Topic: Hypothesis: BTCChina is completely fake (with evidence) (Read 9801 times)

Agreed. (emphasis mine)



And another agreed. (minus some of the language)

Pretty  apagogical argument here 
But it seems you draw the wrong conclusion from it

It's a good proof of concept, but for now, what bitcoin is useful for? In the real world, I mean...

Bitcoin is valuable because it is useful to people. If what you are saying is true, then it would apply to everything that has a dollar market. I'm sure you don't think gold/oil/etc have value solely because they can convert to dollars.

As I said in the other thread, I can ALWAYS sell at those insane high price and get the CNY in my account within 24 hours. So the price is REAL. The volume is inflated simply due to free transaction.

Their site may be down from time to time, but that's nothing worse than gox or stamp

In addition to btcchina, I can also sell on other Chinese exchanges with similar price and received CNY withdraw too.

Maybe they are just fu**ing smarter than you. Maybe they realize that this technology could be a hedge against their US debt holdings. Or perhaps they just want Bitcoin innovations to come from China vs. some other country. I mean, China wants power. When it comes to finances they are actually very forward thinking.

Maybe they are just fu**ing smarter than you. Maybe they realize that this technology could be a hedge against their US debt holdings. Or perhaps they just want Bitcoin innovations to come from China vs. some other country. I mean, China wants power. When it comes to finances they are actually very forward thinking.

No. The dollar is simply the path of least resistance to acquire bitcoin for many people. Bitcoin is valuable because it is useful to people. If what you are saying is true, then it would apply to everything that has a dollar market. I'm sure you don't think gold/oil/etc have value solely because they can convert to dollars.

How can Bitcoin be a hedge against the dollar when the dollar is the only reason Bitcoin has any value? Ask yourself what would happen to Bitcoin's price if it became impossible to convert it into the state fiat you all claim to despise? It would drop like a stone. Bitcoin needs the USD because that is where it derives its value.

Maybe they are just fu**ing smarter than you. Maybe they realize that this technology could be a hedge against their US debt holdings. Or perhaps they just want Bitcoin innovations to come from China vs. some other country. I mean, China wants power. When it comes to finances they are actually very forward thinking.

How do you get money in and out of their exchange? Advice on this matter? Thanks.

All major chinese exchanges, or all major exchanges period? Which exchanges did you investigate? Do you have any info that you can share with us now?

You know, I do find it odd that the Chinese state hasn't been inclined to place any restrictions upon Bitcoin (the most subversive technology on the planet) when they go to particularly extensive lengths to restrict pretty much everything else.  Maybe they just dropped the ball on this one, and recognise it's not really the sort that's easy to pick back up and take away, or maybe they got eyes on this early on and, while our western-dictorcrats spent all year unhelpfully dicking about with how to most regulate & adulterate Bitcoin, maybe they saw an opportunity for the taking; I wonder.

[edit; typo & I'll be looking for your report about this proof you've got + the exchanges responses (I trust you've got hold of gox staff straight away on irc, no? MagicalTux weighed in with a word?]

I posted yesterday that I have a paper coming out that proves not only BTC-C, but all major exchanges are engaged in creating a completely fictitious market. I have contacted the exchanges I have investigated for comment prior to publishing.

More and more am I starting to believe that BTCChina is (for a large part) fake.

- Their volume reports are ridiculous. On the 3 minute chart they have almost exclusively 300 btc per candlestick.
- The whole rise-up at BTC-China seems orchestrated. Every sharp rise is nicely crafted into a short dip which then recovers in order to make others believe that it's safe to buy

And most compellingly

- During the crash the volume stays _THE SAME_ throughout. There is a sharp drop, but no panic selling at all! The volume is constant. This does not make any sense to me.
- Notice how every downward candle towards is also attempted to be caugt immediately - many many intermittent recoveries during a crash. It just doesn't make sense.
- I think we all agree that the price movements at BTCChina have been absolutely ridiculous.

It's almost as if the whole exchange is scripted to make fake orders to amplify any movements seen on Gox. Zero trading fees would allow this.

What would they benefit from this?

Manipulation. This whole rally is based upon "China is going crazy, we must buy asap!". Knowing that the bitcoin world classifies exchanges by price and volume, you can manipulate the entire market by gaining the highest price and the highest volume. This does not mean the trades have to be legitimate as well, as long as the data you're outputting is somewhat believable. The rally on china seemed so ridiculous, that I'd be inclined to think that BTCChina's CEO has some big money at the other exchanges, trading it for high prices as he indirectly has control over the market.


Added facts:

- Nobody seems to be able to access btcchina.com, yet trades are still being executed (do reply if you can reach and deposit BTC)
- During the 7-8 hour Gox trading engine lag, BTCChina ground to a halt as well while BTC-e and Bitstamp continued to have organic trades (though lower average volume).
- Look at this recent crash graph from BTCChina (linked from another topic). It does not look organic, yet highly artificial.





Please discuss Also, === I'm merely speculating ==