Big Boys Big Blocks Ep. 3 with Jiang Zhuoer, Founder of BTC.TOP: Recap

On November 13th, BTC.TOP founder Jiang Zhuoer joined the 3rd Episode of Big Boys, Big Blocks livestream, hosted on Bihu. We had over 10K live viewers and more than 30K total views for this event. In the 80-minute long interview, he explained the meaning of the upcoming fork, why BCH price remains stagnant and why the IFP is not vital to BCH. Please enjoy our translated recap. 

Cindy Wang: Investors are losing confidence, as BCH drops in ratio to BTC. What do you want to say about this?

 Jiang Zhuoer: Both Bitcoin Cash and Litecoin are branches of Bitcoin. The current status of BCH is similar to that of LTC in the previous bull market.  Let's review what happened to LTC in the last bull. 

The graph shows that Bitcoin has risen 120 times from its lowest point to its highest point during the last bull market. The yellow line is a logarithmic coordinate. And the price in the chart is displayed to the power of 10. We can see that Bitcoin had been rising evenly throughout the bull market.

 This graph shows that LTC had risen 337 times in the last bull market. Why so much?

Let’s check out the Litecoin/Bitcoin chart. The starting point was in October 2015. That’s when the bull starts. Litecoin dropped in ratio to Bitcoin all the way until March 2017.

 But it suddenly rose 8 times in March 2017. Why? 

Price is decided by the bull-bear cycle. When a bull starts, people tend to buy coins of least risk and that is bitcoin. So we can see bitcoin rises in ratio to other coins. 

This is what BCH is going through. If counted in fiat, BCH price has been rising. But it’s dropping in ratio to Bitcoin. BCH can do more than Litecoin. If even LTC could rise dramatically, let alone BCH. But I don’t suggest people only hold BCH. Personally, 90% of my crypto assets are BTC, BCH and ETH. And I have miners to mine any coins I like. If BCH succeeds, it could offer you high profit. But it could also go zero. 

 Cindy: You once said that fork is freedom. Do you still believe so? 

 Jiang : Where does the value of blockchain come? Why could it have a trillion-market? Blockchain is just a database. It’s decentralization makes it valuable. Once it loses decentralization, it becomes valueless.  

 Bitcoin is free money as it can never be frozen. Free money is a solid demand for many people. That's why bitcoin is valuable. Once it becomes centralized, it becomes valueless.   

But how to make a decision for a decentralized coin that has no decision-making center? Fork!  Many coins forked before, such as Bitcoin, Ethereum. If a coin never forks, then it’s a centralized coin. 

 BCH marks the first coin that kicked its main dev team out. No coins have ever replaced their dev team. 

What is BCH? After this fork, we learnt that dev teams are not BCH, domain names are not BCH, but community is. 

Cindy: People have been blaming Coinex Haipo Yang for listing BCHA/BCHN futures before the fork. But the price of BCHA is so low that people have no interest in speculation.  

Jiang: I strongly support Haipo. The price of BCHA fell from 20% of BCH all the way to 5% of BCH. If not for him, Bitcoin ABC wouldn’t realize that they have so little supporters. 

Cindy: Bitcoin ABC changed their name into BCHA and announced that they will maintain both BCHA and BCHN chains after the fork, which indicates that they give up on the brand of BCH. How do you look at such moves?  

Jiang: Bitcoin ABC is strong in development, but weak in communication. The community sometimes got them wrong and don’t like them. But I think they have done a lot over the past two years. We should thank them for that. 

ABC failed to understand their position in the community. They caused the fork and only turned out to be kicked out of the community. Moving forward, they will only be a supporting role. 

Jihan also supports IFP. Chinese are more fond of collective action. Just like they are willing to give up some degree of freedom in the fight against coronavirus. And we can see the Chinese government successfully curbed the spread of the Virus. Americans are more fond of personal freedom even at the cost of sacrificing many people’s lives. This is complicated. 

It’s hard to say which party is right. But the BCH community has made their choices. 

Cindy: Where should we deposit BCH to get airdrops? 

Jiang: I suggest you put most coins into a wallet where you own the private keys. This way, after the fork you could deposit them into the first exchange that allows BCHA trading.

Cindy: Will you sell BCHA when you receive them? 

 Jiang: I will sell part of them. I am bearish on BCHA.

Cindy: CEXs like OKEX and Huobi are under investigation. Should users still hold their platform tokens? How about investing in DEX? Like Uni?  

Jiang: Both platform tokens of CEX and DEX are not good investment assets. DEXs have low TPS that are not even supposed to work as exchanges. And each action requires transaction fees that are too high. I think DEXs can only play a complementary role for CEXs.  

 As for platform tokens of CEXs, users cannot do much with them. And exchanges can change rules to affect the price. 

Cindy: How much do you know about BCHN? 

Jiang: BCHN has more people than Bitcoin ABC, most are opponents of Bitcoin ABC. They have people who are good at coding, marketing, building communities. They got support from exchanges even before the fork. 

I believe they could lead BCH to a new height, not only in implementation development, but also in other ways. 

 Cindy: We have excellent developers, united communities, whales like Roger Ver promoting merchant adoption, SLP protocol, privacy tools (like Cash Fusion), and now General Protocols. Shouldn't BCH pump? 

Jiang: What happened in LTC in March 2017? Nothing. In strong wind, even pigs can fly. As weak as Litecoin, it rises over 10 times. When trends come, new users all rush in and buy cheap coins. BCH will definitely rise then.  

Cindy: As an early supporter of IFP, why are you against it now? 

Jiang: IFP can accelerate the growth of BCH. But I never thought it was vital to BCH, not like scaling is vital to BTC.  And I don’t want to cause a split for it. So I gave up. 

Cindy: Where can BCH hit this bull?  

Jiang: I talked about this problem many times before. If LTC increased from 0.002 to 0.02 in ratio to BTC in value.  BCH will rise more. 

Cindy: What does it look like to mine overseas?  

Jiang: There are many traps in mining overseas. I lost 2000 pieces of T9+in Iran. What I heard is that coins mined in Iran must be sold to their central banks. Don’t take the risk to mine overseas, including places in central Asia, east Asia. 

Cindy: Do you think the current bull is led by institutional actors?

Jiang: The early phase of a bull is always led by institutional, large capitals and whales. Simple investors always buy high and sell low. They never dare to buy at the first phase of the bull. They become bold when the price hits the previous record. They read news and rush in.  

Cindy: How do you look at ETH 2.0? 

Jiang: It takes more time to achieve ETH 2.0. It would be a miracle if it can be launched as scheduled. ETH 2.0 can only slowly switch to POS instead of cutting off its hashrate once and for all. 

But once sharding is completed, TPS will be increased tremendously. ETH will then become a strong competitor to BTC. No matter if it’s BTC, BCH, or ETH, just don’t put all your eggs into one basket.  

Cindy: Will cryptocurrencies be taxed?  

Jiang: It’s inevitable. The whole crypto market is getting more regulated. The real question is how to tax.

If you don’t want to pay tax, you could deposit bitcoin for a mortgage. This way, you have money to spend and you don’t need to pay tax. There is a lot you can do to escape tax. 

Cindy: Is Bitcoin not for individuals anymore? 

Jiang: I don’t think bitcoin will be de-individualized. We are now in a certain phase that cannot represent the trend for the whole market. 

Many people ask “will the proportion of bitcoin’s market cap increase or decline”. Those who believe in “eternal bull” think the proportion will hit  90%. This is nonsense. What Bitcoin can do is limited. For example, it doesn’t support DeFi. Ethereum instead will dominate the DeFi market and enjoy more market cap. As the ecosystem grows, new demands appear along with new coins being born. 

Cindy: Now Paypal allows people to buy cryptocurrencies. Will that accelerate the coming of the bull market?  

Jiang: You mixed the cause and effect. It’s the development of Bitcoin and cryptocurrencies that pushed Paypal to make such a decision. The Paypal thing is a hallmark event in a bull market, but not the driving force of it. Financial institutions around the world will join Paypal to support cryptocurrencies sooner or later. But China will be the last to join the trend. 

Please value each and every coin you have. It becomes harder and harder for users to buy coins in China. Maybe one day you need to some “guanxi” (connections) to buy and sell coins.  

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