[China's fakeness] Before and after

[pooya87]

for years on the social media regarding bitcoin, we have been hearing these words "China is controlling bitcoin" i have always shook my head in disappointment after seeing how many people fall for the manipulative words.

you can even see a topic with this exact title here and half of people voting "Yes" for it!

here is how fake Chinese trading volumes were:

source of the charts: https://data.bitcoinity.org

and although i have always been saying having the mining power has nothing to do with any of all this, since not long ago ghash.io had 51+% of the hashrate in one place and nothing happened, but i would like to share this image here also because i find it relevant:

source: Reddit (it looks like the same above site was used)

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[Dude.Lebowski]

for years on the social media regarding bitcoin, we have been hearing these words "China is controlling bitcoin" i have always shook my head in disappointment after seeing how many people fall for the manipulative words.

you can even see a topic with this exact title here and half of people voting "Yes" for it!

here is how fake Chinese trading volumes were:



and although i have always been saying having the mining power has nothing to do with any of all this, since not long ago ghash.io had 51+% of the hashrate in one place and nothing happened, but i would like to share this image here also because i find it relevant:

Source please of the data used to build these charts.  Thanks, man.

[davis196]

China is not controlling bitcoin.Chinese exchanges,users and miners have a huge influence over the bitcoin price.The last speculation bubble,when btc price reached $1160 is a proof for this.
But ,off course, China doesn`t have total control over btc.

[Xester]

I will give thanks for PBOC for doing an inspection. Also with your post my theory on market manipulation and fake volumes coming from the exchangers in China was made clear. With this I can finally see the normal market movement of bitcoin and avoid sudden volatility that cause me to lose hundreds of dollars due to market manipulation. Let us rejoice, today bitcoin will be a much better coin.

[Catmony]

After chinese trading platforms started to have trading fees there is no way for manipulators to make fake orders and buy/sell on their own orders to pump the volume. This is good for bitcoin market and this may also make people aware of the fact that china is not the only one behind every pump/dump.

[ebliever]

Thanks for posting this. I was just looking over the Markets tab for Bitcoin on Coinmarketcap and came to a similar conclusion about the scope of Chinese bitcoin trading. Someone a few weeks ago was saying the real China volume was around 50% of the total, and now it looks like they were about right.

[shinratensei_]

That's why the total number in coinmarketcap by the chinese exchanges are so redundant.

Exactly it's no sense.

[Velkro]

Both graphs looks EXTREMELY good for bitcoin.
More decentralization around the world, that was all there but hidden under fake volumes of china.

[Amph]

After chinese trading platforms started to have trading fees there is no way for manipulators to make fake orders and buy/sell on their own orders to pump the volume. This is good for bitcoin market and this may also make people aware of the fact that china is not the only one behind every pump/dump.

They can still manipulate, but it will cost them money, before it was free to do it this is the only difference, you can't stop market manipulation no matter what you do it is present everywhere not only in bitcoin

[Pursuer]

Both graphs looks EXTREMELY good for bitcoin.
More decentralization around the world, that was all there but hidden under fake volumes of china.

this was the reason why websites like coinmarketcap.com never listed the Chinese exchanges in their market list. if you look there, it is still excluded and they are at the bottom of the list, greyed out. the volume used to be unreal.

After chinese trading platforms started to have trading fees there is no way for manipulators to make fake orders and buy/sell on their own orders to pump the volume. This is good for bitcoin market and this may also make people aware of the fact that china is not the only one behind every pump/dump.

They can still manipulate, but it will cost them money, before it was free to do it this is the only difference, you can't stop market manipulation no matter what you do it is present everywhere not only in bitcoin

yeah but right now they are being investigated and under pressure. it is like when IRS is investigating a business, they cant continue doing their shady operation while on the radar.

[NorrisK]

I don't think you should write fake volume in those graphs. That is a conclusion you are drawing, not a fact.

What is a fact though, was that everybody could simply trade at enormous volumes for tiny profits at a time because there were no trading fees. Ofcourse this inflated the trading volumes, but this does not make this volume fake.

[ASHLIUSZ]

Whether its fake or real, now after the inspection over most of the exchange websites by peoples bank of china several changes have been made in the fee structure and trading process. Popular exchange websites have quoted a transaction fee of about 0.2% of the trading or transaction amount.

[pawel7777]

The way I see it, previous volumes from China weren't exactly 'fake'.

- if you trade with yourself just to artificially pump your volume in order to get lower-tier withdrawal fees - then it's certainly fake.
- if you take advantage of zero trading fees to day-trade (or run a bot) with very low profit margin and capitalise on even tiny price movements (no longer possible with 0.2% fees) - then I don't see how it's fake. Such activities made it very hard to get a clear picture of geographical volume breakdown, but there was nothing 'fake' about that.

[BillyBobZorton]

it's clear that the chinese volumes were fake, but don't get too excited, bitcoin is still mostly chinese based, hashrate is still mostly chinese, that is the real problem, exchanges come and go, its good that the volume is not all chinese now, but its clear that the hashrate is still a problem, too centralized.

Let's just hope things start taking a 180 turn in the future, I don't like that china is so superior in the mining game than the rest, but i dont see a solution as long as the electricity is so cheap there.

[Oggy1987]

The way I see it, previous volumes from China weren't exactly 'fake'.

- if you trade with yourself just to artificially pump your volume in order to get lower-tier withdrawal fees - then it's certainly fake.
- if you take advantage of zero trading fees to day-trade (or run a bot) with very low profit margin and capitalise on even tiny price movements (no longer possible with 0.2% fees) - then I don't see how it's fake. Such activities made it very hard to get a clear picture of geographical volume breakdown, but there was nothing 'fake' about that.

It's both.
As I understood they were doing just what you said, trading with themself so they would get a decrease on fees when they were to withdraw money. But in order to withdraw money (profit) you had to made some real trades, basic buy low/sell higher.
And I'm happy how things go after PBOC, plus if its true that big investors are looking at bitcoin at the moment, it will significantly increase bitcoin price, but first they need time to "stack up".

[BTCLovingDude]

- if you trade with yourself just to artificially pump your volume in order to get lower-tier withdrawal fees - then it's certainly fake.

that is one definition for fake

whether the exchanges were doing it themselves, or was it users, or anything else for the reason, the important thing is that NO MORE the FUDs can use Chinese massive volume to their own advantage and spread lies.

now i wonder what the spam bot of speculation board is going to copy paste from now on

[mobnepal]

it's clear that the chinese volumes were fake, but don't get too excited, bitcoin is still mostly chinese based, hashrate is still mostly chinese, that is the real problem, exchanges come and go, its good that the volume is not all chinese now, but its clear that the hashrate is still a problem, too centralized.

There are many big mining farm in china and not all of them are operated by same company/person so they can't co-operate with each other to attack bitcoin network owning 51% of total mining power. And i even doubt that in total china based mining farm have more than 51% of total hashrate. There will be no any danger for bitcoin network if they can't conduct coordinated attack like blockchain roll back.

[pawel7777]

- if you trade with yourself just to artificially pump your volume in order to get lower-tier withdrawal fees - then it's certainly fake.

that is one definition for fake

whether the exchanges were doing it themselves, or was it users, or anything else for the reason, the important thing is that NO MORE the FUDs can use Chinese massive volume to their own advantage and spread lies.

now i wonder what the spam bot of speculation board is going to copy paste from now on

FUDsters gonna FUD either way, they'll just focus on something else.
The problem is the PBOC's action took away the 'fake' trade but also huge part of genuine trade activity (high-volume-low-profit bots and margin trading). This has rather negative short-term impact on Bitcoin. Higher volume makes the value more stable and makes it harder to manipulate the price.

Hopefully in the longer run, Chinese traders will accept the fees and no margin trading (or they'll find their way to western exchanges) and the volume will pick up.

[traderethereum]

it's clear that the chinese volumes were fake, but don't get too excited, bitcoin is still mostly chinese based, hashrate is still mostly chinese, that is the real problem, exchanges come and go, its good that the volume is not all chinese now, but its clear that the hashrate is still a problem, too centralized.

somehow i am agree with you, i don't know why because maybe i see that in china, the have large mining farm than any other places and they have newest technology than other country and maybe because of this, my feeling keep saying that china is still controlling bitcoin.

[kaijialex]

Even with the raised fee, people are still trading at OkCoin and BTCC with huge volume compared to other exchanges.

I don't find huobi in your second pie chart, is there any reason for that?