Crypto Billionaire, Bitcoin Mining Kingpin Jihan Wu Talks With Fortune About Bitmain
Jihan Wu is one of the youngest millionaires all over the world with just 32 years old. He is the co-CEO of Bitmain, which is the largest cryptocurrency mining firm in the world. The company that is only five years old, has brought in $2.5 billion dollars in revenue, just in 2017.
According to Wu, these results were largely dependent on specialized cryptocurrency-mining, computer chip hardware. At the same time, it has an important cut from the fund that it generates with its dominant position in the cryptocurrency mining market.
Wu and the co-founder and co-CEO, Micree Zhan, own about 60% of a business that has a private valuation of $12 billion dollars.
But Bitmain needs to diversify its activity if it wants to keep growing in the future. At the moment, it has decided to enter the field of Artificial Intelligence (AI), which is also booming alongside blockchain technology. Additionally, Wu and his colleagues are trying to negotiate with regulators to reduce the regulations around the world, but specifically in China – where virtual currencies and activities around them are totally restricted.
Mr. Wu commented:
“We see in the future that negotiating and working with regulators is quite important. We need to push those heavy regulations back a little bit. But we need to work with them, not just try to get around it.”
Old Mining Rigs?
One of the main speculations behind Bitmain is whether they sell older devices to the market before using them to mine virtual currencies. Some users believe that Bitmain develops a new miner, starts working with it, and when they develop a next generation mining hardware, they sell the old ones as if they were new.
About it, Wu said that they do not do that and if they would do so, they would not be transparent with their customers. He explained that if the products they sell would be already used, they would say that to the buyers.
At the same time, Wu stated that they have never mined before they release a miner into the market because that would be not transparent and against Bitmain’s strategy. He mentioned that these rumours are related to a group of individuals that were controlling the hash rate of Monero.
“There’s some kind of group of people that controlled the majority of the hass rate of Monero for a long time,” Wu explained. “I would like to say that to develop such a kind of ASIC is not a kind of secret skill that only Bitmain has.”
For the future, the company will be investing important resources into the research and R&D of mining rigs so as to make sure to maintain an advantage over other competitors.
At the end of the interview, he said that he does not speak so much with regulators, just sometimes when they meet in conferences. Circle, for example, has been talking with regulators much more than Bitmain – which is one of the reasons why it wants to acquire Circle.