Li explained that in this background Huobi was launched in September 2013.
He commented:
The most powerful push of the industry is that people realize how profitable it is to invest in Bitcoin. It was on November 19, 2013, I could never forget, I was sitting in front of my laptop and realized that Bitcoin has gained 10 folds over one month. A lot of well-known and successful companies were established in 2013.
In 2013, people anticipate that Bitcoin will become the future world currency. However, only 10% of merchants were willing to accept it, that is, to make payments directly in Bitcoin, the other 90% were not accepting it. The vast majority of those 10% of merchants have high margins and can tolerate volatility.
In the beginning of 2014 Bitcoin was challenged by regulation policies in China, US and Japan. The cryptocurrency was under great pressure and scrutiny over asset security. Now the global acceleration of Bitcoin is divided into several major countries and regions including Hong Kong, Singapore, South Korea, Japan, Thailand and the US where recently was proposed regulatory framework.
Li added:
As of now, it’s been two years since the countries around the world have made it official to consider crypto legislation. We’ve seen the crypto law proposals in Russia. Countries that are open to foreign exchange are more welcoming, countries that are regulated are less welcoming. Probably that’s the pattern.
Li continued with his outlook for the future of the blockchain technology.
He said:
Government are building up third party intermediaries like data center to increase governance efficiency, like contract signing, authentications, issue invoices, etc. Although governments can’t completely hand this over to a third party, since there are so many departments of government transactions, in every region and every city. And people don’t hand this over to industry associations or to state agencies.
This is a top-down huge project. The government develops products, and now we are able to do it with more efficient blockchain technology.
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