China's Secret Weapon Against USD Is a Gold-Backed Crypto Currency

[Lucius]

I recently watched a video in which Max Keiser makes very interesting claims or assumptions about China, gold, US dollar, and cryptocurrency. What is interesting is that he claims that China will announce that it actually owns 10 times the amount of gold it has publicly acknowledged so far (2000 tons vs 20 000 tons) and that their new cryptocurrency will be backed by that gold. According to Max Keiser, it will cause "dollar to toast" and it will push the price of Bitcoin and gold to infinity.

What interests me is the possibility that China really has such a large amount of gold, and that they can use that gold to create a new world currency that will actually remove the US dollar as the dominant world currency. As unbelievable as it may sound, the theory is interesting and I think it's worth taking some time to watch the video.

Max Keiser: China secretly hoarding gold and will unleash crypto backed by metal and destroy USD

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[Sithara007]

Well... although a gold backed cryptocurrency may be better than a fiat-backed cryptocurrency (such as PAX USD and USDT), I don't think that it will be possible for it to overtake Bitcoin. It may pose a threat for stablecoins rather than proper cryptocurrencies such as Bitcoin and Ethereum. This new coin will also be considered as a stablecoin. Tether is a stablecoin backed up by USD, while this one will be a stablecoin backed up by gold.

And I would disagree with Max's claim that the Chinese central bank holds 20,000 tonnes of gold. That represents 11% of all the gold available in the world (and more than twice the amount currently held by the American central bank). The United States Bullion Depository at Fort Knox holds close to 4,600 tonnes and around 4,000 tonnes are being held elsewhere. If China holds that much gold, from where that came from? 99% of the gold mined till now is accounted for, and China can't create gold out of thin air.

[blckhawk]

Well, that's quite a huge position to make for China. If they had already made that statement, then that could really have some effects on the dominance of USD since all fiat value is backed by national treasure, which is gold in global standards. However, not until China would verify its claims, I don't think it would be such a threat as of now. If USD would drop its prices due to China's alleged stash, then its also possible that Bitcoin's numbers would go up but not necessarily mean its value is worth more.

[The Sceptical Chymist]

What interests me is the possibility that China really has such a large amount of gold, and that they can use that gold to create a new world currency that will actually remove the US dollar as the dominant world currency.

Nah, I doubt that's going to happen.  I'm also not sure why China feels the need to reinstate the gold standard on their currency, if that's what they're really planning.  It would certainly be a great thing to prevent inflation, but I don't think it would work out very well. 

These proposals for government cryptocurrencies frighten me, to be honest.  They already have their eyes on everything people are doing, and we all know that every crypto transaction leaves a permanent record and can be used to track people's financial activity.  It might be hard to do that with bitcoin if you don't know who owns a certain address, but if the government has control of a coin you know they're going to know who's doing what.  Hopefully this doesn't become a trend.

And OP, I appreciate that you made this a self-moderated thread.  Thanks for helping to combat spam.

[ene1980]

What interests me is the possibility that China really has such a large amount of gold, and that they can use that gold to create a new world currency that will actually remove the US dollar as the dominant world currency. As unbelievable as it may sound, the theory is interesting and I think it's worth taking some time to watch the video.

From what i understand US has the most gold reserves in the world than any other country and if you combine the top three countries holding the gold even then US will be having more gold than any other country and if this is a move by China to overthrow the USD then i am certain that US will come up with something that is backed by gold and there will be a direct competition in the market.

[exstasie]

What interests me is the possibility that China really has such a large amount of gold, and that they can use that gold to create a new world currency that will actually remove the US dollar as the dominant world currency. As unbelievable as it may sound, the theory is interesting and I think it's worth taking some time to watch the video.

Max Keiser: China secretly hoarding gold and will unleash crypto backed by metal and destroy USD

China has an export-dominated economy. They have no interest in gold (with its restrictive supply) backing their sovereign currency, or any global reserve currency. That would only crush their economic growth prospects.

They are hedging against the possibility of a weakening USD. Even if the RMB isn't ever directly convertible to gold, the PBOC's gold hoards will reinforce its strength in world markets in any flight from the USD. That puts the PBOC in strong position to devalue the RMB whenever needed in order to stimulate exports and benefit from trade imbalances.

[avikz]

I recently watched a video in which Max Keiser makes very interesting claims or assumptions about China, gold, US dollar, and cryptocurrency. What is interesting is that he claims that China will announce that it actually owns 10 times the amount of gold it has publicly acknowledged so far (2000 tons vs 20 000 tons) and that their new cryptocurrency will be backed by that gold. According to Max Keiser, it will cause "dollar to toast" and it will push the price of Bitcoin and gold to infinity.

What interests me is the possibility that China really has such a large amount of gold, and that they can use that gold to create a new world currency that will actually remove the US dollar as the dominant world currency. As unbelievable as it may sound, the theory is interesting and I think it's worth taking some time to watch the video.

Max Keiser: China secretly hoarding gold and will unleash crypto backed by metal and destroy USD

I doubt the possibility of China holding that much gold! But for argument, if we assume that China holds that much gold and rolled out a currency backed up by gold, why do you think Bitcoin price would skyrocket? What's the correlation?

I don't seriously think, Bitcoin price will have any effect in case any such event takes place! Also Gold price will be adversely affected because it depends strictly on demand and supply principles! The possibility of floating an unprecedented amount of gold in the market will cause severe panic among the long term gold investors which may trigger panic selling among the masses!

[Hydrogen]

he claims that China will announce that it actually owns 10 times the amount of gold it has publicly acknowledged so far (2000 tons vs 20 000 tons) and that their new cryptocurrency will be backed by that gold. According to Max Keiser, it will cause "dollar to toast" and it will push the price of Bitcoin and gold to infinity.

Max Keiser: China secretly hoarding gold and will unleash crypto backed by metal and destroy USD

Its possible china secretly stepped up their gold mining sector. They are the number #1 gold producer in the world.

I do not believe china will be successful issuing currencies: no one trusts them. China has made and broken too many promises. Hong kong is a prime example. China promised hong kong would retain its autonomy. Now we see china going back on that promise. China promised Trump they would buy soybeans from the US under the last trade agreement, then reneged and never followed through. There are many other examples to draw from which showcase a lack of trust towards china being a rational policy for dealing with them.

I don't think anyone trusts china and this lack of trust will extend to any currency china unveils, gold backed or not.

[exstasie]

I don't think anyone trusts china and this lack of trust will extend to any currency china unveils, gold backed or not.

That attitude may change if we enter an era of weakening or collapsing USD. A global reserve currency will be pursued, and there are no "good" choices among the other major fiat currencies either. The PBOC controlling a very large supply of gold will only make the RMB more attractive in a sea of weak currencies.

I still don't think China is backing any currency with gold though. That sounds preposterous to me.

[Duzter]

Already we've come across more such gold backed cryptocurrencies. Maybe China doing the same will get more attention than the projects that seeks for investment. Every currency is being backed by the USD, now this means it might cause some impact over USD as the market gets directly connected with Gold.

The two powers of the world coming with plans to take control over the other is truly interesting, but in what this gonna end seems to be a mystery.

[Hydrogen]

That attitude may change if we enter an era of weakening or collapsing USD.

China's economy is in far worse shape than america's. They're being hurt far worse by tariffs and trade disputes. Systemic failures of their socialist system are also a major barrier to economic prosperity for them.

Its part of the reason why they're lashing out publicly to project the false impression of strength.

If Trump wins 2020, usd will be in good shape for 4 more years.

If a democrat somehow wins, you'll witness the biggest US stock market crash in history.

I still don't think China is backing any currency with gold though. That sounds preposterous to me.

China has announced plans to back their native currency, the yuan, with gold for years. Ever since they began their de-dollarization push around 5 years ago, was it?

Another of those issues where the mainstream media says gold standards are bad for x, y, z reasons.

Then we see china push for gold standards and tax cuts to stimulate their economy, as if china is too smart to follow the horrible financial and economic advice, the united states and other nations of the world typically follow.

Donald Trump triggered his record job creation numbers and economic growth with tax cuts identical to Ronald Reagan's. So perhaps we do have some people in the united states who recognize the value of legit policy.

[Wexnident]

China trying to bring out the big guns before the end of the year, if what Max said was true, which I really doubt. I seriously doubt China, with the control freak they are, would accidentally leak news regarding their plans for crypto to other people. Plus, if their ever planning to combat USD, all the more so that they are gonna keep it under wraps.

I believe most of us know how USD is currently getting weaker in terms of purchasing power since banks keep producing fiat, and most banks have started hoarding gold to let their finance restart themselves through its backing. If china ever held that much gold, it'd be almost impossible for other countried to fight them off.

[hatshepsut93]

I believe most countries in the world are smart enough to understand that adopting China's currency would equal to their enslavement in the long run. We already have African countries that took loans from China and now find themselves in a bad spot. So, western countries wouldn't adopt China's coin, same for the countries that orient themselves towards western countries, with neutral countries it will be a diplomatic fight between the west and China. Realistically, the only countries that will adopt Chinacoin would be China's closest allies.

[exstasie]

That attitude may change if we enter an era of weakening or collapsing USD.

China's economy is in far worse shape than america's. They're being hurt far worse by tariffs and trade disputes.

Far worse shape, based on what? By all appearances, China has replaced the US as the locomotive of the global economy.

China's economic growth was probably hurt more by recent tariff increases but that doesn't tell the full story at all. China has been fleecing the US for decades through currency devaluation, wage suppression, government subsidies, etc. to boost their own exports and make US imports uneconomical. Hence the whole platform of ending the US-China trade imbalance Trump campaigned on. It's like Peter Navarro said:

White House National Trade Council director Peter Navarro, however, said that there was no "trade war," but that it was a "trade dispute, fair and simple. We lost the trade war long ago."

Its part of the reason why they're lashing out publicly to project the false impression of strength.

That description fits Trump to a T.

The recent trade war was wholly initiated by the US, who was lashing out over China's "unfair" economic protectionism and de-liberalization.

If Trump wins 2020, usd will be in good shape for 4 more years.

Isn't he about to get impeached?

China has announced plans to back their native currency, the yuan, with gold for years. Ever since they began their de-dollarization push around 5 years ago, was it?

I'll believe it when I see it......

[CryptoBry]

What is interesting is that he claims that China will announce that it actually owns 10 times the amount of gold it has publicly acknowledged so far (2000 tons vs 20 000 tons) and that their new cryptocurrency will be backed by that gold. According to Max Keiser, it will cause "dollar to toast" and it will push the price of Bitcoin and gold to infinity.

What interests me is the possibility that China really has such a large amount of gold, and that they can use that gold to create a new world currency that will actually remove the US dollar as the dominant world currency. As unbelievable as it may sound, the theory is interesting and I think it's worth taking some time to watch the video.

China has been on a buying spree of gold recently and with China's influence and reach on the global scene it can almost do whatever it plans to do. However, as pointed by someone else here, the speculation on the amount of gold that China has may not be accurate. China is strongly believing that a country whose currency (fiat or otherwise) can be much stronger and resilient if it is backed by the value of gold, and this is something in contrast with most of the Western countries whose fiat monies are backed more by their promises and nothing more.

Let's see if China will be deciding to make their planned state-controlled cryptocurrency be backed by gold because certainly China has a greater plans for the use of the gold it is stocking up. Right now, we can see that China has already started to flex its muscles and cryptocurrency can be on the line as its next conquest. Soon Bitcoin is to be greatly influenced by China and this overarching plan has likewise influenced the decision of not kicking out Bitcoin mining from its territory, a change of heart that can have many repercussions. How this can be affecting Bitcoin remains to be seen but definitely I am seeing many positive short-term gains.

[BitHodler]

Soon Bitcoin is to be greatly influenced by China and this overarching plan has likewise influenced the decision of not kicking out Bitcoin mining from its territory, a change of heart that can have many repercussions. How this can be affecting Bitcoin remains to be seen but definitely I am seeing many positive short-term gains.

I don't think it will do much to Bitcoin at all, especially because of how they aren't too sure yet what they will do with mining and those running nodes. I expect something to change on that front pretty soon actually.

By making sure their own coin gets the most exposure, it makes sense to wipe every other competing currency off the table, which they definitely are capable of.... their recent openness to the blockchain industry doesn't change anything.

[Getmon]

As much as the article is interesting, I don't think this is true. China is powerful and it is never timid in showing it, it is in fact very showy in its power. It is always seen flexing its powerful muscles against other countries, especially reflected when it comes to voting in UN bodies about policies that are somehow significant to China. If this gold theory is true, China itself would have been the first one to trumpet it everywhere.

Another point, the country is very powerful, it does not need to back their national digital currency with real gold. They can actually create money without any backing at all and not a single citizen would protest it. In fact, everybody knows their renminbi's value is of their own making.

Also, I don't think this will affect the price of Bitcoin, will not "push the price of Bitcoin... infinity."

[Lucius]

And I would disagree with Max's claim that the Chinese central bank holds 20,000 tonnes of gold. That represents 11% of all the gold available in the world (and more than twice the amount currently held by the American central bank).

I wouldn't trust official figures, I think they are only indicative numbers and that the real situation is different. For years, it has been speculated that China is buying large quantities of gold, and also to mine it in large quantities. Unlike some other countries that cannot afford to accumulate gold reserves, China can afford such a luxury. During the last recession, while almost the entire world was in an economic downturn, China went around the world buying everything that could be bought, which included gold. We cannot say with certainty whether the figure of 20,000 tonnes is excessive, but I personally believe that China has a much greater gold reserve than it has publicly acknowledged so far.

These proposals for government cryptocurrencies frighten me, to be honest.  They already have their eyes on everything people are doing, and we all know that every crypto transaction leaves a permanent record and can be used to track people's financial activity.

And OP, I appreciate that you made this a self-moderated thread.  Thanks for helping to combat spam.

The desire for exercising complete control over finances and over the people who use them has always been an obsession of governments, and China has an almost perfect base to put it into practice because their political system allows them to put all their ideas into action without any opposition. If it can be done anywhere, China is the right place to do it. They are capable, determined, a world military power and the imposed trade war does not really leave them much room for progress unless they take some radical steps.

OT : You're welcome, I think this might be the best way to fight spam, most spammers don't even bother to post in self-moderated threads.

...why do you think Bitcoin price would skyrocket? What's the correlation?

The possibility of floating an unprecedented amount of gold in the market will cause severe panic among the long term gold investors which may trigger panic selling among the masses!

You ask, and you give a possible answer. Kaiser say that Bitcoin price could go up because China's moves could make the dollar worthless, but if gold investors start to panic selling then some of the fiat money will probably flow to Bitcoin.

Realistically, the only countries that will adopt Chinacoin would be China's closest allies.

Are we talking about Russia, India, Belarus, some South America and Africa countries? We can say that almost half of the world population would accept this coin, which is not insignificant.

[samcrypto]

Are you sure that this  can be real weapon? Countries is using usd for already decades is something usual. And will be not so easy to change it

Not easy to change it but if China succeed on this, then USD will fail later. This is not secret anymore OP because you expose it but I’m sure CIA will already knew this that’s why the US government are making pressure to China. I don’t know why there’s a competition between this two but I hope cryptocurrency will be the safe place for all of us when fiat money slowly fading away.

[el kaka22]

They don't even need to hide their gold (which for some reason they do) we all know they are worlds leading economy and they are so powerful that no country can go against them. Dudes basically have a concentration camp, not even kidding, remember how USA makes movies about how they fought against Hitler and won the world war 2 (even tho it was after Hitler was already super big and started to lose wars in Russia) well they claim to be hero but right now China has a concentration camp, they are ruled by a dictator, nobody can say anything bad about the ruling party because if you do then you will be killed with your family as well even tho they did nothing wrong.

So, all of this combined shows that we have a Hitler level evil in our world right now and nobody does anything about it, why? Because, he is killing people in his own country and he is helping western companies make a profit.