In Science and Space: Changpeng “CZ” Zhao, CEO of Binance, believes that the Bitcoin bear market is beneficial for cryptocurrencies.
According to CZ, price corrections are beneficial and investors shouldn’t interpret token prices as indicators of the health of the cryptocurrency market.
CZ, who connected remotely via video chat, said a four-year crypto market cycle is typical and that a bear market is better for the long term than an apparent never-ending rising trend in a conversation with Messari CEO Ryan Selkis on Wednesday at the Mainnet conference.
Instead, he advised investors to consider the amount of people purchasing and using cryptocurrencies, the variety of blockchains, and Web3 initiatives. The idea that the cryptocurrency market is still in its “early stages” and has a lot of room to develop was reiterated by him.
We have actually witnessed a lot of development for regulatory frameworks, according to CZ.
He remarked, “There will be other cryptocurrencies that are similar to securities, and perhaps similar to commodities, and perhaps similar to cash, but Bitcoin does all three,” implying that pre-existing regulatory frameworks may not apply. Governments, in his opinion, ought to establish a brand-new asset class for blockchain-based assets, which CZ characterised as “simply new technology for moving data” and “a new asset class” in and of itself.”