“One Bitcoin, One House,” Nonsense or Reality?

“One Bitcoin, one house” has recently become a new expectation among Chinese Bitcoin investors. Zhao Dong, an old Bitcoin holder, said that not everyone has the luck to get rich.

“When I first heard of Bitcoin in 2009, I didn’t take it seriously. I thought it was just something like bonus points,” noted Zhao.

But later in 2013, when some of his friends earned a lot from Bitcoin, Zhao thought maybe he should give it a try. He began to learn everything about Bitcoin and its underling technologies. At first, Zhao bought a mining machine with 40,000 CNY and mined 40 Bitcoins, which was really a bad bargain. Because at that time, the price of one Bitcoin was about 50 cents and with¥40,000, he could buy 100 Bitcoins.

Zhao Dong, co-founder of Moji, a free weather forecast app

 

From 2013 to 2014, he invested tens of millions of RMB in mining at Ordos city, Inner Mongolia, China, but suffered heavy losses when Bitcoin price slumped from 8000 CNY to 900 CNY.

“The money I got from mining Bitcoins could not even afford the electric bill, about 2 million RMB per month. So I sold all the mining machines and stopped mining.”

The total number of Bitcoins are 21 million, among which 16 million have already been generated so far. While Bitcoin mining initially used to be carried out at home, it is too costly for individuals to mine Bitcoins and it has moved to industrial-scale mining.

“At that time, Bitcoin holders were actually losing confidence as the price kept falling, but I was really excited to buy Bitcoins at much lower price because I was so sure the price would skyrocket in the future, so I bought 1 million CNY worth of Bitcoins and decided to hold them for long term.”

Now the price of per Bitcoin has reached over 1100 USD. Causes of the spike include more media coverage and venture capitalists pouring money into the world of Bitcoin.

Actually, even today 99 percent of people still think Bitcoin a speculation asset.

“It is no easy to get rich. I bet some people, especially those who are impulsive or shortsighted would go bankrupt because they would borrow money or even sell house to buy Bitcoins. And when Bitcoin price falls dramatically, they would sell Bitcoins instantly. Those people are likely to become penniless. My suggestion is that if you do not have any knowledge of investment basics, please stay away from the Bitcoin world. You will not get rich, and you are just messing with the Bitcoin market. The fact is those people haven’t realized the real significance of Bitcoin.

Zhao believed that Bitcoin will become a mainstream currency, but it is and will continue to be an experimental new currency for years to come. Put simply, Bitcoin is so not ready to redefine currency.  When be asked if Bitcoin will one day be used in everyday life, Zhao said that:

The Matrix is one of my favorite movies, in which you cannot find a fine line between virtual and reality. Actually, the Internet has already blurred this line and I believe Bitcoin is the future of money.”

Now Zhao is running an agent to help people trade Bitcoins.

“I help trade 100,000 Bitcoins a year. The annual volume of trade is 1 billion RMB and I could earn 1% out of it. Going forward, I will work to explore more business models in the thriving Bitcoin ecosystem. “

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