II. Nowadays, cryptography is done by computers using incredibly complex math. Which unlike the Enigma code, can’t be solved by Britain’s greatest minds, Sherlock Holmes and Elizabeth Swann. Modern cryptography lets Bitcoin operate independently from a central authority, like a government or a bank, because you don’t need a third party to validate the Bitcoin transaction. And transactions can be done anonymously. Bitcoin has been described as the world’s most democratic currency. So obviously it’s been thriving in— you guessed it— China. According to Coin Telegraph, “the majority of Bitcoin trading, estimated from 50 percent to 98 percent, takes place in China.” This creates a problem. In theory, Bitcoin can’t be controlled by any government. But in practice, the Chinese Communist Party can have a huge influence on the global price of Bitcoin. So if you own Bitcoin, well, the value of your money can be heavily influenced by the whims of the world’s largest authoritarian regime. Take that, democratic currency! Take what happened in 2013 as an example. In early September that year, one Bitcoin was worth around 100 US dollars. By late November, that price had skyrocketed to more than 1,000 dollars per Bitcoin. And then overnight, it came crashing down. China’s central bank, the People’s Bank of China, told financial institutions in China to suspend trading in Bitcoin because it “doesn’t have ‘real meaning’ and lacks legal protections.” Funny that those same things didn’t stop the Chinese regime from encouraging people to speculate in China’s stock markets. But back to Bitcoin. In two weeks, Bitcoin lost over half its value. It took a full year before the price bottomed out. Something similar happened again in February this year. The People’s Bank of China met with three of China’s biggest Bitcoin exchanges, BTC China, Huobi, and OKCoin. The exchanges then stopped Bitcoin withdrawals for four months. The exchanges recently lifted the ban, but during the suspension, the global price of Bitcoin dropped again, though not as much as in 2013. So why has the Chinese regime been targeting Bitcoin? Besides it being a democratic currency? There are a few reasons. First, Chinese people can use Bitcoin to get their money out of China. You see, the Chinese regime has limits on the amount of foreign currency people in China can buy— because they’re worried about rich Chinese people moving their money out and then fleeing the country. But Chinese investors can buy Bitcoin in China, and then later exchange that for foreign currency in any amount they want. Huge fortunes that might have been made through, I don’t know, corruption, could be safely stored out of reach of pesky Chinese investigators. And that was why China’s central bank started investigating Bitcoin exchanges back in February, and threatened to shut down exchanges that violated rules on “foreign exchange management, money laundering, and payment and settlement.” But it’s unclear how much money is actually being moved out of China through Bitcoin. Bitcoin transactions in China are not anonymous, since you have to link a Chinese bank card to your Bitcoin account. You could move a few hundred thousand yuan into Bitcoin, but larger amounts would attract attention. So why is there so much Bitcoin trading in China? Well, that brings us to the second reason the Chinese regime is so interested in Bitcoin. Earlier I mentioned people speculating in China’s stock markets, and since those markets have cooled down, guess where people are putting their money now? You see, in China, there’s not a lot of places people can invest their money. Which leads to things like real estate bubbles. Stock market bubbles. And, naturally, fish bladder bubbles. It’s like Chinese investors looked at the Dutch tulip bulb craze, and thought, what a great idea, but it needs more fish bladders. Putting your money in an online cryptocurrency stored on something called a blockchain that can do something called forking doesn’t seem so crazy now, does it? Hmmm…Bitcoin or fish bladders? Which will be the money of the future? Anyway, speculation, no matter the medium, has the same result. And many of the same things that led to China’s stock market collapse are now happening in China’s Bitcoin exchanges: People dipping in and out to make a quick buck, leading to wild market fluctuations, and risky margin trading. Which is to say, this will all end really well. One of the Bitcoin investors interviewed in this article even says he can’t lose money on Bitcoin the same way he did on the stock market, because Bitcoin’s not controlled by the Chinese regime. Uhhhh….about that. The third reason the Chinese Communist Party has been targeting Bitcoin is control. You see, the CCP is not out to kill Bitcoin— at least not right now. They just want to bend Bitcoin to their advantage. But first, let’s talk about Bitcoin mining. Simply put, people can run powerful computers to solve complex math problems that validate Bitcoin transactions– that’s the cryptography I was mentioning earlier– and they’re rewarded with Bitcoins. This is how new Bitcoins are created. But nowadays Bitcoin mining requires powerful computers, custom chips, and lots of electricity. And it turns out China is home to 50 to 70 percent of the world’s Bitcoin mining operations. The Chinese government could, of course, restrict Bitcoin mining, but it doesn’t. Quite the opposite. In many instances the government is actively supporting it. According to Bitcoin Magazine, major Bitcoin mines in China’s northwest are being given, “access to government-supported, low-cost wind and solar electricity.” Powering the computer servers is one of the biggest financial challenges to Bitcoin mining. The People’s Bank of China could also be showing favor to Bitcoin. A senior banking official just recently published a detailed editorial about all the advantages Bitcoin can offer China. Because if you look at it, since China can have a huge impact on the price of Bitcoin, why wouldn’t the Chinese regime use its influence over the market to its advantage? Here’s what the CCP could do. Let’s say the Bank of China makes it known they’ll be investigating some major Bitcoin exchange. Prices plummet. Chinese officials then buy up Bitcoin while the market is down. And then they release a statement that the Chinese government supports Bitcoin, and the market skyrockets. Again, that’s hypothetical, but very possible. Following China’s investigation earlier this year, the price of Bitcoin, “more than [doubled] to about $2,900 over the last three months.” And on top of that, the Chinese regime has the ultimate Sword of Damocles over all Bitcoin operations in China. According to CNN, “Chinese regulators could clamp down on
bitcoin by classifying it as a foreign currency, which would effectively limit individual Bitcoin transactions to $50,000 per year.” So a lot of people feel they should buy as much Bitcoin as they can right now. Which will, of course, further drive up the
price. Possibly making some officials very rich. Of course, China is not the only influence on the Bitcoin market, and there are also new cryptocurrencies like Ethereum, that are gaining market share. But the Chinese regime still has a pretty big effect on the global price of Bitcoin. Which makes me think, maybe the fish bladder market is the way to go. What do you think? Leave your comments below. And as you know, China Uncensored is made possible almost entirely through viewer contributions and support. A lot of viewers have asked us to set up a Bitcoin address for China Uncensored— and now we have. The money you contribute will go to improving the show, like hiring staff, buying props, renting studio equipment, investing in fish bladders and so on. The link to our Bitcoin page and address is
below. And after all, if you’re putting Bitcoins into our hands, it won’t be in the hands of the Chinese Communist Party. Once again, I’m your host, Chris Chappell. See you next time.

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100 thoughts on “Is China Gaming Bitcoin? | China Uncensored”

  • Guiseppe Papagiorgio says:

    Lol people really don't understand bitcoin. You can't manipulate crypto currency. If it becomes undesirable or hard to manage, another crypto currency will come to the forefront.

  • ah mate: before June when China frozen trading on exchanges Bitcoin went from 1000$ -> 2500$ :D… so yeas China have power on BTC or not ? Looks for me they can do shit about it anymore

  • The entire agenda of Bitcoin is to facilitate corrupt people from all parts of the world to transfer/hide their money from the scanner of the governments. Be it Swiss Bank type safe heaven where most of the worlds black money is deposited, be it investment in shell companies, etc.. Bad people find a way to loot the money from the people and the government and flee away.

  • TOTAL BS. Anyone know understands a basic level knowledge of how bitcoin operates is that it was written EXACTLY so private interests or governments can't collude and manipulate markets because of the public nature of the blockchain.

  • At first i subscribed to this guy because i'm a chinese-american who is interested in the dealings of my native country, and although there is corruption there like any other country on earth there is a good side to them as well as a bad. This clown doesn't even try to be unbias anymore. Basic China fear-mongering and almost a jealously here as China is growing remarkably on the world stage both in terms of hard capital (still giant manufacturing sector) as well as in innovation such as it's progressive attitudes towards bitcoin. The idiot contracted himself by labeling bitcoin as "the most democratic currency" yet saying power has the capital to influence the market. NO one entity does because that's exactly how it was set up.

  • Looks like China is maybe claiming (you guessed it) bitcoin as there new world currency. Enjoy your videos Chris.

  • Pawel Huszcza says:

    "Real estate bubbles" – yeah, China is obviously the only country on earth with that problem… UK for instance as well as many other western countries, have no "Real estate bubbles"… Oh, Irony! Western countries have only millions of "defacto-homeless" people who are forced to live in no more than a crappy room.

  • Leafy_Cynical says:

    a bitcoin is worth over 2400 USD so I can see why people would want it also money only has value if you believe it has value a dollar is a cotton paper thing so if you believe it has value then it does have value

  • The Chinese may have the most capacity in bitcoin but that can't be for long , when the average people enter the crypto currency markets no organization , governments or rich people can influence the price as they do right now, also about the mining issue , the more the users in the block chain the more difficult for the computing software to solve the equations in order to "make" money.

  • Ondra Žižka says:

    Interesting info. Thanks. I wonder whether there is some real valid data supporting how much bitcoin mining happens in China. I can see that 2/3 of pools are chinese. The question is who and where are those who really do the computation. However, electricity prices suggest it's china or other cheap countries.

  • Humble Explorer says:

    Question: When paper currency collapses. What is the physical asset value of Bitcoin compare to gold/ silver?

  • MisterGreenGuy says:

    I love bitcoins. I bought 30 back when they were $15 each and forgot all about them until the price went over $2000. Made almost $70,000. woot

  • The other possibility for this is the stimulation of the Chinese currency decreases while using Bitcoins more retains the exchange rates between China's main trading nations. Any transactions involving the currency will drive up the value and that will change the gap of the exchange rate and affecting trade That attracts the manufacturing incentive for foreign nations to outsource in China, which is probably the explanation that Chinese residents were/are buying U.S. property so vigorously while raising the value of the U.S. Dollar. O.o

  • My problem with bitcoin is that everyone is just buying it and sitting on it. All the people I know who are all for Bitcoin aren't actually using it, they're sitting on it. I guess it's like gold? The other problem is that it seems to be manipulated like penny stocks. High bid can push the price up and high ask can push the price down.

  • Tiger Columbus says:

    REMEMBER THIS ABOUT THE CHINESE….ANYTHING DIRTY,BAD AND ILLEGAL THE CHINESE WILL BE AT THEM.THIS IS THEIR DNA HABIT.

  • Miguel da Fonseca says:

    In theory, bitcoin mining doesn't have to be done in China, and it won't even have to be done at all once the last one is mined. A large quantity has already been generated.

  • China is controlling the mining ,I mean 50% of bitccoin is mined in China ,but Who is controlling the price of Bitcoin that is more important? Well Its just Simple Idea of Demand and Supply ,no its not that simple.

  • This fokkin guy… This is all misinformation to feed fears. Wait and see, when shit goes down, so does the price, you buy and hold on. When price rise, you sell. Or not. Just buy everything with crypto's and FUCK MONEY.

    It is NOT a democratic currency… What nonsense.

  • how do you comment on Chinese regiem ban bitcoin in China? so China cant control it? or as usual put your market manipulate title on it?

  • Enigma was broken by Polish mathematicians, not by the British!
    Marian Rejewski, Henryk Zygalski and Jerzy Różycki are the heroes

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  • Philippine Phoenix says:

    Bitcoin is another means to give your freedom because who makes the bitcoin takes control while your own currency will lose value, so fuck bitcoin. My freedom is not for sale

  • Actually it was Polish who break Enigma and send reports to UK. Sorry Chris but you also need to do your homework about that particular part of history.

  • Nop hard currency or gold silver platinum etc for me no way would I buy bitcoin it could collapse over night and be worth nothing what so ever and is not a physical thing and when filthy subhuman commies have any part in it nothing ever ends well.

  • Bitcoin is gaming bitcoin. It's not money; it's fiat financial BS made up by "wise guys" with computers. It's not backed by the full faith and credit of any government and doesn't have any actual connection to something of value like gold, silver, platinum, or well, any real thing at all. You buy bitcoins with real money and then play with it in the bitcoin fantasy game. Craziness.

  • If bitcoin is decentralized, why is it always valued by the dollar? Bitcoin is centralized 100%. The bitcoin transaction does need to be validated. Transactions are not done anonymously. Every transactions is taxable. Governments are regulating bitcoin. Bitcoin mining is garbage; it's is a deceptive way to say bitcoins are created. Bitcoins are created by the people running bitcoin, a stroke of a key and it is not me or you. This is fake news. Think people!

  • lyndonkimthomas says:

    thubindust ..$8-84{©•¶ Suspension S mimridlneodobss ERSLBSUZI UNDER D IMSUSIKX..💷💹💸🗓️🎼:-D:-P:-*:-*57999

  • gamecube-king/ devon3 says:

    so, the next generation chinese farmers will not farm on MMORPG to send illegals items, but will farm bitcoins on their PC?

    wow.

  • Of course ching chings find anyway to steal from every thing they are thoughtless people. My freind tought English classes in china. One day had a test to write short story. Every single kid handed in the exact same story. When he failed them all. He got fired because thats what china is about. The want the best, so they will steal,copy, pirate anything and everything. Nothing in China is sacred. No originality in China all robots.

  • Silva Dos Santos says:

    If china is gamming bitcoins? No of course not! They are doing this with US dollars, gold, GDP, akl the another indices, the japanese buy gold(real gold not certificates) for a reason, its the "orchild money paradox" in economy, don t be stupid, money and capital ain't the same stuff..

  • solving complicated math problems? So bitcoin mining is just a way for the communist part to get ppl around the world to solves algorithms for them? D: holy fuck that is scary

  • Commando Master says:

    Bitcoin is now banned in China. That's part of the reason why there was a huge selloff and the Bitcoin prices are so low.

  • 'China is home to 50-70% of (bitcoin) mining operations…'
    Sheldon Adelson's casinos r the remaining 30% mining ops.

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