The cryptocurrency market will grow to “tens of trillions of dollars”. Also, even if most of the digital assets disappear, the price of the remaining ones will increase significantly. The co-founder of Bitmain and Matrixport, and chairman of Bitdeer, Jihan Wu, stated this in an interview with Forbes.
“Even if 95% of today’s coins lose all their value and disappear, the remaining 5% will grow massively,” he said.
Commenting on the establishment of the crypto-financial company Matrixport in 2019, Wu noted that many of the new users “will remain on the market forever”. So, they will need products for managing capital in digital assets.
The growth of crypto quotations will significantly exceed price fluctuations
Earlier, Matrixport raised $100 million in funding following the results of the Series C round. Investors valued the company at more than $1 billion. The round was led by partners DST Global, C Ventures and K3 Ventures; with other contributors including Qiming Venture Partners, CE Innovation Capital, Tiger Global, Cachet Group, Palm Drive Capital, Foresight Ventures and A&T Capital, as well as earlier investors Lightspeed, Polychain, Dragonfly Capital, CMT Digital and IDG Capital.
One investor, Adrian Cheng, founder of C Ventures, said: “As blockchain-based digital assets become more widespread and accepted; new ways needed to generate profitability, source liquidity, and manage crypto assets as a new asset class. Matrixport well positioned to meet the growing demand for this new area of investment; driven primarily by the younger generation”.
According to Wu, cryptocurrencies were “born to be volatile”. He stressed that in the long term, the growth of their quotations will significantly exceed “price fluctuations”.
Technologies like crypto and blockchain have created a new world
Jihan Wu also noted the development of the decentralized finance (DeFi) sector and stated that traditional market players and regulators will eventually adopt blockchain technology.
“Innovations like DeFi are breathtaking. Technologies like crypto and blockchain have created a new world, allowing fintech entrepreneurs to make big achievements. Eventually, traditional financial institutions and regulators will embrace blockchain technology,” Wu said.
Previously in November, Bitdeer announced a merger with special purpose acquisition company (SPAC) Blue Safari Group. The provider of mining services was estimated at $4 billion. The boards of directors of the companies approved the deal. And it is expected to close in the first quarter of 2022.