[2017-02-25] The Butterfly Effect of Chinese Bitcoin Regulations

[TwoTimes]

Over the past few weeks, China has implemented regulations across all bitcoin exchange operations within the country. This, in turn, has caused a significant drop in trading volumes within the region. Some people speculate that Chinese bitcoin traders are now going abroad finding friendlier overseas entrances to bitcoin exchanges.

“You should view the impact of this regulation storm from both the upstream and downstream directions of the business,” explains Li Qian. “For the those at the upstream direction, i.e. the bitcoin miners, they are not affected. Chinese miners continue to mine as usual. Our electricity and labor cost are always cheap. The most affected is the trading aspect of Bitcoin (exchanges). Currently, the impact of the Chinese market in the world has declined a lot, especially after charging fees, our turnover rate is now severely limited.”

Read More Here: https://news.bitcoin.com/butterfly-effect-chinese-bitcoin-regulations/

[Pasnik]

If the bitcoin is regulated as a proper currency, that is good news for the bitcoin.

[aso118]

One unintended consequence is that the Japanese have gained more prominence. The real crackdown on Bitcoin by the Chinese officials will come when they introduce a rival cryptocurrency. Until then, all these measures are actually soft steps.

[1Referee]

One unintended consequence is that the Japanese have gained more prominence.

I noticed that too, and I see it as something good since Japan has shown to be far more Bitcoin friendly than China has ever been/will be.

The real crackdown on Bitcoin by the Chinese officials will come when they introduce a rival cryptocurrency. Until then, all these measures are actually soft steps.

It doesn't matter anymore since Chinese trading has lost its shine. China was interesting for traders due to the zero trading fees, which allowed high frequency traders to demolish the market with their reckless gambling behaviour. Right now the western exchanges are making up the market direction and China just follows quietly. We can thank the PBOC for destroying something that needed to be destroyed a long time ago.

[richardsNY]

One unintended consequence is that the Japanese have gained more prominence.

I noticed that too, and I see it as something good since Japan has shown to be far more Bitcoin friendly than China has ever been/will be.

The real crackdown on Bitcoin by the Chinese officials will come when they introduce a rival cryptocurrency. Until then, all these measures are actually soft steps.

It doesn't matter anymore since Chinese trading has lost its shine. China was interesting for traders due to the zero trading fees, which allowed high frequency traders to demolish the market with their reckless gambling behaviour. Right now the western exchanges are making up the market direction and China just follows quietly. We can thank the PBOC for destroying something that needed to be destroyed a long time ago.

I started to realize that it was just a big show where people (me included) have been tricked into thinking Chinese exchanges were the most important aspect of Bitcoin trading. Reality turns out that they by far aren't what we thought they were. If you look at the top volumes after all this, then it's bitFlyer and Bitfinex that are leading when it comes to their volumes. I just wonder what made bitFlyer suddenly that popular as I didn't see that exchange pop up very often before the PBOC regulations.