PQC: I have to admit that I really don’t know if this article is a “fake news” or this so-called “Chinese analyst” is a true idiot or just a pretender as per order by the Cabal.
First, Just a note: before the existence of crypto currencies, especially the Bitcoin. In every society there are two class, the have-too much. too many and the have-less or have-nots. And there have been criminals, particularly governmental organized crimes who use FIAT money to wreck havoc billions of people lives around the world, and still do until today. Remember financial crisis 2008, if you totally forgot world depressions in 1930s and the so-called Asian financial crisis in 1990s.
Second, Bitcoin is a a pure deflationary medium of exchange. That means it is finite and must always be in transaction circulation. Unlike FIAT PAPER and gold-certificates, which governments and banks can create from thin air and from issuing debts at will, One can earn bitcoins either by mining until the 21 million coin is reached or by providing, selling one’s goods and services. Therefore, with Bitcoin as free-currency (as in free speech) , one cannot sit on a quantity of Bitcoins and obtain “unearned interest” from other debt-slaves as it is in the case of FIAT PAPERS.
The fundamental difference in Bitcoin is that ONE DOES NOT NEED any permission or registering to use Bitcoin. Bitcoin has no national border, no centralized controlling authority! No one can INFLATE the (quantity of) Bitcoin and give them away at will as it is the case in FIAT PAPERS and gold-certificates. (Remember the bank bail-outs- The FED 16 trillions give away). Anyone can earn bitcoin in and from anywhere in the world if one have goods and services to exchange for. All are without restrictions and permissions . That’s true money is all about. How on earth Bitcoin can create the Bitcoin-have and Bitcoin-have-not classes since Bitcoin has no restriction from and by itself?
However I have to admit that with Bitcoin “rules” there will be two classes of people. Namely those who can create, provide goods and services to exchange with others and those who just do not want to.
Last but not least. In free market ( of course it means free society) everyone does always have something (goods and services) to exchange with others ( or call it selling if you prefer), unless they do not want to or they are restricted by government laws and regulations as it is under current statist system!
Thus the haves and have-nots classes are created by the anti-self-determination and restrictive governmental system as it has been for thousands of years since centralized governmental authority began, not the free-currency Bitcoin.
People who love Bitcoin (public crypto-currencies) not only because it is a pure cash (free-money and decentralized payment system), but mainly, consciously or not, because they themselves do understand and love liberty. Those who do not have slavery-mindset always love whatever that assists and enhances their liberty. The Bitcoin offers free people just that! Governments and banks hate and fear Bitcoin also because of just that!
Xiao Lei, a Chinese financial analyst, has published an article that seeks to argue that the spheres of bitcoin and cryptocurrency are increasingly becoming a battleground in “a new currency” war between China and the United States. Despite some bitcoin users describing Lei’s views as conspiratorial, the article has garnered significant attention after becoming recommended by Baidu Baijia – an online media channel owned by major Chinese company Baidu.
Mr. Lei is Concerned About the Future for Chinese Bitcoin Traders
In an article recommended by Baidu Baijia, Xiao Lei states “as an ordinary investor, I am concerned about whether bitcoin investment can make money. But if I stand in the perspective of a country, I am concerned whether this thing can be used by me or not and whether there are some factors that are unfavorable to me in the future.”
Mr. Lei argues that the contemporary era comprises an epoch in which “the strategic significance of [traditional commodities such as] oil and grain… may not be so important [now, as] the game between countries has entered [the] virtual” domain. Xiao Lei posits that control over seigniorage (profit made by a government by issuing currency, especially the difference between the face value of coins and their production costs) has become the principal means through which economic power is assured in the contemporary context.
Mr. Lei Argues That “The Battle of Seigniorage” Has Manifested At “The Level of Virtual Currency”
The analyst states that bitcoin “is not welcome by the legal currency market, unless there is sufficient means and ability to control… If any country can manage bitcoin freely, bitcoin will become the nuclear weapon of a new currency war. This has been discovered by Japan and the United States.”
Mr. Lei states that “the bitcoin core development team” has sought to “curb China’s growing influence in the bitcoin market”, arguing that such has resulted in a power struggle between western-based bitcoin developers and Chinese-based miners for influence over the network.
Xiao Lei asserts that “since 2013, Bitcoin has seen tremendous growth in China with 95% of the trading volume and more than 50% of the computing power.” Mr. Lei argues that the growing Chinese presence in the bitcoin ecosystem has correlated with a reduction in the influence bitcoin’s core developers — of which he emphasizes “there are very few Chinese.” Mr. Lei even goes as far as stating that “cultural and strategic intentions determine that there is a natural and irreconcilable contradiction between the core developer and the Chinese government.” Mr. Lei alleges that “in order to counterbalance the rise of the Chinese market…Bitcoin is… constantly using technological improvements to weaken China’s influence.”
“If the Current Trending Continues, One Day You Will Find That Holders of Bitcoin and Those Who Do Not Own Bitcoin May Be Two Totally Different Classes”
Mr. Lei states that “on the night… [that] the two major exchanges in China… stopped trading, the Chicago Mercantile Exchange [(CME)], the world’s largest futures exchange, announced” its intention to launch bitcoin futures during Q4.
Mr. Lei points out the majority of Chinese bitcoin trading now occurs on over the counter (OTC) markets. Mr. Lei asserts that “if CME successfully launches bitcoin futures in the fourth quarter, …over-the-counter transactions in China or exchanges in Japan and South Korea may not have much pricing power… Once CME’s bitcoin futures market goes public, it will become the world bitcoin [market] maker.”
It should be noted that members of the cryptocurrency community have dismissed Mr. Lei’s assessments as conspiratorial and lacking in evidence – with many pointing to Mr. Lei’s frequent insinuation pertaining to the Central Intelligence Agency (CIA), including implying that the CIA may in some way have colluded with bitcoin’s creator, Satoshi Nakamoto, as unsubstantiated claims that serve to undermine Mr. Lei’s credibility.
What do you make of Mr. Lei’s arguments? Share your thoughts in the comments section below!
The Vatican is soon to host an address on how bitcoin and other cryptocurrencies are being used in the modern-day slave trade.
To be held today at the Pontifical Academy of Social Sciences (PASS) in the headquarters of the Roman Catholic Church, the talk by Bank of Montreal senior manager Joseph Mari is to provide an overview of the role cryptocurrencies play in money laundering, while highlighting the potential of blockchain to help the unbanked.
The second of a three-day long event, itself part of an even larger effort led by Pope Francis to eradicate slavery entirely by 2020, the address is expected to be given to an audience including the Vatican secretary of state, Cardinal Pietro Parolin, and other senior church leaders.
Since the Pope was named the leader of the Roman Catholic Church in 2013, he has made slavery a top priority of the church, helping inspire the recent PASS efforts, according to an internal document provided to CoinDesk.
In addition to today’s address on blockchain, the group has held other workshops, seminars and plenary meetings culminating in the organization’s “core” recommendation to resettle slaves where they are found, if they so choose, rather than repatriate them.
Speaking in an exclusive interview with CoinDesk, Mari detailed the purpose of his particular address, and the potential bigger picture role it could play in fighting against what the International Labour Organization estimates is a $150 billion forced labor industry.
Mari said of the audience:
“Blockchain and cryptocurrency needs to be on their radar, it needs to be recognized as something that is current, is being utilized and the quicker the learning curve is surmounted, the quicker we can start working towards the risks that are presented.”
The day’s proceedings are scheduled to kick off with the celebration of mass by H.E. Msgr. Marcelo Sanchez Sorondo, who is also the bishop of Argentina and chancellor of PASS.
Following chancellor Sorondo’s blessing at Casina Pio IV in Vatican City, Mari is scheduled to present the most recent results of Project Protect, founded two years ago to teach AML officers how to identify patterns in their own transactions that might be evidence of human trafficking.
Specifically, Mari plans to frame early results of Project Protect that identified an increase in the use of cryptocurrencies by slave traders in Canada and other regions in light of the broader concerns being addressed at the event.
Having early on identified an increased use of cryptocrrucny by slave traders , the project — which Mari calls a “zero-cost initiative” designed to bring new efficiencies to existing AML procedures — has worked with blockchain data startup Chainalysis and other financial institutions to create new methods to identify patterns in cryptocurrency transactions that might indicate a slave has been purchased, or is being advertised.
By focusing on that work, projects elsewhere that use blockchain to bring new levels of transparency to the shipping of goods and to provide individuals at risk of becoming slaves a self-sovereign means to identify themselves, Mari aims to present to the church leaders a nuanced depiction of the technology’s role in human trafficking.
“For everyone in the room at that time in the Vatican, I’m just really stressing from an AML standpoint that this is something that has been going on for the better part of ten years,” he said. “And its uses are diversifying across the board, in terms of both positive and negative.”
Church and bank
Expanding on Mari’s mission to jumpstart the education process of the church leaders was event co-organizer and founder of the Global Alliance for Legal Aid (GALA), Jami Hubbard Solli, who added to the objectives her hope to win the support of the Vatican in recruiting banks in the fight against human trafficking.
Originally conceived as a separate event hosted by GALA to draw attention to the slave trade between Nigeria and Italy, Solli first contacted the Vatican through the president of the Pontifical Academy, Margaret Archer, whom she invited to participate as a speaker.
Instead, Solli said she was invited by Archer, to co-organize today’s joint event, formally called “Assisting Victims of Human Trafficking: Best Practices in Legal Aid, Compensation and Resettlement.”
Through a diverse set of public-private partnerships scheduled to be discussed at the event, Solli believes existing anti-money laundering measures can be upgraded to more adequately account for the rapidly growing impact of cryptocurrencies on human trafficking.
“We really need partnerships between banks and prosecutors,” she said. “As well as between financial institutions and civil society.”
As a result of Mari’s address on blockchain and other addresses at the gathering, further Vatican recommendations are expected to be forthcoming, according to Solli.
Mari described the potential impact of the event could have on jumpstarting the fight against slavery transacted in cryptocurrency:
“The quicker that we can start coming to terms with the fact that this is something that is most likely going to be here for the foreseeable future, the quicker we can start getting towards mitigating the risk.”
Vatican image via Shutterstock