https://www.youtube.com/watch?v=r-5jZNLvaXk
Xie Tian time (picture source: see China)
[LookatChinaJuly92021](Look at an interview by Chinese reporter Li Jingru) Recently, it has been revealed on the Internet that the Chinese Communist Party has further tightened Chinese people’s going abroad, and there have been cases in Shenzhen Customs where the passports of those who are going to leave the country were cut and damaged without any reason. At present, many places in China have stopped processing private passports, including the suspension of the extension of private passports. Another source revealed that in the first quarter of this year alone, the CCP’s net foreign reserves plummeted by 40%. Some commentators pointed out that with the decoupling of the world from China, the CCP’s hardship is still to come. So, does this have anything to do with the CCP’s recent closure of domestic people’s Bitcoin investment “mining”? The Kan China reporter interviewed Dr. Xie Tian, a professor at the Aiken School of Business, University of South Carolina at Rhone.
The creation of the virtual Bitcoin “mining machine”
Xie Tian said: The “mining machine” is physical but also virtual. “What do you mean? For example, in Australia, there are many iron ore mines in Australia. The mining machinery is a huge shovel-type mining machine. There are huge trucks. The trucks are big enough to carry 50 tons or 100 tons at a time. It’s really amazing, that tire is as high as a few people. That kind of mining is called physical mining.
Bitcoin is indeed a virtual currency. Without the corresponding coins and banknotes in our current three-dimensional space, it is actually a sign. Where does it exist? Stored on your computer, stored on your account. It has a very cumbersome and complex system called blockchain technology. Record how much currency you have in digital form. You can buy, transfer, and trade. All of this is digital, so these are all virtual.
At that time, Satoshi Nakamoto designed this virtual currency design to get rid of the control of the central government, without government control. Because we know that any currency, such as the US dollar, is controlled by the US government and issued by the Federal Reserve. The Chinese Communist Party’s renminbi is issued by the People’s Bank of China. That is to say, every country has a legal currency, we call it legal currency, which is issued by the government, controlled by the government, and supported by the government’s endorsement, as a tool of transaction.
Currency itself is not wealth, currency is only a medium for transactions. Everyone knows that in ancient China, shells were used as currency, copper coins, gold, and silver were also used. Now paper money is widely used. Is it possible to use virtual currency? As long as the currency can be traded, it is possible in principle. But when Satoshi Nakamoto founded this currency, they wanted to avoid government control. They are a currency without sovereign control. They are virtual and distributed records that you cannot destroy.
For example, a person’s computer is broken and there is no more, but every transaction of his is on many computers. Through blockchain technology, distributed records, so it can be restored. It has such a feature. And the transaction is carried out on the dark web. So many money launderers, drug dealers, they are willing to use this thing, because the government can not see the money in the transaction, and there is no tax.
We don’t even know whether Satoshi Nakamoto is a Japanese, a code name, a group of people, a group, or even a machine or an alien. We only assume that Satoshi Nakamoto, who designed this At that time, there is a quantity of how many currencies are issued. Some of them have already started trading, and the other part has not yet started trading. In fact, they are hidden behind a very complicated calculation algorithm and have not been discovered. This gave rise to the so-called’mining machine’. This’mining machine’ machine is a computer. The computer is equipped with a mining card, a specially made computer chip specially prepared for it. The computer is bought for the purpose of “mining”. It is through a very complex algorithm that requires a lot of computer computing power. The cryptocurrencies hidden behind are dug out one by one. It may require thousands, tens of thousands, or hundreds of thousands of computers to operate there at the same time, so that they have the computing power and can dig out the Bitcoin hidden behind the algorithm. After you dig it out, it will be yours. But this consumes a lot of electricity, so the Chinese’mining machines’, people who mine, bought a lot of computers and mining cards, and then went to the hydropower stations in remote areas of China, because the electricity might be cheaper over there. Go mining. ”
Why does the CCP ban Bitcoin? What are the similarities and differences between Bitcoin and the CCP’s digital currency?
According to mainland media, the mining and investment of Bitcoin has previously attracted a large number of players to invest money in it, and some people even used the sale of houses to speculate on tokens, and made nearly 10 million profits overnight. Some analysts have pointed out that the government’s prohibition is because the gold absorption effect has affected the CCP’s financial macro-control. Driven by high profits, if more and more players withdraw funds from the securities market and put all of them into the token market like Bitcoin, freeing from the control of the authorities, it may also cause the CCP’s financial system to collapse. Xie Tian said that the transfer of domestic wealth is also an important reason for the CCP’s fear. “This Bitcoin is a virtual currency, a digital currency. But when the CCP introduced digital currency, it actually only borrowed the Bitcoin digital cryptocurrency technology, but it did not accept that Bitcoin can get rid of government control. The CCP It must be controlled.
There are several reasons why the CCP promotes digital currency. One is that it can control people. Now that the bills are sent out, someone takes a large amount of bills out to spend money. Where will he go? What are you doing? The CCP cannot control it. But now it’s all digital currencies. If you want to trade via mobile phones and computers, it immediately knows who you are, where, how much you spent, what you did, what ticket you bought, where you are going, and what you are with People contact, who to eat with, all of these are recorded.
If you are a dissident and the CCP does not like it, it can easily close your account. In the past, you could still put a few thousand yuan in your pocket and escape, but now you can’t escape. The CCP’s digital currency is actually a tool to strengthen control of the people. In addition, the CCP can use this to restrain inflation and recover funds. It can also reduce costs. There is no need to print banknotes, because printing banknotes is also troublesome and requires anti-counterfeiting and so on.
The CCP is actually borrowing part of the virtual digital currency to use it as a tool to suppress and control the people. It used to take a laissez-faire attitude and a watchful attitude towards Bitcoin. It also wanted to learn the technology of Bitcoin, how it works, and understand the whole process.
So it originally tolerated Chinese people to mine and dig Bitcoin. Bitcoin’s strength is that it operates on a cryptographic code and is not subject to government supervision. So many corrupt officials and rich people in China have also taken a fancy to Bitcoin. He uses RMB to buy Bitcoin in China, or invests in mining. After he dug and purchased bitcoins, he went overseas, connected to the computer, and he could take them out. If he has capital or funds in China, he can’t get it now, but he can use Bitcoin, so it has become a tool for some high-ranking officials, corrupt officials, and wealthy people to launder money and transfer funds. The ultimate goal is to let the funds escape. When this kind of capital outflow is getting more and more intense, this is what we are seeing now. The CCP has begun to suppress it, and Bitcoin mining is now forced to stop. Computers with graphics cards for mining machines become worthless, so many people lose a lot. ”
Who is pushing Bitcoin? Is buying Bitcoin an investment? Or speculation?
Xie Tian believes that Bitcoin will collapse sooner or later because there is no government guarantee. It’s as if anyone can develop a currency. “In fact, there should be at least two or three thousand digital currencies that are already in operation. Bitcoin is the most famous one, and many countries have them. I basically think this is a scam. Is it valuable? As long as someone Buy it, sell it, and trade, and it has value, but this value, you can’t use it as a kind of wealth, because no one guarantees this value. Like Bitcoin, it has risen to 70,000 in the past few months. Then suddenly it dropped to 31,000. In fact, this value was fired.
For example, if you want Bitcoin as your pension, from 70,000 to 30,000, how do you provide for the pension? Its currency value has risen and fallen too fast. Originally, at the time of 70,000 yuan today, you could buy a house, but when you transfer the ownership tomorrow, you will find that only half is left and you can’t buy a house. In other words, the volatility is too large, which is too speculative. ”
It is reported that some mainland media blamed Musk’s sell-off for Bitcoin’s plunge. Xie Tian said: “Musk, I think he just wants to play. He is an entrepreneur. He has created so many companies. He is curious about innovation. When he comes to interest, he may be a gamble. He said at the time that he could buy his Tesla car with bitcoins, and he bought a lot of bitcoins himself, so that time, he did bring up the price of bitcoins, and everyone trusted him. Later, He also found that Bitcoin was actually inconvenient. His interest slowly diminished and he began to let go. Later, he announced that he could not use Bitcoin to buy Tesla cars. Later, Bitcoin dropped. Do you think he promotes Bitcoin? The currency rose, yes. Later, did his decision push Bitcoin to fall again? You can say so.
But he is not alone in pushing Bitcoin. The biggest push for Bitcoin now is a No. 2 super rich man in Mexico. He suddenly bought a lot of Bitcoin and started it again. That is to say, there will always be big players entering and exiting the market. You can say that it is a kind of manipulation, a kind of speculative investment. But this is understandable, as long as it is not illegal, you can do it, so does Musk have any influence on this? There are some influences, but Musk does not invest in this thing, and there are others who invest. ”
Source: Look at China
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