Unlike most currencies, Bitcoin does not rely on specific monetary institutions to issue

Unlike most currencies, Bitcoin does not rely on a specific currency agency to issue, it is based on a specific algorithm, through a large number of calculations, the Bitcoin economy uses the entire Peer-to-peer network of many nodes to form a distributed database to confirm and record all transaction behavior, and the use of cryptography design to ensure the security of all aspects of money circulation. The peer-to-peer approach to the central feature and the algorithm itself ensures that the currency cannot be manipulated by making a large number of Bitcoin. Cryptography based design allows Bitcoin to be transferred or paid only by real owners. This also ensures the anonymity of currency ownership and circulation transactions. The biggest difference between Bitcoin and other virtual currencies is that the total quantity is very limited and has a very strong scarcity. The monetary system has not exceeded 10.5 million in 4 years, and the total number will be permanently limited to 21 million.

Recently, on the bitcoin exchange of financing news, first, the fire money network claimed to melt tens of millions of dollars, then is okcoin and angel investors Cai win a round million dollars investment.

At the moment, how can a Bitcoin trading platform get large sums of money when the Mt.Gox of the biggest exchange in Bitcoin is suspended and the bitcoin market fluctuates?

To this end, the author visited the IDG millions of U.S. dollars invested in the domestic Bitcoin wallet application platform-currency line, and its founder Changhao, Wang Hao on the bitcoin industry in the recent status of the discussion.

The author found that, since the 2013 bitcoin, the bitcoin industry is ushering in a second entrepreneurial climax.

1, bitcoin business environment usher in new changes

For the collapse of Mt.Gox, as well as the last round of Chinese Bitcoin entrepreneurial tide core "Bitcoin ore machine" the frequent negative news.

Changhao that this is the process of an industry's own evolution, the bitcoin industry expanded sharply last year, and early bitcoin entrepreneurs easily got high profits, but in view of the limited level and professionalism to face a new round of complex and brutal business competition, there will be a Mt.Gox and a large number of stolen Bitcoin.

Changhao said that the bitcoin industry entrepreneur environment is evolving rapidly, in the past is a personal to the team, from the team to small companies, now the entrepreneurial body has become a professional company.

Compared with previous entrepreneurs, new entrepreneurs have a higher level and a stronger capital support behind them.

2, how the Bitcoin trading platform by the capital of the hot holding?

Last December, the San Francisco Bitcoin trading platform Coinbase announced 25 million dollars in financing, while in the country, there are currency lines, the currency network, etc. to obtain financing.

Changhao's answer is: Bitcoin exchange is responsible for the task of replacing bitcoin with fiat currency, which is linked to Bitcoin and traditional currency, and is one of the key links in the bitcoin industry chain and the clearest link in the pattern.

As a result, capital forces have entered the bitcoin industry and have tended to start with the Bitcoin trading platform.

3, domestic Bitcoin trading platform is the capital of the blood struggle

After a lot of negative news, Changhao estimates that there are currently only tens of thousands of active Bitcoin players in the country.

This means that at present, many of the domestic Bitcoin trading platform is currently competing for a relatively small market, the home will be the hope of the bitcoin speculators potential groups.

According to Changhao, and foreign exchange transactions need to transaction fees, the domestic Bitcoin trading platform is exempt from the handling fee.

This means that in order to compete for users, the domestic Bitcoin trading platform must look for better revenue methods.

Changhao said the bank hopes to be able to earn revenue from value-added services--the Bitcoin wallet app that the currency bank subsequently launches.

4. A mixed central bank document on the bitcoin exchange

Last December, the central bank issued a document banning Bitcoin as a currency, a clear indication of the government's bottom line in defending monetary sovereignty.

In this regard, Changhao from two aspects:

Hi is bitcoin as an investment property, declared legal by the government and protected.

In the short term, the central bank notice will make the industry more calm and rational, because the boom and slump, will affect the consumer confidence in Bitcoin. For internet companies, it is a good news that financial institutions and paying institutions are not allowed to touch, which is an opportunity for internet companies.

On the other hand, Bitcoin is forbidden to circulate in the traditional commercial field, and can only confine itself to the investment financial field, which limits the imaginary space of the application of Bitcoin to a certain extent.

5, big bet big win bit currency industry

Before joining the bitcoin industry, Changhao, a senior U.S. scientist at Facebook in 2008, is now in the company of CEO,2012 (Beijing) Technology Co., Ltd. and returned to China last year to return home, set up by IDG partner Li Feng, and with Wang Hao, who served at Goldman Sachs, to create a currency line.

When asked why to join in this uncertain industry, Changhao said that the innovation of the cause are uncertainty and risk, only the existence of opportunities, and if everyone can read, everyone could participate and have a huge opportunity, that this area is already Ali, Tencent's world.

Changhao is more willing to compare the bitcoin industry's relationship with traditional finance to a wagon and steam engine train: When a steam train first appeared, there was no carriage running fast, which did not mean that its future was as good as the carriage.

Obviously, Changhao and many peers believe that Bitcoin is the 19th century medium-term train, its future will run faster.