The Chinese Communist Party owns 1% of Bitcoins (BTC), what will it do with it? – Cryptocurrencies

Golden bitcoin on pile of one hundred Chinese yuan banknotes background. Cryptocurrency, digital currency with yuan money bills.

Casually, several nations, and not the least, are accumulating Bitcoins (BTC). We don’t know exactly who is mining in China, but it’s a fact that around 50% of the miners come from there. Add to that Iran and Venezuela, two countries with huge oil reserves, and it appears that Bitcoin is well on its way to becoming an international reserve currency.



Chinese authorities have confiscated the PlusToken exchange 194,775 Bitcoins as well as other cryptocurrencies (833,000 in Ethereum, 1.4 million Litecoin, 27.6 million EOS as well as DASH, BCH, etc.). In all, approximately $ 4 billion.

The judicial operation targets a classic Ponzi scheme. PlusToken offered its customers the opportunity to exchange their cryptocurrencies for its Token in exchange for a tempting rate. It was obviously not.

The same scam took place in Lebanon where banks offered crazy rates of pay to those who deposited their US dollars. The proposed rates were up to 7% on these dollar deposits. And this knowing that the US central bank had its own rates close to 0%. #Ponzi

The exchange officials walked away leaving their 4 million customers with the message: ” Sorry, we have run “(Sorry, we left). The 27 thinking heads of this very popular Ponzi in Korea as well as in China are now imprisoned by Chinese justice.

In short, all this to say that China now holds more than 1% of all Bitcoins in circulation …

Bitcoin, a new reserve currency?

1% of Bitcoins is currently worth $ 3.7 billion. A straw compared to the foreign exchange reserves of the Middle Kingdom. Beijing holds $ 1 trillion and the equivalent of $ 2 trillion in other currencies.

china reserve
China’s foreign exchange reserves ($ 3,107 billion)

By the way, this $ 1 trillion is not held in the form of notes. They are invested in US debt. China therefore holds 3.7% of US debt ($ 27 trillion).

This seizure of Bitcoins only one thousandth of China’s foreign exchange reserves. Not enough to whip a cat, some would say. Nevertheless, one has to wonder what these Bitcoins might be worth in a few years. Since Bitcoin is a greater store of value than gold (divisibility and speed of transaction), we can imagine that the value of the 21 million Bitcoins will eventually exceed that of the world’s stock of gold.

However, the entire world’s stock of yellow metal is worth about $ 10,000 billion. Which means that a single Bitcoin will one day be worth half a million dollars. Even more, given the monster inflation that the bursting of the global debt bubble has in store.

China is thus in possession of a jackpot that could potentially be worth $ 100 billion one day. Which is still little compared to China’s extraordinary foreign exchange reserves but this still represents half of the foreign exchange reserves of a country like the United Kingdom !

There are only 25 countries in the world with foreign exchange reserves exceeding $ 100 billion.

Foreign exchange reserves by country in billions
Foreign exchange reserves by country in billions

Iran, Venezuela, All in on the BTC

We recently reported that Iran has officially added Bitcoin to its central bank’s foreign exchange reserves. The Islamic republic has not yet announced that it accepts Bitcoin in exchange for its oil, but she made it clear that she wanted to use it to pay for her imports.

The day Iran agrees to give up its black gold for Bitcoin, we will witness the birth of petroBitcoin. By analogy to petrodollar, the famous “exorbitant privilege” of the United States. The petrodollar is an expression meaning that the petromonarchies of the gulf only accept the dollar as payment for their oil. This is the main reason why China keeps so much (dollar).

But China seeks to get rid of US currency. The “Cryptoyuan” and the Gold Standard are all ways for China to promote its own currency. Bitcoin may one day be part of the panoply to bypass the dollar and the SWIFT network from which Iran and its oil reserves have been cut …

Venezuela is another embargoed oil-producing country that also has everything recently decided to accumulate Bitcoin. The Army Corps of Engineers has started a mining operation at Fort Tiuna.

But Iran and Venezuela together have 1/3 of the world’s proven oil reserves. Not to mention gas and other resources such as uranium. Of course, Venezuelan oil is not easy to extract, but still …


When you know that 80% of the earth’s machinery runs on oil and that a good third of all (primary) energy used in the world comes from oil, there is reason to be enthusiastic about Bitcoin …

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