BCH halving night live broadcast: Jiang Zhuoer talks about market opportunities

At the "BCH Halving Night Live" event on the evening of April 8, Jiang Zhuoer, founder of BTC.TOP, participated in the live Q&A as a guest.

The following is the transcript of Jiang Zhuoer's Q&A:

01
Halving is a substantial and lasting benefit

Moderator: BCH halved today, and BTC will also halve in about 35 days. We also see that BCH's price fluctuates greatly today. Some people believe that halving will reduce supply and prices will rise; others believe that "all good news will lead to bad news", and the good news of halving has been reflected in the price in advance, that is, it has been priced in, and the price will fall after halving. What do you think, Mr. Jiang?

Jiang Zhuoer: This question is asked every time there is a halving. In the last halving in 2016, I answered it like this: halving is not a good news, but a substantial and lasting good news.

What is a continuous positive? For example, if an oil company discovers a new oil field, will the stock price of this oil company rise or fall after the new oil field is put into production? Of course, the stock price will rise as the oil field is mined and the company's profits increase, not fall, because the mining of new oil fields is a continuous positive that can bring continuous income.

The benefits of Bitcoin halving are the same. Once the halving begins, it is equivalent to a tycoon who buys 900 Bitcoins every day and destroys them forever. Especially in the current financial crisis, when there is a lack of funds and confidence in buying, the buying funds of this "tycoon" are very valuable and will directly change the comparison of supply and demand funds in the market.

Therefore, I think the halving will lead to an increase in the price of the coin.

As for the view that the benefits of halving have been priced in, just check it with historical data.

When the halving occurred in 2016, the price of the currency increased by 50 times. Obviously, the halving benefit was not priced in. Why was it not priced in? Because Bitcoin is still developing rapidly, and the number of users is constantly increasing. Most of the users in the next two years are not here yet. Since even people are not in the market, there is no question of price in.

02
BCH will share this round of halving bull market

Host: Last year, LTC skyrocketed before the halving, and plummeted after the halving, falling close to its pre-halving position. Will BCH repeat this history?

Jiang Zhuoer: After the LTC halving, it almost fell back to the position before the halving because the timing of the LTC halving was still a bear market cycle. We can see very similar trends in the two LTC halvings in 2015 and 2019. 2019 is almost a replica of 2015.

Since BTC accounts for more than 70% of the total market value, the bull market will only start after BTC halving. LTC halving cannot start the bull market, so after rising, it fell back. BCH and BTC halving time is close, so they will share this round of halving bull market, and BCH will not fall back.

03
Financial crisis will significantly increase the maximum price of Bitcoin

Host: Due to the new coronavirus, global stock market and other asset prices have fallen sharply. Is this financial crisis a good thing or a bad thing for Bitcoin?

Jiang Zhuoer: This is a huge positive for Bitcoin. Even though Bitcoin fell sharply on March 12, this financial crisis will significantly increase the highest price of Bitcoin in this bull market.

Assuming that the highest price of Bitcoin in this bull market was $100,000 before the financial crisis, the highest price of Bitcoin would reach $200,000 or even $300,000 after the financial crisis. This is because the financial crisis will cause the government to print money to save the market, and Bitcoin was born in the 2008 subprime mortgage crisis to fight against the government's money printing. With the Federal Reserve printing trillions of dollars, the value of Bitcoin will be proven by the market.

04
BCH’s advantage: the most suitable block size

Host: BCH is developing. What advantages does it have over other currencies such as BTC?

Jiang Zhuoer: The main difference between BCH and other currencies is what level of decentralization should be achieved.

BTC's development team Core believes that a very high level of decentralization must be achieved, and that microcomputers such as the Raspberry Pi must be able to run Bitcoin nodes, so they insist on not expanding the block size to 1M.

However, too much is as bad as too little. For example, drinking water is necessary, but if you drink too much water, you will also suffer from water poisoning. The same is true for block size. As long as the block size does not exceed the performance limit of ordinary computers, the current limit is about 100M. As long as the block size does not cause ordinary computers to fail to run, there is no centralization problem.

BTC insists on overly small blocks and excessive decentralization, which will lead to a decrease in the number of users it can accommodate. Without enough users, it will not be able to compete with BCH, and will eventually lead to centralization due to its small size.

The mistake made by BSV is similar. BSV requires overly large, even infinitely large blocks, which will lead to overly high requirements on node performance, too few nodes, or even only a few large nodes left. In this way, the decentralization of Bitcoin will be gone.

Only the appropriate one is the best. The block size of BCH is neither too big nor too small, which is the best block.

05
Buying the latest mining machine is a safe investment method

Host: If you think there is a certain risk in buying digital currency during a financial crisis, are there other safe investment methods?

Jiang Zhuoer: I am a miner, so my advice is: buying the latest mining machines, such as Ant S19 mining is a good choice.

Why? If the price of coins continues to fall due to the financial crisis, if you buy digital currency, you will lose money, but if you buy S19, you will not necessarily lose money. Because S19, as the best mining machine, will never shut down. If the price of coins falls, other mining machines will shut down first, and the computing power will decrease. Therefore, S19 can continue to mine and continue to recover the cost of the mining machine.

At present, due to the low price of the currency, the selling price of S19 is also low, even lower than S17 before the big drop on March 12. There is less water in the price, and the price of S19 is lower than that of S17, which is a price inversion. If you buy S19 for mining now, it will not take long for your mining machine cost to be reduced to below Bitmain's production cost, and you will be absolutely safe at this time.

Therefore, if you think it is risky to buy Bitcoin directly now, you can buy S19, mine Bitcoin at low cost, and store Bitcoin. This is a very safe strategy, which will hardly lose money in US dollars, but can store Bitcoin at low cost.

Mining has now become a very professional field. If you want to mine but don’t know how to do it, welcome to B.TOP, become our mining partner, and participate in our joint mining. Our website is B.TOP.

Risk warning: The content of this article is only the personal opinion of the guest and does not constitute any investment opinion or advice.