Chinese trade volums vs. usd trade volumes etc.

[fox19891989]

As a former Chinese btc trader, I can share something for you.

- Do chinese exchanges have 0% trading fee, leading to more frequent trades?        Yes, and many bots trading there.
- Are there more CNY traders than USD traders?         No, I estimate less than Chinese 10k traders are active. US has more traders.
- Are trading volumes reported inaccurately? If so, is there any point in doing so, will it attract more traders? What if the fake volumes are exposed, will it damage the reputation of the exchange with decreased real trade volumes as a result?

Yeah, some of Chinese exchanges fake the trading volume, and most of the volume is traded by bots or platform itself. Reputation? They don't need it, they just wanna your money, they are all greedy bastards, they lend the loan to people with very high rates.

Some biggest exchanges like huobi and okcoin has venture capitals. So that's why they need to fake volumes, to make money from venture capitals, is it clear?

[HarmonLi]

Could there maybe really be HFT going on in China? But I agree that I think it may mostly be fake volume. I mean, it's easy... it's even more profitable if done by the exchange: They know the order book and also hidden orders and can profit from arbitrage, even.

[Cryptowatch.com]

Could there maybe really be HFT going on in China? But I agree that I think it may mostly be fake volume. I mean, it's easy... it's even more profitable if done by the exchange: They know the order book and also hidden orders and can profit from arbitrage, even.

With 0% fee for trading, scalping is quite possible, so bots making tiny trades over and over, will generate profits for the bot owners. If fees were raised, volume would most likely decline.

[alani123]

I don't think that volumes are reported inaccurately from Chinese exchanges. It's just not fair to compare them with exchanges that have trading fees. You can trade 24/7 to a Chinese exchange and only pay a fee when you withdraw.

[vvv8]

Higher volume does not necessarily mean there are more traders or because bitcoin is more popular in china than in the states for that matter. Never mind but I do have a suspicion that most of the mining farms are located in China (where cost of production is low, mainly electricity and mining equipment) and generally what I believe is that these people are mainly into doing business for profit and they will sell the moment new coins are found. And that leads to the higher volume of coins being traded.

Viola. This guy got it right.

Also alot of chinese don't know English, which means they would default to chinese only exchanges anyways.

I'm not familiar with China, but would not most geeks who're into coding/sysadmin/linux and computers in general know a lot of english? I mean, how can you even be a computer geek without knowing english well. And I would assume most traders are considered somewhat of a "geek"?

Not necessarily. They have access to computers and use them, it doesn't mean they know proper English. I highly respect the chinese, but I know there is a language barrier.

[BillyBobZorton]

Could there maybe really be HFT going on in China? But I agree that I think it may mostly be fake volume. I mean, it's easy... it's even more profitable if done by the exchange: They know the order book and also hidden orders and can profit from arbitrage, even.

There are tons of chinese bitcoin whales, you can tell by the fake walls set in a lot of chinese exchanges, they don't even bother at making it less obvious.

[uki]

Could there maybe really be HFT going on in China? But I agree that I think it may mostly be fake volume. I mean, it's easy... it's even more profitable if done by the exchange: They know the order book and also hidden orders and can profit from arbitrage, even.

There are tons of chinese bitcoin whales, you can tell by the fake walls set in a lot of chinese exchanges, they don't even bother at making it less obvious.

that is a natural consequence of the fact that most of the Bitcoins are mined in China nowadays. Thus, probably, people who own mining farms may be one of these whales whom you see playing on the exchanges.

[Xiaoxiao]

CNY is the currency of a country with 13+ billion population (and more unaccounted for)

USD is the currency of a country with a 300m population

[Cryptowatch.com]

Higher volume does not necessarily mean there are more traders or because bitcoin is more popular in china than in the states for that matter. Never mind but I do have a suspicion that most of the mining farms are located in China (where cost of production is low, mainly electricity and mining equipment) and generally what I believe is that these people are mainly into doing business for profit and they will sell the moment new coins are found. And that leads to the higher volume of coins being traded.

Viola. This guy got it right.

Also alot of chinese don't know English, which means they would default to chinese only exchanges anyways.

I'm not familiar with China, but would not most geeks who're into coding/sysadmin/linux and computers in general know a lot of english? I mean, how can you even be a computer geek without knowing english well. And I would assume most traders are considered somewhat of a "geek"?

Not necessarily. They have access to computers and use them, it doesn't mean they know proper English. I highly respect the chinese, but I know there is a language barrier.

Once you try to do anything at cli-level i assume engilsh is needed? Or if you want to edit source code.. I guess non-technical users could be doing well with only chinese on the desktop however, but really, how do you surf the net without visiting and reading english sites?

[galbros]

As a former Chinese btc trader, I can share something for you.

- Do chinese exchanges have 0% trading fee, leading to more frequent trades?        Yes, and many bots trading there.

I really think the 0 fees is the biggest issue for volume.  You can essentially trade with yourself if you want.  I just don't see how the Chinese exchanges can be viable without some low fee to offset their costs.  I worry that one day they will just run away with the coins, but I guess if they have outside funding they are more likely to be legit.

Thanks for trying to answer the OP's questions.

[Cryptowatch.com]

As a former Chinese btc trader, I can share something for you.

- Do chinese exchanges have 0% trading fee, leading to more frequent trades?        Yes, and many bots trading there.

I really think the 0 fees is the biggest issue for volume.  You can essentially trade with yourself if you want.  I just don't see how the Chinese exchanges can be viable without some low fee to offset their costs.  I worry that one day they will just run away with the coins, but I guess if they have outside funding they are more likely to be legit.

Thanks for trying to answer the OP's questions.

No exchange can continue to offer 0% fee for ever. If they can, they must finanze their operations somehow. But nobody, including investors, are willing to give money away for free in the long run. But I guess with a huge customer base there might be several ways to profit off it.

[foxbitcoin]

I'm really hoping for America to step up their involvement with bitcoin that surpasses China.

[uki]

I'm really hoping for America to step up their involvement with bitcoin that surpasses China.

Based on what? What would be the reason to do so? For now most of the Bitcoin use is purely speculative, thus the major involvement of China.
If that changes, we may observe the change of sentiment in the US.