Meitu Founder Cai Wensheng: Regulatory Crackdown on Bitcoin Mining is Not Wise
“3 o’clock sleepless blockchain” group is a newborn Wechat group. As its name suggests, members in this group are so active that group members keep debating and discussing blockchain projects and cryptocurrencies until 3 o’clock at night. This Wechat group attracts many famous investors and senior executives of leading enterprises to join in. Cai Wensheng, founder of selfie photo touch-up app Meitu and a well-known angel investor, is also actively participated in this Chat group, he demonstrated his thoughts on blockchain and bitcoin mining industry.
Cai Wensheng believed blockchain technology has a potential to disrupt every industry. He using the security industry as an example, he said: “Exchange firms change their trading mode as time goes, if cryptocurrency become the mainstream in the currency market, exchanges firms will then star their cryptocurrency business.”
In Cai Wensheng’s point of view, blockchian is based on mathematical logic, the technical structure, the hash algorithms and the Byzantine cryptography are all mathematical components. After being fully developed, blockchain technology will change the original industry regulations, change the original business model and change the original thinking of the rights and interests.
When talking about the volatility of cryptocurrency, Cai Wensheng said that, before 1973, fiat money also fluctuate a lot all around the world, state sovereignty changed so frequently in many counties at that time and a lot of currencies issued by governments devalued overnight, such as the gold yuan issued by the government of the Republic of China. Cai Wensheng thought it is a common development process of a mainstream currency and he believed that digital currency will have a stable value in the future.
In addition, bitcoin mining is also a hot topic in the “3 o’clock sleepless blockchain” group. Cai Wensheng mentioned that 80% of bitcoins are ‘made in China’ and most of the mining pools are also placed in China. He emphasized that, “Mining bitcoin is using China’s excess electricity, we sold bitcoins to Korean, Japanese and American, which makes China to become one of the world biggest countries of bitcoin foreign exchange earning. If the Chinese bitcoin mining industry forced to move overseas due to the regulatory crackdown, for example Canada or Iceland, Chinese investors may need to spend a lot of foreign exchange to buy bitcoin back and that’s not worth of it. “