Topic: How do you weight 'withdraw voucher' as an indicator of insolvency? (Read 818 times)

Clear and prompt. I'll save the time of double-checking, thanks for the info. I am native Chinese, as seen in my previous posts. I was for once so confused how does Bobby Lee, a Chinese, come with liquidity rebate feature - consider the Chinese hubris is growing at the moment, few would want that kind of refinement. Being ABC explained it.

check it out yourselves, his brother is the inventor of Litecoin; he is a ABC who spent most of his life in the States before returning to China, I don't think he really knows anything about China,literally grass-root China;  he runs BTCChina like running a multinational corporate, western mentality, always be proactive in terms of being compliant of laws and regulations, no company will be able to survive in China if you are fully compliant and follow whatever the gov asks let alone to be proactively compliant,  give me a break, they are not going anywhere; just think of Ebay and Alibaba, despite Ebay's early mover advantage, it is Alibaba that dominates the Central Kingdom, eventually.

That's possible but too simple, IMHO. I don't think they think this invention or the effect of it would be even noticed by the government.


No I don't. I thought Bobby Lee remained a Chinese citizen (is him?) Even if he joined other nationality, his TV presence is pretty Chinese, as Chinese as the "you know what i mean" catchword:) (TO NON CHINESE READERS: 'you know what I mean' （亲，你懂的） is a typical way of ending a post in China)

nothing to do with insolvency, they invent this shit themselves with illusion that Chinese government will treat them as good boy(i.e fully compliant sort of shit etc), but no one really cares, not even the Chinese gov. Most exchanges  just  accept deposit through banking account directly.

just switch to Huobi, waste of time to deal with BTCChina, shitty service and user interface, they lost to competitors and lost trust of their customers when they switched to charging trading fee and invented this useless voucher system; their days are gone; You won't expect any startup to be run by a foreigner to be hugely successful in China, especially for startup in this particular tricky space, they are just too off the ground, you know what i mean.

I was a long time BtcChina user and only noticed BTCChina's withdraw voucher a few days ago:

Quote:

The volucher, or "promise-to-pay", is essential to the fractional-reserve system banks use. An easy way to check the value of these promises, is to see how they are traded on black-market. Right now, there doesn't seems to be a black market for these voluchers, at least not found with a search engine. The reason could be that withdrawing cash is as easy as withdrawing the voucher, thus there is no market, and the volucher's value is 100% of the reach cash. This may not hold true in the long run. Can anyone reveal when is your last withdraw from BtcChina and how many days it took?

There is a reason why BtcChina wishes to issue volcuhers: that it removes the 0.5% transaction fee involved in cash-withdraw. But, few should need it. If I wish to give fiat money to someone-else's account on the same exchange, I would exchange my fiat with bitcoins, transfer the coins, and ask him to change it back. With Btc-E the cost is 0.2% trade fee two times, that is 0.4%. With BtcChina, with their liquidity rebate, you can do it with two times ±0.3% fee (yes, you may gain instead of pay).

So the voucher service is useful to a very limited extent. With so many things going around it is a bit strange BtcChina would spend some energy doing the feature. The only other rational execuse is that those who have fiat account on their account can sell the deposite service to others, thus working around the lack of online deposite measurements - e.g. China's alipay, the world's largest payment service (the second largest being paypal) refused to help process bitcoin payment. But I didn't see such activity going on yet.

How much would you weight 'withdraw voucher' as a possibility of insolvency? 20%? 50%? And is there any other exchange issuing promise-to-pay in-place of or along with real payment?

P.S. I reveal this: Back a few months ago, my BtcChina withdraw was processed in 2 days; while in MtGox I requested cash withdraw for more than 5 months, and canceled my withdraw because the account to receive it expired before I my withdraw can be processed.

P.S. It is a well known culture in China Mainland that if you have trouble in your business you should conseal it. Honesty doesn't receive much praise here, not until the two very recent years. I am concerned that we don't have much bitcoin larceny story in China yet. It's too quiet, the probability is highly against it. In other words, some exchange was hacked and coin stolen, we don't know who.