“The blockchain revolution has already arrived. This trend goes forward with great vigor and strength. Riding the trend, you’ll prosper; off the trend, you are doomed. It’s a complete subversion of the tradition, much greater and violent than Internet and mobile Internet.”

The opinion above about blockchain from Bob Xu Xiaoping, founder of ZhenFund, shared in a WeChat group went viral among bitcoiners and blockchainers.

It is interpreted that ZhenFund has been ready to be all in blockchain with all-out effort, which boosts great confidence for the blockchain practitioner. Responding to this, Charles Xue, famous entrepreneur and angel investor in China, better known by his screen name Xue Manzi, has a different viewpoint, thinking that

“the VC circle is too pumped in the blockchain frenzy.”

As one of the first investors concerned with digital currency and blockchain with the background of traditional investment, Xue Manzi, at the age of 65, has invested 20 blockchain projects in 2017 alone, including promising Qtum, Bytom and Ink chain. Today, we (8BTC) have invited Xue Manzi to talk about his opinion on traditional VC community’s speeding into blockchain, and it’s also the first time that he gives us a systematical insight to his blockchain investment. The full text is as follows:

Blockchain frenzy

Blockchain frenzy has begun since last September and keeps on fire. Recently my old friend Bob Xu Xiaoping’s low profile understanding about blockchain shared in an internal group has been go viral. It seems that the VC circle has been over pumped, and frankly speaking, I think Xu is too excited about blockchain. Even so, there are several new noteworthy progress:

• Many big companies, even some listed companies, have launched their own blockchain products.
• Many big names with Internet background have seen the trending and great potential of blockchain technology and they all plan to make blockchain-related layout and transformation.
• Many big names of investment circle have turned their eye to blockchain and digital currency despite Buffett and his older partner Monger’s negative sentiment towards bitcoin.

Most recently, Facebook CEO Zuckerberg made it clear that his major task in 2018 would be to have the new technology of cryptocurrency in his enterprise’s social products. With overwhelming reports about last year’s 1700% spike of bitcoin, whether this stuff is a bubble or a trending has aroused widespread concern of investors. Many investors though being conservative and cautious have also made attempts to buy bitcoin with a small part of their asset. Don’t be carried away by greed. I encourage wise and steady financial management rather than adding leverage. The investment in digital currency has already been a global phenomenon. This means digital currency will be an alternative for everyone to manage their wealth, that is, in personal financial management, you can have part of your asset in digital currency investment.

But I want to emphasize that opportunity comes with risks, bulls will be followed by bears, and for many, they cannot afford it. Apart from that, with irresponsible projects here and there, you’ll pay for it if you are blinded by quick cash. Even those who run WeChat business have been boosting “Bitcoin Lamborghini” with little understand about bitcoin. How weird!

Masayoshi Son – Influence is power

As one of the first traditional investors paying attention to digital currency and blockchain, the first time I knew it I felt strongly that it was like Internet when it was newly born in 1990s. It is the future, a better protection of users’ asset and inspiring more and more individuals to have what they should have with their effort. Surly controversy is along with it just like Internet back then. Buffet and Soros had negative sentiment towards Amazon when it was a startup, and the fact is that they are regret to have chosen the dying Walmart instead of Amazon. And Masayoshi Son’s 90% stock was gone with 90% of his invested internet companies (including aribnb、commerce one、etoy.webvan) died when the Internet bubble burst in 2000, but Yahoo and Alibaba made it. They made no money in early days, but finally getting through from those tough days, they sent Son the crown of Asia’s richest man. In these days, optimistic about the power of blockchain technology for human society, Son is busy making layout of blockchain projects. He has overweight Ripple (BTW, I had recommended Ripple years earlier than Son when it was only three cents worth, and now it has increased thousands of times since then.) He acted later than me but he is much more influential, after all, influence is power!

Last year I have invested 20 blockchain companies, including Qtum, Bytom and Ink chain. Having a great team, Qtum is developing very well and popular overseas. And it makes close cooperation with many large companies, I’m optimistic about the future of Qtum, and I will not short it and actually I’m now buying more in. I’m looking forward to their being the pride of China’s public chain. China has taken the leading role in the mobile Internet, and now we are embracing more blockchain professionals to help realize the China Dream as a world technological power.

The team of Bytom is the most promising in my eye. Chang Jia and Duan Xinxing together is a perfect combination of idealism and realism. They are doing the right job in the right direction with the right team, which is the reason I believe in them. Through all these years, I believe I have acquired the capacity to tell which is good. So I invested Qtum, Bytom and Ink chain, as well as Meitu and 51 credit card, and it turns out that they all bring me good return.

Taste the foam before drinking beer

For all the investors, I have mentioned that blockchain and digital currency are beer with foam in my new year address. Before drinking the beer, you have to have a taste of the foam which takes up 90% of the cup. It is the case with cryptocurrency. So if you are a blockchain dreamer with entrepreneurship, please do it; if not, get away, don’t be the black sheep. As an angel investor, I made all these investments with great caution and observation like walking on ice. For those who cannot afford it, who don’t even know it and who dream overnight rich, I sincerely suggest you do not try it. But the fact is we now have too many irresponsible projects and daydreamers of sudden wealth.

If there are great risks and maybe failure in this industry, why do I have my eye on blockchain? In spite of its uncertainty and risks, blockchain represents the future. As investors, our mandate is to usher in a big boom of a potential industry and bet for a better future, and by the way enjoy the investment return. The 1^st generation of Internet Revolution reformed the social function of mankind, and the 2^nd generation of blockchain technology will completely subvert the way people trade. Decentralized blockchain technology will change the current mode of fiat transaction, whose contribution to the future of mankind will be much greater than that of the Internet. It can be said that the future of blockchain industry is very bright, but the road will be extremely tough with unprecedented challenges.

At last, three rules for you:

Rule No.1, the market has a risk, investment wants discretion!

Rule No.2, the market has a risk, investment wants discretion!

Rule No.3, the market has a risk, investment wants discretion!