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Jihan Wu says the crypto market will grow to tens of trillions of dollars

By:
on Dec 23, 2021
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  • Per Jihan Wu, the crypto industry will continue thriving even if 95% of the current coins vanish.
  • While he considers his exit from Bitmain a tough decision, Wu now runs BitDeer and Matrixport.
  • Despite Matrixport launching during a bear market in 2019, the company has proved profitable.

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Jihan Wu, Bitmain’s co-founder and a crypto entrepreneur, believes the crypto market will continue growing to reach tens of trillions of dollars. He aired his opinions during an interview on December 23, saying the crypto market is volatile, but the sector’s growth will outweigh the price fluctuations. He further noted that even if 95% of the coins vanish, the remaining 5% will grow massively.

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During the interview, Wu highlighted his journey with Bitmain Technologies, explaining how he discovered Bitcoin (BTC/USD) a decade ago and recognized its vast potential after seeing people use the cryptocurrency to purchase hardware and IT services in online forums like Bitcointalk.org. While the industry was promising at the time, he noticed the industry needed some improvements.

As a result, he started working on a solution that would play a pivotal role in BTC’s development. He teamed up with Micree Ketuan Zhan to launch Bitmain Technologies to help manufacture mining rigs. As BTC’s price rose over the years, the mining industry boomed, making both Wu and Zhan billionaires.

By 2018, Bitmain became the largest supplier of mining rigs before BTC’s value plunged by 75%. This crash came as Bitmain was preparing to go public in Hong Kong. As a result of this strain, Wu and Zhan struggled for power.

However, this did not prevent the company from being profitable because Bitmain is still the largest crypto mining rig manufacture despite the recent ban in China.

Crypto businesses continue proving profitable

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Talking about the drift between him and Zhan, Wu said,

That was a tough period for our business and for me. And of course, the pressures of running a complex manufacturing business built up and eventually led to a falling out between us two co-founders.

Although Wu moved on from Bitmain to become the chairman of Bitdeer Technologies and Matrixport at the beginning of the year. At the moment, the companies are valued at $4.00 billion (£2.98 billion) and $1.00 billion (£0.75 billion), respectively.

Notably, Wu launched Matrixport alongside John Ge Yueshengin in 2019 when BTC was in a bear market, showing his commitment to the crypto industry.

Explaining the decision to launch a crypto company amid a bear market, Wu said,

We believed that crypto and blockchain together would experience rapid growth in the future to tens of trillions of dollars. And many of these new users will stay in the crypto market forever, so they’ll need advanced and sophisticated products to manage the wealth they accumulate in crypto assets.

This bullish outlook has paid out, considering the crypto market cap swelled immensely to hit an all-time high of $3.00 trillion (£2.24 trillion). The number of crypto users also increased to 221 million in the first half of 2021.

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