Kong Meng, founder of VeryHash: Bitcoin is likely to replace gold and become a financial asset with greater consensus

Cloud computing power has been a hot topic in the industry in the past two years.

VeryHash, the world's first computing power exchange, was registered in Hong Kong in November 2018. It is a technology company that aims to build a global financial services platform. Since its inception, it has been committed to lowering the investment threshold for mining machines and improving the liquidity of computing power.

At the Digital Mining Summit held on December 20, 2019, Wabi.com, as one of the media representatives, interviewed Kong Meng, the founder of VeryHash, together with many media reporters.

The following conversation is based on the recording of the mining website:

Milin Finance: How does the VeryHash platform enable online transactions of computing power for users?

Kong Meng: Simply put, we move the offline mining machine trading market online, set standards from multiple dimensions, make the transaction process more transparent, and convey trust.

For example, from the perspective of operation and maintenance, we will set a threshold standard for operating efficiency. When the computing power reaches the set threshold, we will provide an operation and maintenance log to let users understand the reasons for the fluctuation of computing power. From the perspective of the mining pool, we display the real computing power through the link of the mining pool. From the perspective of the mining machine, we will then record the SN code of each mining machine. Users can query the activation time and operation and maintenance time of the mining machine to confirm the authenticity of the mining machine.

Planet Daily: We all know that you have experience in traditional finance. Based on your understanding of traditional finance, what stage is Bitcoin at now compared to traditional financial assets?

Kong Meng: My view on Bitcoin is different from that of the insiders. All markets are interconnected. Many investors in the traditional financial market may not buy Bitcoin, but they will use Bitcoin as an indicator of risk rate. They recognize that gold is a safe-haven asset and Bitcoin is a high-risk asset. From the perspective of age distribution, more and more young people recognize Bitcoin rather than gold. In the future, Bitcoin is likely to become a financial asset with global consensus like gold, but I think we may not see it in this era, because gold has become a super-sovereign currency after a long period of game, and it is very difficult for Bitcoin to become a super-sovereign currency similar to gold at present.

Caijing.com: With the Bitcoin halving approaching, what investment advice do you have for miners at this stage? What impact will the halving have on the market?

Kong Meng: I think it is better to hold the mining machine. The mining machine has asset attributes, and the mining machine with liquidity is more valuable. There is no essential logical relationship between the impact of Bitcoin halving on the secondary market. It just has historical rules. The previous two halvings both pulled back to historical highs.

There are two types of "halving" in the market: one is the "halving" stipulated by the system, which I think is predictable, and the other is the reduction in production caused by the increase in computing power, which is unexpected.

The market will naturally digest known risks, so there is no need to worry too much about foreseeable risks.

Production cuts may become the main propaganda for the market to go long, just like the crazy pull-up of Litecoin before the halving. This is in the interests of many parties. Large funds may use the expectation of "halving will inevitably increase" to save themselves, but it also depends on the performance of other financial markets. If the overall volatility of the financial market continues to be sluggish, Bitcoin will not rise sharply.

Art Creation Times: What is the difference between cloud computing mining and traditional mining by purchasing mining machines?

Kong Meng: The threshold for purchasing traditional mining machines is too high, and most users will give up because of the high threshold. Cloud computing power lowers the threshold on the basis of mining. What is different from VeryHash and other cloud computing powers is that we directly transfer the permanent ownership of mining machines to users, which can be freely transferred and withdrawn. Other cloud computing powers only give users the right to use for a limited period of time.

Kiki from CoinWare: We understand that your company initially engaged in cloud computing power and has now upgraded to a computing power exchange. This new way of playing can be said to be blank in the industry. Mr. Kong, what is the original intention of VeryHash's product transformation?

Kong Meng: Mining machine assets have poor liquidity, but mining machines have strong asset attributes. If you regard mining machines as companies, they are companies that generate dividends every day. The increase may not be high, but it is steadily upward. However, no one in the market has studied and announced the increase and decrease of mining machines. So we want to build an online mining machine asset circulation platform to allow valuable assets to circulate freely, which is our original intention.

Kiki from MiningCoin.com: Do you think now is the most cost-effective time to mine?

Kong Meng: It is definitely the case now. There are two standards. The first is the production price of the mining machine, and the second is the profit of the mining machine and computing power.

90% of the cost of a mining machine is chips, and the price of chips is determined by Samsung and TSMC. Knowing the price of chips can roughly calculate the cost price of a mining machine. Now some mining machines are priced lower in the secondary market than in the primary market, which means that they have fallen below the production price of the mining machine.

As for the income from mining machines and computing power, the overall income has remained the same from November 3rd to now. There is no impact on buying new models of machines now. The old models of machines have also depreciated significantly. Even if the currency price continues to remain the same, it is still safe to mine with new models of machines.

Kiki from MiningCoin.com: What stage is VeryHash in now and what are the plans for 2020?

Kong Meng: VeryHash started planning and research in June last year and went online in April this year. We mainly divided it into three stages. In the first stage, we did short-term cloud computing power rental, and attracted traffic and became our users through low-cost short-term cloud computing power. In the second stage, we promoted mining machine hosting, sold mining machine ownership, and improved the standardization of computing power. We are currently in the third stage, promoting the transfer of mining machine ownership. Later, the focus will be divided into B-end and C-end. You can think of us as Taobao for computing power, connecting mining machine manufacturers and mining farms, accessing computing power to our platform, and sharing the profits. When you want to sell, you can place an order for the corresponding model. At the same time, we will solve the global traffic problem for the C-end, improve the liquidity of computing power, make the product simpler and easier to understand, popularize it to users, and improve the liquidity of mining machine assets.

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