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Binance CEO not worried about crypto despite downward trend amid coronavirus outbreak

Image by Binance

Mon, 23 Mar 2020, 09:57 am UTC

Binance CEO Changpeng “CZ” Zhao is still confident with bitcoin’s potential amid the coronavirus outbreak.

In the past weeks, the crypto market has experienced a massive downward trend. On Thursday, bitcoin had a massive selloff with the benchmark digital asset reeling to $3,800 low. It diminished nearly $100 billion off its market capitalization from $225 billion down to $125 billion, Cryptoslate reported.

Despite the trend, CZ’s confidence in cryptocurrency is still intact. CZ shared his thoughts about the matter in a blog post and stressed that the fundamentals of the crypto did not change.

“No, I am not worried about crypto at all. The fundamentals did not change. Unlike fiat, bitcoin remains a currency with limited supply. No one can print more of it. Demand is increasing, especially now. It will be fine,” CZ wrote.

He encouraged the people to take a deeper look at how things work in the real world and noted that there are many factors and time horizons to consider. To deliver his point, he used an analogy.

“Say you take a swimming float, it works and it will help you float in water. Now let’s say it’s attached to the Titanic as it is sinking. Will that float work get you to the surface now? No, it won’t. Is it because the float no longer works? No, the floating properties of the float still work… You get the idea,” CZ continued.

“Fundamentally, bitcoin or cryptocurrencies have not changed. They still work. They are still in limited supply, no one can arbitrarily print more of it. With fiat being printed at a record pace, you decide what will happen, in time.”

As to why bitcoin’s price goes down, CZ explained that it’s because the crypto is a freely traded asset. Its price depends on the market or the people collectively in the market through trading.

When it comes to considering crypto as a safe haven or not, CZ did not enforce his perspective. “You make your own judgment. I made mine,” he said.

Meanwhile, Binance has brought its peer-to-peer (P2P) trading to Latin America and it featured integration to five fiat currencies Brazilian Real (BRL), Argentine Peso (ARS), Colombian Peso (COP), Mexican Peso (MXN), and Peruvian Sol (PEN). In addition, Binance offers zero transaction fees to users who buy and sell Bitcoin (BTC), Ether (ETH), Tether (USDT), Binance Coin (BNB) and Binance USD (BUSD) using the aforementioned Latin American currencies.

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  • Bitcoin (BTC) $9,527.83 (-1.42%)
  • Ethereum (ETH) $237.50 (-1.88%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $242.69 (-2.86%)
  • Bitcoin SV (BSV) $195.44 (-2.38%)
  • Bitcoin (BTC) $9,527.83 (-1.42%)
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