In an interview with Binance CEO Changpeng Zhao (CZ), he expressed that Bitcoin (BTC) is truly the safe haven for all humanity. And more in these moments where the Coronavirus pandemic continues to wreak havoc.
Is Bitcoin the safe haven?
As you may have realized, the past few weeks have been extremely difficult for humanity. 200,000 thousand people around the world have been infected, the dead number in the thousands daily, borders have closed, economies are still in free fall, and there is still no way out of this disaster.
Another thing you should have noticed is the fact that the first cryptocurrency of all was heavily criticized by traditionalists. Because it lost; at the time; more than 50% of its value in a matter of hours.
Many criticized Bitcoin for having failed in its primary mission. Which is to serve as a shield for the human race, especially if we are in the midst of a crisis.
But, for a few days Bitcoin has been reborn from its “ashes” like the phoenix to fulfill its role of safe haven. Thus shutting up a lot of mouths.
Unlike traditional markets, which are still in free fall, and with chilling injections of liquidity without any support. Bitcoin has seen its value begin to paint green again.
For this reason, personalities in our cryptoverse, such as the Binance CZ CEO himself, have put on boxing gloves and have started to fight back. And yell at everyone who said in the past few weeks that BTC had failed that “BITCOIN IS THE SAFE SHELTER!”
Changpeng Zhao answers the question
CZ has been in a hurry, posting a series of quick responses to the most frequently asked questions in recent weeks. All on the official blog of the largest crypto exchange of all. On this occasion we bring you the most important ones.
1. Bitcoin has been part of the falls in the international markets. Is BTC really a store of value, a safe haven? Are you worried about the current situation of the crypto ecosystem?
To which the CEO of Binance has responded that he is not at all concerned about the health of the cryptoverse. Unlike Fiat currencies, BTC still has limited supply, and demand is now rising thanks to the crisis.
“Instead of a naive black-and-white vision of ‘safe haven’ or not, we need to take a closer look at how things work in the real world, which is generally grayscale.”
CZ refers to the fact that in real life BTC is helping humanity far beyond its price level. Not to mention the positive impact that Blockchain technology is having in all sectors of large or small economies.
2. So why did Bitcoin fall?
Bitcoin is a free trade asset. The price is determined solely by the market through the purchase and sale.
Making reference that, unlike the large traditional stock exchanges that can be closed in case of volatility. Bitcoin is traded day and night 365 days a year, and no one can censor it.
According to CZ, there are people who are relatively new to the cryptoverse. This group may or may not deeply understand what is actually going on, or what cryptocurrencies really are. When they feel that there are risks, they sell. According to CZ, there is nothing wrong with this.
3. The FED continues printing money, why doesn’t the price of Bitcoin go up?
According to the Binance CEO, there is a concept that most of the media does not handle, and it is the subject of “Speed”.
Many people believe this increase will be made immediately, that money will start to flow into Bitcoin overnight.
“The markets are inefficient. The speed of propagation of change is slow, which actually gives us many opportunities. “
These $ 30 billion in the United States, and a few hundred billion more in Europe, will not flow freely.
So CZ asks a few questions for us to reflect on. This money, do the banks already have it? Some yes, most no. Have people already bought a new car with the loan? Probably not. Have they already bought more Bitcoin? No, in the majority of cases. Many of them are still panicking about toilet paper.
“These changes take time to spread in the economy. Changes don’t happen immediately when a massive population is involved. “
4. Are crypts a safe haven?
“No one can be forced to consider something, or not. I made my own judgment and made my own decision. Did you already do it? ”
Really, saying an affirmation and that the world creates it is not the philosophy of the cryptos. You may or may not be in the cryptoverse without really believing whether or not crypto is a haven of value.
5. Why are you so optimistic all the time about crypto? What problems does the traditional financial system have?
To which the CEO of Binance replied that, he fundamentally believes that the current economic and financial system is rotten, and Bitcoin has come to fix it.
6. If the system is broken, why do governments keep rescuing companies?
Well, these companies are considered too big to fail. A failed bank could result in retail investors realizing that they never had their hundreds of billions of dollars there. Since they really didn’t belong to them.
“Bitcoin fixes this. With cryptocurrencies, everything is different. There are no government bailouts, at least not printing money. ”
According to the Binance ringleader, printing money without any kind of backup does not magically solve problems. Businesses will continue to fail, and ordinary inhabitants will remain sole losers.
7. Is there anything different this time vs. 2008?
“Yes, I think there are differences. In 2008, there was no pandemic to stop the global economy. But I think Coronavirus is just a trigger, not the root cause of all this disaster. “
More importantly, in 2008 we did not have many options. Rather than hope that the system that caused the problems somehow magically fixes them. But this time, people have more options, there is not only Bitcoin (BTC), it is a complete cryptoverse that is ready to continue helping humanity.
Now we ask you the question, do they match the responses of the CEO of the world’s largest exchange?