Bitmain Jihan Wu: Bear Market May Continue, but won’t Last More Than 2 Years
November 19, Jihan Wu, co-founder of Bitmain, the strong backer of Bitcoin ABC, has emphasized his confidence in the future of Bitcoin Cash (BCH) and PoW (proof-of-work) mining at the Nikkei/CNBC “Future of Money” event in Tokyo.
As the ongoing battle between Bitcoin ABC and Bitcoin SV parties, the future of BCH becomes ambiguous. However, Wu still believes Bitcoin ABC would be more comprehensive and more successful in the future as it is driven by the community. Wu also expressed that he has “huge confidence in the future of BCH” despite the recent mess.
Wu also used this opportunity to take a shoot at nChain’s Craig Steven Wright over the recent BCH fork split between Bitcoin ABC and Bitcoin SV as the battle leads to a significant crypto market crash:
“Craig Wright, the self-claimed Satoshi — fake Satoshi in my humble opinion, has attempted a 51 percent attack on BCH… Bitcoin SV only has two developers, who write very buggy code.”
Wu indicated that Wright should take full responsibility for the chaos and no one should try to “take the community by force”.
Furthermore, the moderator for the event asked Wu about the energy issues of the PoW protocol, Wu answered that:
“The (current) banking industry uses lots of computers and consumes a lot of energy…Human society has to work with money… there needs to be a market. So it all serves a purpose.”
Meanwhile, Wu did add that developers should still try to optimize energy use through methods like energy-saving algorithms and some more efficient machines.
While talking about PoS, Wu acknowledged that the protocol still had a role to play as it has a high transaction throughput.
However, he also highlighted two risk issues of it: one is that PoS miners could mine multiple blockchains simultaneously without having to choose a side. The other is the “long-range attack”, where the big stakeholders could sell their coins to the third party, that may give them instant power over the network.
To the ongoing IPO process, Wu refused to disclose any further information due to the legal provisions, but he indicated that if they succeed in IPO, it will be a good opportunity for financial institutional investors and may improve the transparency and robustness of the virtual currency industry.
In addition, Wu also gave his prediction on the future of the crypto market. He believes that the bear market may continue, but it won’t last for two years or any longer.