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The first year of the industry, the exchange "5 +2" competitive landscape formed

Many of the predecessors of the currency ring saw 2013 as the first year of the Chinese bitcoin industry.

The emergence of any industry comes from the market demand, Li Duo (senior), a veteran bitcoin investment user, believes some of the "abnormal" needs that exist in "abnormal" areas are pushing the bitcoin price growth in early 2013.

In 2013, Li Duo just graduated from a master's degree, he heard bitcoin from a Ph.D. friend of American cryptography, "this stuff can be easily cross-border transfer, without going through the bank, many Mexican smuggled to the United States began Use Bitcoin to send money to your home. "

Li Duo's first wave of "bricks-moving" friends, bought digital currency from the trading platform of the United States and increased the fare "to" the Mexicans who illegally smuggled into the United States. "The old Mexican who smuggled over, without a bank account, working cash earned, usually entrusted to some business middlemen go home, the fee is not low, may be cheated." Li Duo said bitcoin appears After that, these illegal immigrants began to turn bitcoin directly to their hometown, and their families then exchanged bitcoin for local money.

In Li Duo's initial cognition, "Bitcoin is driven by these abnormal transactions that can not get the job done."

However, in the view of Lao Liu, the founder of "Monetary Watch," the growth of the currency price in early 2013 was mainly due to the bitcoin's outstanding "safe haven asset" function in the debt crisis in Cyprus.

"In April 2013, under the guise of anti-money-laundering, the European Union and Germany responded to the debt crisis in Cyprus by raising taxes on depositors, who are perilous in Cyprus and bitcoin as decentralized and super-encrypted The currency has been favored by European hedge funds, soaring from more than 30 U.S. dollars to 265 U.S. dollars in just a few days. "The news of the year was thus reported.
Whether it is more Cyprus-driven or bitcoin illegally paid underground, Bitcoin overtook $ 100 for the first time on April 1, 2013. Compared with the earliest price of $ 0.03 in 2011, bitcoin, the "new gadget," has realized a "richest myth" of more than 3000 times the growth in more than two years.

The rapid price growth, so that more people began to pay attention to bitcoin, and put into the bitcoin industry.

Media influx

Before 2013, Lao Liu actually "did not look at bitcoin as an asset at all," and most of the dug coins were used to play a game called "Nakamoto's dice."

"Obviously, a lot of people know about bitcoin since 2013. It can be said that since the beginning of this year, bitcoin has had an industry in China."

The end of 2013, sosobtc (now changed to AICoin) and currency to see these two market websites before and after the establishment of the foot.

The founder of sosobtc Ye Peifeng and money look at Lao Liu's experience is very similar, both are the computer background, the first time studying bitcoin code is full of interest in this new thing, and personally feel the passion for the market in 2013 After resolutely decided to resign from the "tall" position, began a bitcoin venture.

"There were already quite a few media and quotes websites on the market at that time. There were many domestic bitcoin, BTC123, and later bit-gangs, one bit, and bitcoinwisdom abroad." Ye Peifeng said with a smile: "An industry needs to take off , Information service platform must first lively up. "

Both Lao Liu and Ye Peifeng are extremely innovative "geeks," but all of them were experiencing unscrupulous and unintelligible moments. Like many jokes, they were also used by relatives , Friends marked "abnormal" label.

Mine machine dominate

Yao Yuan, the founder of the Department of Currency, tagged early practitioners in the Bitcoin industry. They like to get acquainted with new things, have a computer background, and have a little financial background. They are free and unruly.

Yao Yuan started his business from 2008, has been a technical partner, has done a lot of business attempts, he is also the typical representative of this label.

In the first half of 2013, Yao Yuan was starting a business with a big brother of Tencent. A friend came looking for them with a newly baked roasted cat blade machine. "That was the first time I heard bitcoin."

Yao Yuan still remembers that bitcoin was 760 yuan at that time. After the friend popularized what is bitcoin, the oldest brother immediately bought 1,000 bitcoin, and Yao Yuan himself bought over one hundred. "The rest of the team executives also reminded us to beware that this is a hoax. Actually, I did not want to make money on this stuff anymore, just think it's cool and interesting, and later I can 'give reward' to interact with my friends What".

By the second half of 2013, Yao Yuan himself bought some 12.8G roasted cat blade mining machines to start mining. It was "a very bare circuit board, which was complicated to install and had to be connected by himself."
"Bitcoin mining" is essentially a lot of computing with a computer to find a very difficult to get a random number. In the Bitcoin rules, on average, every 10 minutes, the "miner" will have a chance to "fight for bitcoin accounting". Whoever counts the correct random number first will be responsible for recording the period Bitcoin transaction information, thereby obtaining a certain amount of bitcoin rewards. The stronger the miner's fortune, the greater the chance of winning a claim.

Yao Yuan briefly sort out several stages of bitcoin mining: bitcoin just a year or two, very few geeks "mining", using the computational power of PC CPU; in 2011, geeks Found that the graphics card (GPU) for the calculation of mining operation is much higher than the CPU speed, began to write a bitcoin video card using the program, but also a large number of video cards assembled to form a video card mining machine. It was not until 2012 that people realized that they could make calculations by designing specialized ASICs to improve mining efficiency.

In the second half of 2012, "Butterfly Miner" in the United States, domestic cat roaster and Avalon miner began to announce the plan to manufacture ASIC miner.

A veteran miners and fat Aberdeen impressed on this period, "the development of mining chips require huge capital investment, when the pattern of these several mining machine manufacturers are, first to raise money with you, raised money after the development At about the same time, Butterfly Miner and Avalon Miner began to publish pre-sale miner products to raise money. Cat roasted even more special, he at the forum for his mining company issued a virtual equity IPO , 0.1 bitcoin one original share. "

At that time more miners to support 'Butterfly' company, that the United States will be more advanced mining technology. However, the final result was beyond the expectations of many people. Butterflies failed to be developed as scheduled. Avalon's miner was the first to be produced and became the world's first ASIC miner.

Starting in September 2012, Avalon released pre-sale, pre-sale price is 9300 yuan / Taiwan. Incredibly, when Avalon miner's pre-sale contract included a lot of "King terms," ​​including starting to develop after raising money but not necessarily research and development success, and after the successful development, may not be shipped.

Even more incredible is that there are still many people have accepted such a clause, the pumpkin Zhang "Avalon mining machine". This also includes the fat boy himself.

In April 2013, Fat Tsai received the scheduled 10 Avalon ASIC mining machines. "ASIC mining efficiency is 100 times higher than the graphics card!"

Fat Aberdeen in August and September 2011 with video card mining, 20000 dollars a day video card dug up to 4 bitcoin, then the price is 60 to 80 yuan, about 70 days can be back to the original. As of April 2013, the computing power of miners around the world has exponentially increased. However, an ASIC mining machine at Fat Aberdeen still dug 3.2 bitcoins per day on average. At that time, 1 bitcoin had risen to around 1,000 yuan, equivalent to only In less than a week's time you can return this.

Two or three months later, with Avalon bulk shipments around the miners generally increase their computing power, fat Aberdeen mining income began to decline, they will gradually hand out these mining machines. Only the cost of more than 9000 yuan mining machine, the fat one sold the highest 260000 yuan, which shows the intensity of the market demand at the time.

Following the Avalon pumpkin Zhang, roasted cat also quickly mass production of ASIC mining machine, the market is quite hot. And, roasted cat with their own production of ASIC mining machine set up the first mine, the self-calculating power once reached 30% of the global power.

By July 2013, a "virtual stake" in roasted cats and mullers rose from 0.1 bitcoins to 5 bitcoins. Combined with the increase in bitcoin itself, the profit of roasted cat's initial "shareholder" once reached thousands of times .

It is at this time, roasted cat behind the important investors behind the "ringed richest man," Li Xiaolai issued a "roasted cat shares, seven bitcoin casually buy" "famous." Not long after this sentence was released, the market's madness began to cool down. The price of roasted cat's shares dropped rapidly from the peak of 5 bitcoin.

With the advent of a large number of ASIC mining machines, the first mines were built and the era of personal computer mining was completely ended. The Chinese bitcoin "Mining" represented by Avalon miner and roaster catcher has since entered the era of global domination.

Platform wrestling

Miners dig the bitcoin to the trading platform to sell, is to promote the trading platform is an important source of activity. Fat Aberdeen said, "At that time I sold some coins, mainly used to buy mining equipment, there are improvements to life, then will gradually buy some Tuen .Many miners for bitcoin's future still have some confidence, think It can go up again. "

In 2011, the first bitcoin trading platform "Bitcoin China" appeared in China. But in the first two years, fat Aberdeen more trading in the QQ group and Taobao. For the fat boy at the time, "the active circle of playing bitcoin in the whole country is also 2,000 people. A 500-person QQ group is 1/4 currency circle. It is more convenient to trade in the group or go directly to Taobao."
Until the second half of 2013, more than one trading platform was established, more and more users poured into the trading platform.

After the market fires up, Yang Linke, the founder of bitcoin China, obviously felt that the platform development has encountered a bottleneck. "The market is good, the company's talent has not increased, especially the technical personnel can not increase because there is no money."

In April 2013, a young man knocked on the door of Yang Linke company, he said he is a user of bitcoin China, and proposed to Yang Linke and Huang Xiaoyu (Bitcoin China partner), want to join the company.

At present, the young man graduated from Stanford University, has eight years of experience as a senior engineer at Yahoo, he just resigned from the technical department of Wal-Mart e-commerce. But Huang, Yang common question is that you can bring something for the company. The other answered, "I can finance."

His commitment to the two veterans was "at least 3 million renminbi," but Yangling's surprise was that four months later he got the company a $ 5 million investment from LightStor Ventures.

Later, Yang Linke gave Bitcoin China China to operate. He is Li Qiyuan, the CEO of bitcoin China, and his elder brother Li Qiwei, the founder of Litecoin.

Just before bitcoin China got financing, the OKCoin currency bank and the firecoin network had two trading platforms.

"Grab the market," Yang Linke felt the competition.

Yang Linke memories, OKCoin on the line, the first trading currency is Litecoin, "the user was taken away."

Li Qiyuan's bitcoin China was originally a natural advantage in the Litecoin market, "but Bobby (Li Qiyuan English name) has chosen OK to refuse Litecoin for the purpose of aversion, resolutely disagreeing with Litecoin." Yang Linke wry smile.

Another platform that is often confused with "Bitcoin China", said Li Dawei, CEO of "China Bitcoin". "In the second half of 2013, many trading platforms entered the market together, including OK, Firenze, our home, BTCTrade, Coupled with the earliest Bitcoin China, the pattern of the 'Big Five' exchange basically took shape this year. "

He thought for a moment and added, "At the time, our five trading platforms all had mainstream currency like bitcoin, and there was a bitter and bit era devoted to the 'cottage' market, which is exactly '5 + 2' pattern. "
2013 is a year of bitcoin price explosion and also a year of dramatic conflicts and dramatic changes.

Since April 1, bitcoin first exceeded 100 US dollars, many investors running bitcoin transactions, the ups and downs for months after the start.

In October, the FBI closed the Silk Road (using bitcoin to conduct illegal trade in gun drugs) and global bitcoin players panicked and feared that the United States would take further action, causing the market to fluctuate dramatically. Bitcoin lost 20% of its market value on October 2 and returned to around $ 100.

The panic did not last long. On November 18, the U.S. Senate conducted a symposium entitled "Beyond the Silk Road - Promises of Potential Threats, Risks and Virtual Currency," weakened the negative impact of Bitcoin, and the Federal Reserve Chairman Bernanke also expressed his optimism and best wishes for bitcoin. Bitcoin soared 50% on the day the seminar ended.

In the next month or so, bitcoin kicked off a wave of sharp growth, "beating $ 1,000 a day and bitcoin quickly reaching $ 8,000." At that time Bitcoin players were beginning to circulate "now A bitcoin an apple phone, one bitcoin can buy a house one day. "

As of December 5, 2013, remembering all the old people in the currency circles that the central government and other five ministries jointly issued a document denied the currency attributes of bitcoin and demanded that domestic third-party payment agencies not support the transfer of bitcoin trading platforms and Withdrawal, bitcoin prices dropped 60%.

"Before that, the trading platforms all crossed the river by feeling the stones, the government did not see us, and we did not know what we did or did not have the future. This time, the entire industry faces a huge challenge together."
Li Dawei recalls: "Shortly after the five ministries and commissions issue their documents, the heads of the five trading platforms discuss with them in the office of Yiquan, the founder of OKCoin, Xu Quanxing. What to do next."

For the first time, under the common challenges the industry faces in major domestic trading platforms, Baotuan upholds the serious exploration of how the Bitcoin industry in China will develop next.