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  • China declares war on Bitcoin.

  • Their reason?

  • Not what you'd expect...

  • Welcome to China Uncensored, I'm Chris Chappell.

  • Good news! The Chinese Communist  Party has found something new  

  • to declare war on. This time it's  crypto mining. Stirring wider fear...

  • ...into a porridge of peril.

  • This is a big deal for Bitcoin, which  is the most popular cryptocurrency

  • That's becauseChina accounts for around  65% of all Bitcoin mining globally.”

  • In comparison, the United States accounts  

  • for 7.2% of global Bitcoin mining.”
 I'll explain why that is in a bit

  • But the Chinese Communist  Party is not a fan of Bitcoin.

  • Bitcoin are created and moved around not  by a central bank or financial institution  

  • but by a broad and disparate network of  computers,” on what's called a blockchain

  • Bitcoin operates entirely outside of China's  Central Bank or Communist Party control. It gives  

  • Chinese people a way to use money completely  free from oversight by the government.

  • So if you're, say, a Chinese  dissident, the Communist Party  

  • can make the bank freeze your savings accountBut they can't freeze your Bitcoin assets.

  • But that's not why the Communist Party is cracking  down on Bitcoin mining. No, no, no. It's cracking  

  • down, because the Communist Party wants to  save the environment. More after the break.

  • Welcome back. Unless you didn't see an adin which case YouTube may have demonetized  

  • us. That's why China Uncensored relies  mainly on viewer support. Which reminds me,  

  • did you know we accept Bitcoin? Visit  chinauncensored.tv/support to learn more.

  • So China has declared war on crypto mining.

  • In order to help the environmentyou see. You might be thinkingWHAT?!  

  • Well, it makes total sense.

  • Simply put, Bitcoin mining is a process  where people can run powerful computers  

  • to solve complex math problems  that validate Bitcoin transactions.  

  • They're rewarded with Bitcoins. This  is how new Bitcoins are created

  • And the computers doing that Bitcoin  mining requires a huge amount of energy,  

  • more than entire countries  like Ukraine and Argentina.

  • And as I said, China makes up about  65% of all Bitcoin mining globally

  • And the Chinese region of Inner Mongolia alone  “accounts for about 8%, due to its cheap energy.”

  • Which is why Inner Mongolia is  not only banning Bitcoin mining,  

  • but also banning any new digital coin projects.

  • You see, Chinese leader Xi Jinping promised,  

  • promised the UN that China will be  carbon neutral within four decades.

  • You can make that kind of long-term promise  when you have the power to rule indefinitely.

  • But becoming carbon neutral is going to be tough,  

  • considering China burns more coal  than the rest of the world combined.

  • So yeah, Xi could have reined in the  number of new coal plants they're building.

  • But banning Bitcoin mining insteadthat  just makes so much more sense.  

  • For purely environmental reasons

  • A few weeks ago, China's top economic planner  released this statement blasting Inner Mongolia  

  • not meeting energy targets.

  • So they had to ban Bitcoin mining  you see. For the environment.

  • This has led to a surge in the price of Bitcoin.

  • Did I mention we take Bitcoin?

  • So you can see, the Chinese  Communist Party has nothing  

  • at all against Bitcoin or other cryptocurrency.

  • In fact, they love the idea so much, the  Party wants to make its own digital currency!

  • More after the break.

  • Welcome back.

  • So I wouldn't want you to think the  Chinese Communist Party has something  

  • against Bitcoin. Sure they've  declared war on Bitcoin mining.

  • And in 2017 they banned cryptocurrency exchanges.

  • For the environment…?

  • But as the New York Times recently reported,  

  • China is charging ahead with a National Digital  Currency, called the e-Chinese-yuan. (eCNY)

  • China's central bank began testing  it in four cities last year.

  • And now it's being brought to bigger  cities like Shanghai and Beijing.

  • In my hand is the new digital RMB. It's held  inside a digital wallet on an app on my phone.”

  • Held by Mao Zedong, who's  watching you from the grave.

  • But China's digital currency  is like the anti-Bitcoin.

  • Because while Bitcoin uses blockchain  technology that keeps transactions anonymous,  

  • China's digital currency...does not  do that. In fact, Chinese authorities  

  • can see every transaction you  make with the digital yuan

  • China's digital currency is not actuallycryptocurrency. Cryptocurrencies by definition use  

  • a decentralized system to record transactionsThat keeps the records from being manipulated.

  • But China's digital currency usescentralized system. It's controlled by  

  • the Chinese Central Bank, and ultimately  by the Chinese Communist Party itself.  

  • But it *feels* kind of like cryptocurrencyso it's the same thing, right?

  • The digital yuan couldgive the  Chinese government more power  

  • to monitor finance flows because a digital  currency system can record every transaction.”

  • “[It] can make it easier for governments  to track financial transactions  

  • to stamp out tax evasion and  crack down on dissidents.”

  • Those two things definitely  belong in the same sentence.

  • And believe it or not, it gets better.

  • It will give the central  bank new powers, including  

  • novel types of monetary policy  to help the economy grow.” 

  • In one possibility that economists have  discussed, a central bank could program  

  • its digital currency to slowly lose value so that  consumers are encouraged to spend it immediately.”

  • Great! I hate wasting all my money on savings.  

  • Well gosh, how long until we can  have that in the United States?! 

  • A bunch of countries are experimenting  with a national digital currency,  

  • Yet no major power is as far along as China.  

  • Its early moves could signal where the rest  of the world goes with digital currencies.”

  • The New York Times always  manages to fill me with hope

  • You know, the Chinese Communist Party  has for years been trying to weaponize  

  • its currency and defeat the US dollar. And  now some say the digital yuan could help.

  • But will the yuan be able to defeat the  dollar as the global currency? That's a whole  

  • nother episode. Let me know in the comments  below if you'd like to see us do that one

  • And now it's time for me to answer questions from  a member of the China Uncensored 50 Cent Army,  

  • fans who support China Uncensored on  the crowd funding website Patreon.

  • James Wallberg asks, “Chris when the CCP falls  do you think China will stay a single country  

  • or split up into several smaller onesTo quote Romance of the Three Kingdoms.  

  • "That which is divided must unitethat which is united must divide."

  • First of all James, Romance of the Three  Kingdoms is one of my favorite books,  

  • and definitely my favorite  of the four Chinese classics.  

  • I highly recommend reading it if you  haven't. Or at least play Dynasty Warriors.

  • But what happens after the CCP  falls is a very good question.  

  • China has existed for thousands of yearsDespite so many different dynasties,  

  • over the last two millennia there has always  been something that eventually unified people  

  • into the country we call China. That will  surely continue even after the CCP falls.  

  • However, regions like Inner Mongolia, XinjiangTibetplaces that have not always been  

  • historically part of Chinathey might become  their own independent countries again.

  • Thanks for your question James.

  • And thank you for watching. Once again  I'm Chris Chappell, see you next time.

China declares war on Bitcoin.

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China Declares War on Bitcoin

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    zijun su posted on 2021/05/17
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