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

[Freefallr]

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.

[elux]

[TERA]

You know I thought the same thing about Gox too.  Bitcoiners just live in la la land where everything is 'FUD' and everything is going to be ok if they only believe - nothing bad can happen to them.

Also these are probably all just high roller daytraders who only left their profits in and are playing with 'house money' to leave their daytrading bots on as long as possible till the very last second and milk as much more profit as possible.

[master-P]

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

[Torque]

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?

[dropt]

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.

[derpinheimer]

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

[Ultros]

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.

[Torque]

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.

[UglyTroll]

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

[Bitcoin_is_here_to_stay]

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]

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.

[thezerg]

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.

[YipYip]

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

[Bit_Happy]

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

[bitcoinsrus]

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

 lol

[DustyRah]

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.

[YipYip]

New PBOC Apporved bubble 2.0 ..has now started 

[windjc]

New PBOC Apporved bubble 2.0 ..has now started 

Is this sarcasm?

[snarlpill]

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.