Exclusive interview with Meng Xiaoni, CEO of BitDeer, at the 2020 Digital Mining Summit of Mining.com: Millennials may become the main consumers of cloud mining!

Recently, Meng Xiaoni, CEO of BitDeer, attended the 2020 Mining Network Digital Mining Summit and accepted a joint interview with reporters from Mars Finance, BoChain Finance, Star Media, Liandede and other media during the meeting. The following is the transcript of the interview:

Q1: Ever since the advent of BTC mining, investors have been constantly asking whether it is better to invest in mining machines or to buy computing power. How should they choose at different stages? How should they control risks? What should they pay attention to in practice?

Well, if you want to invest in mining, cloud mining is a very good way to participate, but whether to ultimately choose cloud mining or to buy a mining machine directly depends more on your own situation.

First of all, you need to understand the entire mining process, which includes a series of links such as mining machine selection, logistics and transportation, mine site selection, electricity price negotiation, operation and maintenance, etc. There are many unknown risks in such a long chain. If you have rich industry experience, and have a relatively high-quality mine and power resources, and can accept the profit model of high initial investment cost and slow output, then buying a mining machine may bring more benefits in the long run.

But in many cases, people tend to overestimate their ability to control and judge future returns. In fact, if you regard mining as a financial investment, risk control is the most critical. So for users who have only a limited understanding of the industry and want to participate in the mining industry, I suggest that you first enter through a lighter product. Cloud mining requires a small initial investment and a low threshold. Users only need to choose services, and the platform will package all aspects of the industry, saving users from tedious procedures. Investment is more convenient, more stable, and the returns are equally considerable. Of course, you also need to be careful to identify when participating in cloud mining. It is particularly important to choose a service platform that has real mining machines, traceable computing power, compliance and stability, and is trustworthy.

Before investing in mining, you can learn more about it, consider which method is more suitable for your own strength, and then make further decisions.

Q2: Now more and more institutions are also deploying cloud mining and cloud computing power. Does this mean that the opportunities and barriers to entry in the industry are getting lower and lower?

Meng Xiaoni: This is how I see it. The entry of more and more institutions does not mean that the track has become lower, but it means that more people are interested in this track and are willing to join it. This is a positive signal from the market. In fact, this trend has gradually emerged since 2019. Although the global market economy has experienced black swan events in 2020, the blockchain industry still shows a good development trend. The attention of the cryptocurrency market continues to rise, attracting more traditional institutions and users to participate.

The low threshold is for cloud mining users, and the platform provides users with a more convenient channel for participation. But in fact, the threshold for cloud mining has always been very high, because the service corresponds to huge physical assets and professional performance management capabilities, large platform products and user scale operation strength. It is not easy to do it well. Take the physical assets and performance management behind the cloud mining products as an example. If you want to do it well, you can understand it as a big miner to a certain extent. It requires more advanced machines, more professional mines, absolutely competitive power advantages, and first-class professional maintenance and operation, as well as compliance capabilities. These are all unit performance management, and they all need to be improved.

Q3: Mr. Meng, please analyze the current situation of cloud mining. Is the current market a stock market or an incremental market?

Meng Xiaoni: The product form of cloud mining is to simplify the complex backstage links on the user side. In fact, these backstage links always exist. The purpose of simplification is to allow more users to participate. Therefore, cloud mining is more of a development of the incremental market. This industry uses this product form to let more users understand it. Some time ago, I shared the future core incremental customer groups of the mining industry: from the perspective of global user attributes, group base and financial strength, the millennials are the most influential, which is what we often call the post-80s and post-90s. Through the analysis of this user portrait, as well as the analysis of investment preferences and investment interests, the millennials' interest in the cryptocurrency industry is increasing year by year. For this investment preference, they hope to have an efficient, safe and convenient channel. So I think cloud mining is in line with the investment preferences of this type of user group. BitDeer's goal is not to fight with existing peers in the stock market. We value a broader market, the global user market.

Q4: Mr. Meng, how will BitXiaolu make it possible for users to earn money in the future, and for Xiaolu to also achieve its own corporate revenue?

Meng Xiaoni: Actually, we have mentioned before that we always adhere to three principles. The first is to always provide user-oriented products. We do what users need, so our products have always been highly demanded in the market and accepted by users.

The second insistence is: we will insist on improving our own strength. The improvement of strength is divided into two aspects, one is hard power and the other is soft power. Hard power is the foundation, such as mining machines and mining farms. We now have more than 30 professional mining farms in the world, hundreds of millions of mining machines, compliant and competitive electricity, etc.; while soft power is the glue. We always take leading technology as the basis, adhere to the user-first business philosophy, continue to integrate high-quality industry resources, and obtain the strongest bargaining power, constantly pursue efficiency and innovation, and always insist on talent reserves and development, so that we can always stay ahead in the industry and establish sufficient core barriers. I think this is also an improvement in the core competitiveness of the enterprise. This core competitiveness represents the company's ability to continue to operate and operate in a long-term and healthy manner;

The third insistence is our 3W cooperation spirit, which is actually called the three-win cooperation spirit. Users win, partners win, and we win. We will let the first win drive the later win. In fact, this idea may not be particularly obvious in the blockchain industry or in the mining industry, but it is a proven mature business idea in the Internet industry. When an industry is recognized by the market and the platform has the ability to scale, it can be realized. We let users win first. The premise of users winning first is that we provide real and stable services, so that users know that we will not run away. Secondly, we provide very good prices, that is, products with relatively price advantages. The second is partners win, because our users keep buying our products, and we reversely bring resources to partners. For example, we will purchase mining machines on a large scale and cooperate with high-quality mines. For example, we will introduce computing power to mining pools. Everyone will win in this way. Finally, through the scale effect, our products can be sold continuously, and we will win.