The CEO of Binance, Changpeng "CZ" Zhao, believes that the Bitcoin bear market benefits cryptocurrencies.
In a Wednesday talk with Messari CEO Ryan Selkis at the Mainnet conference, CZ stated that a four-year crypto market cycle is normal and that a bear market is better in the long run than a seemingly endless rising trend.
"Price corrections are beneficial," CZ remarked, adding that investors shouldn't use token prices as market indicators.
Instead, he urged that investors consider the number of individuals purchasing and utilizing crypto and the variety of blockchains and Web3 initiatives. He reaffirmed the frequent theme that the crypto sector is still “in its infancy” and has more space for growth.
“Crypto is so premature. “Our market is not saturated,” CZ said.
The Binance CEO stated that the crypto business is in good condition and advised the audience to “ride out the cold,” alluding to the market’s current so-called Crypto Winter.
However, CZ is hopeful, and not only about the bear market. In terms of regulation, he stated that several authorities, particularly in the United States, have attempted to incorporate crypto into existing financial frameworks, such as the security-or-commodity dichotomy.
According to CZ, regulatory systems have constructively made significant strides.
“There will be other cryptocurrencies that are similar to securities, perhaps similar to commodities, and similar to cash, but Bitcoin is all three,” he stated, implying that present legal frameworks may not apply.
Governments, in his opinion, should create a whole new asset class for blockchain-based assets, which CZ characterized as “new technology for moving data” and “a new asset class in and of itself.”