Binance Founder Expects Huge Bitcoin Government Adoption in 10 Years
Changpeng Zhao, the former CEO of Binance, predicted that the asset would be more widely adopted by governments in the coming decade.
Zhao suggested that countries could establish additional strategic Bitcoin reserves to counteract adverse macroeconomic conditions. In the lead-up to the U.S. elections, discussions regarding the establishment of a Bitcoin reserve in the United States acquired momentum. Crypto fans anticipate that the asset will serve as a means of mitigating debt and facilitating cross-border payments and finance in light of the increasing national debt.
The potential establishment of a US underpinning could potentially encourage other jurisdictions to adopt the leading cryptocurrency as a reserve and for payments. The price of Bitcoin achieved new milestones following the U.S. election, thereby setting the stage for optimistic projections and overcoming previous corrections.
On the basis of increased institutional adoption, investors have set their sights on a higher rally, as the price is trading above $100K. These inflows to the asset could potentially accelerate development in conjunction with government adoption in the upcoming decade.
Zhao emphasised the advantages of Bitcoin (BTC) over gold in the context of its recent adoption. Bulls anticipate that Bitcoin will experience over-the-top advances in the next five years, as it continues to ascend amid substantial institutional purchases. Gold and Bitcoin are popular as a store of value for a variety of investors, and there has been a decade-long debate regarding their utilities.
In a recent interview, Zhao observed that Bitcoin is becoming increasingly scarce, which could potentially drive its price. Additionally, he identified new applications for the cryptocurrency. Users argue that Bitcoin’s portability and access to a broader adoption network render it more competitive with precious metals, earning it the moniker “digital gold.”
He believes that the asset’s scarcity will encourage increased investment in the years ahead. Conversely, the world remains unaware of the total supply of gold, despite its availability for centuries.
“I believe it should be significantly higher than that (16 trillion market valuation), as you stated that it has numerous advantages over gold. Additionally, gold is not a finite asset; individuals regulate its supply by refraining from extraction, and the exact quantity is unknown. There is a limited amount of Bitcoin remaining, and we are aware of its precise level of certainty.” Added by CZ.
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