Changpeng Zhao, didn’t release an explanation why some cryptocurrencies highly surged in price when it just began with a joke. Zhao is the Chief Executive Officer of Binance. The CEO also does not want to comment on the issue of Dogecoin’s possibility of causing a dangerous bubble, but he stated that the power of decentralization is evident that supported the growth for crypto.
Being run by Bitcoin, cryptocurrencies’ value has increased to more than $2.6 trillion. This put them on the same level as Microsoft, one of the world’s most valuable stocks. The fast growth of the industry attracts investors and gains a lot of recognition from regulators all over the world.
The Associated Press talked with the Binance CEO after his company issued a call for the crypto markets’ regulation worldwide. Aside from meme coins and bubbles, he also talked about the cryptocurrencies that he owns and the promise that he made to share most of his wealth.
Bubble Sign: People Purchase for Reselling
There is not an exact definition of what a bubble is. Bitcoin dropped higher than 80% but still recovered. The same goes with Amazon, it dropped higher than 90% earlier in 2000 to September 2001, but they are now considered as one of the most valuable companies globally. Can we say that Amazon went through a bubble? Maybe it did, and Jeff Bezos would probably agree with this.
Crypto Prices Volatility Reasons
Everything is unstable. Even a house, a stock, or U.S. dollars fluctuate against something else but the value must be parked somewhere.
Since crypto is a small market, it is unpredictable. It is even smaller than traditional assets. The bigger the market value of one’s asset is, the smaller the unpredictability.
There are many active traders in the crypto industry nowadays. Many people are in the industry because investment growth and volatility is their preference.
Crypto Judgement Divisions
People in the cryptocurrency industry divides into two groups. Firstly, hardcore crypto fans. And secondly, people who do not fully understand how crypto works.
As people get more involved with crypto, the value of this is becoming clearer. Those who used to doubt or those who didn’t have any idea what crypto have now their investment in the business.
Years ago, governors of central banks used to be doubtful about cryptocurrency. However, as the industry gets recognized worldwide, they now believe that someday, cryptocurrency will help with economic growth.
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