Jihan Wu has painted a more subdued picture of the next block halving in which miners will only get half of the block reward they are getting right now as part of a process to make Bitcoin more valuable as its hard limit of 19 million coins approaches.
Normally, Bitcoin halving is associated with at least a short-term bull run as the digital currency becomes more scarce in the short term as miners don’t get the required number of Bitcoin from mining to supply the market with new coins and thus there is a gap between supply and demand. The last block halving was done back in May 2016 and now next year will see the latest Bitcoin halving being pursued by the entire community as a form of consensus.
But Jihan Wu, the co-founder and CEO of Bitmain, the largest Bitcoin mining chip manufacturer in the world doesn’t believe that there will be a bull market in the immediate aftermath of the Bitcoin halving next year but he does believe that in the long-term the market will become bullish and the price will increase consistently.
Wu was speaking during a panel interview at World Digital Mining Summit in Frankfurt Germany and was reported by Chinese news agency 8BTC. There are several opinions out there regarding the situation of the market during the next block halving but nobody is sure till it actually happens.
Image Courtesy: Pixabay.com