Binance’s CEO Stands Up for Bitcoin, Despite 70% Fall In Value
With a history of being widely successful in 2017, CEO of Binance Changpeng believes that Bitcoin is still strong enough to survive in the crypto industry. While there are many people that feel nervous about the 70% loss that Bitcoin has sustained, Zhao believes that Bitcoin still has a positive future.
Anyone in the financial industry saw the major changes of 2017, where the Bitcoin went from $890 in value to $20,000, which is over 2,150%. The jump shows that the cryptocurrency world is clearly in demand, and the emerging asset class is definitely generating interest from the public market.
A local reporter and crypto researcher in Switzerland, Bianca Chen, said that the current state of the crypto world is much better than it was a year ago. Her assessment was made by considering the infrastructure, price, volume, and other interest. Zhao commented,
Just checked, btc price was $2500 a year ago, today $6800. Trading volume for btc was 780m a year ago, today is 3.4b. There you go. https://t.co/XxjF7iYhgQ
— CZ (not giving crypto away) (@cz_binance) July 8, 2018
Most of what both notable personas are referring to is the lack of structure in the 2017 era of the cryptocurrency industry. Once Coinbase was established in mid-July of 2017, everything shifted. There was suddenly a way to manage institutional investments in hedge funds, pensions, and other sources.
Even with these advancements, there are multiple banks and financial institutions that do not plan to involve their customers anytime soon. JPMorgan, Goldman Sachs, and Morgan Stanley are just a few of the companies that have decided to stay within the traditional finance sector of the industry. In fact, with multiple regulatory measures, they are not allowing credit cards to be used for the changing value of crypto assets.
The CEO of Goldman Sachs, Lloyd Blankfein, has said in reports that it is arrogant to assume that the new changes to the crypto world keep it from working, because there has been a dramatic change in it.
“If you go through that fiat currency where they say this is worth what it is worth because I, the government, says it is, why couldn’t you have a consensus currency? And so, it’s not for me, I don’t do it, I own no bitcoin. Goldman Sachs as far as I know… has no bitcoin, but if it does work out, I could give you the historical path why that could have happened. I’m not in this school of saying… because it’s uncomfortable with me, because it’s unfamiliar, this can’t happen, that’s too arrogant.”
It looks like the current drop in the Bitcoin for 2018 can be blamed on retail investors. However, by seeing cryptocurrency as more of an asset class, rather than a flexible digital token with a changing value, governments around the world can find the right way to integrate it into their economy.