Interviews 20 August 2018CoinGeek
Jihan Wu: ICOs are ‘unsustainable financial bubble’
Bitmain CEO Jihan Wu recently talked cryptocurrencies with CoinGeek’s Stephanie Tower, advising caution to investors eager to make a killing off initial coin offerings (ICOs).
Jihan Wu, in his early 30s, has accomplished much. He was one of the first to embrace Bitcoin Cash (BCH) as faithful to Satoshi Nakamoto’s vision of Bitcoin as a peer-to-peer currency. Wu is responsible for the creation of ASIC chips in 2013 used for mining, and continues to be one of the most prominent personalities in the industry.
As excited as he is at the prospect of cryptocurrencies, specifically Bitcoin BCH, “supporting real economics,” he knows that with much innovation also comes opportunists trying to win the public’s trust with what are ultimately untenable products. Many initial coin offerings (ICOs), as they seek funding for many unproven variations of blockchain technology, will not bring the returns promised by their fundraisers, according to Wu.
“I believe ICOs are kind of an unsustainable financial bubble. It will burst eventually,” he said, adding that many of them differed from traditional public offerings.
Tokens being offered behave with the same volatility as experienced in bubble markets, where there are clear winners, and losers. Wu sees the bubble popping not too long from now, saying, “It’s just a matter of time. I believe it’s just one year or two. Either way, it [the bubble] will just disappear.”
In the future, Wu sees financial assets taking the form of more traditional assets such as stocks, bonds, futures, and options, though the underlying technology behind these will be blockchain. This is in stark contrast to the present bubble for tokens, which are meant to be exchanged at some point with the digital coins being offered.
“Bitcoin Cash should develop its programming languages, scripting languages to support such assets. If we can do it correct and fast, Bitcoin Cash will win the future of a crypto economy,” he said.
Last May, BCH was upgraded to accommodate more transactions with a fourfold increase in its block size to 32MB, and reenabled with OP_Codes to allow it to be used for smart contracts. This, however, is just one upgrade in a continuing process. Already, Antiguan entrepreneur Calvin Ayre, in a CoinGeek editorial, advised the reenabling of additional OP_Codes, and the raising of the block size to 128MB, among other changes to the Bitcoin protocol.
Wu, when asked on the price of BCH in the coming years, was cautious of short-term predictions. “But in three to five years, we do believe that Bitcoin Cash can go up to $100,000 per [coin],” he said.
If you’re interested in helping the growth of merchant adoption of Bitcoin BCH, join the bComm Association, an industry group that intends to be the focal point for miners, merchants, exchanges, developers and members of the BCH community. Developers and merchants of the Bitcoin BCH community will also be on hand for the first CoinGeek Week happening in London in November. Members of bComm Association can avail CoinGeek Week tickets at discounted prices. To purchase tickets or learn more about CoinGeek Week Conference, visit the official website here.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.
Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.
Interviews 21 March 2019
Could the tech giants be under threat from blockchain?
Fintech and blockchain corporate development specialist Ian Dowson believes that increasing volumes being transacted on blockchains every day “illustrate an increasing robustness” in the sector.
Interviews 21 March 2019
Michael Hudson: Money is just a measure of someone’s time and skill
Bitstocks founder Michael Hudson is making a huge step in helping the world understand crypto for experts and non-specialists alike by launching Gravity.
Interviews 14 March 2019
Jimmy Nguyen: Why nChain has filed so many patent applications
The founding President of the Bitcoin Association Jimmy Nguyen elaborates the nChain position in filing patent applications and what the future holds for Bitcoin SV ecosystem.