OKCoin Xu Mingxing: Bitcoin production halving is a festival for technology believers

The popularity of blockchain, the central bank's plan to launch a national digital currency, and the Australian government's plan to cancel double taxation on Bitcoin have brought Bitcoin back to our attention. In June this year, according to data from Bitcoin trading platform OKCoin, the price of Bitcoin rose from a low of 3,480 yuan to 5,185 yuan. The average daily trading volume of OKCoin trading platform in May this year was more than 1.8 million Bitcoins.

In addition, according to the rules, the second Bitcoin halving day will come on the evening of July 8 or July 9, and the number of Bitcoins that Bitcoin miners can mine will be reduced from 25 Bitcoins every 10 minutes to 12.5 Bitcoins. Halving is a technical and specific presentation of Bitcoin's gold-like properties as a "digital currency". Today, dozens of media reporters visited OKCoin, China's largest Bitcoin trading platform, to learn about the actual trading situation, and had an in-depth discussion with OKCoin founder and CEO Xu Mingxing on the upcoming Bitcoin production halving.

Mingxing Xu, founder and CEO of OKCoin, said: "Bitcoin was originally a global peer-to-peer payment currency pursued by some technological extremists. Today, Bitcoin is still proving its unique attributes worldwide and has gained the trust of more than 10 million users in more than 100 countries and regions. This is all thanks to Bitcoin's genius design - using "proof of work" to solve the "Byzantine Generals Problem", that is, using computer science to achieve the characteristics of virtual currency that cannot be forged while ensuring decentralization. This halving is a technological festival for technology believers, including myself."

When the designers of Bitcoin first studied digital currency, they referred to many properties of gold, such as constant total amount, soft and divisible, decentralized issuer, and the "increasing difficulty of mining" that will be confirmed this time, that is, the output is halved every four years. Affected by the supply and demand of Bitcoin, the number of Bitcoins obtained by "miners" who mine Bitcoin will decrease if the cost remains unchanged. If the value of Bitcoin remains constant, the income of miners will decrease. The production reduction in 2012 did not cause much value fluctuation. The industry believes that this is because the social acceptance of Bitcoin was still low at that time. Compared with this production reduction, Bitcoin has accumulated influence not only on a few Bitcoin believers, but also on more ordinary people and even the traditional financial world in the past four years, and an upward trend has appeared at the end of May this year.

Xu Mingxing added: "For everyone who chooses to invest in Bitcoin, I would advise them to first understand what Bitcoin is and what its intrinsic value and attributes are. Every time we welcome a new round of Bitcoin halving, it reminds us once again of the essence of Bitcoin. We should all be impressed by the great ideas of the designers of digital currencies that can build a market value of more than 10 billion."

Xu Mingxing analyzed that there are four main application scenarios of Bitcoin at present:

1. As a virtual currency independent of legal currency, it is used for peer-to-peer payments.

2. Make cross-border small payments based on its global attributes.

3. Develop the Bitcoin blockchain as the underlying blockchain for the global public multi-blockchain.

4. As a general investment product, Xu Mingxing himself admitted that he is more optimistic about the second and third application scenarios.