Binance CEO Changpeng Zhao believes the bitcoin (BTC) bear market is healthy for the industry. In conversation with Messari CEO Ryan Selkis during the Mainnet conference as of yesterday, Changpeng Zhao said a four-year cycle is normal for crypto.
“Bitcoin price corrections are good”
Changpeng Zhao believes that a bear market is healthier in the long run than a market that just keeps rising. “Price corrections are a good thing,” Zhao said at Wednesday’s event. Investors should not look to the prices if they want to gauge the health of the industry, he says.
Instead, Zhao advises investors to look at the number of users who buy and use crypto. In addition, according to him, it is good to look at the amount of blockchain and Web3 projects. He repeated a common statement in this industry: “it is still early” and Zhao said that the industry still has a lot of room to grow.
“Crypto is in the early stages, we are certainly not in a saturated market,” the CEO of Binance is hopeful. In fact, according to Zhao, the industry is currently healthy and is calling on the public to “ride out of the winter”, referring to the crypto winter the market is currently going through.
Binance CEO is optimistic
Binance’s outspoken CEO is optimistic and not just about prices. Changpeng Zhao also sees great progress when it comes to legislation. He refers in particular to the United States, which, for example, is trying to implement crypto in existing financial frameworks such as the ‘security-of-commodity’ (securities or commodity) split.
“We see a lot of progress in the right direction when it comes to legislative frameworks,” Changpeng Zhao continues. “Some cryptocurrencies are like securities, others more like a commodity or a currency, but bitcoin does all three,” CZ suggesting that existing legislation may not apply to bitcoin.
In his view, governments should create a new category for blockchain technology-based assets, which he defines as “new data transmission technology” and “a new asset class.” It is clear that Binance’s CEO is far from done with the industry.
