Bitmain CEO Claims Bitcoin Halving May Not Spark Bull Run
Analysts and investors alike have long looked towards Bitcoin’s halving as a potential catalyst that could spark the next massive parabolic rally and usher in a new era of growth for BTC and the aggregated crypto markets.
It is important to note, however, that one prominent figure within the Bitcoin mining industry is now noting that miners should prepare for the possibility that the halving will not propel BTC’s price higher.
Bitmain Founder: Now is a Good Time to Invest in Bitcoin Mining
Jihan Wu, the co-founder and CEO of Bitmain, spoke about the upcoming Bitcoin halving during a speech at the World Digital Mining Summit in Frankfurt, Germany, in which he explained that he believes now is a good time to invest in crypto mining, while also noting that the current correction that Bitcoin is caught in is “short-term.”
“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,” Wu noted.
The correction that Wu is referring to is likely Bitcoin’s recent drop below $10,000 that sent its price reeling down to recent lows of $7,800, which is where it has consistently found support over the past couple of weeks.
Moreover, Bitcoin is also trading down significantly from its year-to-date highs of $13,800 that were set in late-June, and it has shown few signs in recent times of gaining any momentum to climb back towards these highs in the foreseeable future.
Jihan Wu Claims Halving May Not Spark Massive BTC Uptrend
Bitcoin’s upcoming mining rewards halving – which is currently set to occur in early-May of 2020 – has been widely look towards as an event that will spark another parabolic uptrend.
During the same speech, Wu explained that miners should prepare for a lackluster response to the halving next year, and that a failure for BTC to surge after the event will require miners to find ways to increase the efficiency of their existing equipment.
“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,” he explained.
Only time will tell as to whether or not this event will truly impact the trajectory of the markets, but history shows that this event has always been directly followed by parabolic uptrends.
Featured image from Shutterstock.
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Cole Petersen, Khareem Sudlow
