The Bitcoin miners are going through an adamant time at present. In fact, 2022 has been a tough year for the entire crypto market. Especially the situation of Bitcoin is especially critical. In fact, the problem of BTC seems to suggest that the bear market will not be over so quickly. The decline in the price of cryptocurrencies also means a decline in the profit of the Bitcoin miners. In addition, the regulatory action by the United States lawmakers requesting energy consumption data from four major BTC mining companies will surely worsen the situation.
However, even in such a problematic situation, most Bitcoin miners have shown up a brave and optimistic spirit while speaking about the short-term and long-term price prospects of Bitcoin. In fact, in an interview with the Cointelegraph, Edward Lu, the senior vice president of Canaan spoke about the maturation process of the Bitcoin miners. If you wish to know more about what Lu said, this article is the perfect stop for you. Keep reading this article for more details about Lu’s comments.
What Edward Lu Said
Recently, Ray Salmond, the head of markets at Cointelegraph interviewed Edward Lu. The remarks made by Lu during the interview may be summed up under the following heads:
What is Happening in The Mining Industry?
Ray Salmond began the interview by asking Lu about his opinion on the happening within the mining industry. To this question, Lu stated that there are various things happening within the industry in recent times. He then talked about the position of Bitcoin and stated that he expects the price of Bitcoin to rise a little by the end of this year. Talking about the mining market, Lu added the mining markets of China and the U.S., with the U.S. emerging as a hotspot of mining activities.
Condition of Miners
Edward Lu sounded optimistic while talking about the Bitcoin miners and the mining industry as a whole. He claimed that the mining industry is a healthy and profitable one. However, at the same time he admitted the “small drop”, and the increase in the energy price. In fact, he claimed that in the case of APEX, OPEX and the profitability of the mining industry, there are various things combined together.
Rewards and Profits
Edward stated that Bitcoin’s design is such that the reward will get halved every four years and as a result, the rewards will become less and less. However, he denied believing that fewer rewards mean less profit. He argued that in spite of rewards declining, the mining industry remains still profitable and healthy. He reemphasized the fact that profit depends on various factors.
ASICs
Lu strongly declined to believe that ASICs “must become more powerful and therefore use more power”. He rather stated that the consumption power versus the terahash is lesser. He also stated that compared to the earlier machines, the efficiency of the recent machines is going down steadily.
Other Comments
Lu emphasised the evolving nature of the mining industry. He further added that he strongly believes in Bitcoin being an asset. He also focused on the fact that the Bitcoin industry has evolved from being an individual venture to the participation of traditional financial institutions and companies. In addition, he stated that Canaan believes in decentralisation.
In conclusion he added that he expects the present cyclce of Bitcoin to be shorter and that the price will rise by the end of the year. He emphasised that this oment of crisis has given more opportunity to the Bitcoin miners.
Concluding Lines
That is all that Edward Lu had to say in the interview about the Bitcoin miners and the entire industry. A look at the interview will be enough for a clearer understanding.
Also read: Future of Cryptocurrencies And Factors Like The Jackson Hole
