Bitmain CEO Jihan Wu’s 2020 Commentary on the Halving and Mining Machines
Jihan Wu, now back at the helm of being the CEO of Bitmain, just yesterday took a video interview in Chinese and expressed his thoughts on the cryptocurrency prices, the upcoming Bitcoin halving and the mining industry.
Global Coin Research went through the interview and highlight some of his comments that stood out to us:
- Optimistic about the Market: Back in 2019 at a Bitmain conference, Jihan expressed his uncertainty of the halving in driving up Bitcoin prices in 2020. Subsequently, he restructured the team in early 2020 in anticipation of the uncertainty, and thus far, we are indeed seeing an unpredictable market going into the halving. This time, he emphasized that when looking at the Bitcoin market at the end of 2019, the uncertainty of the cryptocurrency prices in 2020 was clearly greater. The uncertainty is potentially driving Bitcoin prices to the extreme, so we are seeing the fluctuations in price in 2020 to be far more intense.
- Optimistic about Coronavirus Effect on Bitcoin: During this most recent interview, Jihan said he was optimistic about the cryptocurrency price. There are two reasons and they are as the following:
- According to his observation of China and the neighboring countries, he believes that the Coronavirus can be put out in about two months of time.
- Secondly, he is optimistic as he sees that countries around the world are adopting large, quantitative easing monetary policies, which should bold well for Bitcoin and crypto prices.
- Change in Bitcoin ownership: Jihan mentioned that with the increase in the number of Bitcoin users, the volatility of Bitcoin has decreased. This has subsequently made the price of Bitcoin more stable, so it doesn’t rise as quickly as it used to. He suggests that Bitcoin’s price trend will tend to rise slowly, and reaching the peak by the next bull market.
- On the halving’s effect on Bitcoin prices: Jihan believes that the halving and bull market may not be synchronized this year, and the bull market may be pushed back.
- S19 Machine Power: Bitmain’s new mining machine S19 became on sale for the first time on Bitmain’s official website starting on March 23rd, and it reportedly sold out in 2 minutes. Jihan has a lot of confidence in the machine, as he specified that Bitmain has returned to a customer-centric focus, a change from its previously self-absorbed nature. He believes that under a slow bull market condition, the S19 can remain relevant for 3-4 years.
- Prospects of BCH: Wu Jihan expressed the hope that BCH to do well in the immediate future. He wants the team to execute on the technology roadmap. Should the technology architecture be kept simple, and the communities are maintained well with minimized conflict, the prospect for BCH is promising.
- Outlook for Matrixport: As our readers know, in early 2019, Jihan and former Bitmain investment director Yuesheng Ge founded Matrixport, a one-stop crypto financial service provider that integrates trading wealth management, lending, and custody. In discussing the future prospects of Matrixport, Jihan cited data that demonstrated crypto users will increase from 50 million to 500 million in the future. These users will have new needs and they will need services that will be simple and easy to use. While many service functions in the crypto space are catered to professionals and crypto-savvy customers, Matrixport will be more focused on ordinary users and have a more grounded consumer product.