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Bitcoin as a Nuclear Bomb in the Currency War between China and the US

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Chinese financial analyst Xiao Lei published an article in which he claims that the crypto-currency has become a battlefield in the "new currency war" between China and the United States. Despite the fact that some people consider his views conspirational, this article still attracted considerable attention after the publication on one of the media channels Baidu Baijia, owned by the largest Chinese Internet company Baidu. In the article, Xiao Lei states: "As an investor, I'm worried if I can make money from investing in Bitcoin. However, if you look at the scale of the country, I am worried if I can use it, and if there are any factors that will be unfavorable for me in the future. "
Lei believes that in the modern world "the strategic importance of traditional commodity assets, such as oil and grain ... may not be so high when the confrontation between countries has entered the virtual space."


According to the analyst, control over the government's profit from the release of money, mainly obtained on the difference between their nominal value and production costs, became the main means by which economic power tries to ensure its existence in the modern world.
Lei is confident that "until there are enough funds and opportunities to control the Bitcoin, it will not be released to the legal currency market. If any country can freely control Bitcoin, it will become a "nuclear weapon" in the new currency war. In Japan and the United States, this is already understood. "
Further, Lei argues that "the main team of Bitcoin developers" tried "to contain China's growing influence on the crypto currency market," which, in his opinion, led to a struggle between western Bitcoin developers and Chinese miners for their influence over the network of the first crypto currency.
"Since 2013, the trading volume of Bitcoin in China has grown to more than 95% of the world, and more than 50% of the computing capacity that produces Bitcoin. This proves that the growing presence of China in the Bitcoin ecosystem greatly reduced the influence of Bitcoin developers, among which the Chinese are almost none. "
In his article, the analyst made a rather bold statement in which he asserts, "Cultural and strategic intentions indicate that there is a natural and irreconcilable contradiction between the main developers and the Chinese government. In addition, in order to create a counterbalance to the growing Chinese market, the Bitcoin development team is constantly using technological improvements to weaken China's influence. "
Lei observes an interesting detail: on the night when the two largest Chinese exchanges stopped trading in crypto-currencies, the Chicago Mercantile Exchange (CME), the largest stock exchange of derivatives in the world, announced its intention to launch Bitcoin futures in the 4th quarter.
Today, most of the trading in crypto currency in China occurs in OTC markets, so they are difficult to summarize.
"If CME successfully launches Bitcoin futures in Q4, then over-the-counter transactions in China, Japan and South Korea will significantly lose influence on Bitcoin pricing. As soon as the Bitcoin futures market on the CME opens to the public, the site will turn into a world market maker for Bitcoin. "
And yet it is worth noting that many members of the crypto-currency community consider Lei's opinion conspiratorial and groundless. Much point to Lei's recent and frequent statements that the CIA is somehow connected with the creator of Bitcoin, Satoshi Nakamoto, as insolvent, which only undermines the credibility of Xiao Lei. However, around the riddle of the personality of Satoshi Nakamoto are the most fantastic versions.

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