China fact of the day

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.

Comments

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

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

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

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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.

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

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

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