- Binance CEO, Changpeng Zhao, believes that while Coronavirus may have triggered the current economic meltdown, it’s not wholly responsible for the collapse.
- He believes the outbreak of Coronavirus has shown us the weakness of the world’s economy.
Changpeng Zhao, the CEO of Binance, has said that COVID-19 is not the sole cause of the current global economic meltdown. In a recent blog post, Zhao argued that the pandemic has simply shown the weakness of the world’s economy. Speaking about the global financial crisis (GFC) of 2008 and the current outbreak of Coronavirus, he said:
In 2008, there wasn’t a pandemic pausing global economy. But I believe the Coronavirus is just a trigger, not the root cause. Our economy should be stronger, at least strong enough to survive some shocks.
Bitcoin seemingly crashed soon after the stock market. However, it looks like the coin is once again decoupling from the traditional markets’ fate, as the last few days have started bringing recovery. Despite its volatile nature, Zhao claims that Bitcoin is not “broken.” He said that investors will stop hoarding cash at some point and portfolios will start to expand once again. Bitcoin will be one of the destinations for the currently accumulated money, according to the CEO.
“Have people bought more bitcoin yet? No, in most cases. Many of them are still panicking over toilet paper,” Zhao continued. “These changes take time to propagate in the economy. Changes don’t happen immediately when a mass population is involved.”
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