ViaBTC CEO Market View
Yanghaipo, CEO of China’s leading Bitcoin mining pool ViaBTC and founder of the crypto asset (cryptocurrency) exchange CoinEx, shared his broad view of the latest cryptocurrency market. This is a valuable view as the Chinese government’s policy leaves uncertainty about the impact on the market.
ViaBTC accounts for 11.42% of the Bitcoin hash rate and is a major mining pool ranked 4th in the pool ranking.
This time, in an interview with China’s cryptocurrency blog “Catcher”, Mr. Yang shared various opinions on themes such as Bitcoin (BTC), Ethereum (ETH), the overall market price, and the DeFi (decentralized finance) sector. .. This article is an excerpt of some of the content and introduces it.
Overall market feeling
Regarding the position of the cryptocurrency market after the crash on May 19, Mr. Yang said, “It is now in the first half of the bull market and is slowly recovering.” Since the number and scale of fund management have not decreased so much, it is premature to think that the bull market is over. “
Also, regarding Mr. Elon Musk’s statement on SNS about Bitcoin and Dogecoin, “Mr. Musk is the most controversial person in the bull market this time, and he is an idealist from his entrepreneurial background. “It’s clear,” he said. “He’s also a keen sense of the virtual world, and his global influence on the crypto market has played a big role in its widespread use.” “But the value of crypto. Is caused by the consensus of market participants, and I think the enthusiasm for Meemcoin (DOGE, SHIB, etc.) has nothing to do with Mr. Musk, just as early Bitcoiners have a “bias” against other stocks. He will also have a prejudice against Mr. Musk. “
Relation: Controversial summary of Elon Musk’s cryptocurrency-related tweets
Seeing the future in Ethereum
Due to the expansion of the Ethereum ecosystem, progress toward ETH2.0, and the rate of increase since the beginning of the year, it is predicted that the Ethereum community and investment companies will eventually exceed the market capitalization of Bitcoin.
Yang also shared his views on the BTC / ETH competition.
In the long run, it is inevitable that ETH will exceed BTC.
The position and activity of both communities are completely different. The value of Bitcoin stems from what is “faithful” and is now already a “religion”. Although it has few practical uses, it has brought many benefits to early users from a speculative point of view.
Dogecoin is also becoming a religion, but the community is more active than Bitcoin.
On the other hand, the value of Ethereum is born from practical use. Bitcoin used to have the option of implementing scalability, like Ethereum, but it didn’t. If implemented, it might have already become the largest payment method in the world.
At Ethereum, the introduction of various solutions such as L2 and ETH2.0 is becoming more open. I’m a little stumbled, but I should be able to solve it.
About the BSC ecosystem
Regarding the ecosystem of BSC (Binance Smart Chain), which is a rival due to Ethereum’s remittance speed and gas cost issues, Mr. Yang pointed out that BSC has the potential to weaken Ethereum’s competitiveness.
“BSC is already valuable, and the number of active users and volume exceeds Bitcoin. If it is upgraded and more users move in the future, it may take some market share of Ethereum,” he said. Indicated.
Also, regarding the frequent outflow of funds at BSC, “The funds were not stolen, until the hacker was reasonably using the rules of the code, or the hacker may be a person on the project side. “Currently, the biggest problem with BSC is inexperienced developers. They are only thinking about raising TVL (asset management amount) and neglecting security,” he said. ..
About the DeFi market
In addition, Yang shared his views on the evolution of the DeFi market.
The DeFi sector has expanded its user base significantly since last summer, and its asset management value in major protocols such as Uniswap, Compound, and Curve has also increased significantly, making it a rival to CEX (Centralized Trading).
Under such circumstances, derivative transactions on DeFi are called the next DeFi “frontier”, and Mr. Yang is skeptical about DeFi derivatives in this way.
The feature of DEX is that even stocks that cannot be easily listed on CEX (high difficulty) can be listed without permission, which is a place to trade so-called “long tail assets (assets with few listing opportunities)” in kind.
However, in derivative trading, there is a lot of demand for high-ranking stocks such as Bitcoin and Ethereum, which have high basic trading volumes, but long tail assets have lower physical trading volumes and slower trading speeds on DEX, so they trade with DeFi derivatives. I think there is little merit to be done.
He also pointed out that DeFi is currently in the stage of becoming a bubble economy, but its utility value is high, the utilization rate of DEX and lending market is increasing, and CEX has already lost its advantage. ..
On the other hand, he pointed out that the biggest problem with the NFT boom is that it does not have to use blockchain, and explained that it is ultimately the centralized organization that proves NFT ownership.