Jianping Kong of Canaan Creative: In the era of silicon-based civilization, all computing power comes from mining machines, which are the cornerstone of silicon-based civilization

From legal tender to credit, blockchain has brought a leap forward from a civilization perspective. Mr. Kong Jianping, Co-Chairman of Avalon Mining, shared "Blockchain: Opening a Trusted Silicon-Based Civilization" at the "New Era Mining Summit 2019 Annual Ceremony".

Kong Jianping has several labels: focusing on the fields of chips and artificial intelligence, which is also a very important strategy for our country; the future prospects of blockchain + e-cigarettes (Canaan Creative invests in e-cigarettes); Canaan Creative has always been at the forefront of Bitcoin mining chip research and development, including their size reduction each time, but its overall capacity, speed, and efficiency are ahead of all industries; he is the co-chairman of Avalon Mining Machine.

Silicon-based concept: Carbohydrate food drives the growth of humans and animals, and all things are endless; carbon-based fuel drives mechanical movement and drives the world forward. Silicon-based computing gives souls to all things and drives the evolution of all. Silicon-based civilization may combine energy and computing, and even drive humans to a higher level of evolution, or even replace humans. I have a good friend who sent the DNA of Liu Cixin and other scientists in the Three-Body Problem to a low orbit. It is possible that future creatures will be able to read it and establish a connection with modern civilization. These are all very interesting things.

The following is the full text of the speech.

Let me tell you a joke today. There are three people in an elevator. One took a taxi and the other banged his head against the wall. Then I asked them how they got there. They all said how they got there. But in fact, the elevator took them there. To sum it up, what is the basis for each of our wealth accumulation? It is the big trend.

For example, the back of today's conference hall was full, but the front was not. Why? Because these people have figured it out. Listening to this will not solve the problem of wealth, so they still sleep in the morning. You can look at this picture of per capita GDP. It is the data of 2016. There is an important time node here, which is around 1800. Before 1800, if you were an emperor, it would be difficult for your per capita GDP to increase after a certain level, because it was an agricultural society at that time. Born in that era, working 24 hours a day would not create much wealth. China's economy began to develop after 1950. We have experienced the industrial age and the current information age. At the same time, we have entered a new era, and everyone present has participated in it, which is our digital age. Therefore, every change of the old and new order will bring huge opportunities. The biggest opportunity in front of us is an opportunity in the digital age, that is, digital currency.

As for digital currency, everyone knows that it all started with the Bitcoin white paper in 2008. It was born in the context of an economic crisis. Its characteristics are uniqueness, indivisibility, supply limit, and infinite divisibility. Digital things are very easy to divide, which is very consistent with the characteristics of the digital age. This should be a very popular picture in the circle of friends a few days ago. The increase of Bitcoin in ten years is very amazing. Everyone has seen it, so I will not post it in full. In summary, "Money earned by luck will be lost by ability."

There are too many people around us who participated in Bitcoin very early and left very early. There are also people who worked very hard and mined a lot of Bitcoin, but they have no more, because they want to earn more Bitcoin, invest in more projects, but in the end they still can't outperform Bitcoin. Yesterday I saw someone say in the group that many things can't outperform Bitcoin. Some good projects can occasionally outperform Bitcoin in a short period of time. The biggest obstacle for Bitcoin to break through 100,000 US dollars is time. Everyone can't stand it. Many people think that if Bitcoin falls to 7,000 US dollars, what does it matter? So it's harder to keep the currency than to be a widow.

How does Bitcoin rise? Halving will affect the supply of Bitcoin. When the supply is less, the demand is more. If the demand remains unchanged, it is easy to rise. At the same time, the cost will also increase. So this is one of the reasons why Bitcoin will rise. But if it will rise just because of halving, then this logic is definitely not enough. In addition to halving, we saw that the Federal Reserve cut interest rates two days ago. Many people say that Bitcoin is not legal tender. We have seen many cases of legal tender collapse. Germany is a particularly good country, but you see that Germany's legal tender in 1920 was used to ignite fires. At the same time, you can see that Argentina's exchange rate has depreciated a lot from 2017 to July and August this year. The number of countries in the world with legal tender stability can be counted on one hand, and most of the legal tender is unstable.

We are now in the era of digital assets, which are divided into three parts. One is data assets, which are all kinds of data on the Internet, and the other is the digitization of physical assets, but the time may not have come yet because of policy factors. There is also digital currency, which everyone is already involved in. So many projects fail not because the founders of these projects are not working hard, but because the timing is wrong. For example, the previous stage was mainly digital currency, and only those that can become digital currency will have a large space. For many projects combined with entities, the project parties also work very hard, but the result we see is that they may become cannon fodder. The project parties themselves and the people who invest in them have become cannon fodder. How far are the Chinese from the information superhighway? 1,500 meters forward.

It is undeniable that the entire digital economy will become the main driving force for future economic growth. Two formulas have been verified before. One is called Metcalfe's Law, and the other is Gilder's Law. More connections generate more data and value, and faster rates accelerate the circulation of various factors. These two laws show why the Internet era generates more value, wealth, and liberates more labor. The digital economy was born in the digital age after the Internet, and the value it generates must be more than that of the Internet era.

In our digital economy, what should the value of Bitcoin be? It must be greater than the value of the era of gold and the era of the US dollar. At least there must be a digital currency whose value exceeds that of gold and the US dollar. This picture should not be released. It talks about that since this era is good and digital currency is good, who should it belong to? There is a small game. There are 100 people in the room. Each person has 100 yuan. Every minute, 1 yuan is randomly given to another person. What is the distribution of wealth in the room in the end? A small number of people control most of the wealth. As long as it is a free market and a free trade market, all wealth will eventually become a distribution form, such as a 28 distribution or some other distribution. A small number of people will control most of the wealth. The people in front gradually return to zero, and the people behind are getting more and more. It is normal for the people present to have more Bitcoin than those around them and those outside. Don't feel strange.

The price of Bitcoin will continue to grow exponentially before it reaches a steady state, just like China's 40 years of continuous economic growth. China has land dividends, demographic dividends, and technological dividends. Every few years, people rush to go abroad, thinking that the country is not doing well and has not yet entered a steady state. Its economy can also continue to grow. Digital currency has not reached a steady state, so its value growth will still show an exponential growth trend in the future.

Many of you have experienced two rounds of regulation, not counting the minor ones. One was the earliest five-department document, and then the seven-department document in 2017 that everyone has experienced. At that time, the entire industry didn't have to work, and people thought what would happen. We have seen that the recent regulatory dynamics have changed. I circled it here. In 2017, when the leaders of the central bank talked about digital currency, they talked about the word "regulation". But in the past few months, since July 18, 2019, all leaders have mentioned research as the core point in their speeches.

The Chinese word choice is very particular. "Regulation" and "research" are two words with different meanings. Our leaders have changed their cautious and regulatory attitude towards digital currency to a research attitude. In the future, they will be more supportive. This is in line with the trend of the development of the entire era and technology. It is not something that a single person can stop or influence. The development trend of global blockchain is also very clear to everyone. Most countries still recognize blockchain. Only a small number of countries do not support digital currency, and most still support it. The United States has a particularly strong regulatory capacity. Everyone knows that there is Libra's digital currency. The core can be summarized in one sentence: "Make value transfer as convenient as sending messages and transferring pictures." It brings nothing else but a currency war, because the legal currency of most countries will definitely be bloodbathed if it is not strongly prohibited, because the legal currency of most countries cannot be relatively stable and value-preserving. It is a cross-sovereign currency, which is different from Bitcoin. Bitcoin here is generated by PoW calculations.

As we all know, the first computer in 1946 was very large, and its computing power was very low, not as good as the current convenient computers. If the computer we used when we landed on the moon was used to mine Bitcoin, it would take 1 billion times the time of the universe to mine it. So everyone is talking about whether the computing power will increase. It will definitely increase. The mining machine chips will continue to iterate. Everyone does not need to discuss whether the computing power will increase. A11 will be released in a few days. Now is the era of computing power. In addition to Bitcoin, what else needs computing power? Other digital currencies also need computing power. For example, Ethereum can use various mining machines to do PoW calculations. In addition to digital currencies, there is also the field of AI. AI was born in 1956, but it became popular again in 2016. We released AI chips in 2018. These fields were not mature before because of insufficient technology, insufficient computing power, or wrong scenarios. Now AI computing has become very important. The entire digital currency computing and AI computing constitute the "Silicon-based civilization era". What are its characteristics? It will give birth to the value of the Internet of Things, and now it is the Internet of Things, because there is blockchain in the value.

In the past, it was the artificial intelligence Internet of Things, and in the future, it is ABIoT. Now, if robots are a little smarter, you won’t know that you have been suffocated to death while you are sleeping at night. After the blockchain is implemented, the blockchain protocol is open and transparent, and hackers cannot hack it. At least you will not be bullied by robots. ABIoT will develop into an unimaginably large value intelligent network, because 5G will bring better connection efficiency and connection methods, and the overall structure of distributed computing. Now everyone is talking about mining machines. We call mining machines mining machines. In the future, every node and every device will have mining machines. In the future, there will be cloud computing, super nodes, edge computing, etc. The hybrid computing of blockchain will surpass the current real estate and digital real estate and become an important asset category for people in the future. Among the world's large enterprises, there will be a group of national-level enterprises with a market value of more than 10 trillion US dollars, becoming the computing power operators of the main industries on the earth. You may be the wealth leader or industry leader in the next 30 years, but you may not know it today and think you are just here to attend a meeting.

Silicon-based civilization is a distributed digital society. In the era of silicon-based civilization, all computing power comes from mining machines. Mining machines are the cornerstone of silicon-based civilization, and miners are the founders of silicon-based civilization. Hearing this, shouldn't the people present give themselves a little applause? Today's mining machines are mining machines, and in the future every device will be a mining machine. Today's mining machines are written in files. If you want to clean them up in the future, every electronic device in your home can be cleaned up. Finally, let us thank this era together and pay tribute to every miner. Thank you everyone.