Even though the vast majority of cryptocurrencies will certainly vanish, Jihan Wu, co-founder of Bitmain Technologies, previously the largest provider of cryptocurrency mining equipment, believes that those that remain would likely grow exponentially.
Bitmain Technologies, which specialized in mining rigs for the emerging bitcoin mining sector, was co-founded by him. Bitmain, which had a 75 percent market share of the sector at one point, expanded in lockstep with bitcoin’s price.
Bitmain, on the other hand, had its stock price plummet by 70% as a result of the bitcoin meltdown. Since then, the company has regrouped and has returned to profitability. In order to satisfy regulatory concerns, it is now designing less energy-intensive mining rigs.
Wu left Bitmain early this year to focus on his responsibilities as chairman of two other companies. The first is a cryptocurrency mining platform, while the second is a financial services organization.
Wu’s financial services startup, Matrixport, is geared to capitalize on the expected expansion of cryptocurrency and blockchain. Wu predicted that the combined value of crypto and blockchain would reach tens of trillions of dollars in the future. Many of these new users will remain in the crypto market indefinitely, necessitating the development of innovative and sophisticated tools to help them manage the money they amass in crypto assets.
Although the crypto business is troubled by challenges, Wu believes that the innovations emerging from it will enable it to evolve far more swiftly than the present financial system, which is hampered by regulations and limits. DeFi, he remarked, is a breath-taking concept. Crypto and blockchain technologies have ushered in a new era, allowing fintech entrepreneurs to achieve significant success. Moreover, established financial institutions and authorities will eventually accept blockchain technology.