The main reasons for buying bitcoin were getting money out of the country and speculation.
Speculation -- dead. which is a good thing.
Getting money out of the country? I suppose you meant getting FIAT money out of the country, i.e.
1) RMB -> BTC
2) BTC -> USD/EUR/etc.
I wonder how many corrupted cadres have been using this way to get their money out of the country, not many, I think.
Even there are many, all they need to do is switching their source of BTC from open exchange to a private sources, which I am sure will flourish because it's profitable.
but how is that any different from giving the merchant RMB and him giving you USD outside, especially when you consider the volatility risk?
No difference if that merchant has a sufficiently deep pocket, he's essentially a MSB, you know, like an exchange.
Once you get your btc, the volatility risk is the same, it always take 6 confirmations to transfer and sell your booty.