From auditing at Tsinghua to the mining farm legend: Guo Hongcai's rise and fall in the crypto world

Born in 1983 in Pingyao, Shanxi, Guo Hongcai has experienced over a decade of tumultuous events in the cryptocurrency space. This well-known figure in the crypto world, who calls himself “Master Bao,” once boldly claimed that Bitcoin’s price would eventually reach 1 million yuan. His life trajectory is itself a fascinating history of investing in cryptocurrency assets. From a college entrance exam failure to a mining tycoon, and then to a loser in a bear market, Guo Hongcai has witnessed the entire process of blockchain moving from the fringes to the mainstream, only to be repeatedly tested by the market.

Dream of Beijing and Tsinghua Affection: From Exam Failure to Garage Coffee Enlightenment

In the 2003 college entrance exam, Guo Hongcai scored only 300 points, which seemingly disqualified him from Tsinghua University. However, this young man did not give up; instead, he chose to go north alone, renting a small room at Tsinghua University’s Zhaolan Institute, starting an alternative college life as an auditor. While attending classes, he contemplated how to survive and make money in this city, and his resilience began to show at this time.

In 2013, at the entrepreneurial incubation platform Garage Coffee, Guo Hongcai encountered Bitcoin. The turning point came during a blockchain lecture—one speaker, later hailed as a leader in the crypto space, ignited people’s investment enthusiasm with passion and theory. This speaker was Li Xiaolai. His speech attracted a large number of followers, many of whom later made considerable profits through Bitcoin investments, and Guo Hongcai also began to pay attention to and contemplate the value of blockchain technology during this wave.

Official Entry and Mining Dreams: Strategic Bottom Fishing in 2014

In 2014, Guo Hongcai officially entered the cryptocurrency space. At this time, Bitcoin had experienced a significant decline. As a newcomer, he made a seemingly radical but later proven wise decision—to buy a large amount of Bitcoin while prices were low. Bolder actions soon followed: he invested in building a mining farm in Inner Mongolia, which would later be recognized as the largest Bitcoin mining base at the time.

The mining farm’s returns exceeded expectations. In 2014, the electricity cost for mining each Bitcoin was around 5,000 yuan, and that year, the farm produced 100 Bitcoins. This meant an annual output value of over 500,000 yuan, which was a considerable investment return at the time. Guo Hongcai’s vision and execution ability were initially validated by the market.

Bear Market Trials and International Stage: Persistence and Transformation from 2015 to 2016

In 2015, the cryptocurrency space faced its first massive bear market. Discussions of blockchain technology fell from trending topics to obscurity, and attendance at various blockchain summits dwindled, with many investors going bankrupt and exiting the market. The pessimism spread throughout the ecosystem, but Guo Hongcai chose to persevere and learn. He was not crushed by market sentiment; instead, he used this low period to enrich himself—watching movies to learn English in preparation for the upcoming international stage.

In 2016, Guo Hongcai was invited to attend the globally renowned Davos Forum. On this stage gathering global financial elites, he sat among sharply dressed financial professionals in a simple T-shirt and slippers, explaining major topics like Bitcoin, blockchain, fintech, and national sovereignty in an accessible manner. This speech helped many people re-evaluate this figure from China in the crypto space, and his performance shattered external stereotypes of cryptocurrency believers.

Bull Market Explosion and the Era of Live Streaming: The Pinnacle Moment in 2017

In 2017, the long-awaited bull market finally arrived in the cryptocurrency space. Guo Hongcai’s patience paid off handsomely. That year, he launched a large-scale live streaming event with 100,000 participants, recounting the development and evolution of Bitcoin over the years, injecting a confidence boost akin to a shot of adrenaline for his fans. During the live stream, the accumulated value of virtual gifts like flowers and rockets from viewers exceeded ten thousand yuan, reflecting their recognition of his views.

However, the policy shift in September 2017 disrupted this prosperity. The domestic 9-4 ban was officially issued, and the cryptocurrency market faced strict regulation. Guo Hongcai actively responded to the spirit of the policy by launching the “China Tour” initiative, aimed at helping investors establish a more rational and correct investment perspective. This move reflected his awareness of social responsibility as a representative figure in the industry.

Bear Market Collapse and Painful Lessons: The Truth Moment in 2018

In the first half of 2018, Bitcoin’s volatility became the norm in the market. Insider trading, public conflicts among major players, project parties manipulating prices, and investors fighting for their rights became frequent occurrences, with the excitement in the crypto space even surpassing that of the entertainment industry. But this glamour was illusory.

By the second half of the year, the market entered the most ruthless bear market. Bitcoin prices plummeted, the carefully crafted personas of major players collapsed in reality, countless project teams quietly disappeared, token funds lost everything, and investors faced the dilemma of “ankle cuts” (being deeply trapped). Guo Hongcai was not spared either. A video of him speaking candidly while drunk circulated online, where he admitted to being trapped—he had previously held 600 Bitcoins, and in the process of trying to bottom-fish during the bear market, he lost 400 of them. This figure sparked heated discussions in the crypto space, with some praising his honesty while others used his story as a warning to overly optimistic investors.

A Shift After Multiple Cycles: Guo Hongcai’s New Choices

After experiencing the painful lessons of 2018, Guo Hongcai did not completely exit the crypto market. After 2020, as the crypto space went through several cycles of bull and bear markets, he gradually began new attempts and transformations, shifting more focus to other cryptocurrencies like Ethereum.

Guo Hongcai’s story reflects the overall development trajectory of the crypto space: from the adoration of fringe technology enthusiasts, to the influx of institutional capital, to the adjustment of regulatory policies, and finally returning to rationality. He has grown from a youthful and reckless entrepreneur into an investor who has undergone the repeated trials of the market. In this process, there have been joys of victory and lessons from failures. And this is the shared life experience of Guo Hongcai and all participants in the cryptocurrency market—finding their own place amidst the monumental cycles of ups and downs.