Bitcoin Halving and Changes in the Mining Landscape: Interview with Shenyu

Recently, the co-founder of the digital asset custody solution provider Cobo and the global large mining pool F2Pool, Shen Yu, was interviewed and shared his views on hot topics such as Bitcoin Halving, the mining landscape, and the Bitcoin ecosystem.

The Impact of Bitcoin Halving on Mining Enterprises

Shen Yu believes that the Bitcoin mining industry mainly has three types of enterprises:

1. North American listed mining companies: relying on cheap energy, recently financing through stock price increases, and beginning to expand into new businesses such as layer two solutions.

2. Non-listed mining companies supported by Chinese capital: distributed in South America and Africa, pursuing low-cost operations, and recently expanding rapidly in Africa.

3. Emerging mining companies supported by national investment: The goal is not only profit but also to obtain early Bitcoin production.

Overall, the Halving has a significant impact on the second type of mining enterprises, as they are more sensitive to cost changes. Currently, many mining companies are undertaking large-scale relocation of mining machines to optimize costs.

Altcoin Market Expectations

The Godfish indicates that after this Bitcoin Halving, it is unlikely that there will be a "Altcoin Season." The main reasons include:

• Market participants are different from before, many miners have hedged their risks months in advance.
• Listed mining companies have raised a large amount of fiat currency.
• Some mining enterprises have migrated to low-cost areas, reducing their sensitivity to costs.
• Funds primarily flow into Bitcoin through channels such as ETFs.

He believes that the current market is in the mid-stage of a bull market, having found a new narrative logic, but has not yet reached a high leverage and FOMO state.

Competition between AI Chips and Mining Machines

The divine fish believes that AI chips and mining machine chips may not be in a competitive relationship:

• Bitcoin chip architecture is simple, which promotes rapid iteration of chip technology.
• Some mining chip manufacturers have already begun developing AI chips.
• Bitcoin chip design concepts are beginning to be applied to AI chips
• Mining and AI chip companies may gradually merge in the future.

He expects that the future growth focus of the chip industry may shift towards the AI field, but the experience accumulated from crypto mining will help the development of AI.

Bitcoin Ecosystem Expansion

For the development of the Bitcoin ecosystem, Shen Yu holds a positive attitude:

• The Bitcoin main chain primarily serves as a store of value, making significant updates difficult.
• Innovations such as layer two and sidechains are underway.
• Recent economic incentives in technologies like the Lightning Network have attracted a large number of users.

He believes these attempts are necessary, and although they are in the early stages, they are all developing in a positive direction. The decentralized nature of Bitcoin also ensures the natural evolution of the ecosystem.

The Future of Custody Services

Facing the entry of traditional financial institutions into the crypto space, Shen Yu believes this is a good thing:

• Helps to address new users' concerns about secure storage.
• Future blockchain technology will be applied more seamlessly.
• Cobo focuses on private key management solutions at different stages.
• The participation of traditional institutions will broaden the development path of the cryptocurrency market.

He anticipates that after the two major core issues are resolved, ( performance and user experience ), the crypto industry will welcome a truly grounded development state.

Investment Mindset and the New Generation

The divine fish shared his investment insights:

• It is recommended that high net worth individuals invest 10-15% of their assets in promising sectors.
• Currently paying special attention to the development of "modular blockchain".
• Reduce the FOMO mentality through thinking and reflection.
• View the market from a higher perspective to avoid short-term impulses.

He also mentioned that the new generation of post-00 investors is more sensitive to market sentiment and more adaptable to changes in the online environment.

Future Outlook: AI, Metaverse, and Crypto

Shenyu is optimistic about the integration of future technologies:

• Technologies such as blockchain, AI, and the Internet of Things will be deeply integrated.
• Each terminal and AI agent may have its own smart wallet.
• The final form of the metaverse may differ significantly from current imaginations.
• Blockchain will enable the storage and presentation of data and ownership in virtual space.
• Asset on-chain of mature applications will become the future trend.

He believes that the cryptocurrency industry has already gone through the asset issuance and bubble phases, and in the future, it will rely more on applications that solve real problems to drive development.