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Binance CEO: “Bitcoin Fixes This” As Traditional Market Crashes

The unexpected COVID-19 pandemic has thrown the whole world into a tremble, leaving a vast majority of companies running out of cash and struggling to survive. To address the cash flow crisis that millions of companies are facing, the government is following a multipronged strategy to save the economy from this dire situation.

According to the New York Times, the Federal Reserve (FED) has decided to pump a large amount of money into the market:

“The Fed’s response is very much in line with its actions in 2008 and 2009, which were aimed at creating a wall of money that stops that cycle. Eight days ago, the central bank announced $700 billion in bond purchases to serve as that wall. Now it is saying that could be higher, plausibly in the trillions of dollars’.

The announcement seems to meet all entities’ needs, but is this a perfect measurement for all? Changpeng Zhao (CZ), CEO of Binance made his own standpoint on this matter: 

“The optics/ PR are also different. With printing money, the taxpayers are robbed (made poorer) indirectly, but they don’t complain much. At least, not as much as if a bank failed, such as Lehman, then everyone knows exactly who to blame, which CEO/regulator/politician failed, etc. When printing money this way, everyone saves face and is happy, except for the poorer retail guys. But they don’t know anything, do they, so it’s ok”.

The government bailout policy with massive money printing, on the other hand, consolidates CZ’s confidence in the role of cryptocurrencies. Bitcoin is often accused of being prone to “manipulation” but at least we know that there will be no bailouts from the government or “intervention” from the central bank to limitlessly inflate the supply.

CZ supposed that the current financial system had collapsed and Bitcoin would soon become the alternative option. But still, investors will not switch to Bitcoin immediately even if they realize the current system is almost out of date. There’s still a long journey ahead for Bitcoin to prove its potential.

You may also want to read: Binance CEO: Bitcoin Did Not Drop 60% Because of COVID19

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