Ex-Bitmain CEO Jihan Wu Goes Anti-Moon, Thinks Bitcoin Halving Won’t Lead To A Bull Market
Right now Bitcoin Halving is a big topic in the cryptocurrency world. The Bitcoin halving occurs at periodic intervals based on Bitcoin etiquette. The term Bitcoin Halving refers to the block rewards, which the miners get if they find a valid block.
The point where new coins are created means the money supply rises by a projected amount, but this does not inevitably rise in inflation. If the supply of money grows at the same rate that the number of people utilizing it rises, rates remain constant.
If it does not grow as fast as demands, there will be deflation and early holders of money will see its value rise. Coins have to get originally allocated somehow, and a fixed rate looks like the most suitable formula. The 2020 bitcoin mining halving is set to make the block rewards go from 12.5 BTC to 6.25 BTC and will user in a whole new era of bitcoin as over 85% of the bitcoin will be in circulation at that point. In 2012 it went from 50 BTC to 25 BTC, then in 2016 dropped from 25 down to 12.5 BTC where we are at today. This ‘phenoma' happens every 210,000 blocks and there are 1,800 blocks per day (roughly 144 ten minute increments in a 24 hour time period). The new mining rewards phase is also making new mining equipment upgrade too which will have an impact on the greater ASIC ecosystem.
The former CEO of Bitmain thinks that now is a good time to invest in crypto mining but bitcoin halving might not trigger a bull run.
“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 continue to invest in mining equipment. We are currently in a short-term correction of price. 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.”
It is important to note that during the last Halvening, the Bitcoin price didn’t really fluctuate. Although, some blame the 50 percent price rise (from $435 to $645) in the three months before the reward cut, with small risk of establishing causation. Apart from that, the network was moderately routine. The overall hash rate stayed the equivalent.