Binance CEO: Bitcoin bear market ‘healthy’ for crypto industry long-term

Binance CEO Changpeng “CZ” Zhao thinks that the Bitcoin bear market is good for crypto.

Speaking with Messari CEO Ryan Selkis at the Mainnet conference on Wednesday, CZ, reached remotely via video chat, said four years crypto the market cycle is normal and that a bear market is healthier in the long term than a seemingly endless uptrend.

“Price corrections are actually good,” CZ said, adding that investors should not look at token prices as signs of how the crypto market is doing.

Instead, he suggested investors look at the number of users buying and using crypto, as well as the number of different ones blockchains and Web3 projects. He echoed the common crypto refrain that the industry is still “early” and still has plenty of room for growth.

“Crypto is so early. We are not in a saturated market,” CZ said.

The CEO of Binance claimed that the crypto industry is actually in a healthy state and urged the audience to “skip the winter”, referring to the so-called crypto winter that the market is in now.

But the Czech Republic is optimistic – and about more than the bear market. As for regulation, he argued that some regulators, especially in the US, have tried to fit crypto into existing financial frameworks, such as security-or-goods binary.

“We’ve actually seen a lot of progress in a positive direction for regulatory frameworks,” CZ said.

“There will be some cryptocurrencies that are security-like and maybe commodity-like and currency-like, but bitcoin does all three,” he said, suggesting existing regulatory frameworks may not apply.

In his view, governments should create a new category entirely for blockchain-based assets, which CZ describes as “simply a new data transfer technology” and a “new asset class” in its own right.

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