Jihan Wu, co-founder of Bitmain Technologies, once the largest supplier of cryptocurrency mining rigs, says that even though the vast majority of cryptocurrencies will probably disappear, those remaining will likely grow massively.
According to an article released today on Forbes, Wu began his cryptocurrency journey back in 2013, after coming to the realisation that more infrastructure was needed to support the emergence of bitcoin.
He co-founded Bitmain Technologies, which supplied specialised mining rigs for the burgeoning bitcoin mining industry. As bitcoin grew emphatically in price, so did Bitmain, at one point having a 75% market share of the sector.
However, a bitcoin crash led to Bitmain suffering a 70% drop in its own share price. Since that time the company has regathered itself and has become profitable again. Now it is building less energy intensive mining rigs in order to attempt to address regulatory concerns.
Wu moved on from Bitmain earlier this year, and now concentrates on his role as chairman of two other companies. One a crypto mining platform, and the other, a financial services firm.
Matrixport, Wu’s financial services company, is designed to take advantage of the projected growth in crypto and blockchain. Wu says:
“We believed that crypto and blockchain together would experience rapid growth in the future to tens of trillions of dollars. And many of these new users will stay in the crypto market forever, so they’ll need advanced and sophisticated products to manage the wealth they accumulate in crypto assets.”
Even though the crypto industry is beset with obstacles, Wu believes that the innovations that are coming out of the industry will help it to develop much more quickly than the existing financial system, with all the constraints and regulation that it suffers. He says:
“Innovations like DeFi [decentralized finance] are breathtaking. Technologies like crypto and blockchain have created a new world, allowing fintech entrepreneurs to make big achievements. Eventually, traditional financial institutions and regulators will embrace blockchain technology.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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