When we talk about defending Bitcoin and cryptocurrencies, no one can defend better than the CEO of Binance Changpeng Zhao.
He has once again spoken in the favor of Bitcoin as he says that Bitcoin has not yet lost its value as a safe-haven asset. According to him, Bitcoin is still a safe-haven asset. He also believes that the coronavirus epidemic has not caused the big crash of Bitcoin.
‘Coronavirus is just a trigger’
Everyone thinks that the coronavirus epidemic is the real cause behind the recent bitcoin price crash. However, Binance CEO Changpeng Zhao (CZ) says in a recent blog post that the Covid-19 epidemic only ignited the current economic meltdown but the global pandemic was not the main reason.
He explained that the current global financial crisis is different from that of 2008 and says that the economy must be strong enough to survive some shocks.
“In 2008, there wasn’t a pandemic pausing global economy. But I believe the Coronavirus is just a trigger, not the root cause. Our economy should be stronger, at least strong enough to survive some shocks,” he said.
Then why Bitcoin’s price crashed
If not the Coronavirus pandemic, then who is behind Bitcoin crashing? Changpeng Zhao explained why Bitcoin’s price crashed. He said in the blog post that there are new people in the crypto field who do not understand it completely, therefore when they get panic or feel that their assets are at risk, they start selling their crypto assets. According to him, this might be the real reason. As he says:
“There are people who are relatively new to crypto. This group may or may not understand or believe crypto deeply. When they feel there are risks, they sell. When there is panic, they sell.”
Furthermore, he says that some people highly rely on short-term gains to pay their rents. So, whenever the market gets down, they sell their assets in order to cover their expenses. So, according to Binance CEO, this is the main reason that caused bitcoin crash, not the Coronavirus epidemic which only indirectly affected Bitcoin.