TL;DR: : OK Blockchain Business School based in Beijing, China interviewed bitcoin mining pool BTC.TOP founder, Jiang Zhuoer, during a livestream recently. It received hundreds of thousands of views, but it wasn’t until journalist Cindy Wang translated the discussion that the English-speaking world could get a chance to read his thoughts on multiple topics: Grin, Bitmain, Bitcoin Cash, EOS, Litecoin, BSV, Craig Wright, investing, and his general feelings on cryptocurrency’s future.
An Interview with BTC.TOP Founder and CEO, Jiang Zhuoer
OKBS: How did you get started in Bitcoin?
Jiang Zhuoer: I was working on a gaming product that faced cross-border payment problems in 2013. News about the Bitcoin frenzy, its rollercoaster ride in particular, attracted my attention. And I began to learn about Bitcoin and figured it might be a good cross-border payment solution. That’s how I entered the space. Later, I started mining with several mining machines at home, and then founded BTC.TOP. I think Bitcoin is a brand new invention that will bring more economic freedom and really change the world for the better.
Did Jihan Wu really leave Bitmain?
The whole community is wondering the same, whether Jihan Wu left Bitmain. He and Micree Zhan are co-CEOs of the company. We have seen countless examples of two CEOs leading a company, and it doesn’t work well. They want different things, have different strategies. I believe investors behind Bitmain would love to see Jihan and Micree deal with separate businesses. But nobody is leaving the company.
What is Jihan’s role in Bitcoin Cash going forward?
Jihan told me that he will not take a public stance about BCH anymore. He believes it’s good for BCH to evolve in a decentralized way. BCH opponents mistakenly think Jihan had control over the community. The truth is that Jihan never had much say over BCH. For example, Jihan proposed to fund development with a fraction of block rewards in May of 2018. But he was met with strong resistance from BCH supporters. Actually, a lot of his suggestions were turned down. But people tend to overrate Jihan’s influence. That is not true.
Exchange Tokens and Litecoin
How do you look at exchange tokens?
Exchange tokens are rallying hard these days. Buying exchange tokens is like you are betting that the exchange as a company can last a long time. But investing in Bitcoin and other coins is betting a particular blockchain will last a long time. So, it’s a matter of personal choice. I don’t invest in any exchange tokens, but they could be a speculative money making tool.
How will Litecoin halving impact the market in 2019?
Litecoin halving leaves room for price growth. In 2015, Litecoin halving made its price go up from about $1 yuan to a high of $8. As Litecoin’s block reward decreases from 25 LTC to 12.5 LTC in five months, history might be repeating itself.
Markets are always forward-looking, as shown in Litecoin’s recent surge. The halving elicits a clear “sell the news” reaction in the months leading up to the event. But remember that the unexpected always happens. What matters most is hold your coins tight, don’t panic about market fluctuations. If you sell all of your coins now, you may never be able to afford them in the future.
Bitcoin Core (BTC)
You said on the social media platform Weibo that Bitcoin developers intend to increase the maximum number of bitcoin core (BTC) in circulation. Can you verify this claim?
Bitcoin Core developers have been intending to increase the 21M limit of BTC for years. Since it damages bitcoin’s economic model if developers don’t work to scale the network, the only option left for them is to remove the halving mechanism.
This is a long-term plan for the Core camp. I have had some conversations with Core developers, and they want to change the 21M limit after BTC experiences two reward halvings, which means in five to ten years.
I think Grin is a Core experiment to test this idea. Bitcoin Core developers are also part of the Grin development team. As we have noticed, Grin is a very interesting project that has no halving mechanism.
Actually, I am concerned that Core developers will successfully remove Bitcoin’s halving mechanism. After all, they already made BTC users believe that high transaction fees are normal. So, I announced the news on Weibo to warn the community. If the community is strongly against it, Core developers might give up the plan, or at least postpone it.
What is your current cryptocurrency portfolio? Last year you seemed to look bearish on EOS, for example.
My portfolio is 40% BCH, 30% BTC, 20% ETH and 10% EOS.
In 2017, I trusted in my own judgment and invested heavily in BCH. I believed that BCH represents the right direction, and it was my largest holding. I earned a lot then. But I neglected to realize there are black swan events in the world of cryptocurrency. For instance, I didn’t expect Craig Steven Wright would split BCH and successfully take part of the BCH community with him.
The price of BCH wouldn’t have dropped so much if there were not the split. I trusted my judgment too much, and neglected the chances of a black swan.
I learned my lesson in BCH, and changed my investment strategy. Before, I thought EOS has some serious bugs and could be killed by government. So I didn’t invest in it. But what if it succeeds? What if it grows and improves?
Anyway, the cryptocurrency space is full of uncertainties. You’d better not put all of your money into one coin.
Would you invest in BSV?
For me, BTC and BSV are a business. They are like company products. BTC has Blockstream behind it. And BSV has nChain and some other consortiums behind it. I personally don’t see a future in BSV. Craig Wright (CSW) threatened to start a hash war, but nothing really happened. He keeps contradicting his words.
CSW is a black swan in the BSV community. I would never invest in a coin with so much uncertainty.
Special thanks to the OK Blockchain Business School.
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