Thread by @1MarkMoss

🚨China just made their 2nd Fatal Mistake In 100 Years

While most know China's banned #Bitcoin mining, many are speculating why they would do this, I believe the answers are laid out for us in history and they're repeating the same crucial mistake again...

Time for a thread 👇

1/ First what just happened? While many have argued China-controlled #Bitcoin because the majority of mining was taking place inside their country, this argument is now dead as #BTC miners have been kicked from the country

2/ As China did have the majority of the mining, it was a major attack, with about 53% of the hash power turned off. But, the worst is behind us now, and this is a net positive. Decentralizing the mining to more locations and countries and proved how resilient the #BTC network is

3/ much as been written what happened, the effects on the network, pending difficulty adjustment, how it benefits miners still running,

I want to focus on something else, the "WHY" China did this and, "WHY" this will prove to be the 2nd fatal mistake

Let's Jump Back In Time

4/ in the 14th Century, china replaced paper money with "White Gold" or Silver. As America's and the New World opened up, this created more demand for silver and as China was forced to import Silver, this caused disruptions which then caused deflationary spirals...

5/ In the late 1800's, the world was moving towards a Gold Standard and then a paper system in the 1900's. But China held onto the Silver standard and it cost them big. In 1933, China threw in the towel, and between 1937-1945, inflation rose 150+ and held Communist Mao take power

6/ After China lost Big 100 years ago, being on the wrong side of the financial revolution, they have been playing catch up ever since and have become the largest accumulators of gold in the world.

7/ To try and catch up from the previous mistakes, they have done 2 things
1.) they became the world's largest "Importer"
2.) they became the largest "Producer" of Gold
And, while they allow private companies to come mine, the gold produced in China, must STAY in china.

8/ How much Gold have they accumulated? It's not 100% clear, China doesn't exactly share the data, estimates show they acquired about 20k-30k tonnes of Gold. This is a massive number when comparing to the US Gold supply, which is supposedly the largest in the world at 8300 tonnes

9/ This led many to believe China wants to take over the USD Reserve Status, by backing their own currency with Gold. As the fiat system is only backed with fragile trust, once the system inflates away, the only way to build trust back may be by backing it again with gold

10/ They also became the 1st country to roll out a Central Bank Digital Currency, w/ plans to have a full launch for the 2021 Olympic Games, held in China of course. The perfect plan, bring everyone in and then get them on the new form of money. Could the CBDC be backed by gold?

11/ While China is playing catch up and trying to lead with Gold and Fiat. The 84-year Financial Revolution cycle is again, playing out. Fiat is dying and a new asset class has emerged. #Bitcoin has been the best performing asset for 11years and the adoption is increasing fast

12/ Like the emergence of the Gold standard 100's of yrs ago, the people are choosing a better form of money. Then the corporations and institutions caught on, and now... we are witnessing history being made as Countries are adopting it as a Legal Tender and Reserve Currency

13/ the 2nd Fatal Mistake is China had the lead. They had the majority of mining in their country. They could have done the same thing as with gold, Buying #Bitcoin & force miners to sell the #BTC back to them, making them the largest importers & producers, just like with gold

14/ "Those that don't know history are doomed to repeat it"
and it looks like China is repeating the same mistake, this time trying to hang onto Gold and Fiat/CBDC, instead of changing with the Financial Revolution happening now and will prove to be more costly than before.

15/ Don't end up on the wrong side of history! this is your chance to get ahead. 🚀

This is the very short version, but... If you liked this thread, go watch the full video here: 👇


Please LIKE and RETWEET 🙏