Neither the United States Dollar in China, nor the Chinese Yuan in United States hold the digital money supply as Bitcoin does in digitalization authenticity in both countries. Bitcoin in UNITED STATES, CHINA, INDIA, JAPAN, SAUDI ARABIA, RUSSIA is the same Bitcoin everywhere.
While the US dollar (USD) is holding the qualitative value to BUY United States in every transaction in the world and the Chinese yuan the Renminbi may buy China this interpretation does not apply for Bitcoin. Bitcoin may not buy everything a country offers or the Central Banks regulate, it may not buy China or the United States. A cryptocurrency or an asset with global supply which does not have the intrinsic value to be validated in such authenticity of the correlation may not cost more than the alternatives which do. No country in the world will ban its national currency, but it may ban Bitcoin and cryptocurrencies as whole – for any reason, especially due to a financial crisis in terms of obligations to the national debt, happening by the replacement with digital currencies.
The meaning of a national currency is its value and the ownership it accumulates with it. What may the United States dollar buy? It may buy, pay everything, including but not limited to the ownership of the country United States of America. There are no limitations to the purchasing power of the US dollar. The Chinese yuan is holding equal identification like the national currency of Unites States – the USD.
The market divergence between national currencies, cash and digital money cryptocurrencies like Bitcoin, Ethereum is that digital money or cryptocurrencies may not buy everything.
The identity of a national currency is the purchasing power of unlimited aspects in terms of usability, buying, selling, trading.
United States – China Transactions
The United States – China transactions are mostly trade transactions dealing with trade, business and investments between the countries. Bitcoin as an alternative payment asset of value different than the national currency of both United States and China, trading at $111,000 per BTC is not of interest in large investment deals and international payments.
The security for large transactions in Billions worth is with an asset that does not lose value, and is equivalent to a national currency and worth. Bitcoin is not an equivalent to the US dollar or the Chinese yuan.
As this realization may define that Bitcoin losses identification with the countries of the world, their national economies, the central banks regulation, Bitcoin becomes worthless, losing its accumulated price no matter what price it reaches as high.
How legit is Bitcoin? Cryptocurrencies like Bitcoin which are not formally issued by a country, with the valid worth may not be legitimate source for payments and transactions as they are not officially issued by a Central Bank or equivalent body and are not official mechanism for transactions, payments. Central Banks as the regulation have not obtained ownership or officially legalized Bitcoin as official payment asset of worth.
What price may Bitcoin reach? Bitcoin may reach the price of inflation becoming worthless for global finance, trade and business as not officially backed by issuance from legitimate source of authority and regulation.
How secure is Bitcoin? Bitcoin is not a secure payment asset or digital mechanism for transactions, as it may not hold its value in case of inflation or financial crisis. The most secure asset for payment transactions is an asset which may maintain its value. International transactions require the security of the asset value and the security of the payment processing, while the dollar may be transferred by secure technology to China, Japan or United Kingdom for any kind of international payments, Bitcoin as an asset does not hold such security level for international transactions.
China’s ban of Bitcoin
Transactions between United States and China based on foreign trade, forex, business deals, international investments require no devaluation of the financial assets for the transfer of money in exchange of production or investment capital, which Bitcoin BTC may not secure and may not offer. The Chinese products paid in Chinese yuan are most preferred option for trading deals as they secure the associated value of production secured with currency of the same equivalent as the products manufactured or investments made.
The ban on Bitcoin is security for China in international transactions and payments, as producers and manufacturers may not be paid in Bitcoin and no payment may be processed in Bitcoin in China.
Will Bitcoin replace money? Bitcoin created the crypto industry by being the first cryptocurrency which entered the alternatives for paymets as digital money, followed by Ethereum and countless of other cryptocurrencies. If Bitcoin was the only cryptocurrency in the world it would indefinitely dominate the market as the only payment instrument in its global supply besides fiat, having no other alternative for payment. Bitcoin is a second layer payment asset which means that you always use cash to buy bitcoin, and it is not actual real alternative to money and it may never replace fiat or money. Bitcoin may never replace money issued by the Central Banks or be payment system.
