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CHINA BITCOIN TRADES DROP 90%

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Thread replies: 65
Thread images: 8

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Is that the sound of a bubble popping?
Can you hear the air coming out?
Last night, the PBOC forced Chinese bitcoin exchanges to introduce transactions fees and trading volume collapsed by 90%
Can anybody explain what this will do to the price of BTC?
>>
Make it stable
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>>1755664
Wouldnt it make it fall instead?
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Well volatility will presumably decrease, which may lead to a decrease in volume on western exchanges too as "traders" see less opportunity to profit. This might have a knock on effect on the profitability of exchanges.
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No more bogus transactions manipulating the price therefore less volatility which is a good thing.
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F
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>>1755663
Probably a drop.

One of the reasons I could see BTC gaining so much is the potential to profit from HFT across other cryptocurrencies and price disparities. If this is potentially removed as a reliable source of income, people who were pumping money in to gain from it may exit and sell off. It will be interesting. Considering the market cap increased by 9B with the unit price going up 80% in less than 3 months, I think it's safe to say it gathered attention from "real" money.
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>>1755665

to these idiots in denial `stable` doesnt include the 80% drop which will happen slowly but surely over the coming months.

back when btc was $200, THAT was the genuine price. before every Du Lin and Yung Lo and their 15 kids set up buy/sell orders.

honestly, i have faith in btc, however even if dropped 50% tomorrow it would still be overvalued. nobody, and i mean NOBODY, knows how much bitcoin is actually `worth`, and thats the problem.

decentralized currency my ass. might as well rename it to ChinaCoin
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>>1755663
lol, they've just made BTC more valuable

any barrier to access it makes mainstream currencies less trust worthy and reasonable alternatives, in general, to bank/monetary system more attractive to smart people
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>>1755815
>to these idiots in denial `stable` doesnt include the 80% drop which will happen slowly but surely over the coming months.

Ok, so you calculated wisely that BTC will fall to about 200$ in the next months? Great! I think it is time to short it on leverage and become a multi millionaire. Are you doing it already?

>honestly, i have faith in btc, however even if dropped 50% tomorrow it would still be overvalued. nobody, and i mean NOBODY, knows how much bitcoin is actually `worth`, and thats the problem.

If you say it is overvalued, then you know how much it is worth and will be shorting heavily I assume?
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its currently used as hedge against falling yuan.
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>>1755815
>nobody, and i mean NOBODY, knows how much bitcoin is actually `worth`,
That's what markets are for senpai
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>>1755815
It's worth whatever supply and demand dictates
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>>1755663
>Last night, the PBOC forced Chinese bitcoin exchanges to introduce transactions fees and trading volume collapsed by 90%
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>>1755663
i sold everything i don't even care right now.
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>>1756016
Haha how much did you gain?
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>>1755663
Damn you're retarded.
Chinese volumes were extremely inflated due to leverage, no fees, volume incentives, ... Recently the PBoC made the Chinese exchanges stop leverage and instate fees.
And poof, the fake volume disappears.

There have been many threads about exactly this, and it's a very good thing in the mid-to-long run.

Nothing changes for the traders, except there's a lot more trust now.
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>>1756188
more than 200% overall.
i tripled my btc then lost half of it and cashed out at double price.
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>>1756628
trusting chinaman would be one of the biggest mistakes you'll ever make
>>
What does this mean for ethereum guys?
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>>1756727
And with the evaporation of the fake Chinese volume, Bitcoin's apparent reliance on China has been debunked and thus drastically reduced.

All the naysayers on the internet kept saying "muh Chinese own 98% of bitcoin, stay away!", and it turned out to be bullshit.
As some of us have been saying all along.
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>>1756734
wait china says something vaguely affecting bitcoin trade, and the 9/10 of total traffic stops the fuck happening. and your conclusion from that is this is proof that majority of bitcoin trade is not happening in china?

... i can't follow you where you are going anon, but take this!
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>>1756762
All that traffic was fake traffic.

It was literally Chinese people ping-ponging their own bitcoins back and forth between their own accounts, simply because the Chinese exchanges charge them less for withdrawals the higher their volume is.

No trading fees + incentives to create empty volume = massively inflated fake volumes.

What's left now is actual Chinese volume, pretty much same as it's been these past months.

This was all about the Chinese exchanges trying to outdo each other in volume in hilariously cartoonish ways, almost nothing changes for actual traders.
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>>1756769
>simply because the Chinese exchanges charge them less for withdrawals the higher their volume is.

Should be "chargeDDDDD them less".

Past tense, thank god.

I personally started a few threads wishing for the Chinese exchanges to get shut down simply because of the zero-fee trading bullshit falsely inflating the Chinese share of the bitcoin market.
What actually ended up happening was even better of course, PBoC simply made them charge trading fees. Done.
>>
So until now making trades on Chinese exchanges had literally 0% fee?
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They never made it out of denial.

Let it sink in good.
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>>1756818
Yes.

You only paid the exchange something when you actually withdrew your money from the exchange.

And the more volume your account showed, the less you paid for that withdrawal.

So the Chinese simply set up bots to shuttle the same bitcoin back and forth for no reason other than to create volume.

That's all over now. Thankfully.
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>>1756826

Then I guess this shouldn't actually affect the price too much since the non-artificial demand is still the same.
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>>1756834
Everyone needs to adjust, a lot of people erroneously thought the Chinese actually did own 98% of bitcoin (despite the efforts of people like me), which explains why so many people overreacted when the Yuan rose and PBoC announced oversight measures on January 5th.

In the very short term, expect the unexpected.
In the mid-to-long term, expect only positive effects from this modified Chinese situation (that's not to say other elements can't negatively influence bitcoin).
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Should drop dramatically watching closely to dump if i see it free fall
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>>1756846
>Should drop dramatically
Why?
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>>1756850
China tycoons dumping
>>
>>1755663
can it be because the chinese didnt and still dont give a shit about the future of bitcoin and were only in it for some ez gains using 100x leverage?
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>>1756861
What makes you say that?
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>>1755663
thanks op i just set my stop sell.
>>
it definitely made the charts fucking ugly

and the order book

what a mess I cant read this shit...
>>
TO EVERYONE WHO STILL THINKS THIS IS A BAD THING: THE VOLUMES WERE FAKE, NOTHING CHANGED

Example
>Lee has one bitcoin and two BTCChina accounts: A and B
>Lee moves that one bitcoin back and forth 101 (one hundred and one) times in one day
>bitcoin starts in account A, and ends up in account B

Fake volume: 100
Actual volume: 1

What the recent PBoC measures did, was remove that 100 in fake volume.

Also, volume itself has 0 (zero) effect on the price of bitcoin.
What influences price is supply/demand, nothing else. And if you move the same bitcoin back and forth, demand/supply remains balanced, so there's no effect on price.
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>>1756732
That it still is a mess
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>>1755663
Looks like people bought btc a lot before the fee forcing, so it seems quite normal that it calm down for a while after that. Too soon to claim a durable drop of exchange volume
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>>1757712
We have no way of knowing if the true Chinese volume actually did drop.

The only thing we know is that a fuckton of fake volume thankfully disappeared.
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>>1755821
This.
>Hey people, we're going to take your gold but it will be for good we promise
>Instantly enter into a spiral of inflation and money devaluation

Geez, wonder what would have happened if I bought gold then.
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>>1755663
D:
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>>1755815
> nobody, and i mean NOBODY, knows how much bitcoin is actually `worth`

>back when btc was $200, THAT was the genuine price.

hmmm
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>>1757688
i really find this hard to believe. if you throw your funds around on an exchange like this you will bleed money like crazy and someone can swoop in and take your shit too.
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>>1758323
You can send bitcoin directly from the exchange to a specific address, anon.
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>>1758374
at which point you get fleeced hard just try it!
the fact is nobody is sure to make money from trading on an exchange aside from the exchange itself.
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>price still climbing after chinese exchanges get regulated
Tick tock nocoiners, tick tock.
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>>1758383
>at which point you get fleeced hard just try it!
What do you mean?
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>>1758323
chinese exchanges had 0 trade fees
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>>1758488
if there are no fees on trading they skim you when you try to cash out and or deposit.
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>>1758494
Yes, they had a withdrawal fee.
And guess how Chinese traders could get discounts on those?
By creating empty volume.

See how everything fits?
>>
so do you guys think it's crashing again anytime soon or will it stabilize?
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>>1758535
crashing and then stabilizing. Im saying this with no information or knowledge tho
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As an aside, how were these exchanges able to operate if they had no fees?
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>>1759531
nvm I see it has been answered already
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Where can I buy Bitcoin Unlimited? Or is that the same thing as Bitcoin?
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>>1755759
>bogus transactions
You mean liquidity and low fees trading which allowed everyone to keep trading, and keep the price at a constant level?

Now everyone will have to market buy / sell to get their BTC which will swing the price around. More trading makes the price smoother in my opinion because you've got more activity on both sides. I think that low activitiy causes faster movements and unpredictable price swings.
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>>1758535
It crashed a couple of times already in the past few weeks, primarily because of those PBoC announcements causing undue panic.

Bitcoin's growth had been very stable, and was cruising for new all-time highs.
There was a correction coming along the way, but those PBoC announcements from the past few weeks forced that correction to happen early and hard.

The bitcoin market is a lot healthier now than it was before January 5 2017, with much better trust (people no longer think the Chinese own 98% of bitcoins and bitcoin volume).

Expect growth, and better stability. All else remaining equal.
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>>1760332
do you think it would be a good time to buy?
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>>1756769
Youre making excellent points, but the guy arguing with you is an idiot and not worth your time.
I understand what youre saying, agree with it and wish it would just end the thread lol
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when do i buy bitcoin?
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>>1760809
when it falls below $400
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>>1757688
>What influences price is supply/demand, nothing else.
Not when there are people speculating. And I'm pretty sure a large part of the bitcoins are detained by people speculating on the bitcoin
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>>1755663
>Is that the sound of a bubble popping?
>Can you hear the air coming out?

No, it's just the chinese new year. Everyone takes a week off, the country stops for a week. Sorry to burst your fantasy.

>mfw even the """"news"""" outlets confidently connecting the current volume decrease with the old news of inspections and fees
Do they ever research what they report on, like, at all? It's like they want to look incompetent.
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>>1761671
Also, just tried
>ctrl+f "new year"
>1 single result and it's my own post

Ok it's not just the ""news"" sites and nocoiners, cryptofags everywhere confirmed for being retarded. No wonder you get stuck with worthless bags all the time.
Thread posts: 65
Thread images: 8


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