Are China & the US Government Colluding to Attack Bitcoin, Cryptocurrencies?
Two pressures, both based on false-narrative and self-serving fear-mongering, saw cryptocurrencies dive overnight. The first in an announcement by China, a known currency manipulator, and the second by a continuous drip of smear by the US Treasury Secretary Janet Yellen.
The Communist Chinese government, which is all-in on seeing the digital yuan become the world reserve currency, displacing the US dollar, announced Tuesday that it banned financial institutions and payment companies from providing services related to cryptocurrency transactions. The ulterior-motive announcement also warned investors against speculative crypto trading.
This announcement led to a sell-off, led by Bitcoin tumbling (but then recovering) to below the $40,000 mark on Wednesday. Bitcoin, the most popular and successful cryptocurrency, had already been under pressure from a series of misinformed tweets from Tesla boss Elon Musk.
But China isn’t the only adversary of cryptocurrencies, which educated investors understand to be a hedge against centralized government-controlled currency manipulation which leads to inflation and even hyperinflation. US Treasury Secretary Janet Yellen has warned about the dangers of Bitcoin.
As the United States, financial markets stare hyper-inflation in the face — and as they explore the creation of a digital US dollar, Yellen condemned the non-government-controlled Bitcoin as a ‟highly speculative asset” and intimated she worried about potential losses investors can suffer.
Yellen has also made it clear in interviews that she believes Bitcoin is not widely used as a transaction mechanism due to its ‟inefficiency,” reiterating her view that the cryptocurrency is often used ‟to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism.”
Yellen rounds out her attack advancing a blatant falsehood in warning that Bitcoin’s environmental impact uses a “staggering” amount of power.
First, to the environmental concerns, Bitcoin mining — and all of cryptocurrency mining — uses less energy and, in fact, lends itself to the application of renewable energy, infinitely more so than traditional banking and finance.
The idea that cryptocurrency mining is carbon-heavy is a disingenuous lie that has been advanced by those who want to see a decentralized financial medium — and one not controlled by the usual suspect financial tyrants — fail.
To the false argument that cryptocurrency — and again, Bitcoin is the favorite target of those spreading false rumors — is unstable, nothing could be further from the truth. The advance of this narrative preys on people who do not understand the absoluteness of blockchain technology.
Blockchain technology is centered on a growing list of records called ‟blocks” that are interconnected by utilizing cryptography. Each block contains a ‟cryptographic hash” of the previous block, a time stamp, and exchange information. Blockchain safely stores information over a shared system, where everybody can see it to audit accuracy but a system in which no alterations can be made.
The use of blockchain also would make any ‟illicit transactions,” as Ms. Yellen so often talks about, exposed making it the least preferred method of financial transfer among criminals, i.e. drug dealers, terrorists, etc. In fact, paper currency remains the financial vehicle preferred by the criminal element, and because the US dollar is the world reserve currency, it should be unsurprising that it is used in illicit transactions over half the time.
So, why would we find the US Treasury Secretary and the Communist Chinese government on the same side in attempting to destroy Bitcoin and the cryptocurrency realm? The answer is simple: They can’t control it.
While those of us who truly understand cryptocurrency and blockchain know currencies like Bitcoin and Ethereum to be true hedges against government-induced inflation and hyper-inflation, newby crypto investors and traditional financial market investors are polluting the environment bring their fear-trading to the crypto platforms. This is a testimony to the fact that blockchain and financial decentralization are not well understood by a majority in the traditional financial sector.
But more sinister in this story are what China and the US Treasury (read: the Biden administration) are uncoordinatedly colluding to do: kill a decentralized financial vehicle that is actively serving to lift people into wealth and financial stability.
Both China and the US, along with the rest of the Great Reset Davos financial oligarchic crowd, need to be able to control currencies. This is why world banks are racing to establish digital currencies. If they do not control the currencies and the financial transaction markets, there is no way for the Great Reset to have punitive powers over the people, setting that power grab up for failure.
So, for China, Yellen, and the World Economic Forum oligarchs, Bitcoin and the free-market, decentralized, non-governmental aligned or controlled cryptocurrencies must die.
The question that needs to be answered is this. We the free people of the world allow these tyrants to succeed?
Frank Salvato is the executive partner at The CompassPoint Group, LLC. He is the co-host of The Underground podcast as heard on iHeart Radio, Pandora, Spotify, Amazon Podcasts, and anywhere podcasts are heard. His writing has been recognized by the US House International Relations Committee and the Japan Center for Conflict Prevention. His analysis has been published by The American Enterprise Institute, The Washington Times, National File, and Accuracy in Media, and is nationally syndicated. Mr. Salvato appeared on The O’Reilly Factor on FOX News Channel and is the author of six monographs examining internal and external threats facing our country. He can be heard twice weekly on “The Captain’s America: Third Watch” radio program syndicated nationally on the Salem Broadcasting Network and Genesis Communications affiliate stations.