Bitmain's Jihan Wu discusses 'next phase of growth' post China's crypto crackdown

China’s newest crackdown on the crypto trade had a extreme influence on a number of trade gamers, particularly miners situated in China. Whereas China’s transfer was met with criticism by a number of analysts and different market contributors, the Chinese language co-founder of a well-liked ASIC-chip manufacturing firm, offered a considerably distinctive point-of-view.

On an episode of “The Finest Enterprise Present,” funding professional Anthony Pompliano interviewed Bitmain co-founder and cryptocurrency entrepreneur Jihan Wu. Collectively, they explored the nuances of China’s newest crackdown on crypto transactions and what the market may appear like in 2022.

Wu additionally shared his ideas on who was probably depart China after the crackdown and who may be capable of keep.

China exodus

Whereas most information reviews centered on China’s newest ban and its results on crypto exchanges, Wu tried to current the regime’s perspective. Talking concerning the crackdown, he mentioned,

“However I believe that’s fairly comprehensible as a result of China is kind of a really giant nation with 1.4 billion of inhabitants. And the scenario there was actually sophisticated.”

Wu added that the USA was additionally a “highly effective” authorities wanting into cryptocurrency and its regulation. Nonetheless, as regards to miners, entrepreneurs, and crypto merchants leaving China, Wu famous that there was a gaggle of people that may keep in crypto, even in China. He mentioned,

“…(in a) very brief time, the China retail traders will disappear…they’ll all retreat from crypto and solely these excessive net-worth Chinese language households will keep in crypto.”

One large on the best way out is likely to be Bitmain itself. Stories claimed that the mining {hardware} firm may cease promoting machines to Chinese language patrons and transfer its factories to Southeast Asia.

Furthermore, it’s noteworthy that whereas China was a serious contributor of Bitcoin mining hashpower, the identical dropped drastically after the “exodus.” In keeping with the Cambridge Bitcoin Electrical energy Consumption Index, China’s share of the common month-to-month hashrate fell from 75.53% to 46.04% between September 2019 and April 2021.

Seeking to 2022

Despite current occasions, Wu appeared optimistic about what the approaching 12 months would convey. To show his factors, he spoke concerning the steady token exchanges on Ethereum spreading liquidity, in addition to “trust-building machines” in GameFi and cloud mining.

Extra than simply value efficiency, Wu additionally opined that crypto start-ups would start to have a larger influence on the “actual world.”

He concluded,

“However after this brief interval of downturn, we are going to see [the] subsequent section of development.”

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By Xnode24

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