Binance owner Changpeng Zhao expects Bitcoin to narrow the market capitalization gap with gold as governments and institutional investors gradually change their approach to reserve assets.
Gold currently holds a total market valuation roughly ten times larger than that of Bitcoin. Zhao said major nations have built complete evaluation, storage and trading systems around gold over decades, meaning any transition toward digital alternatives will not happen overnight.
Zhao is the founder of Binance, the world's largest cryptocurrency exchange by trading volume. Bitcoin remains the largest cryptocurrency by market value, but crypto industry leaders have long compared its role as a store of value to physical gold.
However, Zhao suggested that governments will eventually begin accumulating digital assets for sovereign reserves over time. He said more than half of such an ideal state reserve could consist of Bitcoin, with the remainder held in assets including Ethereum, the second largest digital currency, and BNB, the native cryptocurrency of Binance.
Role of artificial intelligence in crypto trading
Zhao also announced that stablecoins, which are cryptocurrencies pegged to traditional assets, will serve as the initial link connecting digital assets with artificial intelligence services. He noted that once an enterprise or service is set up to accept stablecoins, adding Bitcoin integration becomes very easy.
The impact of artificial intelligence will be felt in trading earlier than in payments, according to Zhao. Market traders must process vast amounts of financial data, track news developments and react quickly to price movements, tasks that automated AI algorithms can partially perform.
Zhao estimated that applying artificial intelligence to market trading could boost overall trading efficiency by ten times.
His predictions follow remarks from Matt Cole, chief executive of American investment company Strive. Cole previously suggested that the upcoming growth phase in the cryptocurrency market could prove to be the most powerful in Bitcoin's history.
