hey everyone and welcome back to my channel welcome back to my subscribers especially this is where we talk about money saving and how to secure yourself in an insecure world this is bald guy money i'm bald guy let's talk money so today i want to talk to you all about national digital currencies and one in particular the digital yuan or chinese eu one and what i specifically want to cover is what it is why china is launching it and why it isn't the next bitcoin and also why i would never ever invest in it as always please just remember none of this is financial advice i am sharing my opinion and point of view supported by logic and math at the end of the day you at home have to make your own decisions on how to invest and if you like what you see please hit the like button smash that baby up and subscribe to my channel so you don't miss any of my content okay now that we've got that out of the way the digital yuan china is aggressively ramping up the launch of its digital yuan in fact according to this bloomberg article from a week ago the chinese trial of the digital currency has now expanded from 500 000 to 10 million eligible users assuming they keep expanding at this rate we could see an excess of 200 million users by the end of the year quite incredible really but what exactly is the digital you on i think a lot of people don't quite understand what it is and how it will work so please pay close attention to this part in simplest terms the digital yuan is exactly the same thing as the paper you want you can see it here only in its digital form and as the number of users expands there will be less need for this little piece of paper which is very convenient for the chinese government as they're keen to gain total control over their society so when i said at the start of the video that the chinese yuan is not the next bitcoin i meant that very literally just take a look at this top line comparison i've prepared bitcoin is decentralized meaning it's not controlled by any one person or government or entity whereas the chinese yuan is centralized controlled directly by the chinese government meaning that manipulation of the currency in the case of the yuan is possible whereas manipulation of bitcoin is for example impossible the bitcoin network is private but transparent what do i mean by that that means that addresses linked to transactions are private in the sense that me baldguy i can have an account called x12345 and nobody can directly link that address to me personally however all of my transactions are transparent and can be seen on the blockchain and verified by the network of computers that maintain it whereas transactions of the digital you on are number one not private at all and most importantly not transparent as coming back to the first point the fact that it's centralized and controlled by the chinese government means that there are a lot of grey areas that they can operate in to change and manipulate things happening within their blockchain system the supply this is a really good one bitcoin limited supply of 21 million coins whereas for the digital yuan really the sky's the limit they can create as many as they want digitally out of digital thin air and inflate the the currency as much as they want anytime they feel the need to do it and the last point here take a look at this is that bitcoin is historically increasing in value bitcoin is a store of value whereas the yuan is historically flat in value in fact it is decreasing in value and i'm going to illustrate in a moment exactly why so even from a speculative point of view the digital yuan is not an investment vehicle since we've already established that this is just china's play to eliminate paper currency let's take a look at how the yuan has performed versus both the us dollar and bitcoin over the last 10 years okay here it is so as you can see if we go back to july 2011 one yuan would purchase 0.1548 usd so let's call that 15 cents fast forward 10 years later to today one yuan buys exactly one five four eight uh usd meaning that it's 15 cents so no change so what i mean when i say the yuan has been historically flat or in fact decreasing in value what i mean is that versus the us dollar it doesn't really grow it when we're saying that it's an investment vehicle it's not something you could buy something of today and in 10 years it would be worth more versus for example the us dollar as we can clearly see here in fact when you factor in inflation because we know the us dollar is inflating at a very high rate especially if you've seen my earlier video the yuan is actually decreasing in value now if we jump to the comparison with bitcoin one yuan back in 2011 was 0.0014 bitcoin today that same one yuan is 0.00005 bitcoin which is a change of negative 900 sorry it was which is a change of negative 99.6 meaning that versus bitcoin the u1 has lost 99.6 of its value okay so when we're thinking about things as an investment vehicle clearly bitcoin and the digital yuan are not the same thing and believe me when i say that with the launch of the digital yuan absolutely nothing will change and for good reason china doesn't want their currency to be overvalued because it wants the goods that it produces to remain cheap because if they don't remain cheap companies will simply manufacture goods elsewhere to save money and consumers will stop buying chinese products in fact it's the reason they artificially keep the value of their currency low to keep their industry rolling you want proof look no further than back to august 2019 when the united states officially labeled china a currency manipulator now there are reasons apart from simply control of their citizens that is driving china to move forward on this project quickly and the reason is that they want to become a major reserve currency of the world thus eliminating their dependence on the us dollar or at least limiting it in a way as it stands today the us dollar is the major reserve currency of the world more than 60 percent of global reserves are in u.s dollars and there are many historical reasons for that and i will unpack that in a separate video but what i want to say is that even if successful the actual value of the yuan shouldn't move much considering what i said about affordability of chinese goods so in summary the digital yuan is not a vehicle for investment no matter what any youtube advertisement scam or chinese government-sponsored journalism tells you the new yuan is a lot like the old one it can just be controlled easier which will always be its barrier to succeeding versus bitcoin or even versus the us dollar and really keep this graphic in mind before deciding whether to buy or not to buy the digital yuan the centralized aspect of it means that you may just do something someday that makes the chinese government mad and poof your money will all be gone just like that something that can't happen with vehicles like bitcoin as always i wish you all happiness i wish you all success hope you liked the video please remember to subscribe hit the like button and see you in the next one