I wasn't implying that you can successfully block a decentralized exchange. You will not be able to because of the shear fact that the network is multi nodal. What I'm saying is...

If this hypothetical right out ban did exist, then all Chinese based exchanges would disappear post ban. There would be no Chinese based marketplaces where speculative trading occurs, since it would be illegal. As you stated it would be forced to out of country exchanges.

But if the Chinese government filters access to those exchanges and penalizes people who attempt to circumvent it, then you would see a reduction in Chinese traders, which account for a large number of current speculative traders.

My point is to highlight exactly what you pointed out, that there would be a drop in the number of total traders, and the price would drop, but it will give new buyers a chance to fill the gap and pick up all the volume at reduced prices.

I wanted to highlight that a ban wouldn't have no effect. It would have a significant effect in the short duration, as we saw today with the near instantaneous drop over a simple rumor. Something that US buyers would capitalize on.