Post
Topic
Board Speculation
Re: At what price we would be at if Btifinex disaster didn't happen?
by
MatTheCat
on 02/09/2016, 12:05:02 UTC
Bitfinex wasn't really a dominant exchange as even traders there are looking what is happening at exchanges as OKCoin and Huobi. The other exchanges just follow their path. Only some times you see that exchanges don't want to follow the Chinese exchanges all the way up. Then there is a gap of $20-$30 between China and the west.


The whole attractiveness of Bitcoin to Chinese investors is escape from CNY and exposure to USD. Bitfinex was without a doubt the biggest USD market in the world. Whilst the Chinese markets tend to lead, how much of that volume is actually for real?

Bitcoin is dominated by the Chinese for sure, but a big part of it's attractiveness is it's USD convertability. I wonder how many Chinese Bitcoin Cowboys were using Bitfinex as a kind of USD bank account, only to wake up one morning with a 36% haircut?

Bitfinex was a terrible event for Bitcoin and the only logical outcome of it is much less capital flow in Bitcoin than there would otherwise be.