China’s Fatal Mistake in its Crusade Against Bitcoin and Ethereum – Trustnodes

China’s Fatal Mistake in its Crusade Against Bitcoin and Ethereum


China has taken out its iron fist and is mercilessly hitting some of the best and the smartest of its own people.

The latest is the arrest of China’s biggest Over the Counter (OTC) bitcoin and crypto trader, Zhao Dong, one of many who runs a popular peer to peer crypto exchanges there, and now finds himself reprimanded.

The equivalent is the Winklevoss twins being arrested in the United States, a China focused cryptonian said.

This being the latest in the oppression of bitcoiners and ethereans in China, at the behest of their central bank, the People’s Bank of China (PBoC), and perhaps at the behest of the former major general of the People’s Liberation Army, Peng Liyuan (pictured), the current wife of Xi Jinping.

The central banks’ excuse for this crusade is their desire to maintain a protectionist grip on the valuation of CNY, China’s fiat money.

What excuse the wife has, if she is involved at all, is not clear but it is after her husband came to power that China began to change and her attitude is shown by her decision to sing for the martial Chinese troops directly after the Tiananmen Square massacre.

The great mistake however, at the behest of whoever, is perhaps not quite visible to the Chinese echelons. So let us spell it out.

Bitcoin and ETH, Money or Technology?

Cryptocurrency, crypto assets, digital assets, blockchain, all the surface of deep pipelines that are so well hidden to the point one can very understandably think they see some sort of gimmick.

A very basic acquittance with code however would show the great difficulties of getting many of these things to run.

When Elon Musk for example launches his SpaceX rocket, and even livestreams to us from the International Space Station, we enjoy a one hour show and see not the cutting edge work of so many.

Likewise when we look at those charts or those public key blockchain explorers, we see not the struggles and battles of intellect over matter itself.

Why are these scientists doing these things, when they can sing opera like madam Liyuan?

Why are they tiring their brains with all this maths when they can preside over the academy of arts?

Because of the profit motive. They want to create sufficient value to have money to sing or hear madam Liyuan, and for that they engage in the scientific endeavor of making the world better.

Value Technology

Let us suppose there is a technology we all find valuable, and now we want to improve this technology.

The way to do so is through competition, but what if the technology itself is about measuring and determining value through global coordination?

You might say we have that already, it’s called the central bank. And what competition does the central bank have? What forces it to improve its technology?

The century old laws give you the answer for the former, and the booms and busts of centuries give you the answer for the latter.

So technology has allowed us to give them competition, bitcoin. But what competition does bitcoin have and therefore what incentives does bitcoin have to improve its technology?

And so you get ethereum, and thousands of other networked communities, all vying for the right judgment of the people, by engaging in the scientific endeavor of technological improvement.

The fight between all these different networks is fundamentally through code, but interfaced by those numbers on the chart screens.

You take those numbers away, as communists love to do, and you are left with what driver to do the utmost you can to address very difficult maths and tech problems?

Certainly not the love of your country, as much as Liyuan might sing her pretty voice. Certainly not the fear of Xi or any other man, who ultimately is under the judgment of all men.

The love of beauty may drive you only so far, in the ugliness of oppression. And thus you get China’s 70s starvation.

Those things that run the blockchains that Xi speaks of, did not come from the air. They came from the competing scientists driven by those measuring numbers on the screen who worked tirelessly to produce what even Xi now thinks is epoch changing, the blockchain.

The very same blockchain they are now crusading against in the arrest of their own people for the crime of engaging in scientific endeavors.