From Mining Farm to Metaverse: Bao Er Ye's Crypto Assets Investment Journey

Guo Hongcai, widely known in the industry as "Master Bao Er", was born in 1983 in Pingyao, Shanxi. His Crypto Assets investment career has witnessed the development trajectory of Bitcoin from obscurity to a market capitalization of trillions.

Entering the Crypto World: A Tsinghua University Audit Student to an Early Bitcoin Evangelist

In 2003, Guo Hongcai scored only 300 points in the college entrance examination, but he had grand ambitions and applied to Tsinghua University. Although he was not admitted, he did not give up; instead, he moved north and rented a house near Tsinghua, auditing courses while seeking entrepreneurial opportunities. This unconventional way of thinking also laid the foundation for his later investments in the Crypto Assets field.

In 2013, when the price of Bitcoin hovered around a few hundred dollars, Guo Hongcai began to get involved in Crypto Assets. At that time, Garage Cafe served as an entrepreneurial incubation platform, witnessing the gathering of many early believers in blockchain. It is worth mentioning that the blockchain sharing session hosted by Li Xiaolai at Garage Cafe attracted a group of early followers, many of whom later achieved significant profits through blockchain investments.

Mining Layout: Strategic Vision for Deep Cultivation in Bear Markets

In 2014, when Guo Hongcai officially entered the Crypto Assets field, Bitcoin experienced a significant downturn. Market data showed that at that time, Bitcoin dropped from over $1000 at the end of 2013 to the range of $300-$400. However, Guo Hongcai chose to go against the trend, purchasing a large amount of Bitcoin and investing in Inner Mongolia to establish what was then claimed to be the world's largest Bitcoin mining farm.

According to the data, the electricity cost of mining one Bitcoin in 2014 was approximately 5000 yuan, and the mining farm successfully produced 100 Bitcoins in its first year of establishment. This strategic decision demonstrates Guo Hongcai's judgment on the long-term value of the industry and his counter-cyclical investment thinking, laying a solid foundation for his later market position.

Bear Market Training: A Key Period to Enhance Professional Skills

In 2015, the Crypto Assets market entered a bear market cycle, and Bitcoin prices remained sluggish, hovering in the range of 200-300 dollars. There were few participants in the blockchain summit, and a large number of investors exited after incurring losses. During this low point in the industry, Guo Hongcai did not stagnate but continued to enhance his professional skills, including learning English to improve his international communication abilities.

His persistence during this period enabled him to participate in the Davos Forum in 2016, where he could discuss professional topics such as Bitcoin, blockchain, and financial technology in English with global financial elites. Despite his casual attire, which stood in stark contrast to the other formally dressed finance professionals, his professional insights attracted the attention of the attendees.

Bull Market Erupts: The Turning Point from Holding On to Harvesting

In 2017, the Crypto Assets market experienced a significant rebound, with Bitcoin prices soaring from around $1,000 at the beginning of the year to nearly $20,000 at the historical peak by the end of the year. Guo Hongcai's holdings grew substantially in value, and his market position also improved accordingly.

In August of the same year, Guo Hongcai launched a large-scale live streaming event attracting 100,000 participants, detailing the development history of Bitcoin, which enhanced investors' confidence, while also receiving a large number of live streaming gift rewards. In September, with the domestic "9·4" regulatory policy coming into effect, Guo Hongcai quickly adjusted his strategy and initiated the "China Tour" to help investors establish reasonable investment concepts.

Market Fluctuations: Even Big Players Can't Escape Market Cycles

In the first half of 2018, the Crypto Assets market experienced significant volatility, with ongoing disputes between project parties and investors. In the second half of 2018, the market as a whole fell into a downward channel, with Bitcoin prices dropping from nearly $17,000 at the beginning of the year to around $3,200 by the end of the year, a decline of over 80%.

In this round of market adjustment, Guo Hongcai also faced severe challenges. A video that surfaced in August showed him attempting to bottom fish multiple times during the bear market, resulting in a loss of about 400 out of 600 Bitcoin holdings. This experience indicates that even seasoned investors find it difficult to accurately grasp the market bottom, and repeated bottom-fishing strategies may pose significant risks in a continuously declining market.

Transformation and Development: Adapting to Changing Market Participants

After 2020, Guo Hongcai began to transform and develop after experiencing multiple rounds of bull and bear cycles. As the landscape of the crypto assets market continues to evolve and the regulatory environment becomes increasingly clear, Guo Hongcai's investment strategies and market positioning have also adjusted accordingly. As an early participant in the industry, his experiences not only record his personal investment journey but also serve as a microcosm of the development of the entire crypto assets market.

Maintaining rationality during market cycles, adjusting strategies in a timely manner, and continuously learning to enhance professional skills are investment philosophies distilled from the experiences of Master Bao Er Ye, which still hold significant reference value for today's Crypto Assets investors.

Investment Insights: Rational Thinking in Market Cycles

The investment journey of Master Bao reveals several key investment principles:

1. Reverse Thinking: Buying a large amount of Bitcoin and laying out mining during the market downturn in 2014 indicates long-term confidence in the industry.
2. Professional Accumulation: Focused on skill enhancement rather than short-term trading during the bear market of 2015-2016, laying the foundation for future development.
3. Risk Management: The bottom-fishing error in 2018 showed that even seasoned investors need to strictly control their position management in a declining market.
4. Strategic Adjustment: Timely transformation in response to changes in the market and regulatory environment reflects the importance of adaptability.

Whether you are a newcomer to the market or an experienced investor, understanding the characteristics of market cycles, maintaining a long-term perspective, and avoiding emotional decision-making are key elements for navigating the Crypto Assets market steadily.