EXX’s Ronald Lam: The Altcoin China Needs, If World Is Ready For Chinese Appetite For Blockchain
In this interview with the General Manager of EXX.com which runs the XBTC global mining project in China, Ronald Lam talks about altcoins in China and what’s next for the blockchain technology in the country.
Ronald Lam, GM of Exx
Growing interest in ETH and ETC in China
Several factors could have caused ETC and ETH to boom in China. One reason is that ETC and ETH are like applications to the blockchain technology but only BTC maintains the function of a transaction mediator.
Many people in China, including the government, are similar to other people around the world who are seeking to make the blockchain technology applicable to their daily lives, citizens welfare, properties registration etc which means they are now thinking more of what this technology can do in the long term other than focusing on short-term benefits.
However, we have to admit that people in China first knew cryptocurrencies as a way to invest and make fortune. Most of them are focused on making transactions to earn money. Most Chinese are professional investors in cryptocurrencies.
Since the Chinese government has had serious regulation on cryptocurrency exchanges in the past few months, especially for Bitcoin, these investors need a way to exit and invest in something popular and reliable. Thus, I could say not only ETC or ETH but also the transaction volume and price in Litecoin or other altcoins are booming in the Chinese market.
No matter what causes the growing interest, I always said that we have to thank all investors in cryptocurrencies. Without their involvement, no one will know what a cryptocurrency is, how the technology behind it works and what it can do to benefit our future.
View on altcoins in China in coming years
In my point of view, many altcoins have good ideas on how the blockchain technology could be applied to daily lives. Some of the altcoins are related to the real estate or even company shares. However, many of them are still on paper and they have many barriers such as legislation and execution to overcome. Thus, even when they yet have no value, many investors believe in their ideas and invested.
In China, these altcoins’ transaction value may be raised in a period of time. After the “Honey-Moon” period, they may drop to a point that is worth nothing since there are not enough support to some ground-breaking ideas. And then, many people will claim that they are a “scam”.
What China or even the world needs now is any altcoin that is backed by actual and responsible developing team to execute their idea. One good example is Ripple. Ripple is a distributed financial technology that allows banks to send real-time telegraphic transfer across the network.
It is backed with a responsible and powerful developing team and they have good application for the network which makes it worth being invested in and supported.
Due to its effort to deal with the banks and payment company, and overcame many difficulties, although its value is now more or less unnecessary, it still owns its position of the remittance business in this industry.
Many altcoins will be coming up or boom in China in the coming years. Since China is a place for dreamers and innovators. And having the biggest bitcoin population in the world to support valuable ideas.
However, it is really hard to tell the future of these altcoins due to several reasons. For example, laws, execution methodology and even the crowded altcoin market in China.
With altcoins getting popular, what’s the relevance of Bitcoin in China in five years?
Bitcoin is always important in China or to the rest of the world. It is the original technology that is to innovate the internet. Bitcoin is worth its value because of demand-supply in China.
China has the highest hash power in the world, and people require Bitcoin not only as a medium of transaction but as a financial investment. Altcoins are always trying to improve the Bitcoin network. It is common sense that if something only improved a little compared to its original, it gets little attention and support from the public.
Thus, some altcoins may have diverted attention from Bitcoin, they have a long way to go to take its position. For a simple understanding, we have different brands of mobile phones (altcoins). However, the basic idea is the mobile communication system (Bitcoin) that facilitates communication. Unless there are ground-breaking ideas that makes the mobile communication system (Bitcoin) no longer necessary, its importance is indestructible.
Is the world ready for China’s big appetite for Blockchain?
In Bitcoin community, we talk about decentralization. It is not only for the technology but also sharing of everything. Chinese are always stamped as “playing in their circle”. This is not the case. Many Chinese want to go outside to help the community. However, communication and cultural barriers have blocked both sides. Before we ask if the world is ready for the Chinese and their appetite for the Blockchain technology, we should ask if the world is ready to break the barriers to welcome the Chinese into the bigger community. Then, we’ll see how far the Chinese have developed in Blockchain technology. The research in Blockchain technology is led by the government, which should give broader ideas or applications of what Blockchain technology could do. Blockchain technology’s mainframe is decentralization, there should be no barriers, no separation between people.