Bitmain co-founder and former CEO Jihan Wu has predicted bitcoin’s price will continue to rise, even if a bull run fails to materialize in relation to the next halving.
While many analysts have predicted BTC is going to retest its previous all-time high at some point before the next halving event, which is set to occur in May 2020, Jihan Wu believes the price increase will be more subtle. As opposed to the markets experiencing another massive bull run, such as the one which characterized the final quarter of 2017, Wu thinks BTC’s price increase will be gradual.
Bitmain’s former CEO told audience members at the World Digital Mining Summit held in Frankfurt, Germany that bitcoin is in a short-term price correction. He also recommended miners to continue investing in the efficiency of their equipment to cope with the halving event which will cut block rewards by 50%,
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 continuing 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.
While the US Securities & Exchange Commission (SEC) delivered a blow to bitcoin by denying the lastest round of ETF proposals, Wu says the crypto markets have experienced impressive growth even without government support.
Wu’s comments follow on Bitmain’s announcement to launch two new mining rigs in the Antminer 17 series, which will improve upon both the hashing rate and power efficiency for miners.
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