Despite all of the financial chaos being witnessed by the global crypto sector at the moment, Jihan Wu, the CEO and co-founder of Bitmain, has continued to show his support for Bitcoin Cash (BCH) as well as the proof-of-work (PoW) mining protocol.
While delivering a keynote talk at the Nikkei/CNBC hosted event called the “Future of Money” in Tokyo, Wu spoke about many of concerns that currently surround BCH’s recent hard fork as well as the growing issue of energy consumption within today’s crypto mining industry.
Wu: “Miners Will Play A Larger Role Within The Crypto Ecosystem Moving Forward”
Talking about the current state of the cryptocurrency mining industry, Wu made it abundantly clear that the altcoin ecosystem ”had [definitely] become more and more industrialized and professional since its inception”. However, over the course of the coming decade, Wu believes that miners will start to branch out into other niche areas such as coding and protocol development.
Also, in true fashion, Wu continued his beef with nChain’s chief scientist Dr. Craig Wright, who is one of the primary agents responsible for the recent BCH fork split (into Bitcoin ABC and Bitcoin Satoshi’s Vision), by calling him a ‘fraud’. As things stand, both BCH ABC and BCH SV are embroiled in a ‘hash war’ which will eventually determine which one of the two entities gets to use the BCH ticker symbol and logo.
In regards to Wright, Wu stated:
“Craig Wright, the self-claimed Satoshi — fake Satoshi in my humble opinion — has attempted a 51 percent attack on BCH “He’s quite a different kind of personality … Wright should take full responsibility for the chaos. Bitcoin SV only has two developers, who write very buggy code,”
Wu: “Stop Blaming PoW For Everything, Even The Banking Industry Consumes A Lot Of Energy”
During the Q&A half of the discussion, Mai Fujimoto, the moderator for the event, asked Jihan about the energy issues that currently exist in relation to the PoW protocol.
Wu’s response was curt and to the point:
“The (current) banking industry uses lots of computers and consumes a lot of energy,” he said. Human society has to work with money … there needs to be a market. So it all serves a purpose.”
With that being said, he did add that the crypto sector still has to work towards optimizing its energy usage by making use of newer, more energy-efficient algorithms.
Pos vs PoW
Talking about why he favours the Proof-of-Work protocol over Proof-of-Stake, Wu stated that PoW has “proven itself” over the years, especially in terms of securing cryptocurrency networks and solving differences over governance.
While talking about PoS, Jihan Wu noted that the protocol came with its fair share of “unsolved problems and risk factors that remain to be solved till this very day”. If that wasn't enough, he also brought to light two other key risks currently associated with PoS. These include:
- PoS miners can currently “mine multiple blockchains” simultaneously without having to choose a particular side.
- Another issue with the PoS protocol is that of “long-range attacks”, wherein a network’s primary stakeholder can potentially sell his/her altcoin holdings to a nefarious/ third-party agent, thereby giving them complete control over the currency’s native ecosystem.
However, despite all of its issues, Jihan did mention that PoS still had a role to play in the larger scheme of things, especially since the protocol has a high transaction throughput.
As the altcoin industry continues to face immense bearish pressure with each passing day, Wu continues to remain highly confident that premier digital currencies such as Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) will eventually bounce back and once again scale back to where they once were (monetarily).