Binance CEO Changpeng Zhao (CZ) says that the current state of the cryptocurrency market is healthier than before. He also highlights that the sustainability of crypto is extremely important.
“Cryptocurrency industry is healthier now”
In a recent interview, Binance CEO Changpeng Zhao (CZ) says the industry is actually in a much better place than it was nine months ago, when the leading cryptocurrency Bitcoin and top altcoins were trading at record levels. On the subject, CZ makes the following statement:
In fact, I think the industry is much healthier now than it was six months, nine months ago. People who develop real apps stay in the industry.
Zhao notes that crypto has attracted many unbelievers, who are likely just speculators. According to the Binance boss, this should not have happened on a grand scale. Therefore, the ongoing correction was inevitable. “Often, markets go overboard in both directions,” adds Zhao.
Changpeng Zhao: A little reset is healthy
The total cryptocurrency market cap reached nearly $3 trillion in early November. Also, Bitcoin rose as high as $69,000. However, as you follow on Kriptokoin.com, this was followed by a brutal collapse triggered by unfavorable macro conditions.
It was the collapse of the Terra project that started the market contagion. After that, things got even worse for crypto. The explosion of one of the leading names in the industry created a domino effect. It then ousted other big players like Three Arrows Capital. Zhao believes that the cryptocurrency market should only attract those who believe in technology. “To be clear, a little reset is healthy,” he says in this context. Now that the market has collapsed, investors have a long-term view.
The importance of crypto sustainability
Also, Binance CEO CZ says that the sustainability of crypto is extremely important. He adds that there are more reasons for crypto adoption. CZ notes that no other asset of the Bitcoin caliber could survive with less efficiency. He also states that Bitcoin is much more efficient than other modes. In this context, CZ makes the following assessment:
Any trillion dollar asset requires much more energy to sustain it than the mining power of Bitcoin. I believe Bitcoin mining is much more efficient than other modes used to manage other types of assets.
CZ emphasizes that calculating the energy costs of other assets is not easy. Binance CEO says it is difficult to assess energy costs by taking the example of big banks in big cities. “How much electricity do banks consume? I don’t know,” he says. Zhao explains his views as follows:
On the contrary, Bitcoin is transparent. Because calculating mining costs is easy. But transparency doesn’t necessarily make crypto a bad asset.
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