CZ advises to stop buying gold and switch to Bitcoin

Leaving the Binance management chair, CZ still enthusiastically supports Bitcoin. Photo: The Market .

On October 17, cryptocurrency billionaire Changpeng Zhao (CZ) shared a video of a crowd of people lining up to buy gold, believed to be in Vietnam. The incident occurred when the price of precious metals reached an all-time high in the world market. The father of the Binance cryptocurrency exchange said that Bitcoin is a better choice.

“Our industry is doing a terrible job of marketing our products. Instead of making fun of ourselves (which I do a lot), let’s tell more people about Bitcoin,” CZ humorously shared.

Like gold, Bitcoin prices have also experienced a period of rapid increase in recent times. The digital currency recently reached the milestone of 125,000 USD , an all-time high. However, after geopolitical turmoil related to US-China economic policy, Bitcoin prices crashed sharply and then partially recovered.

Recent post by former Binance CEO. Photo: @CZ.

In the cryptocurrency industry, Bitcoin is considered as "digital gold". It has similar properties such as low volatility, less affected by inflation, and is a safe haven compared to similar assets. However, Bitcoin still has many more potential risks.

This digital currency fluctuates at a much higher rate than gold. For example, after reaching the $70,000 mark in 2021, it experienced a long winter, falling to around $20,000-$30,000 , losing more than 70% of its value. Although supported by several countries, Bitcoin's liquidity and acceptance cannot be compared to gold, an asset with thousands of years of history.

The debate between real gold and “digital gold” has been going on for years between two sides of the coin, with no final outcome. The market prices of these two assets are constantly fluctuating. At the moment, “real” gold is dominating BTC.

However, there are some cases where governments get rich when the cryptocurrency increases in value. Bhutan has abundant hydropower resources, providing cheap electricity for Bitcoin mining centers. By mining for many years, they have become one of the countries with the largest BTC. In this way, the Central Asian country does not need to invest too much capital, taking advantage of national resources.

El Salvador was the first country to legalize Bitcoin. The country had planned to build a geothermal power plant from a volcano to mine the cryptocurrency. The government of President Nayib Bukele has been buying BTC at various price levels. To date, the asset has increased in value by about 150%.

However, with a long-term holding strategy, the country's profits remain on paper until it sells for profit. Meanwhile, the South American country faces economic instability. For much of the time since Nayib Bukele took office in 2019, El Salvador has been on the brink of default. As of the summer of 2022, some of the South American country's government bonds were trading below $0.30 .

To conserve cash, Mr. Bukele's government began delaying public-sector salaries. Investors braced for the worst.

Source: https://znews.vn/cz-khuyen-ngung-mua-vang-chuyen-sang-bitcoin-post1594856.html