Binance CEO Changpeng “CZ” Zhao thinks the Bitcoin bear market is sweet for crypto.
In a dialog with Messari CEO Ryan Selkis on the Mainnet convention Wednesday, CZ—who related remotely through video chat—mentioned a four-year crypto market cycle is regular and {that a} bear market is more healthy in the long run than a seemingly unending upward pattern.
“Value corrections are literally good,” CZ mentioned, including that buyers shouldn’t take a look at token costs as indicators of how the crypto market is doing.
As an alternative, he advised buyers take a look at the variety of customers shopping for and utilizing crypto, in addition to the variety of completely different blockchains and Web3 initiatives. He repeated the frequent crypto chorus that the trade remains to be “early” and nonetheless has quite a lot of room to develop.
“Crypto is so early. We’re not in a saturated market,” CZ mentioned.
The Binance government argued that the crypto trade is definitely in a wholesome state and urged the viewers to “experience out the winter,” referring to the so-called Crypto Winter that the market now finds itself in.
However CZ is optimistic—and about extra than simply the bear market. With regards to regulation, he argued that some regulators, particularly within the U.S., have tried to include crypto into current monetary frameworks such because the security-or-commodity binary.
“We have now really seen quite a lot of progress within the optimistic path for regulatory frameworks,” CZ mentioned.
“There will likely be some cryptocurrencies that’s just like securities, and possibly just like commodities, and just like forex, however Bitcoin does all three,” he mentioned, suggesting that current regulatory frameworks might not apply.
In his view, governments ought to create a brand new class fully for blockchain-based belongings, which CZ outlined as “simply new expertise for transferring information” and “a brand new asset class” in and of itself.
