Chapter 1 Market Overview China is standing at the same starting point as other countries in a fierce competitive blockchain market. China’s leadership can be attributed to some pioneers who are devoted to the development of blockchain and also the active efforts made by Chinese Internet enterprises. China has already passed a stage of rapid and disorderly development and the layout of the industry has been shuffled. The whole industry is heading towards a regulated and standardized direction with increasing capability in R&D at bottom levels. 1. Pioneers Many people, whether they were IT novices or dice rollers, scrambled to be the “the first person who eat crabs” as soon as the notion of blockchain was introduced, leaving an unforgettable page in development history of China’s blockchain industry. With their efforts, China’s blockchain industry took off and derivative industries began to prosper. In 2011, a young sci-fi author, a sci-fi fan, and a young man who was nobody decided to create China’s first blockchain BBS known as ChainNode.On June 9, 2011, Yang Linke, who knew nothing about IT and Bitcoin, created China’s first Bitcoin exchange—BTC China. As the oldest Bticoin transaction platform in the world, it once ranked the second in the world and the top 1 in China in terms of Bitcoin trading volume. The year of 2013 marked a turning point of Bitcoin when entrepreneurs began to commercialize it. Four years after the birth of blockchain, the price of Bitcoin skyrocketed to a point even higher than gold. In the same year, attitudes towards the cryptocurrency varied from country to country, and in those where Bitcoin became legitimate, investors flocked to it. At the beginning of 2013, a postgraduate of Beihang University developed a first-generation Bitcoin miner — FPGA miner. As it gained popularity in the market due to its higher mining efficiency compared with GPU, the price of each FPGA miner was raised to 400,000 yuan, although the cost was only thousands of yuan. Later, a postgraduate called Mao Shixing dropped out of Zhejiang University for business start-up after persuading his family, and founded F2POOL, China’s first mining pool, in 2013. Undergoing twists and turns, it has become one of the four major Bitcoin pools in the world In July 2013, a group of Bitcoin investors and miners established China’s first Bitcoin investment association in a hotel in Shenzhen. In 2014, Guo Hongcai established the largest Bitcoin mine at that time in Inner Mongolia where 500 Bitcoins could be mined within one day, a basis for his legend of making a profit of 10 million dollars per day when a single Bitcoin’s price was as high as 20,000 dollars.
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