Yeah I think so. But anyway, once bitcoin becomes a national reserve asset like gold, diamonds, dollars ... it can help bitcoin and even the decentralized economy have a particularly important position.

Peter Thiel was not talking about how bitcoin will be a financial weapon for China to be used against the world, he was talking about how it could be a “Chinese financial weapon” used to dethrone the USD’s monetary status. And I do not see this valid according to what I read from the news, valid reasons should be given along side. He did not even comment about Chinese CBDC (digital yuan) which some people have being commenting about.

Anyone implying China will control bitcoin are just thinking they know what they are saying, but China can not control bitcoin, even as China mine 65% of newly mined bitcoin, the mined bitcoin is well distributed throughout the world, not congested in China. Also, some countries are becoming more friendly with bitcoin mining, making percentages of miners in China compared to the world to be reducing

I can't imagine how that would happen, if the meaning of "weapon" was "to control the market", maybe at least Chinese should have more than 50% of  BTC cir supply.
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As I know that China is stockpiling much more than 50% Bitcoin

I'm not really sure how can they used bitcoin to be a financial weapon when they just rank them #7 in the latest CCID release.



https://mp.weixin.qq.com/s/ZdJVdv8rNch2sWRPBSUEOA

Likely candidates for me is obviously their Digital Yuan, and turn this into a global currency. But I don't know if this will be successful, if China did have plans to replace the US dollar.

China can turn anything into weapon including their cheap toys, microchips or mobile phones and I don't think taking over Bitcoin is a realistic threat but they can fix this easy if they want.
Western counties including United States could create regions with cheaper renewable energy in north and colder regions and make more pools to compete with Chinese pools and create some balance.
Governments can't control all miners even if they want, and that would be a nightmare with restricting and blacklisting some transaction, but they can incentivize regular people to create new pools and reduce influence from China.
It looks to me that PayPal is more concerned what will happen with USD and all other fiat inflating currencies than about weaponizing Bitcoin  

It is unlikely that they are interested in bitcoin. They want to make their digital yuan and promote it.

But you can't be sure about that. That that said weapon is not a literal word meaning weapon to kill people, it is all about financial competition and we know how ambitious they are. Nevertheless, China won't probably talk about that in public, that gonna be their secret.

If that is true, why they ban Bitcoin in the first place. This remained uncertain, or maybe this is just an assumption to create another market drama and change the direction for trend. Because that is really not the thing that we are expected to see in the future.  

I am quoting from the source that the OP meant.
With the words that are written, it is clearly exaggerated.

Thiel, The response to the title is slightly exaggerated as if China has already done it and threatens certain countries with fiat money by scapegoating Bitcoin.

In fact:
By looking at the words in the contents of the title is very different.


I concluded that.
Thiel himself still doubts what he is talking about: it means: 'wondering' in the words issued by Thiel, he himself does not know what he is talking about, here it is very clear that Thiel is just saying what he thinks so far between the US vs China.

Conclusion: Bitcoin currently cannot be controlled by any government, including China, where might Bitcoin be used as a 'weapon' and a threat.
So, the news that the OP publishes here, in my opinion, is a hoax, in other words, it is not clear, it is a lie, and in doubt.

Today everyone wants to talk about bitcoin, the newsrooms of Yahoo finance do not escape the rush of the news and in that sense any idea of the editor who in this case is a creator of "paid" content to fill spaces in the submenu "yahoo.finance" just to writing.

Today you have to look for reliable sources and have "criteria" not to give continuity to the game of the editors. This even happens on specialized websites in the crypto world.

Of course, there is a topic of discussion in the OP news, but it is very speculative, ambiguous and repetitive, the context is disguised to make room for the noun in the discussion. Certain news must be missed (this is one).

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Many things say made in China, but for now the dollar says made in the U.S. The best weapon the Chinese have is cheap labor.