Changpeng Zhao, Binance CEO, believes that the Bitcoin bear market will be good for crypto. Changpeng Zhao “CZ” Zhao instructed the Mainnet crowd to “ride out winter.”
CZ, who connected via video chat with Ryan Selkis, Messari CEO at Wednesday’s Mainnet conference, said that a four-year cryptocurrency market cycle was normal and that a bearish market is better for the long-term than an seemingly endless upward trend.
4 Year cryptocurrency market cycle is normal
CZ stated that price corrections are good and suggested that investors should not look at token prices to determine how the market is performing.
Instead, he recommended that investors examine the number and types of crypto users, as well the number and types of Web3 project and Blockchains. He reiterated the crypto adage that the industry is still in its early stages and has much to learn.
“Crypto’s so early. CZ stated that we are not in a saturated marketplace.
Crypto bear market will end up with an upturn
Binance’s executive stated that the crypto industry is in a healthy condition and encouraged the audience to “ride through the winter,” referring specifically to the current Crypto Winter.
CZ is optimistic, and not just about the bear market. When it comes to regulation, he argued that some regulators, especially in the U.S., have tried to incorporate crypto into existing financial frameworks such as the security-or-commodity binary.
CZ stated that “we have seen a lot more progress in the positive direction of regulatory frameworks.”
He said that there will be cryptocurrencies similar to securities and commodities and similar to currencies, but Bitcoin does them all. This suggests that the existing regulatory frameworks might not apply.
He believes that governments should create a completely new category for blockchain-based assets. CZ described it as “just new technology to transfer data” and “a brand new asset class.”