It's not as simple as it seems, because as the article says, China has the ability to harm the US, but if it goes in that direction, it will harm itself as well. Simply put, China depends on the US and vice versa, and all this pressure from the US is just an attempt to reach agreements that will be more favorable to the US than they have been so far.


As for China's investment in Bitcoin, I think this is just one possible interpretation by one of the people from BlackRock who obviously want to emphasize the possibilities of investing in BTC even more, considering that they are doing great with their BTC ETF. However, whatever the economic situation on the global markets, I would not agree that China will just decide to invest in BTC, given that they are fanatics who are obsessed with control, and how will they control something that is decentralized and also largely depends on mining farms and various companies located in the US?

China can do it but it is like a big tap on their own face because years ago in the last market cycle, they cracked down Bitcoin mining and in many years they tried to constrain their citizen access to Bitcoin and cryptocurrency as most as possible.

They can do it because their government totally control that country and citizens in that country have no power from voice to vote for impacting the governmental policy. If Chinese government actually do it, it will be a greatest ever comeback in Bitcoin national policy history.

If it happens, it's big win for Bitcoin investors and I imply about people who already bought bitcoin and hold their bitcoin a long time. For new investors and future investors, it's kind of loss because they soon will have to purchase bitcoin at more expesive prices.

China already holds a significant amount of Bitcoin, so I don't think they would buy more if they're planning to dump it. In my opinion, the best option for them would be to buy gold. Well, you can't really blame China for this; it was the US that started the economic war by trying to raise tariffs. Now, China is just responding and trying to show the US that they can't be bullied, they’re ready to fight back.

Bitcoin growth as in what?  To me it is growth as in more players but it is a rollback on the other hand because more Bitcoin is placed into the same hands of central players.  It is growth if you tell me millions of people are now becoming new Bitcoin holders, not when I hear banks and governments centralizing all those funds in a small number of hands.

Countries and governments join this market bring double effects. First it brings more legality and legalize Bitcoin more as well as contributing to new big demand that will lift price up. Secondly it might bring negative effects by having more big holders and Bitcoin distribution will become more centralized in no longer institutional investors or old era whales but with appearances of governments.

Governments surely will not be actively with trading and their Bitcoin holdings will reduce circulating supply on the market that can possibly affect trading volume on the market too.

Why I might agree with your thoughts about this move having such a tendency of harming China in a way is how even the massive new tariff declaration by Trump affected US households negatively as they had to pay more on certain groceries and other items. We live in a world that's referred to as the global village maybe due to the economic interdependence that exists among nations, but critically looking the manner at which Trump went about with the tarrif it didn't implied that he understood how much they needed China as much as China needed the US for economic growth.

It's a matter of geo-economic rivalry with each wing strategizing amid the rising trade tension. If China finds a need to invest in BTC after  evaluating all options  it wouldn't be about trying to control bitcoin but as not to bow to Trump's pressure. In any case I don't think the US will hesitate if they find a spot through which they could control bitcoin as China. Unfortunately for both sides bitcoin is completely decentralised.

There is no official statement released yet by the Chinese Government that they are planning to dump part of its treasury.  The news stated by @OP is regarding on the statement of Jay Jacobs in his interiew with CNBC and the statement is somehow light saying that many countries including China are "diversifying away" from the US treasury.  this does not necessarily mean they are dumping but rather possibly expanding or spreading out.

News oftentimes sensationalize their statement especially the headline to catch the viewers attention.  It is often times exaggerat worst is misleading people into believing something that is yet to be founded.

China has been very wise in this matter and if they sell Bitcoin now they are in a lot of profit. At this time the price of Bitcoin has gone up due to which they will not buy Bitcoin but before that the price of Bitcoin had gone down a lot which was a good opportunity for China to buy Bitcoin. I have hear that China has bought a lot of gold and because of this, gold has gone up a lot and the United States is also buying a lot of gold due to which the purchase of gold between the two is being given in a very large amount. This has cause a lot of trouble in the case of both of them due to which the discussion about the tariff is still going on between the two.

As much as I would love that to happen for the sake of Bitcoin, I doubt they will go that route. These things are a little more complicated than this. They will also consider how it will affect them negatively. I doubt they will want to hurt themselves just to hurt the US.


I don't think this is a reason that will make them not sell their treasury holdings off and go into bitcoin and gold. Yeah, I agree that they're obsessed with control (so is almost every other government), but in this case, they're not trying to control Bitcoin. They just investing. I mean, they don't control gold too ,but they can invest in it.

You are right, I have searched for this. Still, I can not get any concrete information from the Chinese website or any reliable sources we can hold onto to be genuine but however, but we all know the Chinese government is very strategic when it comes to trade deals with the US government. I doubt they would be quick to sell off their treasury bond with the US, as it would be too early for them to do so, looking at the fact that they are having trade wars with the US government. Although they have retaliated, which shook the world economy and that of the US, maybe we should call it "a test on the microphone," and a warning signal to the US. They would hold onto their Bond for future retaliation if anything funny happens again.