Innosilicon Bitcoin ASIC Miner Founder Urges Crypto Investors To Remain Upbeat In Current Market Slump
Founder of Innosilicon Urges Investors to Remain Positive, Even with the Current Market Slump
The crypto market has continued on the rollercoaster pattern that it seems to keep perpetuating since it began. Though 2017 ended on a high note, this year has not been as kind, and the industry is presently in a slump. Since this pattern is fairly consistent, there are many executives with Bitcoin mining that are not discouraged or deterred by the current prices.
Alex Ao, who founded the Chinese firm Innosilicon, spoke at CoinDesk’s Consensus Singapore 2018 to encourage the community. His company was started in 2014 when they made one of the first bitcoin ASIC miners, and he sees the mining business as an independent sector that has a patter of its own cycles. Concerning the current bear market, he is taking the opportunity to double down with their mining progress.
“We started out in 2014 and saw the price of bitcoin go up and down over the years, but we still believe in the future. … History always repeats itself and that's the nature of economy,” Ao said.
The chief revenue officer for BitFury, Henry Monzon, agreed with Ao, saying that the mining industry is presently in a state of consolidation that needs to be taken advantage of.
Despite his agreement, Monzon does not plan to use Bitfury’s resources to expand their mining efforts to include cryptocurrencies beyond the current network for now. That does not mean that they never will expand, as Monzon added, “It's too early to decide on going to other cryptocurrencies.” Supporting where their focus lies, BitFury recently took to the media to announce that they have a new Bitcoin ASIC chip.
Taking over the conversation on the mining industry, Monzon added that the traditional chip makers should not be “overly concerned” with the new creators in the space. There are technical and design requirements for traditional chips that are much different from what is required for cryptocurrency. However, this makes for a new advantage in the industry.
The dynamics of crypto mining is evolving, even if the pattern seems the same. Many companies in the mining industry, like Canaan Creative and Bitmain, have already filed applications to go public so that they can offer initial public offerings (IPOs) as well. Bitmain still seems to rule this technology as the dominant creator of mining hardware, but competitors are making it difficult to maintain that role.
With all of these different factors, CEO and co-founder Xin Xu of SparkPool has said that this is just a sign of the maturation of crypto, considering that the mining industry is starting to make an appearance too. Monzon echoes this viewpoint, noting that the connection between mining and crypto networks shows that the mining industry is “starting to get into the public's eye sight.”
There has been a lot of talk from mining companies, but the investors’ side is equally important in this situation. The CEO and co-founder of C Block Capital Group, Bing Lin, said that he believed that most mining firms are spending the profits on the research and development to tech that does not apply to them. He specifically referenced artificial intelligence and the Internet of Things, adding,
“That's like investing in the sesame, not the steak. I don't feel that being listed necessarily gives you an advantage. Money is not necessarily the only driver.”
Ao added onto Lin’s comments, saying, “If you truly believe in blockchain, you would continue to be creative without the constrains after going for public money.” This seemed to be a reference to the mandatory disclosure of earnings for the public firm.
One of Monzon’s concerns is that a crypto mining firm could establish an IPO in 2018. However, he quickly added, “I don't think Bitmain's business model is even sustainable.”