Jihan Wu, the co-founder and chief executive of mining rig manufacturer Bitmain, says he’s optimistic that Bitcoin can perform well this year in spite of the coronavirus outbreak.
In a new interview with the Chinese crypto outlet 8BTC, Wu says central banks’ efforts to combat the impact of the pandemic through bailouts and loose monetary policies could drive the price of all financial assets higher.
But Wu says he doesn’t expect the king cryptocurrency to go on a bull run until well after the May 2020 halving.
“I think the bull this time may not come immediately after the halving. There will likely be a delay in time…
As bitcoin’s market cap grows, its volatility decreases and becomes more stable. That means we may not see abrupt spikes in its price.
No matter how high bitcoin goes, one day it will reach the top. Before that, it will see price [with] flatlining growth with lots of twists in the next few years.”
The chief executive of the Bitcoin mining giant also says he doubts Bitcoin will ever act as a safe-haven asset in a volatile global macro environment.
As for Ethereum, Wu is optimistic about the prospects of the second-largest cryptocurrency. Although he believes Ethereum developers are moving at a slow pace, he says the smart contract platform is “untouchable” with first-mover advantages in areas such as decentralized finance (DeFi).