The whole system is designed in such a way that you can't just make up transactions and verify fake ones. Those blocks would immediately be rejected as invalid by everyone else.
Which only matters if "everyone else" is the majority. In this case, "everyone else" is the minority if China's bitcoin investment is coordinated. It's called the "Byzantine Generals Problem" and is the basis for all validation on a P2P network. It is not impervious to attacks, and China is situated pretty well to be able to carry it out.
Either way, just as there is no guarantee of security, there is also no guarantee of threat, and everyone is free to put their money wherever they like.
If China decides to start making fake blocks, they don't suddenly get the ability to steal Bitcoin, nor do they get the ability to deny Bitcoin transactions for others. Everyone else will immediately notice that some (or even most) miners are dishonest and ignore them.
Which only matters if "everyone else" is the majority. In this case, "everyone else" is the minority if China's bitcoin investment is coordinated. It's called the "Byzantine Generals Problem" and is the basis for all validation on a P2P network. It is not impervious to attacks, and China is situated pretty well to be able to carry it out.
Either way, just as there is no guarantee of security, there is also no guarantee of threat, and everyone is free to put their money wherever they like.
Right, and I'm telling you that the novel concept in Bitcoin is solving the Byzantine Generals Problem.
If China decides to start making fake blocks, they don't suddenly get the ability to steal Bitcoin, nor do they get the ability to deny Bitcoin transactions for others. Everyone else will immediately notice that some (or even most) miners are dishonest and ignore them.