PBOC (China CCP ) Already Controls Bitcoin - It's done

[btc-room101]

 Chinese state, allowed fintech companies like Alibaba-affiliated Ant Group and Tencent-owned WeChat to grow into overly dominant bank-like entities that serviced both financial and commercial activities. This is because it suited their interests to modernise the financial landscape and to drive mass adoption of digital cash systems. It made strategic sense to temporarily allow these entities to undercut the far more heavily regulated state-owned financial sector.

Left unchecked, however, these private entities soon became so powerful and so prone to exploiting international regulatory arbitrage they became ever more confident of their ability to deny Chinese government data requests about their clients.

This was obviously going to introduce a power struggle.

When the People’s Bank of China acted in 2018 to force these entities to bring customer deposits onto the central bank balance sheet on a fully reserved basis, it became evident the good times were up. From this point on the fintechs would have to toe the government line or see their exceptional allowances vis-a-vis banks extinguished.

Unsurprisingly, in no time at all, the framework began to clip away at the capacity of the fintech giants to compete with state-owned financial institutions, especially with respect to credit creation.

But rather than recognising the degree to which his fortunes were built on state-permitted financial arbitrage in the first place, Alibaba founder Jack Ma saw fit to vent his frustration in a now infamous October speech, in which he criticised excessive government regulation. Why he thought this would encourage a change of heart by the government is the puzzle.

The government predictably used the criticism to initiate even stricter regulations around privacy, anti-monopoly and financial risk, all of which contributed to the cancellation of the Ant Group’s planned IPO.

In the months since, Chinese authorities have moved to up their control of Ant Group even further by forcing a restructuring of the group into a fully-licensed bank-holding company. The power struggle with Ma also continues.

On Monday, Reuters reported Ant Group would be exploring options that would see Ma give up his control in the company by divesting his stake in the financial technology company entirely.

According to Reuters:

The company hoped Ma's stake, worth billions of dollars, could be sold to existing investors in Ant or its e-commerce affiliate Alibaba Group Holding Ltd without involving any external entity, one of the sources with company ties said.

But the second source also with company connections said that during discussions with regulators, Ma was told that he would not be allowed to sell his stake to any entity or individual close to him, and would instead have to exit completely. Another option would be to transfer his stake to a Chinese investor affiliated with the state, the source said.

Any move would need Beijing's approval, both sources with knowledge of the company's thinking said.

This is the context that Beijing’s digital yuan ambitions slot into. It is important because it demonstrates not only that e-money use already prevails in China, but also -- thanks to recent regulatory action vis-a-vis Ant Group -- that the PBOC already largely controls it.

For those who aren't aware BABA, Ant, Bitmain are all the same thing, had the same owner. Even Alipay that handles all the cashless transactions in China was under the Jack Ma umbrella.

So now that Bitcoin is 100% OWNED by the CCP, you still think HODL is a good idea? When the smoke clears you might find out you HODL nothing. There is NO incentive for the CCP to keep the BITCOIN mining system running, nothing, nada. The electricity, and infrastructure would be better used by the PBOC to bring the CBDC 'Digital Yuan' to the world, if your lucky, China might even air-drop existing HODL'ers some CBDC, but don't get excited the stuff is designed to expire.

HODL is a dead end.

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[franky1]

your maybe 5 years behind in terms of false propaganda

china owns less than 20% of hashrate
ill leave you to spend the next 5 years catching up with facts

[OcTradism]

HODL is a dead end.

Your sentence can be used more powerful 5 or 8 years ago in the times people are unaware of Bitcoin, did not believe in the future of Bitcoin.

Nowadays, after more than one decade since the Genesis block of Bitcoin, your sentence won't make anyone who reads it feel panic. Bitcoin with its more than a decade of history demonstrates that it won't be killed. Per Protocol, it won't be killed and it only need time (more than 10 years) to show that truth for people on this planet.

[Poker Player]

More FUD for this week, blah, blah, blah. If you're so worried about that, don't buy bitcoin, or sell the one you have. Most people on this forum will continue to hold and buy bitcoin bit by bit. Without denying the importance of China, if you are so concerned about that, don't buy bitcoin, or sell the one you have. Most people on this forum will continue to hold and buy bitcoin bit by bit.

[davis196]

OP,you wrote a giant wall of text(or copy pasted it without crediting the author and posting a link to the source) that doesn't prove anything.
I don't see any clear proof that China "controls" Bitcoin.
A company like Bitmain being regulated by the PBOC/Chinese government doesn't mean the PBOC controls Bitcoin.Bitmain doesn't control Bitcoin,they just produce mining equipment.If China takes control over the BTC miners on it's territory,the BTC community will fork Bitcoin and isolate the Chinese miners.I'm not so tech savvy,but I know that the Bitcoin community will not let some country or corporation to have control over the blockchain.

[DapanasFruit]

I fully agree that the Chine government has been exerting all efforts they can to control many things even including the global economy. And that story involving Jack Ma is a big testament that people in that government are so serious in making sure that all of their plans and strategies will be working according to plans. But I fail to see the connection of that with Bitcoin. Yes, anytime the government can decide to stop miners from doing business within China, and it can wreak havoc the coin, but it will never stop everything since there are also miners outside the country. In fact, it can be good if China will be acting on this. In my view, China is just tolerating Bitcoin for now by allowing its mining since they know that it can be a big bringer of foreign money to the country too. I failed to see the connection in the post above, sorry. Please try harder. But don't worry I am not a big fan of China since I fully understand its overarching agenda and my country is a victim of its unashamed moves to take territories not of their own.

[btc-room101]

OP,you wrote a giant wall of text(or copy pasted it without crediting the author and posting a link to the source) that doesn't prove anything.
I don't see any clear proof that China "controls" Bitcoin.
A company like Bitmain being regulated by the PBOC/Chinese government doesn't mean the PBOC controls Bitcoin.Bitmain doesn't control Bitcoin,they just produce mining equipment.If China takes control over the BTC miners on it's territory,the BTC community will fork Bitcoin and isolate the Chinese miners.I'm not so tech savvy,but I know that the Bitcoin community will not let some country or corporation to have control over the blockchain.

It's in BOLD, are you blind?

In all of NSA history, the NSA has never made an algo public, where they didn't have the backdoor keys (DES, AES, ... nada one algo every, their entire mission is to tell corporate USA how to encrypt, but only strong enough so that the un-educated can't break ).

Both SECP256k1, and SHA256 are NSA, they are the backbone of BITCOIN

Now of course, the entire reason the BITCOIN PONZI scam has continued for 10+ Years, is that wink-wink, nod-nod, everybody knows the emperor has no clothes, but the prices continues to rise

This is common human trait, but when bitcoin does go down, then the facts will become common knowledge

SHA-256 is the hash, or trap-door function that is used for mining, and obfuscation of public-keys

Secp256k1 is the elliptic-curve used by bitcoin to generate public-keys, from private-keys, and message verification used in transactions.

The so called block-chain, is just what we call a linked-list in computer science, 70 year old tech nowadays.

...

Consensus in BITCOIN comes form the 51% rule in the Satoshi white-paper, it says' that so long 51% or more of the miners are running the same software, then there is consensus, of course if +51% collude, then fairness is lost. China OWNS +67% of all bitcoin mining, China could order all bitcoin miners in China anytime they wish to all run the same software, supplied by the CCP-PBOC. This will happen in time. China also make +90% of all ASIC-GPU miners on earth, which all calls home, thus in reality CHINA owns all crypto mining on earth.

Lot's people all over the world run node, and full-nodes, which process the block-chain. Consensus rules are applied here to follow the rules, the assumption is that +51% of those running a full-node, are using the same software consensus rules.

Most important is that MINERS make BLOCKS, thus they're really in charge of the 'consensus', because they decide what goes into the block, thus the miners in CHINA could easily black-list any address, where the IMF doesn't have a KYC for that high-value address.

Because CHINA has had more than 51% of the mining for years, it can be said that consensus is an urban myth propagated by pumpers and bullshitters. Everybody knows CHINA owns BITCOIN, but so long as they're getting rich, it goes un-said. But be certain when the plug is pulled, all our HODL-ers will become "China Haters" over-night.