Why cryptocurrencies should not be ignored: response from the head of Binance
The collapse of major crypto platforms like FTX and Terraform Labs has dealt a tangible blow to the confidence of investors who prefer to invest primarily in traditional assets. A spate of bankruptcies last year has forced them to rethink their strategies for entering the crypto market. While the reluctance of such players is a deterrent to cryptocurrency adoption in the short term, Binance CEO Changpen Zhao believes that a mass exodus from cryptocurrencies will hurt the aforementioned investors in the next 10-20 years. We tell you more about the expert’s point of view.
It should be noted that the new week in the cryptocurrency world started positively. Over the weekend, BTC showed good growth and reached a peak of $23,960. The overall situation in the coin market looks like this.
Situation in the cryptocurrency market this morning
Why buy Bitcoin?
According to Zhao, in the next ten to twenty years, those investors who abandon cryptocurrencies now will then be “overboard” with innovation. Here’s his quote on the matter, cited by a source.
Not adopting cryptocurrencies could have existential consequences for traditional financial players in 10 to 20 years’ time.
"Existential" in this case refers to the existence of such companies. That is, Changpen Zhao admits that ignoring promising avenues today is capable of leading to the collapse of some giants over a long period of time. And while Zhao could be described as a stakeholder in such a scenario, he does believe in the promise of decentralised assets. The latter, in turn, are proving to be an increasingly popular destination for investors around the world.
Binance CEO Changpen Zhao
Changpen has repeatedly stated in the past that the actions of unscrupulous representatives of the crypto industry are causing long-term damage to it. A prime example is the collapse of crypto exchange FTX due to the irresponsible and allegedly illegal actions of exchange founder Sam Bankman-Fried. By the way, Sam himself put part of the blame for the FTX collapse on Binance and on Chanpen – allegedly his report about FTX native token sales caused the trading platform’s bankruptcy.
Naturally, it is difficult to believe such a version. However, a good business would hardly be destroyed by a tweet, and the alleged loss of billions of dollars in FTX accounts was definitely not Chanpen's fault.
Some of the cryptocurrency companies that went bankrupt in 2022
Zhao’s opinion is easy to read between the lines – he’s appealing to big investors outside the crypto industry not to associate it with individuals. The fact that FTX has failed to manage its assets doesn’t mean that a similar fate awaits all other exchanges.
And that sounds logical. At least when FTX existed, cryptocurrency exchanges did not disclose their own reserves or share liabilities. And since this practice is now gradually being introduced, we can talk about more transparency in the industry. And that, in any case, creates more investor confidence.
WOO X cryptocurrency exchange reserves, which are updated every 15 minutes
Those who are giving up on Bitcoin now have something to lose. Still, in the next bull cycle, the main cryptocurrency could well rise as much as $200,000. This prediction, based on price dynamics during previous post-hulking bullruns, was made by a crypto trader under the nickname Trader Tardigrade.
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As a reminder, halving is the halving of miners’ reward for a Bitcoin block mined. This procedure takes place every 210,000 blocks, or once every four years or so, and helps to gradually reduce the growth rate of the cryptocurrency’s supply. The next halving will take place in March 2024.
Trader Tardigrade believes that about a year after that event, BTC will hit its new all-time high, which will be 189 percent above the current record of $69,000 from November 2021. Here’s his viewpoint.
Bitcoin exchange rate forecast
As is traditional, let us remind you that believing in forecasts is a thankless task. And while some of them may indeed come true, more often than not they don't. So such predictions should be treated only as a possible scenario.
A trader’s prediction is shown more clearly in the diagram above, where the dynamics of stochastic oscillator is also shown. The stochastic oscillator is a technical analysis indicator that shows the position of the current price of an asset relative to the price range of a certain period in the past.
According to Cointelegraph sources, Trader Tardigrade has shared his prediction for the next bottom of the major cryptocurrency. Trader expects that already after the next bull run, Bitcoin will fall in price to around $70,000. This is almost three times higher than the current market value of the cryptocurrency.
It should be noted that as market cycles proceed, Bitcoin gets more expensive one way or another over time. In the current bearish trend, BTC rate went down to $15 thousand, with the record value of the first cryptocurrency at $20 thousand as of 2020. Well, the level of $3,000-$4,000, which was recorded at the end of 2018, is not even close to being dreamt of now.
Counting down to the next Bitcoin halving
Globally, there is a tendency for Bitcoin’s volatility to decrease with each growth cycle. That is, each successive growth phase yields lower returns than the previous one. And this is a sign of the growing acceptance of crypto in different regions of the world.
Bitcoin’s more stable price will also serve as a good reason to use the cryptocurrency on a daily basis, as many novice investors are afraid of cryptocurrencies precisely because of the prospect of their value collapsing.
We think Changpen Zhao is hardly wrong in this prediction. Still, the world is indeed heading towards digitalisation and tokenisation of assets, as can be seen from the same launches of NFT collections from world-renowned brands. So completely ignoring the cryptocurrency and tokenisation trend today is indeed unlikely to lead to good consequences in the future.
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