Some say that the U.S. will use China’s involvement in Bitcoin to harvest wealth, but the actual situation is probably more complex. This resembles a deadlock: on one hand, pushing most countries (excluding hostile nations like China and Russia) to accept Bitcoin, establishing protective barriers to prevent China from dumping U.S. Treasury bonds and triggering credit defaults; on the other hand, using the tie between Bitcoin and U.S. Treasury bonds to mask the issues of excessive issuance and dollar depreciation. If China and Russia also get involved, the final outcome may be: Bitcoin is U.S. Treasury bonds, U.S. Treasury bonds are Bitcoin; holding either is stepping into the same trap.
'Illusory' binding logic
Through the continuously rising price of Bitcoin, the U.S. attempts to cover up its lack of anchoring to physical assets and inherent value. This is a game of 'swapping cats', using the scarcity and price bubble of Bitcoin to make U.S. Treasury bonds appear more 'valuable'. In reality, this is merely a scam that binds debt issues with a 'technological illusion'. As Bitcoin rises, U.S. Treasury bonds appear more 'stable', and investors are more willing to hold U.S. Treasury bonds, cleverly hiding the U.S.'s over-issuance problem.
The technological 'disguise' of Bitcoin
Supporters always emphasize the scarcity and decentralization of Bitcoin, but these characteristics do not imply it has intrinsic value. Gold has existed as a decentralized asset for thousands of years and possesses natural physical value; whereas Bitcoin is merely a symbol in the virtual world, lacking a physical foundation and government credit backing. The U.S. has tied U.S. Treasury bonds to Bitcoin, allowing both to promote each other: when Bitcoin rises, it masks the issues with U.S. Treasury bonds; the ties between U.S. Treasury bonds and Bitcoin continue to expand issuance.
Gold is the real solution.
Bitcoin is essentially the 'rival' of gold, but its scarcity and technological attributes are not reliable. With technological advancements, the security of Bitcoin may be compromised and eventually eliminated. There may be a universally accepted global digital currency in the future, but it will never be Bitcoin. Gold is the only real asset that can break this scam.
In this 'Bitcoin war', if countries blindly increase their holdings of Bitcoin, they are essentially increasing their reserves of U.S. Treasury bonds, providing backing for the dollar's credit. Ultimately, this liquidity-rich scam may destroy the wealth of many nations, and the only thing that can protect sovereign economies remains the stability and physical value of gold.