Bitcoin might still be trading sideways, but the heavy downturn seen in the price of gold and silver recently has triggered reactions across the crypto community, with most crypto veterans weighing in on Bitcoin’s long-term prospect against the physical assets.
On Saturday, Jan. 31, Binance’s founder Changpeng Zhao made a remark about Bitcoin’s role as an emerging technology against gold and silver, which have just suffered steep losses within a single trading session.
CZ says Bitcoin is young
Recent data shared by market analysts shows that gold fell by about 15%, while silver also dropped deeper by as much as 38% over the last 24 hours.
This massive price decline saw the assets wipe out about $15 trillion in combined market value, an unexpected crash seen just after the assets recorded new highs.
While the rapid decline had caught investors off guard, the high volatility has been labeled as a rare “black swan” event, triggering curiosity about the possibility of such volatility.
Nonetheless, CZ has joined the debate, acknowledging that such dramatic price moves can occur “even with a physical asset, like gold and silver, with thousands of years of history.”
While the crypto market has often been criticized for its rapid volatility, CZ has seized the opportunity to challenge the growing narrative that traditional assets are immune to extreme shocks.
With the recent event serving as a key example despite the age-long existence of the concerned assets, CZ reminded that Bitcoin is still in its infancy.
He emphasized that Bitcoin is a 17-years-old technology, heavily suppressed in most of its existence. He also added that other crypto assets are younger, hence “We are still early.”
Godfrey Benjamin
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