Posted 2 years ago | by Ben Armstrong
Binance CEO Zhao: Cryptos Long Term Trend is Positive
Changpeng “CZ” Zhao, who is the CEO of crypto firm Binance, thinks that cryptos have a bright future. He echos a recent report from Blockchain Capital that called for much higher crypto prices next year.
According to Zhao:
“Bitcoin is still a small market cap instrument so there will be high volatility in the short term. However, if you look at the fundamental technology, the longer-term view, about a 5-year or 10-year horizon, we’re very confident that bitcoin and cryptocurrencies are here to stay.”
Zhao is probably right.
If we take a longer term look at how well token prices have done, it is easy to see that high levels of volatility don't mean that the token complex is about to drop to zero. All that said, there is no law that says that Bitcoin must always be the most valuable token, or that it will necessarily lead cryptos into the future.
Zhao sees Blockchain With More Impact than Internet
Zhao went on to comment that he thinks that blockchain technology will ultimately be create more social change than the internet, which is a bold idea. In some ways blockchain technology has already shown that it can captivate global industry, as well as young people across the globe.
It would be hard to think of another technology that could go from nothing to the levels it has reached in around a decade. The internet took almost 40 years to reach bubble territory, although the advent of computer technology helped make the internet what it is today.
Blockchain technology has the advantage of having not only the internet, but mobile technology as a means to grow. The idea of a smartphone as a consumer product was absurd 20 years ago, and now some of the poorest people in the world may have one in the coming years.
Cheap mobile technology is a big driver for blockchain technology, which can leverage the handheld connectivity that is dropping in price every year.
The Official Question
As Zhao points out, the crypto markets are still tiny. There is very little institutional involvement in the space, and many governments have outlawed their possession or use.
People tend to trust large organizations, which may be why Facebook's Libra program hit a wall of official opposition in the USA.
If cryptos did breakthrough to the general public in a big way, there is a good chance that crypto users would face a major roadblock in the form of the governments, and the central banking cartels they have a century-long working relationship with.
As the situation in China has demonstrated, even if a government wants to stomp down on cryptos, it is much easier said than done.