With bearish activity spreading throughout the crypto space as of late, many people are looking for some sort of miracle to sort things out. Many have long believed that the upcoming bitcoin halving – set to take place in May 2020 – is likely to do the trick. Unfortunately, according to Bitmain CEO Jihan Wu, this may not be the case.
Bitmain CEO Predicts a Lack of Bulls
Bitmain is one of the largest – if not the largest – cryptocurrency mining corporations in the world. Stationed in China, the company is facing the threat of shutdown given that China has long considered a ban on crypto mining given the alleged hazards its poses to the environment. At the same time, China has been considering this ban for some time and has not done anything to implement it. Perhaps the country is realizing that it will lose a lot of income if it does such a thing.
Nevertheless, Bitmain has managed to stick around through both good and bad times, having survived the BTC price scare of 2018 that caused the world’s number one cryptocurrency by market cap to lose approximately 70 percent of its value. During that time, mining equipment sales for the company were at an all-time low, as many were concerned about bitcoin’s falling price and interest dropped significantly.
It’s probably safe to say that given the company’s long and arduous journey, its head executive Jihan Wu knows a thing or two about crypto and what it will do in the future. In a recent interview, he’s claiming that the bitcoin halving set for this coming May might not lead to the bull market everyone is expecting.
However, he does mention that the price could potentially grow “long-term.” He suggests that the cryptocurrency’s price maneuvers in “cycles,” and that perhaps mining hardware might make a better investment than the actual currency itself. He states:
There are many uncertainties, but now is a good time to invest in crypto mining. If I were a miner, I would not stop mining but continue to invest in mining equipment. We are currently in a short-term correction of price. Having a long-term perspective is significant. If bitcoin’s price remains unchanged after halving, the efficiency of existing equipment must be improved to balance efficiency and computing power.
Some New Developments
As it turns out, Bitmain is planning to release a new five nanometer mining application in early 2020. The product is set for mass production during the first quarter and will feature “specific integrated circuits” to ensure mining is done faster. Furthermore, he claims that Bitmain is in the process of building “repair centers” that will significantly lessen the time needed to make repairs by the end of this year.
Lastly, Bitmain will connect mining hardware owners with mining farms for education and training purposes.