POW’ER 2020 Stove-Fire Seminar in Digital Mining Industry Conference: the ‘Prisoner’s Dilemma’ in Contract Competition
(Guests from left to right: HBTC vice operation director Yase Wang, Hobi Global market maker director Seng Xiao, Coco Coin product R&D manager Haizhi Xing, WBF founder Bella Fang, BICC COO Hill, BitMax chief analyst Bonna Zhu, MXC matcha marketing development manager Duo Ge)
Reported by Mars Media, “POW’ER 2020 Technology and Application Conference” held by Mars Blockchain was organized in Shanghai on Aug. 11. The conference was themed by four topics of industry blockchain, IPFS and distributed storage, digital mining and DeFi, and invited hundreds of leading managers to discuss the present and the future of the blockchain industry.
In the conference, the founder of ZB innovation think tank Aurora hosted the seminar ‘the Prisoner’s Dilemma in Contract Competition’. The guests are HBTC vice operation director Yase Wang, Hobi Global market maker director Seng Xiao, Coco Coin product R&D manager Haizhi Xing, WBF founder Bella Fang, BICC COO Hill, BitMax chief analyst Bonna Zhu, and MXC matcha marketing development manager Duo Ge.
HBTC vice operation director Yase Wang said, contract products and the derivatives are all the tools that can facilitate the turn-over efficiency. As for the trend of future market, he thinks the entire cryptocurrency market is an anchoring market based on US dollar, which is very similar to the traditional finance. Currently, there are more and more institutions are getting on board. As such, it is normal that the whole contract market is 20 times bigger than the spot market.
Hobi Global Market Maker director Seng Xiao presented the view that the traditional finance market is the imitatee of digital assets. In traditional finance market, the size of spot market is much smaller than its derivatives. Similarly, the derivative market, which is 20 times bigger than spot market, is still very small. In the future, it could reach 30 times or 40 times.
Xiao continually said, if the decentralized exchanges don’t be evil, providing excellent service and taking the consumer value as the key, they don’t need to fear the competition of decentralized exchange platforms. Decentralized exchanges will be extremely valuable to market, and Huobi could like to keep changing according to the needs.
Coco Coin R&D manager Haizhi Xing said, the reason why the size of derivatives of digital assets surpassed the size of spot market relates to the high volatility and short cycle of the derivatives, which also explains the quicker speed of making profits.
Answering the question that contract is devil or angel, he said contract transaction is a financial tool, devil or angel depends on humans’ decisions. It’s better not to judge the tool.
WBF founder Bella Fang advocated the contract market is very promising, supported by the arguments: 1. Bitcoin is characterized by high volatility and extensibility; 2. As the spot market can barely fulfillment the consumers in blockchain market, the demand is bigger than the supply; 3. It also relates to that Bitcoin was half diminished.
BICC COO Hill pointed out, it is normal that the derivative market is 20 times bigger than the spot market, as the market share of contract market is bigger and bigger, with the enhancement of market education, increasing confidence of users to the filtered assets, and accelerating technologies. He said, the key of BICC exchange is firstly helping users make money, then building a benign ecosystem and good user experience.
BitMax chief analyst Bonna Zhu said, with the change of liquidity and volatility, the contract market will explode in the coming years. The emerging players in this market prone to choose the derivative market of digital assets.
MXC matcha marketing development manager Duo Ge presented that the derivative market for investors is angel not devil. Even though it may have the properties of devil, but it is still angel.
Besides, he reasoned the explosion of derivative market for three points: 1. The derivatives have the market foundation, as it was used for hedging; 2. There are needs for speculation in the market; 3. Because the contracts anchor on the price of spot goods(three times rising or decreasing), they will not influence the price of spot goods when entering the market.