You may well have a point.
From here
http://www.coindesk.com/chinas-bitcoin-exchanges-survived-the-crackdown-battle-aftermath/
'Xu, CEO of OKCoin, is a co-sponsor of the Garage Café meet-up too. During his talk, he made a plea to the audience not to use bitcoin as a speculative vehicle. Xu said:
“If the exchange rate shoots up as crazily as in November, there is a good chance that we will spend this Spring Festival behind bars.”
Hopefully the Chinese exchanges will slowly become an irrelevance as better Western options arrive. Overall I don't think they've done BTC many favours and a country where it can't be used for anything other than speculation and trading isn't going to get it where it deserves to be.
So we have persistent rumours of fake volumes, astounding unprofessionalism such as the Roger Ver contract drama and a publicly stated and very powerful incentive to not let the price spiral upwards.
That's disregarding the general climate of doing business in China which is a shower of shit in terms of transparency at the best of times.
It's a rather persuasive case.
Topic: If bitcoin bubbles again, Chinese exchanges will have problems - page 3. (Read 2756 times)
The Chinese government does not like speculative bubbles. They are currently issuing warnings about the stock market. They are restricting lending. They are telling people not to sell any property to buy stocks. To the Chinese government, speculative bubbles cause chaos and disorder and may ruin people's lives. That in turn threatens the government's position. We saw how the Chinese government began to warn and freeze bank accounts in 2013 when bitcoin was bubbling.
From the point of view of Chinese exchanges, bubbles are a bad thing. If a bubble develops, the government will come back in and start shutting things down. What if China's top three exchanges made a pact to keep bitcoin from bubbling? They would have nice, calm business for years. This is my conspiracy theory. They can short bitcoin, engaging in stop hunting with phantom coins to take money from heavily leveraged buyers. At the same time, they contain any major rallies so they don't catch heat from their government. At the same time, miners are selling coins everyday anyway, so the default pressure is down.
Only an absolutely enormous bullwhale who keeps buying and withdrawing coins could possibly expose such a plan. And I don't think we have a bullwhale like that.
From the point of view of Chinese exchanges, bubbles are a bad thing. If a bubble develops, the government will come back in and start shutting things down. What if China's top three exchanges made a pact to keep bitcoin from bubbling? They would have nice, calm business for years. This is my conspiracy theory. They can short bitcoin, engaging in stop hunting with phantom coins to take money from heavily leveraged buyers. At the same time, they contain any major rallies so they don't catch heat from their government. At the same time, miners are selling coins everyday anyway, so the default pressure is down.
Only an absolutely enormous bullwhale who keeps buying and withdrawing coins could possibly expose such a plan. And I don't think we have a bullwhale like that.
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