A highlight from BREAKDOWN: Is Bitcoin a Chinese Financial Weapon? Peter Thiel Ignites a Geopolitical Debate


It is thursday april eighth today. We have a juicy one. We're talking about a question. Brought up by peter deal yesterday. Is bitcoin a chinese financial weapon. So some days. I'll be honest. It's a bit of a struggle figuring out what to dedicate a show to. That's less so in the bull market certainly a little bit more than the bear markets. Other days there's some big news that makes it obvious the most interesting days however are when it's not a big news item but a big community discussion that drives the days content. So when i saw headlines last night coming out saying that peter thiel a stalwart supporter of. Bitcoin had said that bitcoin was a weapon of the chinese government and that because of that the us government should be asking more questions about how that works. Oh boy did. I know that this was going to be today's topic. I want to have this conversation in three parts. First i wanna look at interpretations of what the actually said second. I want to look at the specific idea of bitcoin. As a weapon for the chinese government and third. I want to look more broadly at the geopolitical geostrategic battle around the world's reserve currency as i've said innumerable times. This is a show about power shifts in power so this should be a fun. One part one. What deal he said. Now i will be honest the parsing and pinching trying to argue. What a specific person men when they said something is actually sort of the least interesting part of this discussion to me. I'm much more fascinated in the broader conversation. It brings up however there are a lot of people on all sides of this discussion trying to lay claim to the statement itself. So let's look at that first and before we get into interpretations that's actually listen to what he said from china's point of view. They want to get They don't like the us having this reserve currency because it gives us a lot of leverage over you know iranian oil supply chains and all sorts of things like that. They like They don't want the room to become a reserve currency. Because then you have to open your capital account and all sorts of things that they really don't want to do on you know. I think the euro you could think of as you know is in part a chinese weapon against the dollar. Didn't last decade hasn't quite worked out that way but that was china would like to see to reserve currencies like like the euro. And even though i'm sort of pro crypto pro. Bitcoin maximalist person i. I do wonder whether at this point. Bitcoin is also should also be in part of as a chinese of financial weapon against the us where it's it is. It threatens fiat money but especially threatens the the us dollar and And china wants to do things to weaken it so it's sort of china's long. Bitcoin perhaps from a geopolitical perspective The us should be a little bit Bsa some tougher questions about exactly how that works. But some some internal stable coin in china. That i mean that's not. That's not a real cryptocurrency. That's just a some sort of totalitarian measuring device. All right so how are people interpreting this. I is the most literal interpretation. This was embodied in the bloomberg headline that made many people notice. The story in the first place feels scorns. Bitcoin as chinese financial weapon in about-face pretty serious words. He's scorning bitcoin and this is a big about face for him. The article claim that the oil was urging the us government to consider tighter. Regulations on crypto currencies dmitri covina's host of hidden forces also took a more literal view and added that he hoped it got. Bitcoin is to more carefully. Consider this perspective. He tweeted bitcoin as chinese weapon. G where have i heard this theory. Before dmitri covina's hidden forces also took a more literal view saying maybe he's saying that integration of bitcoin into the us financial system makes both the us and bitcoin. Vulnerable since china is incentivized to it at a future date and that regulators need to be asking some hard questions about the prudence of such a move so that is one take. It takes what peter said at face value. what about other interpretations. Another point of view is that he was saying the. Us actually needs to get more involved in bitcoin. Less it fall into the hands of the chinese as a powerful asset in other words and this interpretation feel statement was an affirmation of the power of bitcoin and call for us engagement not a condemnation or dismissal of it. alex glad from the human rights foundation. Put it this way quote. He's saying. Bitcoin is important. And we shouldn't fall behind a communist china the fact that he says he's a bitcoin. Maximalist is the signal in that clip. The rest is noise though. I would dispute that. This is quote long. Bitcoin suzu thinks that it even more crisply feel is pointing out the nation's elite that far from being tulips or a speculative mania. Bitcoin has geopolitical and civilizational significance and will be pivotal in the rise and fall of fortunes and empires now a sort of extension of this theory. This interpretation looks at deals interest in mathematics in this version of the interpretation. Not only is the saying the. Us should be more engaged with bitcoin. He's deliberately using tactics designed to provoke the us to do. Just that will call this. The four chess argument chow wang. Put it like this stopping peter. The'll he's playing the forty chest trying to get. Us politicians interested in bitcoin and ultimately the us government and federal reserve to accumulate. bitcoin galaxy. Brain stuff remember deal roads

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