Bitmain, a BCH myth? or a history of the decline of the mining machine kingdom?

In August 2018, Bitmain announces that: “Bitmain is about to have an IPO in Hong Kong with a valuation of $50 billion.”

People who is new in the crypto community may not know what Bitmain is, but if you have seen the cryptocurrency ranking website, you must know the BCH (ranked 4th). The BCH is derived from a team, who successfully forked bitcoin and created bitcoin cash.

Within five years:

· It reaches 70% of Bitcoin’s computing power

· It has become the world’s largest mining machine producer

· Hong Kong Pre-IPO

The founder of Bitmain is a person who is feared by all players in the crypto community. His name is Wu Jihan, and people gave him a nickname “JIHAD” to express his horror power. Because only he has the 51% bitcoin attack power.

In the beginning, Wu Jihan was also a believer in Bitcoin. In 2011, he invested in bitcoin and earned some profit, and he has been unstoppable since then. In the next 2–3 years, he successively invested in mining machines, chips, and other manufacturers, and once again succeeded in making profits.

Because of the fear of being eliminated by the market, and the large lure of profit, Wu Jihan started his mining journey. By 2015, his company “Bitmain” developed the fifth-generation ant mining machine, which has greatly improved the cost performance compared with similar products. At one time, it was praised by many people, and everyone is scrambling to buy.

The result is that Bitmain’s mining machine accounts for 70%-80% of the global market share, and the computing power has reached 70% of the entire network, which is why he is called “JIHAD” because he can control the Bitcoin by computing power.

Later, due to the dispute with the Bitconnect coin (BCC) team, Wu Jihan dominated the first hard fork in the history of Bitcoin and created Bitcoin Cash (BCH). The terrible part of BCH is not only because he is a competitor of Bitcoin, but because of the mining machine that mines Bitcoin can also mine BCH, which greatly diverts the computing power of BTC. It can be said that it is a competition of “twin brothers”. In the period after the birth of BCH, based on economic benefits, many mine owners betrayed bitcoin and tapped bitcoin cash, causing the transactions on the bitcoin chain to be greatly congested, and the bitcoin’s branch products became hot.

After finishing the glory, let’s talk about the crisis that Bitmain will face next.

1. Mining machine crisis, endangering core competitiveness

In April 2018, Bitmain announced the sale of the Ant B3 mining machine, which was priced at around $2,500, and fell to around $1600 in May. During this period, there have been serious problems such as “early mining” and “poor power calculation”. And according to the Pre-IPO documents they produced, the two chips that were developed recently before failed.

2. Hoarding BCH, trying to exceed BTC

As you can see from Bitmain’s May internal investment report, Bitmain used the company’s main profits to buy BCH. Although BCH has always wanted to surpass BTC, it is pitiful that BCH’s market share is always only 10% of Bitcoin market, and there is no tendency to exceed it.

3. Anxious IPO, anxious money

In May, news of Bitmain IPO came out one after another;

In June, the rumors continued;

In July, Bitmain released an IPO message;

In August, it should begin IPO, but it was delayed until September.

Is that all for the IPO, or is it because the capital cannot continue to support?

In the early morning of August 12, Wu Jihan expressed his position on Twitter to suspend the split of BTC and BCH, and each developed according to their own route. It seems that they are passing the signal, long-term funds, and public opinion consumption wars have already made Bitmain physically and mentally exhausted.

So, if they succeed, then Bitmain will become the king in the whole blockchain and finance.

If failed. They will be seen as a failed test with no feelings.