Bitcoin Miners address the bearish market, new entrants and IPOs
The milestones marked by the crypto market late last year have foreshadowed its performance this year. Every upswing and downturn of the market is compared to the $19,783 valuation achieved in last December.
However, Bitcoin mining executives aren’t too concerned about this year’s market slump. During Coin Desk’s Consensus Singapore 2018 event, several miners gathered to voice their opinion of the year’s market fluctuations, increasing competition and future methods of finance.
Alex Ao, founder of Chinese firm Innosilicon - one of the first Bitcoin ASIC makers in 2014, said that he plans on increasing his efforts because the current bear market is good for the mining business.
He stated, “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.”
Also present at the conference was Henry Monzon, chief revenue officer of Bitcoin miner maker Bitfury, who said that the mining market is maturing. On expanding Bitfury to other networks, Monzon said, “it’s too early to decide on going to other cryptocurrencies.”
Monzon also cautioned that the mining industry shouldn't be “overly concerned” that veteran chip makers like NVIDIA and Intel have entered the market. He further added that crypto-specific companies will have an advantage over new entrants as the design requirements for crypto chips are different from traditional ones.
The market might be mirroring the previous cycles of fluctuations but the market players aren’t relying on old tricks. Several crypto-miners are moving forward and maturing; some are even looking to initial public offerings (IPOs) to raise funds.
Xin Xu, CEO and co-founder of Ethereum mining pool SparkPool, said the mining industry is “starting to get into the public’s eyesight”, signaling an outgrowth for the industry beyond the regular cryptocurrency market.
IPOs pave the way for more funds and greater coverage, but some speakers were still skeptical on such a move. Bing Lin, CEO and co-founder of investment fund C Block Capital Group, said that after doing due diligence, he concurred that miners waste money on needless things like research and development on aspects like Artificial Intelligence (AI) and Internet of Things (IoT).
He added, “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.”
Alex Ao, summed up this concern by stating, “if you truly believe in Blockchain, you would continue to be creative without the constraints after going for public money.”
Image via Shutterstock
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