Chandler Guo, one of China’s top Bitcoin tycoons, shared with BlockPulse 360 his thoughts on the cryptocurrency industry in China.
Chandler was one of China’s first Bitcoin miners and has become one of the country’s most well-known cryptocurrency ambassadors. His success has brought him overseas to the United States to continue building his crypto empire.
BlockPulse 360: Did your move to the United States have anything to do with the fact that the US is more ICO and blockchain friendly than China?
Chandler Guo: Obviously, I am a big fan of Bitcoin and ICO. Just like everybody else in the crypto community, I understand the potential of digital currency and the magnitude of what it means for the economy. Today, ICO has made many people very rich, but in the future, cryptocurrency is likely to become the only currency in circulation. However, most governments, even the American government, are not the biggest fans of ICO and blockchain because of how difficult it is to control. Already, ICO is mostly decentralized and I think it will remain that way for the better.
I chose to move to America and in particular, to the Silicon Valley region, because I noticed that there existed an established community in technology and innovation that I felt would be a good place to grow my business. Many resources are already pouring in, so it would not be too difficult to pick up from where I left off in China. But I am thinking beyond business, as well. This will become my home and where I will raise my family. I want this to be a place where I can host parties where anybody, regardless of their crypto affiliation, can feel welcome. For me, it is about building a community for everyone in the cryptoworld.
BlockPulse 360: What is the current situation on ICO in China? Is it actually banned?
Chandler Guo: Things work a little bit differently in China than they do in America. I know that when something is banned here, it means that it is forbidden. But the Chinese government is very clever. Anything that is new, like cryptocurrency back when it started, is generally banned without any concrete details about the ban. So when the Chinese government says that ICO is banned, it does not mean that Chinese citizens cannot participate in ICO-related affairs, especially if they are happening overseas. In fact, some of the top ICO exchange and lease companies in the world are Chinese or have Chinese CEOs. The same idea applies to digital currency mining farms.
It was a smart thing to do on the part of the Chinese government because by putting a ban on ICO, it opened a door for citizens who were interested in crypto endeavors to leave the country. And it would not be a problem at all because the country’s population is over 1.3 billion. The number of people, like me, who would actually leave the country to pursue ICO is very small in comparison to the overall population. The Chinese government would not suffer. In fact, the government’s strategy depends on some of its citizens leaving the country to pursue international ventures.
BlockPulse 360: What makes the Chinese market so important on an international level?
Chandler Guo: I think that it is important to first understand the difference between how the government is perceived in China versus most other countries. In China, the government is recognized similarly to the way a person sees their grandfather. In the States, it seems like citizens view the government more like the CEO of the country, or the CEO of a company where each citizen is a shareholder.
Like I mentioned earlier, China’s tactic was to ban ICO for the first initial years to push its citizens out of the country. I had no intention of leaving China before I learned about cryptocurrency and blockchain. I still think that China is a paradise where everyone can make a lot of money quite easily. But for somebody like me, who had the means to leave, I knew that I could do better in the industry if I left. I think China knew that people like me would leave, and in the end, it will be advantageous to the country because even when a Chinese person loses their Chinese nationality or becomes a dual citizen, they will always preserve their Chinese identity. I will always look Chinese, follow Chinese traditions, and crave Chinese food. But by having people go abroad, the Chinese government is grooming its citizens to become international citizens that represent China. This is very important because back in the day, Chinese people never left their hometown, let alone the country. Today, many more Chinese people are travelling and even making money in foreign countries. Some of that money typically gets sent back to relatives, so the Chinese government continues to benefit. It really is a smart move by the Chinese government.
The Revolution of Public Preferences on Investments
The emergence of cryptocurrency, as Chandler told us, came about naturally as a result of the shift from an initial public offering (IPO) to an initial coin offering (ICO). The general public became interested in ICO because they realized that IPO was costing a fortune. Between the actual investment, fees paid to the banks, and maybe even to a middleman, the cost of investing in IPO was not justifiable for many. ICO, however, has a much simpler process and anybody can make money from it without much hassle. Entrepreneurs, especially, were good candidates for ICO investment because they could immediately utilize their return for new projects, either related or unrelated to blockchain. Therefore, the revolution of ICO should not simply be dismissed as a consequence of the free market, but a deliberate movement toward valuable and practical applications of the internet.
The Future Direction of Crypto, Cryptocurrencies, and the Mining Industry
When talking about the crypto mining industry in China, Chandler thinks that regulation will come slowly based on the government’s sweeping ban of ICO for the sake of boosting international business. As a result, Chinese entrepreneurs in the cryptoworld will resort to earning money abroad. As for Bitcoin and the other new cryptocurrencies, it is Chandler’s opinion that Bitcoin will remain the primary contender for the world’s sole digital currency. There may be many new cryptocurrencies cropping up, but so many of them become delisted shortly after they are launched that they are unlikely to truly take flight the way Bitcoin did. Chandler predicts that by the end of his lifetime, Bitcoin will be worth at least one million dollars so that all global trade can be done using digital currency. The problem with using Bitcoin when the price is cheap is that it is too volatile, rendering it useless in international trading. If Bitcoin does take off in the way that Chandler foresees, then it would be wise to buy now before the price rises. Chandler also appreciates blockchain technology, as it complements digital currency in a way that our current system lacks. By implementing blockchain technology to digital transactions, we can ensure the integrity of a universal and open source ledger to prevent fraudulent activity.
Chandler’s Advice for People Who Are New to Crypto
BlockPulse 360: According to a recent survey, more than 8% of the US population have digital assets. Among the people who do not own digital currencies, more than 30% think that it is unnecessary or are not interested. What kind of suggestion would you give to these people?
Chandler Guo: I think it is very difficult to give any sort of advice to these people because if they are not interested in making any changes, nothing I say will make them think otherwise. I have noticed that people who have completed higher education are less inclined to purchase digital currency, maybe in part due to distrust in the cryptoworld. Of course, better education and promotion of crypto is needed so that people can come into this with a solid foundation of knowledge. Otherwise, I truly believe that people who do not own any digital assets at all will not end up in a good place in the future. Same goes for the big companies out there. The crypto movement happening right now is akin to the evolution of handheld technology we just witnessed in these past ten years.
image via Pixabay