Jihan Wu, the co-founder of Bitmain, the world’s largest Bitcoin mining hardware manufacturer, recently spoke at an online event where he shared his thoughts on the cryptocurrency mining industry. The conference was hosted by BitDeer.com, a global leader in digital asset mining and cloud service platform, and was launched at the second coming of the annual Wet Season Festival on 21 April 2021.
This year, the company brought together eight of the most respected companies in the cryptocurrency mining space—Mining++, BTC.com, Matrixport, BTC.TOP, PandaMiner, WAYI.CN, and Blocking Tech. The conference kicked off with a keynote from Jihan Wu, who made his first public speech as the new chairman of the BitDeer Group.
Wu began his address by commenting on the current state of the mining industry. He explained that there has been a rising trend in the industry in the past few months and more institutional players have been entering the space. And while Wu didn’t provide any further details as to which companies exactly were expanding their operations to include Bitcoin mining, he recognized that this was an overall positive development for the industry.
“This is good for the industry as it indicates that it’s being increasingly recognized by mainstream finance,” he said. “Be it as a new operational direction for the company or as a new type of financial investment, I believe that more and more big-name companies will continue to enter this industry in the future.”
He also said that he didn’t expect the trend of new companies entering the mining industry to stop anytime soon. With Bitcoin’s price expected to rise in the coming years and more companies using the digital asset as their reserve currency, Wu’s prediction has a very high probability of coming true.
However, Wu also touched on another, less exciting topic during his keynote speech. He said that while he expects the mining industry to grow, he also expects this growth to face many challenges. The first, and probably the biggest challenge the industry and its leaders will have to face is establishing a level of trustworthiness. While growing at an unprecedented pace, the cryptocurrency industry is still minuscule when compared to the world of traditional finance and needs much more support from the general public in order to become more than just a niche.
Wu noted that improving the public opinion of the mining industry will have to begin with customer education. Now more than ever, it’s become increasingly important to educate customers about the risks of cryptocurrencies and the mechanics of the cryptocurrency mining industry. This, he explained, is the only way to help the public truly understand what the industry is all about and remove some of the stigma associated with cryptocurrencies.