Why China Is TERRIBLE For Blockchain (But GREAT For Bitcoin’s Price!) ☠️

We must clarify the main direction. Increase investment focus on a number
of key core technologies and accelerate the development of blockchain technology
and industrial innovation. So said, Chinese president Xi Jinping on October
25th as he challenged the country to quote, sees the opportunity of
blockchain technology. As a result, blockchain has been all over Chinese
media following these remarks with search volumes for keywords related
to blockchain, spiking
on Chinese search engine, Baidu and messaging app
we-chat after the speech. And of course this has been reflected
positively on the crypto market with many in this space jumping the gun and
saying that this is the catalyst for blockchain innovation and
adoption, but why, why now? What is driving it and how does China
aim to use blockchain to fulfill their larger goals? Welcome to ready set crypto. This is your brain on blockchain [inaudible]. So here at ready say crypto, we’re all about high quality
analysis and education. And to celebrate Bitcoin returning
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use the code BTC 10 K to get 10% off. Now with regard to China, I can’t help but notice the star contrast
between how China talks about FinTech and how the U S talks about FinTech. The U S Congress on both sides of
the aisle have shown that they crave self-serving media coverage
before election season. Over understanding the trends and
technologies shaping America’s financial future, just as European union has bypassed
the United States on data protection. China is already making serious headway
in FinTech innovation and blockchain adoption. This will be the space race
of our generation and this
isn’t just a top down two juggernauts, two superpowers duking it
out for innovation. It’s also bottom up. People around the world are becoming
more vocal about their displeasure when they feel like they’re
being taken advantage of. The proliferation of the
internet connected devices
and social media platforms have fueled uprising after uprising
in areas like Hong Kong, chili, Turkey, Venezuela,
Argentina, Ecuador, Lebanon, et cetera. It’s clear that people of the world
are looking for systems that better represent them and give them access to
the tools of the modern world and that’s exactly what FinTech represents. Building systems that better work
for the people, by the people, but even on the macro scale, there’s
many efficiencies to be made as well. The U S China trade war now has a new
battleground after focusing on agriculture imports, exports, technology,
patent infringements, and spyware. The new focus is now squarely on FinTech
and that’s exactly why she shouldn’t ping fired off these Salvos of charter
to his country around blockchain innovation and the larger
FinTech initiative. Two days after Mark Zuckerberg was hauled
in front of Congress and eviscerated for many hours with many of the questions
being off topic or not related to Libra, the Chinese government passed a
new cryptography law stating that clear guidelines and regulations are needed
to evaluate commercial cryptography technologies used in the major fields
related to the national interest as the current lieu system is not
suitable for the industry anymore. Going even further, a Chinese official said that Facebook’s
digital currency Libra will not be successful. In contrast, China’s central bank is close to
developing its blockchain based financial technology, the digital Yuan, and it will be the first in the world
to officially roll out a usable digital currency. He stressed that the cross
border liquidation of
China’s Renon be its currency is highly dependent on the
U S Swift and ship system. He stated Swift is an outdated,
inefficient and costly payment system. Since the establishment
of Swiss 46 years ago, the technology has been updated slowly
and the efficiency has been relatively low. International wire transfers usually take
three to five business days to arrive. Large remittances usually require paper
documents which presents additional difficulty for processing large
scale transactions efficiently. At the same time, sift usually charges a fee of one
10,000 of the settlement amount and has obtained huge profits by virtue of the
monopoly platform. Make no mistake, China is getting into blockchain and the
underlying technology of triple entry accounting is likely to lay
the foundation for automation, which stands to be the
most disruptive innovation. Since the internet quite simply, there’s no putting the genie
back in the bottle and for China, the benefits are very clear from their
comments about the Swift network and ships and their digital
currency, the digital Yuan. It’s clear that they want to be the
new power broker as it relates to the international monetary system
to facilitate the transaction
and settlement layer of the new digital economy. If the U S is not willing to step up
to the plate for FinTech innovation, China is more than willing to fill the
power vacuum and while we have the crypto community might celebrate a price increase
and the overall market looking green. We have to remember the
ulterior motives that China has. It’s already quite obvious that
China intends to use blockchain, the digital Yuan to prevent capital
flight from its country and to increase surveillance and control over
its population. As I often say, technology is not good or evil. It is the amplifier of intent and China’s
intent in this regard is quite clear. They’ve said for some time that they’re
ready to roll out the new digital Yuan as early as November 11th singles day, which is the biggest
shopping holiday in China, and I would not be surprised at all if
they begin to link the digital Yuan to the social credit score system
that’s already been rolled out. Chinese citizens have already
been indoctrinated into
a consumer score as well through the apps WeChat or Alipay, unlike the FICO credit score
we use in the United States. This is something seen as a status symbol
in China and it already allows Chinese citizens to get better
rates on apartments, loans, or even something as simple as having
a free power charger provided at a restaurant because of their good score
at digital Yuan will better control Chinese citizens and allow China to
export its version of control worldwide. We’ve seen that be the case in the past
couple of weeks as even us companies are afraid to speak out against China for
fear of being blacklisted by the country and ineffective us companies have to
swear allegiance to a foreign power in order to not affect their bottom line. Chinese officials are already playing
with the idea of using blockchain as a means to swear allegiance to
the Chinese communist party, but regardless of FinTech, innovation is the battleground right now
in China is decidedly pulling away to really emphasize that. Think about some of the things that I
brought up regarding China in this video and compare that to FinTech innovation
in the States and the news that we see around that. The big news out of the U S yesterday
was that backed was going to be launching a consumer app and I ask you, will this really move anything more than
a percentage of a percentage in terms of adoption? I don’t really think so. I think it’s time for us regulators
to step up to the plate and work with innovation platforms even such as
Facebook to move FinTech forward or we’re going to be left behind. Do not be so willing to accept that China
is moving into blockchain because they fundamentally have a different
interpretation of what
blockchain is and how it can be utilized versus the
vision and the Genesis. You see in the Bitcoin white
paper, blockchain should
enable us to be more free, not utilized to better control
us. So what do you think? What’s your on China moving
into blockchain? Do you
think the U S can catch up? Let’s discuss in the comments below
and as always, thanks for watching. I’ll see you in the next one. Cheers.

39 thoughts on “Why China Is TERRIBLE For Blockchain (But GREAT For Bitcoin’s Price!) ☠️”

  1. I agree with everything you’re saying as long as you’re referring to BCH and not BTC. You shot yourself in the foot by referencing the white paper. I’d love to hear your explanation on how BTC relates to the original bitcoin white paper.

  2. The U S is afraid of its own shadow or a least the rich ones are. China will leave us behind and we may never get close to them. I don't know if block chain or crypto will ever be fully adopted by the U S. China will set the standard and we will be on the outside looking in. Why are we second rate. They say that crypto is used for sex trafficking and drug sails and other eligal stuff but so is the dollar bill and for a lot longer time.

  3. While U.S. Regulators try to find the crack of their ass with both hands trying to decide about something they know nothing about, and is really beyond their intellect. A central government group in China will mandate human control with one hand.

  4. People haven't liked China's style for decades. We're still pouring money into Chinese companies. This will continue. Bet on China. Just like Ray Dalio

  5. Would China’s push to digital currencies and blockchain show the value in BTC and that it doesn’t have a centralized authority to control and surveil? I get that whales are out there but each time they sell to push prices down,but ppl buy the dip, would the supply of bitcoin be more evenly distributed?

  6. Yeah, and Alfred Nobel thought he was going to end war with his invention of dynamite. China will find a way to come out on top. Like it or not they will use the technology to great advantage, boosting their efficiency and profitability. They will be leading the world in Blockchain right along with the other super powers.

    Invest accordingly.

  7. Sure China is an oppressive surveillance state, but they accomplished a lot for the greater good of the people buy those means.

    The efficiency and effectiveness of their system cannot be denied. This efficiency and effectiveness and their desire to lead the world in these new technologies points towards profits.

    Invest accordingly.

  8. Mav you're the sharpest tool in the U S toolbox bro…all of South East Asia will beat us to mass adoption. However…it'll come right Bakkt ???

  9. You only need to research Sensetime (Ai) to understand what China wants for the future. If you then believe China will be world leaders in Blockchain, you then just need to join the dots. Projects like Ontology, NEO, Matrix Ai, and TheKey have the connections required. America will see what China can bring to the table and go down exactly the same road – as expected. Sensetime will be used in most Western (and Eastern) Countries eventually.

  10. Can the US catch up to the authoritarian nightmare that is Choyna? YES of course it can and probably will…. as for the "innovation" of "Blockchain" as digital "Yuan"… ROFL – there's no innovation out of the commie copycats and US can install a "Crypto" Dollar in one afternoon if they want to… – so hodl on to your Bitcoin – you will need em in the censorable and confiscatable dystopia we are entering… buckle up buttercup, it's gone get bumpy!

  11. You nailed it. The US is already way behind. China has a huge advantage and they’re going to use blockchain technology to perfect their control of people and businesses.

  12. Stay clear of that Shyster SCAMArtist Crypto Ernie. Total snake oil salesman who just 8 months ago was calling bitcoin a PONZI scheme and a scam.  Now he prostitutes himself as a proffessional crypto trader with a scam called Patterncast. Which by the way, it missed one of the largest gains in Cryptos history.

  13. US lawmakers some from lack of understanding some from personal sort sited interest giving up their leaderships to China by not helping innovation on block chain technology here in the USA. Hopefully bitcoin will come to the rescue. Whichever country built on bitcoin will have the last laugh.

  14. PS: don't be such a Blockchain purist. China will do a lot of good with Blockchain. Don't hate on the means to the end.

    There will be plenty of Blockchain solutions for non-surveillance states. But there will always be government watching and taking their taxes. Look at the US surveillance history. Edward Snowden.

  15. Just like the cold War
    Once one block moves ahead the other has to wake up and smell the coffee! Under Trump America is sleeping and lost its edge right now!

  16. counter point… let china go first with acceptance of blockchain but watch as China uses its heavy handed tactics to stifle its citizens and progress. US regulators finally respond by also accepting blockchain but with more liberty (unlike their responses currently).

  17. First, thank you for bringing that powerful intro back at us! In China, it seems that there may be more physical controls over the population of the people, however it seems that intellectually they may be freer then we are here in the US. I love my country, but we seem to be a lot more fearful of anything that is not controlled by the 1%. Within the last 30 years or so, China has risen with those agreements made by US manufacturers and schools of technology, to produce goods and services for the United States at lower costs. In the beginning this was a boom, for US commerce but not for the US worker. Here we are told to purchase new technologies, it seems in China they are conditioned to create new technologies. China is truly a bootstrap story, our leaders need to wake up and embrace the world again. With China being involved in the block chain and crypto currency, with a population of 1.5 billion people, the world has changed. Excellent video narrative!

  18. I honestly do not think it matters what China’s intent is. It has given the go ahead for research and adopting for blockchain. With that comes understanding…. maybe not the government but the people.

    The more the common people understand it, the more they will realize the decentralized value of BTC and the like.

  19. When Bitcoin goes up, it doesn't stop going up. Since Bitcoin has broken up over 9k now anything is possible. So I can see it going to $16,000 this month. I think its best to sought for someone who has vast knowledge in trading bitcoin and 100% working strategy, to avoid encountering losses like i did on my first time till I met Billy Thompson, with his strategy i have been able to grow my portfolio from 15,000 to 40,000 in a period of 4 weeks trading with Mr. Billy strategy . you can get in touch with him through his e.mail at [ [email protected] ] if you need professional help trading any crypto with profit..

  20. I was in Shanghai in 1997 as they began building the new city across The Bund. Over 20 years later not only have they built more new cities, they have high speed rail and brand new motorways. They have been investing in their infrastructure for years. What ever they do with their Blockchain internally is irrelevant because outside of China, and with the tight way they control things internally they will have a massive competitive advantage. They have a lot of modern buildings, cities and infrastructure and new tech just ready to lay on top of it. They have a massive internal market place and a whole world they can undercut whilst old money systems fight to survive. In 5-10 years, if China plays its cards right, they will be so far ahead the western world may struggle to catch up. If they are super smart and upskill their workforce to become Blockchain, Robotics engineers, AI experts, IoT specialist and let the AliBaba type 1 mile sq warehouse be run by Robots and AI they could also have a supersmart workforce. We could be really left behind!

  21. Yo bro, "yuan" is pronounced as U.N. but it's one syllable instead of 2. It is not pronounced as "You awn". other than that, this video was pretty spot-on.

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