Crypto Myth Debunked: There’s No Evidence China Owns 194,000 Bitcoin

Crypto Myth Debunked: There’s No Evidence China Owns 194,000 Bitcoin

Last week, Bitcoin.com News published an editorial detailing governments’ Bitcoin holdings, acquired through confiscations, mining, or direct purchases. Among the claims was the assertion that China might hold over 190,000 bitcoins. However, this speculation was quickly challenged. This week, Sani from TimechainIndex.com stated unequivocally, "There’s no proof that China still holds any of their confiscated bitcoin."

China’s Alleged Bitcoin Hoard: Fact or Fiction?

On December 10, 2024, an X (formerly Twitter) account known as "Finance Guy" shared a graphic with 41,400 followers. The image purportedly detailed the Bitcoin holdings of various countries and companies, claiming China’s balance sheet included 194,000 BTC. According to the chart, dated May 2024, the U.S. government topped the list, followed by China, with Germany and Ukraine holding significantly smaller amounts. However, the chart’s outdated nature casts doubt on its accuracy.

Sani rebutted the claims, pointing out that Ukraine liquidated its Bitcoin donations in fiat to support defense efforts, while Germany sold off its 50,000 BTC earlier this year. Regarding China, Sani wrote, “Anyone thinking that they still hold these bitcoins, please provide us with the addresses.” Blockchain researcher Kyle Torpey echoed this skepticism, noting that the sources for China’s alleged holdings are often dated and unverifiable.

The Evidence Says Otherwise

The persistent rumor of China’s Bitcoin stash originates from the country’s 2019 crackdown on the PlusToken Ponzi scheme, which saw authorities seize a reported 194,775 BTC. While this haul is documented, the fate of these coins remains speculative. Blockchain analysts like @Ergobtc from the now-defunct OXT Research believe the coins were liquidated on the open market in 2019.

Sani’s commentary highlights a critical issue in the crypto space: unverified claims spreading unchecked. “No one ever provides evidence,” Sani remarked, emphasizing the Bitcoin community’s mantra: “Don’t trust, verify.” Without transparent on-chain data, these assertions remain mere speculation.

Transparency and Blockchain Integrity

As of December 11, 2024, no wallet addresses have been linked to the Chinese government’s alleged Bitcoin holdings. The blockchain’s transparency ensures that such claims can be verified, yet no supporting data has emerged. Meanwhile, verified information exists for other governments, such as the U.S., the U.K., Bhutan, and El Salvador, whose Bitcoin holdings are reflected in on-chain evidence.

Breaking the Echo Chamber

The myth of China’s Bitcoin hoard exemplifies how easily unsubstantiated claims can gain traction in the crypto community. Without hard data, these narratives undermine the decentralized ethos of Bitcoin, which prioritizes transparency and verification.

As blockchain enthusiasts and researchers, we must prioritize facts over hearsay. Until verifiable evidence is presented, the story of China’s 194,000 bitcoins remains just that: a story.