Bitcoin and other cryptocurrencies have been seeing even more accelerated adoption despite the misgivings of skeptics. Crypto billionaire Changpeng Zhao, also CZ, has asserted that the industry is not going away.
Is crypto still a bubble?
In a tweet, the Binance chief executive stated that the continued resilience of crypto would also see it grow. CZ has always been bullish on Bitcoin, so it comes as no surprise that he’s putting go both foot behind the asset.
Things that don’t go away tend to grow. https://t.co/CNjC2nSDWA
— CZ 🔶 Binance (@cz_binance) March 9, 2022
His market reflections are coming on the back of news that Dubai has taken a bold step towards embracing crypto. The city, which is well renowned as a global financial hub, has just approved a Virtual Assets Law that will provide regulatory clarity for crypto.
The Binance boss also took a jab at skeptics who hold the viewpoint that the rising price of cryptocurrencies constitutes a speculative bubble. CZ stated that people who still think the crypto market was in a bubble were “in a bubble themselves.”
Several crypto critics have held, and continue to hold this opinion of crypto. Among them are the founder of Berkshire Hathaway, Warren Buffett, and his close associate Charlie Munger. Both legendary investors who have lived through several speculative frenzies, they often compare the crypto market and especially Bitcoin to the dot-com bubble of the late 90s.
Jeremy Grantham, a co-founder of Grantham, Mayo, & Otterloo (GMO), and Michael Burry, a hedge fund manager from the Big Short, are also among skeptics that call crypto a bubble. According to Grantham, the crypto market is ripe for going bust this year.
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However, as CZ and other market participants point out, crypto continues to defy their speculations and even win some skeptics over. Market participants point to growing conviction among countries like the UAE, Singapore, Malaysia, and El Salvador as evidence that crypto is here to stay.
The ballooning capitalization of the crypto market, which reached over $3 trillion at its peak, is also not left out of crypto supporters’ arguments.
Have other digital assets also proven to not be bubbles?
Other kinds of digital assets like NFTs have also suffered the same stigma. John Hawkins, a senior lecturer at the University of Canberra in Australia, has described NFTs as “an overblown speculative bubble inflated by pop culture and crypto-mania.”
Some analysts are also noting that the NFT bubble may have bust already. Bloomberg reporter Aaron Brown noted that trading volumes in the most popular NFT collections have declined by as much as 40% in recent weeks.
Despite this, the market remains optimistic for NFTs. It has been pointed out that the number of unique NFT traders has been on the increase.
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