Why the hell are Chinese Bitcoiners still trading on Chinese exchanges?

devphp

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Quote from: TERA on May 08, 2014, 04:03:43 AM

Quote from: devphp on May 08, 2014, 03:42:39 AM

Quote from: Freefallr on May 07, 2014, 08:06:56 AM

What would a normal, rational-thinking person do? It would get off the exchange as soon as possible, in my opinion. It would try to exchange BTC to fiat and move out as long as there is more clarity about the current situation.

The only thing that is clear about fiat (be it USD or Euro or Yuan) is that they will keep printing more and much more of it. So why exchange to fiat and leave? That would not be rational thinking.

Four reasons:
1. In case the value of btc declines faster than the value of fiat.
2. To buy cheaper coins later
3. To pay expenses
4. To make other investments.

Yes and No.
It seems, there are enough people who don't find these 4 reasons valid at this point in time to exchange to fiat. There are always two fools in the market: one who buys and one who sells

TERA

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Quote from: devphp on May 08, 2014, 03:42:39 AM

Quote from: Freefallr on May 07, 2014, 08:06:56 AM

What would a normal, rational-thinking person do? It would get off the exchange as soon as possible, in my opinion. It would try to exchange BTC to fiat and move out as long as there is more clarity about the current situation.

The only thing that is clear about fiat (be it USD or Euro or Yuan) is that they will keep printing more and much more of it. So why exchange to fiat and leave? That would not be rational thinking.

Four reasons:
1. In case the value of btc declines faster than the value of fiat.
2. To buy cheaper coins later
3. To pay expenses
4. To make other investments.

devphp

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Merit: 260

Quote from: Freefallr on May 07, 2014, 08:06:56 AM

What would a normal, rational-thinking person do? It would get off the exchange as soon as possible, in my opinion. It would try to exchange BTC to fiat and move out as long as there is more clarity about the current situation.

The only thing that is clear about fiat (be it USD or Euro or Yuan) is that they will keep printing more and much more of it. So why exchange to fiat and leave? That would not be rational thinking.

snarlpill

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$5 24k Gold FREE 4 sign-up! Mene.com/invite/h5ZRRP

To move their money out of the country, to leave their BTC on Huobi or w/e and make in-person street sales, and probably simply because they trust their own country's exchanges. I kind of feel like many Chinese would feel weary about sending their BTC to outside/Western exchanges after watching Mt. Gox.

windjc

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Quote from: YipYip on May 07, 2014, 10:51:20 PM

New PBOC Apporved bubble 2.0 ..has now started Cool

Is this sarcasm?

YipYip

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New PBOC Apporved bubble 2.0 ..has now started Cool

DustyRah

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What would you do if you had a whole box full of cash and no place to invest it?

There is very limited places to invest in China other than buy property. There is so much cheating that investing in stocks or any kind of business is far too risky. BTC is quite attractive in this type of environment.

bitcoinsrus

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Quote from: Bit_Happy on May 07, 2014, 09:33:24 PM

LTC/BTC speculation is the new China Bubble......LOL?

lol

Bit_Happy

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A Great Time to Start Something!

LTC/BTC speculation is the new China Bubble......LOL?

YipYip

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Quote from: master-P on May 07, 2014, 09:35:38 AM

Maybe they don't plan to cash out in fiat and are confident they'll be able to withdraw their BTC from the exchanges.

+1

They could use this thing i heard about called bitcoin..... i think they might be able to move there money to some other country or something like that...

Not really sure how it works Tongue

thezerg

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Quote from: Freefallr on May 07, 2014, 08:06:56 AM

There is one thing I really don't understand - what the hell motivates Chinese people to still trade on Chinese exchanges?

Let's say you would hear news that [PUT YOUR COUNTRY HERE] told their banks to stop any Bitcoin-related activities. What would a normal, rational-thinking person do? It would get off the exchange as soon as possible, in my opinion. It would try to exchange BTC to fiat and move out as long as there is more clarity about the current situation.

But why are Chinese still trading on Chinese exchanges?! I really don't get it. Am I missing something? Maybe someone can help me out.

We can hypothesize that this effect is the result of some force or combination of forces in the Chinese economy/society. We can speculate why (housing bubble, no good investment opportunities, tremendous concentrations of wealth, large underground economy) for fun. But more importantly what does the existence of this force mean for Bitcoin in China? I think it actually means that Bitcoin will remain very much alive there... perhaps spreading via other, less centralized means.

UglyTroll

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I saw a lot of Chinese talking about HODL, only one guy seems gonna dump off his coins, so I think 90% Chinese coins will not got dumped in market before everything got closed.

Bitcoin_is_here_to_stay

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Makes more sense to me than trading on MtGox in the last days. I guess they basically have to decide if they prefer to withdraw fiat or BTC.

UglyTroll

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A last ditch struggle before all exchanges got closed, that's all Grin

Torque

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Quote from: dropt on May 07, 2014, 10:50:45 AM

Quote from: Torque on May 07, 2014, 09:54:39 AM

Yes, but the real question is not why are they still buying BTC, but how are they getting fresh fiat deposits in?

When the next bubble happens, it would be assumed that if all bank accounts are closed for Yuan deposits then they can't run up buying high volumes of coins in China. This would take millions of $$ worth of Yuan deposits to do, not something easily done with either vouchers or even cash deposits. But I have a weird suspicion that in the next run up we won't be seeing a slow down of high volume purchasing in China... business as usual.... which again begs the question how? Unless it was all just a bunch of FUD to begin with? Or perhaps deposits will still be allowed "under the table" for a select privileged few?

Why does it have to be "fresh fiat"? All the money that was put into the Chinese exchanges during the Nov/Dec runup didn't just disappear during the crash, it's entirely possible a good percentage of it is sitting on the sidelines. We have no idea what the fiat side of the Chinese exchanges looks like, and one should be cautious in assuming that there isn't a lot of cash just sitting in trading accounts.

You're assuming that it will be the same number of Chinese bitcoiner accounts in the next run up, i.e., zero growth of their user base. I'm hoping it'll be 3x more than last time, so therefore fresh fiat that wasn't there before will need to enter the market.

Ultros

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Quote from: derpinheimer on May 07, 2014, 11:03:03 AM

Has any if them really been far even as decided to use even go want to do look more like?

You've got to be kidding me. I've been further even more decided to use even go need to do look more as anyone can. Can you really be far even as decided half as much to use go wish for that? My guess is that when one really been far even as decided once to use even go want, it is then that he has really been far even as decided to use even go want to do look more like. It's just common sense.

derpinheimer

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Has any if them really been far even as decided to use even go want to do look more like?

dropt

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Quote from: Torque on May 07, 2014, 09:54:39 AM

Yes, but the real question is not why are they still buying BTC, but how are they getting fresh fiat deposits in?

When the next bubble happens, it would be assumed that if all bank accounts are closed for Yuan deposits then they can't run up buying high volumes of coins in China. This would take millions of $$ worth of Yuan deposits to do, not something easily done with either vouchers or even cash deposits. But I have a weird suspicion that in the next run up we won't be seeing a slow down of high volume purchasing in China... business as usual.... which again begs the question how? Unless it was all just a bunch of FUD to begin with? Or perhaps deposits will still be allowed "under the table" for a select privileged few?

Why does it have to be "fresh fiat"? All the money that was put into the Chinese exchanges during the Nov/Dec runup didn't just disappear during the crash, it's entirely possible a good percentage of it is sitting on the sidelines. We have no idea what the fiat side of the Chinese exchanges looks like, and one should be cautious in assuming that there isn't a lot of cash just sitting in trading accounts.

Torque

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Yes, but the real question is not why are they still buying BTC, but how are they getting fresh fiat deposits in?

When the next bubble happens, it would be assumed that if all bank accounts are closed for Yuan deposits then they can't run up buying high volumes of coins in China. This would take millions of $$ worth of Yuan deposits to do, not something easily done with either vouchers or even cash deposits. But I have a weird suspicion that in the next run up we won't be seeing a slow down of high volume purchasing in China... business as usual.... which again begs the question how? Unless it was all just a bunch of FUD to begin with? Or perhaps deposits will still be allowed "under the table" for a select privileged few?

master-P

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https://keybase.io/masterp FREE Escrow Service

Maybe they don't plan to cash out in fiat and are confident they'll be able to withdraw their BTC from the exchanges.

Topic: Why the hell are Chinese Bitcoiners still trading on Chinese exchanges? (Read 1613 times)