How Chinese is Bitcoin? — Part 1: Trade Volume

By Neil Woodfine via blockunchained.com

  • “Chinese exchanges generate most of their revenue from CNY withdrawal fees [4]. And these CNY withdrawal fees are tiered based on each trader’s trade volume, encouraging traders to trade as much as possible to lower the cost of withdrawing their profits”
  • “But overplaying China’s trade volume leads to the wrong conclusion that bitcoin’s value is purely derived from its role as a speculative plaything for Chinese investors. It leads people to make the mistake that there is existential risk to bitcoin in the Chinese government’s treatment of bitcoin trading, or just Chinese traders’ whimsy”What’s really at work is that China is increasingly leading the world in internet technology

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