4. 货币 (huo bi) = currency
火币 (huo bi) = fire coin
火
Huobi
Name & Logo
5. Huobi Early Days
25 February 2014: trading volume = 352,762 BTC / 1.5 billion CNY
1 September 2013： 1 BTC = 806 元
19 November 2013：1 BTC = 8,000 元
6. • Banks and payment companies were prohibited from
doing any bitcoin related business.
• Bitcoin use as currency for payments and setting prices
in bitcoin is illegal.
• Bitcoin was classified as a “virtual commodity” – legal
for people to own and trade.
• No bitcoin tax policy.
• PBOC logic – separate bitcoin risk from financial system.
• Effect on exchanges – short-term banking challenges,
but solutions have been found.
China
Bitcoin Policy
12. Huobi
&
Tsinghua
• Huobi and Tsinghua University joint Digital Assets
Research Initiative.
• Publish the first Chinese global bitcoin industry
report.
• Purpose is to educate and influence:
• Business leaders
• Entrepreneurs
• Investors
• Regulators
15. Bitcoin Mining
• Hard times – difficulty increasing, revenue falling.
• China is the leading bitcoin mining country:
• More than 50% of global hashing power
• More than 75% of ASIC manufacturing
• China’s advantages:
• Low electricity cost from hydroelectric, wind, solar, and coal
• Low cost of labor
• Manufacturing infrastructure and economies of scale
• Passion for bitcoin
17. • Goldman Sachs report says 80% of global bitcoin
trading volume is on Chinese exchanges
• Not entirely accurate, because:
• Zero trading fees on Chinese exchange
• Unreliable transaction data
• 50% is a more realistic estimate.
• Bitcoin trading is popular in China because:
• Millions of Chinese already trade stocks and commodities
• Gambling has deep roots in Chinese culture
• There are not many other legal investment opportunities in
China
• Zero fees attract international traders to Chinese exchanges
Bitcoin Exchanges
18. Bitcoin
as Investment
• Chinese are conservative investors; real estate
and gold the most popular long-term investments.
• Bitcoin is digital gold, but only few people
understand this now.
• More education and marketing will create demand
for bitcoin as a long-term investment in China.
19. Bitcoin
for Payments
• International e-commerce (opportunity)
• Most Chinese do not have international credit cards
• Most Chinese cannot receive international payments
(PayPal, etc.)
• International remittances (opportunity)
• 50 million overseas Chinese have 2 trillion dollars
• 1 million foreigners in China
• International B2B payments (opportunity)
• China domestic payments (dead end)
• Illegal
• No demand
21. • Government is pragmatic – wants to allow
innovation but control risk.
• December 5 policy separates bitcoin risk from
financial system.
• The policy is working – expect no new policy
unless it is necessary.
• China will use U.S. policy as a reference.
• Bitcoin companies must self-regulate and act
responsibly.
• Outlook – cautiously optimistic.
Future China
Bitcoin Policy
22. Final Thoughts
• Bitcoin (financial)
• Bitcoin is a great investment
• International payments and money transfers – coming soon
• A payment method in China – wait a long time
• Will bitcoin ever be a global currency?
• Bitcoin (blockchain technology)
• Asset registration and proof-of-existence
• Transparent and secure voting
• Smart contracts and DACs
• Internet of Things and machine-to-machine payments
