Another bank failed this week and it is very tempting for us crypto nerds to shout from the rooftops that we have a solution. Binance CEO Changpeng Zhao says it is not necessary. “Crypto should not depend on the failure of others.”
Bitcoin and bank independent crypto
CZ had one Ask-me-everything session on Twitter, and here he said that the growth of Bitcoin and other cryptocurrencies does not depend on the collapse of banks. He was asked about the potential for bitcoin to rise as banks collapse left and right.
The director of Binance emphasized that banks and cryptocurrencies can coexist and that it is not a zero-sum game. He rejected the idea that a bank’s success or failure has a significant impact on bitcoin, stating that cryptocurrency is just one of many places to park money outside banks, such as: real estate, stocks, or gold.
Crypto must be able to stand on its own two feet
CZ continued that more banks could fail and that the banking sector is long established and prone to inefficiency. Because banks know they can be bailed out, they are encouraged to take risks.
However, he stressed that the growth of cryptocurrency is due to the improvement in its use and utility, rather than relying on the decline of traditional banks. This can be done, for example, by being better than banks. B. Faster and cheaper transactions.
More options than cryptocurrencies to avoid banks
According to CZ, cryptocurrency is not the only choice for people looking to reduce banking risk. He argues that there are many other ways to park money outside of banks and that different people prefer different types of assets.
“The growth of cryptocurrency is based on improving its use and utility – rather than relying on the demise of traditional banks,” said CZ.
Source: Btc Direct
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
