Bitcoin economy's "black Swan-type venture": Winners or few

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Original title: Bitcoin, Black Swan-type business

Rhapsody for Entrepreneurship

Business ID

Founder: Li Qiyuan, Yang Linco, Huang Yuyu

Start-up Time: June 2011

Company Name: Shanghai SA West Network Co., Ltd.

Business model: Bitcoin trading platform, trading Bitcoin through RMB

Financing records: An Zhen China venture capital and American speed of light venture 5 million USD a round financing

The price of Bitcoin rose again last week and presses various forms of bitcoin start-ups. Because of the lack of legal basis and regulatory system in the bitcoin industry, there is no clear business model, many people will be compared to the relevant start-up companies "Black Swan-type business."

How far can a Bitcoin venture go? bitcoin China c E o Li Qiyuan in an interview with reporters in the south, said bitcoin from the technology will bring disruptive innovation opportunities, is not likely to be stopped by policy.

Play out of the venture

In the 2011, Bitcoin was in the ascendant on the other side of the ocean. M T.gox (founded in July 2010, in Tokyo, Japan, known as the world's largest bitcoin trader) and other trading platforms attracted China's two bitcoin enthusiasts Yang Linco and Huang Yuyu, they found that there is no such a bit-currency trading platform, out of "fun", They used their spare time to organize a simple Bitcoin trading site, in their words, "it was not a start-up at the time."

This March, another bitcoin fan, Li Qiyuan, began looking for entrepreneurial opportunities after Wal-Mart's E-commerce division resigned. Li Qiyuan in the 15 years after graduating from Stanford University, has done the community, the cloud storage, the network video, the electric business technology and so on many fields. For this typical it-tech guy, bitcoin may be a truly challenging and opportunity-related area, compared to the previously engaged Internet segment.

Li Qiyuan is deeply influenced by internet thinking because he has been studying and working in Silicon Valley. Since 2011, when he learned about Bitcoin, he used "perfect" to describe bitcoin. "Because Bitcoin is based on mathematics, all technical or geek will recognize the value of Bitcoin being centered and borderless," he told reporters at the south. So this March, he found Yang Yellow, three people decided to go together to do Bitcoin trading platform. At present, bitcoin China is Li Qiyuan as CEO and the other two are vice presidents and chief architects respectively.

Li Qiyuan to the South reporter recalls: "This February, the price of Bitcoin in fifty or sixty yuan, I let a lot of people hurriedly to buy Bitcoin or participate in this field of entrepreneurship, but at that time we are not high enthusiasm." "The subsequent development was unexpected to everyone, including the founders," he said. Three partners in the official operation of bitcoin China, April Web site trading volume was once close to 90,000 Bitcoin, the peak of nearly 200 million yuan. According to Ling, a Chinese staff member, since the end of October, Bitcoin has been hot again, with the highest volume of Bitcoin in China more than 100,000 bitcoin, or even more than the M T.gox and other sites.

Security Deals

In fact, bitcoin China is Li Qiyuan's first venture, but he thinks he has a business DN. This D-N-A is not only shown in his optimistic outlook, but also in the control of the current risk. He told reporters in the south that the current risk of Bitcoin China is almost the risk facing the industry as a whole.

Due to the absence of relevant regulatory measures and legal protection, a large number of Bitcoin trading platform in the transaction security of serious loopholes. Li Qiyuan, the company is also the largest investment in ensuring that the trading platform security issues and user experience. To ensure security, bitcoin China is currently working with the top three of the domestic payment companies to do the money settlement, and the user funds to the Third-party escrow account, but also take the cold storage offline backup to ensure that the user information and funds will not be swept away by hackers. Although not yet recognized by the State or the government, but Li Qiyuan that: "Bitcoin is technically an innovative thing, and not harmful, so the country should not stop." ”

Second, Li Qiyuan that the biggest risk to Bitcoin is that the price of Bitcoin fluctuates too fast. He said: "Recently, the price of Bitcoin has hit new highs, which is related to the influx of too many people in a short time." The price is too high or the growth is too fast, itself is prone to risk. ”

What is it that makes Bitcoin go up the rocket? Li Qiyuan, someone calculates that the amount of Bitcoin will be limited to 21 million. The difficulty of digging ore is proportional to the amount of Bitcoin, the output fixed, the scarcity of bitcoin pushed up its value in the past 4 years, many people out of speculative mentality hype Bitcoin. In addition, free transaction fees and increased awareness have attracted more people. Who's buying Bitcoin? Li Qiyuan told the South reporters: "There has been no breakdown of statistics and research, the team is currently only 20 people, completely did not expect to cope with such a hot market." ”

Focus on big Flow

A few days ago, bitcoin China announced the completion of the 5 million dollar a round of financing, investors for the speed of light An Zhen Chinese venture capital and the United States speed of light business. This has become the current domestic financing limit of a Bitcoin trading platform. Li Qiyuan told the South reporters, the main funds used to enhance product safety, security of user property.

In the profit model, the original idea of the site temporarily through the fees to make money, charge 3 per thousand of the handling fee. The domestic trading platform has been exempted from handling charges, Li Qiyuan that at present, the main is to promote Bitcoin, so that more people know Bitcoin, do scale and flow. As for the future development plan, Li Qiyuan hope to be able to do "comprehensive Bitcoin Company", as for the specific product direction and function, Li Qiyuan said temporarily is not convenient to disclose.

Third party reviews

Guest Speaker: Ali Microfinance research researcher Xu Dong

The creation of the rich is difficult to continue

Some of the more well developed bitcoin companies may stick around for five years or more, but I don't think it's a worthwhile thing for any entrepreneur, unless it's the internet geek who can try to hold on.

The bitcoin is stored in the process, not the trading function. If it cannot be turned into a trading currency, its price cannot remain stable, so it may never be able to stand firm. It's like a commodity, rising and falling are normal. It is expected that after this wave of speculation, the price will go down again.

Although the field of Bitcoin has recently poured into a lot of investment, it feels a bit like the first half of the speculation. At that time, everyone may feel that the mobile internet era, hand-travel companies will have potential, so it was fired hot. Bitcoin is similar to the truth, and ultimately to the market to judge. In addition, Bitcoin faces policy risks. Imagine that even if Bitcoin is recognised by the state, the best results may be acquired by the state. So I think from the perspective of entrepreneurs, whether from the business logic or bitcoin itself, the risk is relatively large.