INB Capital Yi Lihua: Blockchain value is hundreds of times more than the Internet

It was a month away from the two meetings of INBlockchain (commonly known as coin capital). Just during this month, with the opening of the blockbuster revolutionary screenshot of Xu Giping, the founder of Zhenge Fund, on January 9th, a storm on the topic of blockchain was fierce.

Two years ago, Yi Lihua, who had turned from a traditional VC investor to a blockchain investment and claimed to be a blockchain evangelist, seemed to be calm because he had foreseen all of this, and he did not forget to "fill the knife": INB Capital Li Xiaolai, the founder of the company, had previously asked Xu Xiaoping to invest in related projects, and he still hesitated. When many traditional VCs face the blockchain, the reflection arc is still too long, which is indeed a very regrettable story."

Since the end of 2015, with the contact with Bitcoin, in the past three years, Yi Lihua has invested in more than 70 blockchain projects such as Quantum Chain, Chain, Eos, BigONE, etc., many of which have a return rate of over 100%, and the overall project return rate is 40. Times around.

"In the face of new things, you will find two kinds of people, one is curious and the other is full of prejudice." And he is obviously the first.

In 2015, when he was doing equity investment, he met one of the earliest blockchain companies in China: BitSE. Although the company was later transformed into a blockchain technology company, they were also among the first companies to start mining in China. .

At the beginning, Yi Lihua, like everyone else, was dubious about this new thing, but after that, he was the fastest. He gave the other party a third of the money and began to try mining. Soon, he found that he not only received coins every day, but also the price of the coins rose from 1,000 yuan to 3,000 yuan. "A little reliable."

When he was doing the best capital, he invested in projects such as Tianhe Yun and Zhongfuda. The average rate of return was 3-6 times. In the traditional equity investment field, he felt that he was qualified, but he could not be called excellent. . Therefore, when a new track with equal opportunity for everyone opens, when many people are still watching, he chooses a brain to rush in.

Yi Lihua’s desire for a new order is stronger than ordinary people, probably from his origins. One of the most successful blockchain investors in the moment, was destitute five years ago.

He came from the countryside of Hunan's Loudi, his father's peasant, his mother was illiterate, and he first went to Shanghai to study. The only idea was to "can find a way to eat." When I was the poorest, I spent nine months in Shanghai with 1800 yuan. When someone introduced my girlfriend, he didn’t even ask the other person to sit at McDonald’s.

In this era when the class solidification theory was frequently thrown out, what he got was arguably "a bad hand." But perhaps it’s the “encouraging education” from the family to the big one. He always thinks that “I’m very good in all aspects.” When he was only 1,800 yuan, he relied on “renting two rooms and one room, and subletting both rooms. Go out and sleep in the living room's folding bed" way to solve your own accommodation.

Moreover, he is still enough to fight. In the most difficult time, when he learned that a city government was attracting investment, he found the business owners he knew in Shanghai. From the 400 people, 60 people were selected, and then they were able to help them to declare an average of more than 40 pages of materials, from technology, team to business model, a little bit solid. The ultimate success of 20 people earned him the first 5 million in his life. He has therefore embarked on the path of professional investors.

The 30-year-old young man, who still has a heavy Hunan accent, said that he "has always had a big dissatisfaction in his heart." Because: In the traditional world, we are not stupid, but also very hard, but the original value system is difficult to be shaken, most people are "drinking soup" after all. Therefore, he has always been eager to "stand on a fair track to compete, lose my recognition, and win is also deserved."

Undoubtedly, the blockchain he devoted to is, in his opinion, such a mobile high-speed train that is fair to everyone. This train does use a very magical way, but in a few years, he has made a transition to the life class.

The following is a dialogue.

1.36Kr: Just a month before we met, the blockchain suddenly broke out. What is your intuitive feeling? When it breaks out at such a time, what do you think of the reasons behind it?

Yi Lihua: The intuitive feeling is swept by the screenshot of Xu Xiaoping's friend circle. I think the excitement of Teacher Xu Xiaoping is also a cause. As early as the EOS project, Teacher Li Xiaolai once asked Xu Xiaoping to invest together. However, when the traditional VC is facing the blockchain, the reflection arc is still too long. This is indeed a very regrettable story.

Of course, Teacher Xu Xiaoping did not act now. The Real Fund invested in the public trust of Hangzhou in the Angel Wheel. Lianchuang invested in the Bitcoin trading platform OKCoin in the early stage. However, the screenshot of Teacher Xu Xiaoping has had a huge impact on many companies. Many investment companies have begun to organize the blockchain for everyone. This should be the most obvious change.

In the past, many people have heard of blockchains, but they are still in a state of wait and see. But by Xu Xiaoping, many people are anxious. Just like a revolutionary storm that is coming, you can’t stay out of it. Coupled with the recent rise in blockchain concept stocks, the blockchain is actually affecting traditional finance, and the combination of these factors may be the reason behind the big outbreak.

2. 36Kr: How do you personally look at the value and significance of the blockchain?

Yi Lihua: First, I think it redefines assets. Our past assets, such as stocks, real estate, etc., in this world, people do not really belong to their own assets that can determine the value. The world of blockchain can be partially realized.

There has never been a technology or asset class in human history that can really achieve this effect: cryptocurrencies (excluding many altcoins) are assets that cannot be diluted or taken away, and are carried on the Internet, which makes people's assets Forms achieve fairness, privacy, and efficiency.

Second, the blockchain redefines the organizational form. In the development of human society, the value of all new technologies must be aimed at improving efficiency, and the development of blockchain is the efficiency of organizational relations. You can think about how the 6 billion people on the planet formed an organization. We identify each other through various identifiers such as name, identity, geography, experience, etc., and create trust between people through various interactions, which can form a relationship of mutual exchange and high trust.

Most of the current companies, whether they are banks or large Internet companies, are just big intermediaries, such as Taobao, WeChat, Didi, and many other successful companies. What they are doing is essentially the function of trust intermediary.

If you think about it carefully, you will find that half of your life is paying the "trust intermediary fee", and half of the time is in the value preservation and security of the rushing assets. People have already paid a huge cost for this. The blockchain has achieved a certain degree of efficiency and the combination between people and between people and free markets. Of course, the blockchain is not a panacea, but it can be enough to bring a 10% change to the world.

From these two points, I think the blockchain is worth a hundred times more than the Internet. The Internet promotes the efficiency of information circulation, and the blockchain changes and transmits the value level. This is completely two levels of things.

3. 36Kr: What important nodes have you experienced from a traditional venture capital investor to a evangelist in the current blockchain?

Yi Lihua: My principle of doing things is the combination of knowing and doing. When many people hesitate about Bitcoin, my actions are the fastest. When I made equity investment in 2015, I found a company, one of China's earliest blockchain companies: BitSE, which later transformed into a blockchain technology-based company, but they also started mining in China. At that time, I started to have an interest in the blockchain. When I got to know the BitSE team twice, I directly used one-third of the money for them to mine, and the rest of the money later bought Bitcoin.

The reason why this industry can go so far is because I have a dissatisfaction in my inner world and I recognize the fair rules of the blockchain world. There are a lot of people who say this to me: I know that Bitcoin only costs 3,000 yuan. Now you let me buy 30,000 yuan for a bitcoin. I can't accept it. This logic is the biggest reason why many people have missed Bitcoin. Fundamentally, he still did not analyze the entire logic clearly, and did not fundamentally recognize its value. So I focused on bitcoin and eth, and I bought it while digging. In the dozens of blockchain projects I have invested in, the overall rate of return is over 40 times, and no project is a failure. Only BTS was bought for 2 yuan, and I did not sell it when it fell to 2 cents. It has doubled today.

Logically speaking, our previous VC projects are supported by profits, but the blockchain has brought me shocks, like Bitcoin, just a set of popular systems. The value of Ethereum is reflected in how many people use it. These are a little different from our previous investment logic. This means that you can do technical development purely without having to pull a list from the customer. Later, some blockchain projects were contacted and found to be very efficient and more useful for market use.

4.36Kr: You are both the founder of You Capital and the founding partner of INB Capital. What is the difference between the two? What logic does INB Capital follow when investing in blockchain funds?

Yi Lihua: You are still doing some traditional venture capital projects and not doing blockchain investment. INB Capital is focused on blockchain investment, and my main energy is also here.

We are looking for opportunities in the entire blockchain industry, with a focus on blockchain trading, main chain, and application. The first step in investment logic is to look at the founders. The second is to see if the application scenario of this project has great prospects. The third is to focus on some of our optimistic directions. The founder will see if he has entrepreneurial spirit, whether he is reliable, whether he has certain leadership and professional ability. This is a comprehensive concept.

In the trading category, we voted for Bigone, dew, etc. Before the team successfully completed the exchange, regardless of influence, or entrepreneurial passion is very rich, people and things are right.

The main chain, similar to the operating system of mobile phones, the application of blockchain needs to be developed on the main chain. In this direction, we have invested in a project called MIXIN, the founder is a well-known technical master. Also invested in EOS and qtum, vechain. The vechain founder sunny meets the characteristics of the outstanding founder and has a high score. E0S founder BM (Daniel Larimer) has a very strong technical ability, and he can quickly make products that others can't. Application, we voted for the public letter treasure, mainly focusing on the founder's entrepreneurial enthusiasm, professional ability, including his talent. Recently also focused on the content of the public chain Ulord, the financial and transaction base chain Uchain

INB Capital may be more like a blockchain investment and industrial institution. We support more blockchain companies through investment, products, services, strategies, etc. We hope to rebuild a better world through blockchain and provide power for China's commercial upgrades.

5.36Kr: In INB Capital, you are working with Li Xiaolai, how to evaluate him?

Yi Lihua: There are several very important people in my life history, one is Li Xiaolai teacher. I and Li Xiaolai and the old cat are aware of the investment blockchain. Li Xiaolai’s traditional investment should not be successful, but the blockchain investment is very successful. He is a very diligent, inclusive, wise and very good person. He is also very advanced in his views and layouts. Many people in this circle are recognized by everyone and contribute to the development of the blockchain industry. I have made a huge contribution, but I have suffered too many misunderstandings.

INB Capital has always focused on investing in blockchain and will continue to contribute to the development of blockchain in the future. At present, we are working with universities and research institutes to collaborate on blockchain experiments. We support labs to do blockchain technology research and development and talent training every year. We hope that through the efforts, the blockchain will become a help for the country and society. Pusher to bring a better life to the people.

6. 36Kr: What are the currently accepted blockchain scenarios in the industry? As you said before, it may take two years for the application scenario to be applied globally. How did this judgment come from?

Yi Lihua: Finance, content, internet of things, games, etc. Landing like e-commerce is still difficult. Blockchain technology is not a panacea, and some are not suitable for decentralized scenarios. But because its technology is not mature, efficiency is currently not as high as centralization in some respects.

Bitcoin is the most successful blockchain application, demonstrating that blockchain technology (Digital Ledger) can be used on the Internet to conduct secure transactions without any third party. Based on this, Ethereum has added the concept of smart contract, which makes the blockchain not only applicable to the issue of cryptocurrency and its transfer, but also can develop various applications on this basis to meet various industries and applications. The needs of the scene. Despite their successful operation, there are various bottlenecks in the application of blockchains in dealing with the scale of transactions.

EOS (a blockchain operating system designed for commercial operation applications) attempts to provide some common functions and modules that are required for different blockchain applications. Simply put, it is to provide a relatively complete operating system, which is convenient for application developers to quickly develop their own applications on the EOS operating system.

In addition, EOS is expected to be several orders of magnitude larger than Ethereum in terms of processing transactions, and once developed, it will be the first platform to support commercial-scale applications. But its large-scale development at the basic level will take about a year. With such platforms, including high-speed applications, plus the development time for blockchain applications, there are almost two years. In general, because the blockchain application requires a lot of people to confirm the "book", the entire processing speed is not yet fast.

7. 36Kr: As a decentralized underlying technology, blockchain will challenge the interests of many centralized organizations. How do you see the opportunities of giants and SMEs?

Yi Lihua: The advantage of a small company is that there is no burden, and you can move forward with your sleeves. You can no longer rely on big companies in the economy. The disadvantage is that its talent system is not perfect and the application scenarios are not enough. In this regard, big companies still have an advantage. Of course, the decentralization of the blockchain is not absolute. It refers to slowly moving in that direction on the application model, but not everything is suitable for decentralization. Moreover, I think that in the future, it will be a process of integration like e-commerce and offline retail. For example, like manufacturing, many scenes do not need to be forced to go up.

8. 36Kr: Many related projects were considered to be “air” last year, and ordinary people are particularly likely to become “chives”. What do you think of this?

Yi Lihua: There is a problem with this problem. There are only a handful of traditional investments that belong to the winners. Three of the 100 entrepreneurs successfully financed? One of the 10,000 entrepreneurs successfully listed? But it can't be said that other ventures that fail to succeed are air or scammers. The high failure rate is not caused by the blockchain, but an evolutionary process. In fact, these processes are in line with business rules. However, there is no authoritative regulator in the early stage of the blockchain, and there is no specific rule mechanism. There are many people who are over-packaging and arrogant propaganda. I hope that in the future, there will be orderly and regular management, which may require the government. The department can promote it. I believe that everyone's wisdom will find a way.

How should ordinary people avoid becoming "chives"? I think there is only one way to learn to be more professional and excellent. There is a call in the stock market and investment market. "Investment is risky and market entry needs to be cautious." In this world, the rewards of hard-working people are always greater than those who do not work hard. The better people are more rewarding than ordinary people, and everyone thinks that more than half of traditional equity funds are also losing money. They are still elite groups. Failure is success. Mother, success is those who insist and be professional. Social progress also comes from those who work harder and pursue better.

Now the entire blockchain assets are more than 500 billion US dollars, just over Tencent. The logic here is that Internet companies represent the transmission of information, and the blockchain conveys value and trust, so the entire market is still small. The future will continue to grow. If digital assets will become a must-have asset for all households in the next decade, we assume that the assets of the entire traditional world will reach several trillions of dollars, then the blockchain will only account for 3% of it, and it will be more than ten times Ascending channel.