Historically, the price of Bitcoin has always feared extremely well after a mining reward halving event. The next event is less than 50 days away and the predictions about its effect raged on through the first two months of 2020. But all that changed as the Covid-19 pandemic struck and crippled much around our global society.
The halving has now become less of an event in the eyes of many, and its impact on the price of Bitcoin is even more confusing and uncertain. The global financial space is in a state of flux, and cryptocurrency’s role in the future is also at an interesting juncture.
The co-founder of Bitmain, one of the largest ASIC mining rig manufacturers in the world, Jihan Wu, is of the opinion that cryptocurrencies show great promise in the midst of this current economic crisis. In a recent interview, Wu had said he was positive about the future of digital currencies like bitcoin. Wu explained that the recent bailouts and central planners’ stimulus injections could make digital currencies more valuable.
A delayed Bull run
For Wu, the maturation of Bitcoin in a time where global financial systems are under pressure will help it grow and cement its place in the future, but the immediate action after the halving may have a delay on it.
“As Bitcoin’s market cap grows, its volatility decreases and becomes more stable,” Wu explained. “That means we may not see abrupt spikes in its price. No matter how high Bitcoin goes, one day it will reach a top. Before that, it will see prices with flatline growth with some twists in the next few years.” Wu also added:
“I think the bull this time around may not come immediately after the halving. There likely will be a delay in time.”
Bitcoin as a safe haven?
Wu then detailed that he doesn’t think Bitcoin can act as a “safe haven in a volatile world.”
“However, Bitcoin and the financial markets, in my eyes, are a bit like the relationship between a surfboard and wave. How well you can surf depends on your skills,” Wu said.
He then went on to explain the latest round of next-generation miners Bitmain recently revealed. Bitmain unveiled two Bitcoin miners with max speeds up to 110TH/s per unit on February 27. The mining manufacturers cofounder believes these next-generation miners will serve the market for at least 3-4 years.