Bitmain cofounder Jihan Wu’s recent interview discusses some of his predictions concerning the future of bitcoin, mining, the bitcoin halving, and the cryptoconomy. Despite the coronavirus outbreak and its effect on the global economy, Wu is optimistic and he believes the modern central banks’ loose monetary policy infecting the world will bolster the value of financial technologies.
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Slow Growth and Bitcoin’s Price Top
The cofounder of Bitmain, one of the largest ASIC mining rig manufacturers worldwide, believes that cryptocurrencies show great promise in the midst of the current economic storm. According to a recent interview published on Friday, Bitmain’s Jihan Wu had said he was positive about the future of digital currencies like bitcoin. Wu explained that the recent bailouts and central planners’ stimulus injections could make digital currencies more valuable. During the discussion, Wu noted that the price of bitcoin also has a top and at times growth will be slower.
“As bitcoin’s market cap grows, its volatility decreases and becomes more stable,” Wu detailed. “That means we may not see abrupt spikes in its price. No matter how high bitcoin goes, one day it will reach a top. Before that, it will see prices [with] flatline growth with some twists in the next few years.” Wu also said:
I think the bull this time around may not come immediately after the halving. There likely will be a delay in time.
