What Is A Bitcoin Mining ‘Double Spend’?
Worth mentioning is that Bitcoin is a threat to China’s introduction of the e-Yuan digital currency in Hong Kong. I have little doubt that China will cease Bitcoin mining and would not hesitate to create a condition called a “double spend” which would effectively ruin Bitcoin’s ecology.
A double or multiple spend effectively creates counterfeit Bitcoin and can only be effected by a majority of miners. China, which does approximately 65% of the Bitcoin mining could create this condition all on their own. Although, it’s highly likely the Chinese government would likely say it was the Bitcoin miners- not them. They could argue the Russians and Iranians also participated in this potential internecine warfare (wink, wink).
Digital e-Yuan verses Bitcoin
Bitcoin may rise more over the shorter term. But longer term I see no chance it will hold up as a store of value – as an asset that, for instance, might compete with gold, whose long-term prospects I believe are sensational (as I explore in depth in my latest book China’s Rise and the New Age of Gold).
Why? For one thing – and there are other reasons as well – China won’t let it happen, because a triumphant Bitcoin would run counter to China’s plans for its own digital currency, the e-yuan. While China has banned Bitcoin exchange trading on the mainland, the cryptocurrency is traded on exchanges in other Asian countries and in Hong Kong. China plans to use Hong Kong as a hub for international use of the e-yuan in cross-border transactions. If Bitcoin continues to make waves, China would view it as a threat to e-yuan adoption and would not hesitate to quash Bitcoin.
And it has the means to do so. When it comes to both Bitcoin and Tesla, China holds all the cards. Putting aside Tesla for a moment, realize that China currently carries out 65% of global Bitcoin mining. That on its own is enough for China, if it chooses, to create what’s known as a “double spend.” This refers to a situation in which a single Bitcoin is used for multiple transactions, the antithesis of what is supposed to be the case. In effect, it would create counterfeit Bitcoin, thereby destroying the entire ecosystem on which Bitcoin is based.
My newest book, China’s Rise and the New Age of Gold reveals the best investments for the near future and beyond… available on Amazon Books and Kindle version.
China’s Rise and the New Age of Gold
HOW INVESTORS CAN PROFIT FROM A CHANGING WORLD
China’s growing role in the global economy is showing no sign of retreat. Indeed, recent events have only increased China’s influence—to the point where China is poised to edge out the United States and take the lead. For investors like you, this tectonic shift poses difficult challenges—along with tremendous opportunities. In China’s Rise and the New Age of Gold, one of the 21st Century’s top economic experts, Stephen Leeb, lays out his compelling argument that explosive gains in gold lie ahead. Gold’s price will increase dramatically to as high as $20,000 an ounce. Investing in gold will be the best (and perhaps only) way to generate substantial investing profits in this decade and beyond. Dr. Stephen Leeb draws from his vast knowledge of macro-economic trends and current market conditions to explain China’s plans to launch a new monetary system centered on gold, which will largely supplant the global dollar-based monetary system. And he provides you with the tools you need to invest in all things gold, including in gold itself, gold mutual funds and ETFs, and the right mining companies. The author paints a picture of a fully transformed investing world—one that will make important yet temporary events like the 2008 financial meltdown and coronavirus crash pale in comparison. This prescient guide to 21st Century investing delivers the knowledge and insight you need to draw unprecedented profits as China’s rise truly launches a new age of gold.
