Bixin — An Offer of all-in-one?

Overview

Bixin is a Chinese company that offers a wide range of services, including multi-signature wallet, Bitcoin(BTC) exchanges, interest-generating monthly accounts and also a bitcoin mining pool. Users can trade BTC directly with CNY using Bixin and 0.3% will be charged as commission fees. The interest rate of the monthly account ranges from 2% to 6.01% per year, steadily increasing over time.

Bixin is now responsible for 8.3% of the total hashpower in the Bitcoin blockchain, making it the fourth largest mining pool in the Bitcoin world.

Stance on Bitcoin Cash

Bixin is one of the largest opposer of Bitcoin Cash in China. They are strongly reluctant to the fork and the adoption of Bitcoin Cash (BCH) on their platform. They have made statements about the consequences that may be brought by Bitcoin Cash, such as a fluctuation of hashpower in Bitcoin blockchain. They reiterated that they will distribute all hashpower to the Bitcoin blockchain and appealed to other miners to do so. Bixin is also one of the earliest mining pools that signaled Segwit2x.

Bixin will exchange all BCH they hold to BTC after the fork on 1 August. The income will be distributed back to their users according to their BTC holdings. The estimated value of this exchange will be more than $10 million in light of the BTC holdings of Bixin.

Risks

Concerning the Bitcoin Cash, Bixin has distributed 10% exchange deposits to the users at a rate of 0.075BTC = 1BCH. At the time of writing, the price ratio of BTC:BCH is about 0.0903BTC = 1BCH. In this case, if Bixin keeps distributing at this rate while the price ratio remains unchanged, they will earn roughly 0.0153 BTC per BCH (assuming transaction fees as negligible). Given the huge amount of BCH holdings, Bixin can earn a considerable revenue from these series of exchanges. Nevertheless, Bixin may still adjust the rate over time and make the above speculation invalid.

Other than that, there is fear concerning the monthly accounts mechanism of Bixin. There is no guarantee from Bixin regarding the interests as they come from the earnings of mining operations. As Bixin is not regulated, users may not get back their interests by legal channels once Bixin fails to distribute interests. Therefore, users have to assess the risks involved before using the services. (Nevertheless, Bixin has worked on KYC and AML)

Opportunities

Bixin occasionally provides rewards to their users. This year, by converting altcoins to BTC, Bixin gave out rewards equivalent to $10 million to their users, and that replaced the saving accounts mechanism.

On the other hand, Bixin is launching a feature in the wallet, which allows peer-to-peer transactions of BTC with Bixin as the third party arbitrator. The increasing amount of rewards and new features are attracting more users in China or even from other countries, which will help facilitate growth of the company.

Disclaimer: We have no affiliation with the aforementioned products and this article is solely for academic purpose.

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