China fact of the day

by on January 12, 2017 at 2:36 am in Current Affairs, Data Source, Economics, Law | Permalink

RMB accounted for 98% global bitcoin trading volume over past six months

Here is the link, picture, and source.  Of course that is all about capital controls, and a capital control-evading mechanism is what Bitcoin has evolved into.  I wonder how it will evolve further, especially if the Chinese crack down on the practice, which they are more than capable of doing.

1 JC January 12, 2017 at 3:12 am

So the Chinese government can put an end to Bitcoin through regulation? That’s a serious risk.

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2 5North January 12, 2017 at 4:57 am

government regulation is good– it protects the populace

(at least that’s the general viewpoint of most all MR commenters)

U.S. currency regulators (+IRS & DEA) are quite eager to crack down on BitCoin– and they will eventually

people of the world must be protected from this dangerous BitCoin scheme, government regulators have no other motives

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3 Doug January 12, 2017 at 6:01 am

Don’t discount second order effects. Chinese regulation may reduce RMB/BTC volume, but it may also spook a “flight to quality” in a sense. BTC could just as easily spike on regulations as everyone and their brother in Beijing rush for the exit.

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4 yo January 12, 2017 at 4:30 am

How does that work? I mean where do Chinese Bitcoin sellers get the Bitcoin from?

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5 Reduction January 12, 2017 at 6:12 am

At a first approximation, a Chinese bitcoin miner with a party friend and a low electric bill.

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6 zby January 12, 2017 at 6:13 am

Most speculators believe that the trade volumes at the Chinese exchanges are fake. And beside that they are also the result of the exchanges having 0 fees for the trading – so people trade back and forth a lot. I don’t know of any other exchange with 0 fees trading.

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7 Kronrod January 12, 2017 at 10:05 am

That’s the answer. Chinese exchanges don’t earn money on trading fees (there are none), they earn money on providing leverage to the gamblers / traders. So I would say Tyler’s interpretation is wrong.

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8 Axa January 12, 2017 at 7:12 am

The sad thing about Bitcoin is retail investors: the people that can’t afford to lose what they have invested.

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9 Brian January 12, 2017 at 9:27 am

One interesting thing about volumes that are that extremely concentrated in RMB is that there is a limit to how much of the Chinese capital flight is being converted into Dollars, Pounds, and Euros. It could still be a very high number, but it’s not strictly acting as a conduit to get your RMB out of the country. Either the customers are holding on to their bitcoins or they’re just using this the bitcoin exchanges as a gambling hall.

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10 Larry January 13, 2017 at 1:05 am

If Trump tries to tax remittances, that will be the next bitcoin bonanza.

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