Binance CEO does not believe crownvirus was not the cause of the crash

Binance CEO Changpeng Zhao said in a blog post that the crownvirus was only the "trigger" for the great global economic downturn and not the root cause.

Binance CEO does not believe crownvirus was not the cause of the crash

Bitcoin: safe haven

Binance CEO Changpeng Zhao published a blog post in which he claims that the crownvirus pandemic was not the real cause of the great global economic collapse that we are experiencing. Zhao believes that the pandemic was only the spark that ignited the crisis and said that the crownvirus has exposed the great weakness that the world economy currently suffers from. In Zhao's words: "In 2008, there was no pandemic to stop the world economy. But I think Coronavirus is just a trigger, not the root cause. Our economy should be stronger, at least strong enough to survive some shocks."

The great fall of the most important stock markets in the world was accompanied by a great fall in the price of Bitcoin. However, despite suffering a big drop, the price of Bitcoin recovered very quickly and reached growth rates of almost 90%. Since then, the price of Bitcoin has been consolidated at USD 6,300. Most analysts, including Zhao, think that when the panic sets in, investors will stop accumulating cash and start expanding their portfolios again. Bitcoin could benefit from those investors who are looking for a new way of conceiving finances and the economy in general. However, Zhao explains, "These changes take time to spread in the economy. The changes do not happen immediately when a massive population is involved."

According to Zhao, despite the correlation of the price of Bitcoin with the fall of the traditional markets, Bitcoin will function in the future as a safe haven since its supply is fixed and cannot be manipulated like fiat currencies.