Binance CEO, Changpeng Zhao, and known by the alias ‘CZ’ in the cryptocurrency world, posited a rather different view from what has been popularly circulated as to the impact of Coronavirus; the COVID-19 pandemic on bitcoin prices.
Coronavirus has been the rage for the past few weeks, infecting hundreds of people across countries and at an alarming rate. Simultaneously, there has been a drastic drip in bitcoin prices Speculations by some cryptocurrency analysts and enthusiasts are that the virus is responsible for the current bitcoin price crash. However, Changpeng Zhao is of a different opinion.
The Bitcoin price collapse, he said, was already a reality, and that the Coronavirus is merely a spark that triggered the economic crisis. He suggested that the pandemic was not recognized as the root cause of the economic situation. Rather, he thinks it shows how fragile the global economy is that it could not handle the blow.
Changpeng Zhao, when asked if the situation this year bore any likelihood to the Global Financial Crisis in 2008, he stated that although there was no Coronavirus to deal the economy a blow that year, he still believes that the virus isn’t the basic cause of the meltdown. He insists that we should have a good enough economy to take some hits.
He also spoke about the continuing Bitcoin price fall on traditional markets. It was equally surprising to see the speedy recovery after a particularly drastic fall in line with stocks indexes just last week. At one point, the increase was near 90%.
BTC / USD has cooled down since then, trading around 7 percent over the last 24 hours. Nevertheless, Bitcoin is not “broken,” Zhao notes, unlike the legacy system.
Pretty soon, investors would cease hoarding cash, which is sad because the practice keeps the dollar strong during this period that Coronavirus terrorizes the global community. However, they’ll start expanding their portfolio, and they’ll most likely end up at Bitcoin junction for their wealth.
Is Bitcoin going to be the safe haven?
Only a few months back, Andreas Antonopoulos, a cryptocurrency educator, for told the bitcoin price crash situation with baffling accuracy.
John Bollinger, who has urging investors to sell anything they can in such cases, admits that the Bollinger Bands volatility tracker crashes caught him suddenly. In this way, he admits.
Nevertheless, Zhao thinks Bitcoin is the’ Safe Haven’ and a potential promise if its supply is set and can not be abused as fiat currency.