Guo Hongcai's Decade of Exploration in Bitcoin: From Tsinghua Auditing to Market Witness of Mining Deployment

When it comes to early legends in the crypto world, the name Guo Hongcai is always hard to avoid. Known as “Second Uncle Bao,” this investor has expressed optimistic long-term views on Bitcoin in multiple public forums. His experiences record, from another perspective, the development trajectory of China’s Bitcoin industry.

From Failing the College Entrance Exam to Tsinghua Auditing: An Unyielding Path

Born in 1983 in Pingyao, Shanxi, Guo Hongcai scored only 300 on the college entrance exam, seemingly signaling a certain life outcome. However, he refused to give up and chose a different path—heading north alone, renting a small room in Tsinghua University’s Zhaolan Courtyard, and beginning to audit courses there. During the day, he attended lectures and studied economic theories; at night, he pondered how to create value. This experience laid a solid ideological foundation for Guo Hongcai.

In 2013, Guo Hongcai encountered Bitcoin, a pivotal moment. At that time, Garage Coffee was just an incubation platform for startups, and a person later dubbed the “Pyramid Scheme Master”—Li Xiaolai—gave a speech on blockchain there. This speech gained many supporters, who later achieved considerable gains in the market. This event also marked Guo Hongcai’s continued focus on digital assets.

Mining Deployment and Early Accumulation

In 2014, Guo Hongcai officially entered the digital asset field. That year, Bitcoin experienced a significant dip, and Guo seized the opportunity to buy大量 Bitcoin. More importantly, he invested in building a large Bitcoin mining farm in Inner Mongolia, recognized by the industry as one of the largest mining facilities in the world at the time.

Based on cost data from that period, the electricity cost to mine one Bitcoin in 2014 was about 5,000 yuan. The farm produced 100 Bitcoins in its first year, representing substantial asset accumulation at the time. During this period, Guo demonstrated a deep understanding of the economics of mining—knowing that mining essentially converts electricity into digital assets, and that cost advantages determine competitiveness.

Persistence and Learning During the Bear Market

In 2015, the crypto market entered a prolonged bear cycle. Attendance at blockchain summits plummeted, and many retail investors exited after sustained losses. This period tested the psychological resilience of all market participants. Guo Hongcai did not give up; instead, he used his free time to self-educate—watching movies and learning English to broaden his horizons.

In 2016, Guo was invited to attend the Davos Forum. On this global stage of elites, he wore a simple T-shirt and slippers, sitting among sharply dressed financial professionals, fluently discussing cutting-edge topics like Bitcoin, blockchain, and fintech, as well as their relationship with national sovereignty. His performance broke stereotypes about crypto insiders and showed his progress in international expression.

Market Turning Point in 2017 and Personal Revival

In 2017, Bitcoin’s market began to rise, and Guo Hongcai’s moment arrived. That year, his life seemed to accelerate.

In August, Guo organized a large-scale live broadcast with over 100,000 participants. During the event, he detailed Bitcoin’s development over the years, reinforcing viewers’ understanding of its long-term value. The event also brought him substantial tips, including gifts worth over ten thousand yuan.

In September, after domestic regulators issued the September 4th ban, Guo actively responded by launching the “China Tour” to help investors establish scientific and rational investment concepts and promote healthy market development.

2018 Bear Market Challenges and Reflection

In the first half of 2018, Bitcoin experienced intense volatility, with frequent insider trading, project defaults, retail investor rights protection incidents, and the crypto scene surpassing entertainment in popularity. In the second half, Bitcoin’s price continued to decline, causing many industry insiders’ personal reputations to collapse and investors to suffer losses.

Guo also faced tests during this bear market. In August, a video of him drunk and speaking candidly circulated widely online. In the video, he admitted to repeatedly buying the dip during the bear market, ultimately losing 400 Bitcoins (from a holding of 600). Though somewhat awkward, his honesty and rational understanding of the market were evident—no investment decision is foolproof, even for experienced market players.

Later Transformation and Market Adaptation

After 2020, having experienced multiple bull and bear cycles, Guo gradually adjusted his investment strategies and market focus. He began paying more attention to opportunities in other mainstream digital assets like Ethereum, continuing to seek value in this rapidly changing market.

Guo Hongcai’s ten-year journey reflects, to some extent, the entire process of China’s Bitcoin industry from inception to development and regulation. He has experienced peaks and troughs but has always maintained observation and learning. This resilience and adaptability are essential qualities for survival in the volatile crypto market.