Jihan Wu: investing in mining is more profitable than just buying cryptocurrencies
Bitmain co-founder shared important insights
Jihan Wu, one of the key people behind the creation and development of one of the world's leading mining companies Bitmain, shared that investing in mining is more profitable than just buying cryptocurrencies. On World Mining Summit on October 8-10 in Frankfurt (Germany) Jihan Wu told that investing in the extraction of cryptocurrencies, as well as directly in the purchase of mining equipment, on the long-term planning horizon seems to be an even more profitable investment step than buying cryptocurrencies.
The Chinese company Bitmain intends to also help miners survive the halving in the Bitcoin blockchain, which is expected in May 2020. The fact is that according to Wu, one should not expect that Bitcoin will automatically adjust upward in price when the reward in the network of the oldest cryptocurrency decreases. According to his estimates, even if this happens, you need to be prepared for the fact that high volatility can nullify the growth.
In such a situation, miners just need to upgrade equipment on time. In particular, Wu talked about two new products for miners - machines that have more chips
As a result, customers are now available S17 + with a workload of 73 TeraHash and T17 + with 64 TeraHash. Thus, more powerful mining equipment will make it easier for miners to go through the period of low prices for Bitcoin, which was in the past and which will certainly be repeated in the future.
It is worth noting that Bitmain also provides educational support to miners, and the company itself plans to enter an IPO.
According to global marketing director of Bitmain:
“Until today, the transfer of knowledge in the mining sector has not been systematic. The opening of ATA is due to the fact that there is an urgent need for this, and Bitmain intends to help ensure that generally accepted standards are established in the field of mining, which will ultimately contribute to the sustainable development of such entrepreneurial activities, as well as increase confidence in when a business is mining cryptocurrencies".
Bitmain maintains a leading position in both the field of Bitcoin mining and the production of mining equipment for the extraction of this cryptocurrency. Currently, 77% of all Bitcoin mining capacities are concentrated in China. The summit also confirmed the launch by Bitmain of a new information product for miners. This is the first platform in the world that will connect the owners of mining machines with the owners of mining farms in a communicative and technological way. The platform is called the World Digital Mining Map (WDMM).
The new platform will become an important tool for finding the optimal location for mining equipment, when a number of factors will be taken into account, including the cost of 1 kWh of energy, as well as the amount of commission for placing capacities on a particular mining farm.
According to Matthew Wong, Director of Mining Farms, Bitmain: “WDMM will help make cryptocurrency mining more resilient from a long-term perspective.”
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