News Tech: Changpeng “CZ” Zhao, CEO of Binance, believes that the Bitcoin bear market is good for cryptocurrency.
According to CZ, “Worth corrections are literally positive,” and traders shouldn’t use token prices as a gauge for the health of the cryptocurrency industry.
A four-year cryptocurrency market cycle is normal, and CZ—who spoke remotely via video chat—stated that a bear market is better for the long term than an upward trend that seems to go on forever—during a conversation with Messari CEO Ryan Selkis on the Mainnet conference on Wednesday.
Instead, he advised investors to consider the number of people purchasing and using cryptocurrencies, as well as the number of other blockchains and Web3 projects. He reiterated the widely held view in the cryptocurrency community that the market is still in its infancy and has plenty of space to grow.
As for the regulatory frameworks, CZ said, “Now we have actually witnessed a whole lot of improvement within the positive track.”
He said, implying that present regulatory frameworks could not be applicable, “There might be some cryptocurrencies that are exactly like stocks, and possibly just like commodities, and just like foreign money, but Bitcoin does all three.” Governments, in his opinion, ought to establish a completely new asset class for blockchain-based assets, which CZ described as “a new asset class” in and of itself and “just new know-how for moving information.”