The world of cryptocurrency never sleeps, especially not during holidays. While many were celebrating the Lunar New Year with family trips and visits, a dedicated group was burning the midnight oil. Their focus was locked on the volatile graphs of Bitcoin and altcoins, engaged in deep discussions about blockchain technology, driven by a fear of being left behind by the next technological wave.
This intense energy wasn't isolated. A WeChat group known as the "3 O'Clock Community" gained legendary status during this period, rumored to include elite figures from venture capitalist Xue Manzi to media personality Luo Zhenyu, all debating the future of blockchain.
As the foundational application of blockchain, Bitcoin itself was on a rollercoaster. After a steep plunge in early February that saw it drop below $6,000, it remarkably surged back to over $10,000 by February 22nd. Such extreme volatility has created controversial fortunes for figures like Li Xiaolai and Zhao Changpeng, while countless everyday investors have seen their wealth skyrocket or evaporate almost overnight.
What does this frenzy look like on the ground in a major Chinese city like Chengdu? Who are the people behind the screens, and what stories do they have to tell? We spoke with several local participants to hear their experiences.
A Small Player’s Perspective
In 2012, Xu Bo was a student at Southwest Jiaotong University. A self-described "homebody" with a passion for playing DOTA at a near-professional level, he first encountered Bitcoin through its whitepaper on foreign tech sites. Intrigued by the technology, he used his gaming PC to mine just under 8 Bitcoin.
"Back then, it was just for fun. I never imagined it would reach such heights," he recalls. He notes that the earliest adopters in China were often returnees from studying abroad. "I knew a programmer from a car club—he liked Tesla, I liked AMG. He even developed an app for his Tesla that could mine automatically." That friend eventually cashed out 600,000 RMB from his Bitcoin holdings and moved to Shenzhen.
Despite his own potential gains, Xu is cynical about the current state of crypto. He sees it as a departure from Satoshi Nakamoto's original vision of decentralization, now dominated by large mining pools with immense computational power. "What's the point? It's just a battle of computing resources now. The big farms are the ones really making money; I'm just a small player. My coins aren't worth much." He chose not to cash out, instead starting an e-commerce company in Chengdu to help merchants sell on overseas platforms like Amazon.
The Mining Farm Operator
Wang Chunlin represents the other side of the coin—the large-scale operator. In 2013, he and a financially savvy partner invested in a mining operation, purchasing 800 specialized miners.
His partner praised his expertise, but Wang himself is reserved about his journey. The infamous Mt. Gox incident in 2013 created massive instability, and his strategy became one of careful timing. "We only powered on the miners when the Bitcoin price was right to cover the electricity costs," he explained. When asked about profits, he demurred, "We didn't make that much, really."
The extreme volatility led him to a more cautious outlook. "Most people have never seen that kind of money and can't handle losing millions overnight. The risk is enormous." This perspective shifted his focus from pure speculation to the underlying technology. He is now partnering with others to find and invest in promising blockchain application projects. "The blockchain sector is poised for a real explosion. Honestly, I feel like sleeping is a waste of time right now."
The Believer and Investor
He Sheng is a busy man. He produces three different programs about blockchain and is a frequent speaker at forums across the country. His online persona is "He Sheng, The Blockchain Believer."
For him, blockchain is a philosophical pursuit as much as a financial one. He cites the film V for Vendetta as an inspiration for his distrust of centralized systems like banks and social media platforms. "How can you be sure your assets or information won't be frozen or misused?" he asks. Blockchain technology, in his view, represents a more transparent and equitable future.
An experienced angel investor in TMT sectors, He gradually moved all his capital into blockchain after a VR project he backed failed to take off. He started with Bitcoin in 2013 and expanded into numerous other cryptocurrencies. "It's frowned upon in this circle to discuss how much you hold," he says, though he admits to owning "over a thousand Bitcoin" alongside substantial amounts of EOS and BCH. "I'd have to ask my assistant for the exact numbers; I don't even know myself."
He advocates for a long-term, belief-driven strategy, advising against speculative short-term plays. "Don't just look at Bitcoin's price drops. Believe in the blockchain technology itself. Holding long-term will pay off multiples over. You need to make choices today that your future self will thank you for."
Rapid Success and New Ventures
Liu Jun entered the crypto space relatively recently, but it was enough for him to achieve financial independence by the age of 24. Previously working in traditional finance, he found that even its substantial profits paled in comparison to the opportunities in crypto.
He disbanded his old team and pivoted to providing crypto allocation services—using investor capital to buy and sell coins based on market analysis and price disparities across global exchanges. "The profit margins in this industry are astronomical," he notes, hinting at the vast, and sometimes opaque, wealth flowing through the market.
He has witnessed incredible stories of wealth creation firsthand. "There are too many examples. Someone bought the domestic ICO project Ant Shares (NEO) at a few cents; it rose to over 300 RMB within a year. That person easily bought a apartment outright with the proceeds."
Seeing the intense demand for knowledge, he recently organized a blockchain conference. Tickets, initially priced at 200 RMB, were scalped for nearly 4,000 RMB, with over a thousand people attending. Optimistic about the future, he has now opened a new company in Chengdu's Global Center. "Hangzhou has already embraced blockchain with open arms. I believe Chengdu's market has a great future."
Understanding the Crypto Community
Based on these interactions, the crypto community can be broadly categorized into three groups:
The Tech Purists
This group is comprised of IT professionals, engineers, and tech geeks who were involved from the very beginning. Many of the names on Forbes' cryptocurrency rich list belong to this category. They are the true innovators, deeply passionate about the potential of decentralized technology to change the world.
The Tech-Adjacent Advocates
These individuals may not be developers, but they possess a strong understanding of blockchain fundamentals through studying whitepapers. They believe fervently in the technology's transformative potential and often joined during the early or mid-stages, accumulating capital through mining and early investing.
The Capital Speculators
As the financial attributes of Bitcoin and other cryptocurrencies grew, institutional investors and speculators flooded in. This group, armed with significant capital, amplified the market's speculative nature. It includes everyone from inexperienced "retail investors" (often called "bagholders") to knowledgeable traders and, unfortunately, scammers and pyramid schemes.
The core crypto community remains relatively small, united by a belief in decentralization and the revolutionary potential of blockchain. This belief sometimes borders on religious fervor. Yet, they are also acutely aware of the technology's current limitations.
The most significant contradiction is that the supposedly "decentralized" crypto assets are following the Pareto principle, becoming increasingly centralized. It is rumored that nearly 40% of all Bitcoin is held by roughly a thousand wallets, creating a pronounced oligopoly. Newcomers must be cautious to avoid being exploited by these large holders.
Frequently Asked Questions
What is the main draw of cryptocurrency for most people?
For many, the primary attraction is the potential for significant financial gain in a relatively short period. Beyond the wealth effect, there is a strong undercurrent of technological FOMO (Fear Of Missing Out)—a desire to understand and be part of a potential paradigm shift in how the world handles data and value.
Is it too late to get involved with Bitcoin and blockchain?
While the era of mining Bitcoin on a home computer is largely over, the technology itself is still in its early stages of application. Many believers argue that understanding blockchain is essential, as its applications will extend far beyond just cryptocurrencies into supply chains, healthcare, and governance.
What is the biggest risk for a new investor?
The extreme volatility is the most apparent risk. Prices can swing dramatically based on regulatory news, technological developments, or market sentiment. Furthermore, the space is still a frontier market, rife with projects that have no real utility ("air coins") and sophisticated scams designed to separate investors from their money. 👉 Explore secure trading strategies
How can someone start learning about blockchain?
Begin with the foundational material, like the Bitcoin whitepaper. From there, numerous online resources, courses, and communities are dedicated to blockchain education. Focus on understanding the core concepts of decentralization, distributed ledgers, and smart contracts before making any investment.
What’s the difference between investing and speculating in crypto?
Investing typically implies a long-term belief in the underlying technology and its value, with a strategy based on holding assets through market cycles. Speculating is more focused on short-term price movements to turn a quick profit, which is far riskier given the market's volatility.
Are there legitimate blockchain projects beyond Bitcoin?
Absolutely. Bitcoin was merely the first application. The Ethereum network introduced smart contract functionality, enabling a vast ecosystem of decentralized applications (dApps). Other projects are tackling issues like decentralized storage, compute power, and cross-chain interoperability.
The stories from Chengdu reflect a global phenomenon: a mix of frantic energy, ambitious dreams, and sobering realities. While the promise of life-changing wealth is a powerful lure, it is matched by the risk of significant loss. The technology itself holds immense promise for creating more transparent and efficient systems, but its financial markets remain a wild frontier. The key is to approach with cautious optimism, prioritizing education and risk management above the fear of missing out.