At 16:00 on March 21, Bixin launched the third issue of Bixin Insiders on Yiyi Live. Xing Kong, the founder of Bixin, who has held the currency for ten years, and Wang Chun, the co-founder of Yuchi, the founder of stakefish, and the investor of Bixin, who have held the currency for nine years, chatted with you about the mental journey of facing the sharp rise and fall in the past ten years.

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main content

In this market situation, you may not be able to listen to what Amway sells to you and what dry goods you talk about. So today we don't talk about technology, we don't talk about dry goods, we only talk about stories and inner thoughts.

Just a few days ago, Bitcoin plummeted by nearly 50%, assets were halved, and all communities were wailing. Some people may have just entered the market and experienced this kind of decline for the first time. Some people said that I even survived the trough of 3,000 dollars, and this market can still resist.

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Bitcoin in 2011

Xingkong: Hello everyone, I am Xingkong, the founder of Bixin. This time, Bitcoin fell by another 50%. When we just met and chatted, we found out that since the Bitcoin crash in 2011, the two of us are one of the few old people in the currency circle who have experienced 4 sharp rises and falls. For the first time, it fell from $30 to $0.01 in 2011, and then stabilized at around $2 in the later period.

Wang Chun: But there was another reason for the drop to $0.01 at that time. Later, it quickly fell back from $0.01 to $17, and then continued to fall from $17. I remember it fell below double digits. At that time, there might only be one mainstream exchange. , His price should be the fair price in this market. Then Bitcoin slowly recovered from $2. I remember that Xingkong sold a lot of coins when it rose to 2.7 dollars. I also sold hundreds of coins at about the same time and bought an iPhone, which was stolen after two months of use.

Xingkong: At that time, Bitcoin fell below everyone’s confidence, and everyone could only cheer each other up, and the chat group name became “Everyone stand up”.

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Bitcoin in 2014

Xingkong: In fact, it is difficult for us to control the effect of the crowd, but Satoshi Nakamoto created Bitcoin as a tool, which has great advantages. Bitcoin is super-sovereign and free, whether it is used as currency or asset, it can be used at any point in time. Some people sometimes make the price very high, and some people sometimes make the price very low. In fact, whether it is low or high, Bitcoin is Bitcoin. It is also a self-owned asset. Holding this asset will give you insurance for your life. After that, at the beginning of 2014, we experienced a second drop, down 900. The situation was different at that time. Wang Chun was working on f2pool, and Bixin also formed a team of four or five people. In 2011, it doesn't matter what kind of fall it is, the big deal is to find a job and do something else by yourself, but with a team in 2014, the burden will be heavier. Now it is even more different, and the burden is heavy again. The number of people in the entire industry and the entire company are increasing, and there are more and more participants, so everyone will feel more and more motivated, and the products of the entire industry are getting better and better.

Wang Chun: When your plate becomes bigger, sometimes there is no way to turn back. Small people can easily buy all of them when they fall to 3800, and throw them all when they rise to a certain price. Those with a larger size can also invest in various things, such as buying houses and stocks. But when your volume is multiplied by 10 or more, for example, when the United States encounters such an epidemic, its economy has problems, and nothing can afford such a large level of funds. Different volumes will bear different costs. question.

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Arbor Day's Plunge

Wang Chun: I think many people were caught off guard by this sharp drop. I remember that when I participated in Bitcoin 2019 in the United States last year, the entire market was very optimistic, and I felt that there might never be any Bitcoin below $10,000. I told some people that it might fall to 6,000 next, and it would not fall any lower. At that time, no one believed me, thinking that I was crazy and could fall to 6,000 again. Now it seems that I am relatively conservative, after all, it fell to more than 3,000 a few days ago.

Xingkong: This plunge is also a hint to the currency circle - our infrastructure is still not strong and stable enough. The great point of Bitcoin is that it provides liquidity in the financial market through a 24-hour non-downtime method; but it is also because of this method that everyone finds that it can drop directly from 7000 to 3800, which will not happen in traditional markets. So many people are discouraged, and some people don't even have coins in their hands.

Wang Chun: Some people say that the bad news is exhausted, but I think the bad news is far from exhausted. There may be more bad news about the epidemic in the future. I think there may be 1 million confirmed cases by the end of the month. In fact, the first thing I thought of during this plunge was to sell Ethereum first, because in this case, Bitcoin is the safest. Bitcoin is a truly decentralized asset. Whether it is Ethereum or EOS, most cryptocurrencies are not so decentralized. Of course there are some exceptions, such as Grin. Eight new crowns broke out at the Ethereum conference in London. If there is a problem with the core developers of Ethereum, the price will definitely have a huge impact. The Bitcoin development team is very distributed, so when anything like that happens, I would choose to swap assets into Bitcoin rather than hold something that has centralization risk.

Xingkong: It’s okay for Bitcoin. In fact, the biggest bad news for Bitcoin is the plunge caused by high interest leverage. The entire industry is due to the accumulation of leverage, and the explosion will form a domino stampede effect. There is no circuit breaker mechanism, and the price will go directly to 3800. The previous market position was several billion dollars, but now it has dropped to 10%~20%, only a few hundred million dollars. Although this plunge has hit the confidence of many people, it has also made the entire market safer. I think that in the next six months and a year, there will be no such stampede effect anymore, with a maximum plunge of 10%-30 %.

Wang Chun: At most, it will be a continuous downturn. For example, 6,000 yuan today, 5,000 yuan tomorrow, and 4,000 yuan the day after tomorrow, but it will not plummet by 50% in one day.

Xingkong: I don’t think so, because everyone has no coins in their hands and no motivation to operate. It is more likely to be 6,000 today, 7,000 tomorrow, 8,000 the day after tomorrow, and then fall to 7,000 or 6,000. The possibility of fluctuations is relatively high.

Wang Chun: If the bitcoin market is in a downturn like this, in a state where it will neither skyrocket nor plummet, and if you want to find some stimulus to get rich in the short term, the traditional financial market in the next few months will be more interesting.

Xingkong: The traditional stock market will be more affected by the event, while Bitcoin is slightly more long-term.

Wang Chun: I recently paid special attention to Boeing's stock, which is much more exciting than the price of Bitcoin, and I copied some back at the lowest price of Bitcoin two days ago.

Xingkong: Every time the plunge is to return to the position of value investment, everyone thinks that as long as Bitcoin exists in the whole world, it has investment value.

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USDS

Xing Kong: Early Bitcoin participants all had a dream, which is to use Bitcoin for payment. But now the main function of Bitcoin is still a freely held asset, and it is recognized by many people that it can make certain payments. The future innovation of Bitcoin is based on making better financial products to make the use of Bitcoin more efficient, effective and convenient. For example, the USDS we recently launched, USDS will be exchanged for the corresponding Bitcoin in real time according to the spot price of the US dollar. USDT is a centralized product. If there is a problem with the centralized product, the entire currency circle will suffer huge losses. I think that stablecoins should be in full bloom. Everyone issues stablecoins, and 100 companies have issued stablecoins. USDT may only account for 1%. Even if there is a problem with USDT, the other 99% of stablecoins will have no problems. The impact on the currency circle Not so big anymore.When your product cannot be decentralized, there can only be more such products to decentralize the entire stablecoin market.

Wang Chun: What supports the price of USDS?

Xingkong: When a user accepts USDS with Bitcoin at Bixin, Bixin will exchange Bitcoin for the corresponding USD or contract USD in the USD spot market and contract market. Any compliance issues are relatively safe, and it is exchanged at a 1:1 spot price in US dollars. Bixin found in the process of USDS this time that Bitcoin is a free asset tool, it will not change because of your support and opposition, it will always exist, and its value will be reflected when you want to use it . The same is true for USDS, which will make it more convenient for many people to use after its release.

Wang Chun: What is the total circulation of USDS?

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production halved

Xing Kong: Let’s talk about mining. Many miners have lost a lot. Everyone only sees that the price has been halved, but in fact the killer for miners is the halving of output, which will happen in May.

Wang Chun: Then when did you realize that the price might not be optimistic?

Xingkong: I realized it in January, because the leverage was too high at that time, and there was a huge risk that the interest rate of Bitcoin loans was extremely high, which was a big gamble. But I only thought it would drop to 7000, 6000 at most. It is possible that it will still rise after the halving in May and June, but it is still a lore for miners, because doubling the price is almost the same as not rising. But in the long run, I think Bitcoin and mining are both very good industries.

Wang Chun: Looking back on the last halving, the community is still discussing the issue of capacity expansion. We communicated more with Bitcoin developers than now. At that time, some developers felt that if the currency price continued to slump, there would be some concerns about the security of the Bitcoin network. This time we will only encounter more challenges than last time, so what kind of impact do you think the security of the Bitcoin network will be in the future?

Xingkong: I thinkThe Bitcoin network has always been the most secure network, so the handling fee has not increased much recently. In the future, we need to strengthen support for the Lightning Network. The implementation of the Lightning Network is based on the Bitcoin network, which is a decentralized two-layer network. It makes the Bitcoin network more and more secure and allows more and more Bitcoin applications. What everyone is worried about in the future is the handling fee and whether the mining network is safe. The only way to solve the security problem is toEnhancing the use of Layer 2 networks。

price fluctuations

price fluctuations

Starry Sky: It is normal for the value to fluctuate. When the previous $30 fell to $3, I would definitely be very depressed and hoard it desperately. But I am still very confident in Bitcoin. It is a brand new tool with different characteristics from others. I think there will be opportunities to do something in the future. At that time, I held coins with this idea, including when I was working as a mining machine for 12 years. In the long run, Bitcoin is a decentralized complete system and payment system, no matter what its price is. For everyone, if the spot price falls, it will fall, and it is good to live with money in hand. But people who play futures will worry about liquidation.

Wang Chun: Futures are indeed more risky. When I was holding the spot, because I didn't like to charge the currency to the exchange, I opened an empty order on the exchange, and the empty order was larger than the spot amount I held. Even less, and ended up losing a lot of money.

Xing Kong: At the beginning of 2017 and 2018, the price of Bitcoin did reach a high point, but I didn’t particularly believe in USDT at that time, so I didn’t sell it.

Wang Chun: I understand, Xingkong does not believe in USDT, so it makes USDS.

Audience question

Audience question

Question 1: How do exchanges distinguish some illegal sources of funds for Bitcoin? 

Xingkong: Bixin and some other exchanges will do address traceability in the future, and the on-chain analysis platform is also doing related work. I think this is an inevitable trend, and it is also the work on anonymity that many hard-core Bitcoin supporters want to do .

Wang Chun: There are great differences in the industry on this point, and it is difficult to say who is right and who is wrong.

Xing Kong: In fact, I have always looked at this matter very rationally. The issue of Fungibility (interchangeability) is very important. Banknotes are not interchangeable, because the serial number on each banknote is different, but the real interchangeability is that I gave you one yuan, and Wang Chun also gave you one yuan, and you can’t tell which one. Whoever gave it, the anonymity will be stronger. Interchangeability is also a feature in numismatics, but I personally think this is questionable because it will be less practical. After I gave it to you, you may not receive it due to network problems or other problems, but there is no way to verify whether it is really not received. I think this can be regarded as a feature of Bitcoin. There are transaction types that support interchangeability and transparent transaction types, but these must be tested by the market. If privacy coins like Grin can succeed, so can Bitcoin plus anonymity. I have always been very optimistic about Grin. Grin is also the only currency that Bixin has no users but is still supporting.

Question 2: What is the development progress of Bixin's hardware wallet?

Xingkong: The hardware wallet has a real body and is still being debugged. The Bixin hardware wallet was developed by Mr. Aofeng, a Bitcoin core developer. It has several characteristics. The first is that it is completely open source, and the second is that it is the first wallet that does not allow everyone to store mnemonic words. Nowadays, many coin loss events are caused by the mnemonic words being stored in the cloud disk or written in the notebook. Whoever gets the mnemonic will control all your assets, which is a single point of failure. If the private key is in an open environment, none of your money is your money.

Wang Chun: I keep the private key in my head, because I have memorized pi since I was a child, and I have memorized the square root of two and the root of three.

Xingkong: If you can remember, it is a very good way to keep the private key in your head, but many people can't. Moreover, Wang Chun is a practitioner in the industry. As an ordinary person, after a year or two, you remember that you have coins in your wallet, but you don’t remember the private key.

Wang Chun: I can introduce how I transfer coins from my address. First log in to your own server, type: bitcoin createrawtransaction, type UTXO and where you transfer coins, how much handling fee to pay, then type signrawtransaction, add the output string, and add your own private key, A signed transaction can be generated and finally sent through sendrawtransaction. The only place where you need to type the private key, if you add a space in front, it will not be entered in the history.

Xingkong: I often forget the password, because if it is an unimportant account, I just fill it in.

Wang Chun: My habit is, regardless of whether it is important or not, I will generate a random password and put it in 1Password.

Xingkong: If you don’t believe in centralized institutions, my suggestion is to buy a hardware wallet.

Bixin Introduction

Founded in November 2014, Bixin is a blockchain asset wallet. Bixin has provided blockchain asset custody services for nearly one million users for many years, and supports BTC, USDS, ETH, USDT, EOS, LTC and other blockchain assets. It is a veteran wallet and evangelist in the blockchain industry. On this basis, Bixin has built a blockchain asset wallet that includes core functions such as fiat currency transactions, one-click instant exchange, lending, leverage, co-management wallets, guaranteed payments, and mining machine malls. Bixin is committed to developing a blockchain asset platform that everyone can use, so that everyone can equally hold and use blockchain assets, protect their own assets, and create value for the blockchain industry by providing services and products. value.