Head of GSR Asia Pacific: Enhancing awareness of risk hedging among crypto mining participants is one of the signs of market maturity

Song Zhengxin, head of the Asia-Pacific region of GSR, said at the online video summit of the “World Digital Mining Conference” that the issue of “how miners should choose appropriate financial instruments” said that Bitcoin is going through a stage of development similar to the commodity market in the early 20th century. At present, miners are mainly composed of high-net-worth individuals and small organizations. Miners and oil companies are actually very similar. They are both commodity producers, and their income and costs are constantly changing. “Our advice to miners is the same as that for oil companies. We must hedge risks, but we do n’t need to hedge all output. At least we should take out the price of electricity and wages to lock in the selling price, so that we can guarantee Covering the fiat currency standard cost, there will be no loss or downtime, the rest can be hoarded for a long time, wait for the price of the currency to rise and then sell, and increase the overall yield. ” He also said that the 312 extreme market brought a reshuffle of the digital currency market, but every storm in the financial market will bring a crisis, which proves that miners should adjust their mentality and should not make subjective judgments on currency prices, but should pursue Long-term stable income. “We see that the entire industry participants are constantly raising awareness of risk hedging, which is one of the signs that the market is maturing.” GSR was established in 2013 and manages billions of dollars in digital assets through a self-developed digital asset trading system. The team members are from traditional financial and technology companies such as Goldman Sachs, Oracle, and IBM. GSR stated that it will enter the Chinese market for the first time in 2019 and hopes to bring traditional financial service solutions to the mining and currency circles.