The trading volume has been high in China because commissions are extremely low, 0% in many cases, and a relatively small number of people are doing a huge amount of day trading.
The media misunderstood or misrepresented this high volume as indicating high demand, which caused speculators to drive the price up to $1242.
When the Chinese government started attacking bitcoin, since people thought that actual demand in China was driving the prices up, they overreacted and caused a huge crash.
Websites like fiatleak.com encourage this kind of confused thinking by suggesting that every trade represents fiat flowing into bitcoin, ignoring the fact that every trade involves one person buying bitcoins, plus another person selling the same amount of bitcoins for the same amount of fiat (less commissions)!
The biggest issue with confused thinking is that it allows unimportant facts like the high transaction volume in China to drown out important facts like the huge success of the Second Market Bitcoin Investment Trust.
The media misunderstood or misrepresented this high volume as indicating high demand, which caused speculators to drive the price up to $1242.
When the Chinese government started attacking bitcoin, since people thought that actual demand in China was driving the prices up, they overreacted and caused a huge crash.
Websites like fiatleak.com encourage this kind of confused thinking by suggesting that every trade represents fiat flowing into bitcoin, ignoring the fact that every trade involves one person buying bitcoins, plus another person selling the same amount of bitcoins for the same amount of fiat (less commissions)!
The biggest issue with confused thinking is that it allows unimportant facts like the high transaction volume in China to drown out important facts like the huge success of the Second Market Bitcoin Investment Trust.
Well i dont fully understand... i really dont belive that the volume was driven by low fees... majority of people just buy BTC amd HOLD, they are not trading (as far as i belive), so they really dont care about the exchange fees, since it is a one time transaction, and BTC should still go up in price like hell in the future, so i think majority of people (and thus majority og bitcoins...?) doesnt care about the fees.