Bitcoin and other cryptocurrencies are being adopted even faster, despite the skeptics. Crypto billionaire Changpeng Zhao (CZ) says the industry is not going anywhere.
Is the bitcoin and altcoin market a bubble?
In a tweet, Binance CEO states that the continued resilience of crypto will also grow. CZ has always been bullish on Bitcoin (BTC), so it’s no surprise that the asset has left both legs behind. The market repercussions follow news that Dubai has taken a bold step to embrace crypto. As we reported on Somanews, the city recognized as a global financial center has passed a Virtual Assets Act that will provide regulatory clarity for crypto.
The Binance boss is also tough on skeptics who take the view that the rising prices of cryptocurrencies are creating a speculative bubble. People who think the crypto market is still in a bubble are “in a bubble,” CZ says.
Several crypto critics have embraced and continue to hold this view on crypto. Among them are Berkshire Hathaway founder Warren Buffett and his close friend Charlie Munger. Legendary investors who have had a few speculative sprees often compare the crypto market, and Bitcoin (BTC) in particular, to the dot-com bubble of the late 90s.
Jeremy Grantham, co-founder of Grantham, Mayo and Otterloo (GMO), and Michael Burry, a hedge fund manager from Big Short, are also among skeptics who call crypto a bubble. According to Grantham, the crypto market is poised to go bankrupt this year.
However, as CZ and other market participants have pointed out, crypto continues to challenge speculation and even win over some skeptics. Market participants point to increasing adoption among countries such as the UAE, Singapore, Malaysia, and El Salvador as proof that cryptocurrency is lasting.
Have other digital assets proven to be bubble-free as well?
Other types of digital assets, such as NFTs, have also received the same stigma. John Hawkins, a senior lecturer at the University of Canberra in Australia, describes NFTs as “an exaggerated speculative bubble inflated by pop culture and the crypto craze.”
Some analysts also state that the NFT bubble may have already burst. Bloomberg reporter Aaron Brown states that trading volumes on the most popular NFT collections have dropped as much as 40% in recent weeks. Despite this, the market remains optimistic for NFTs. Its supporters point out that the number of NFT traders has increased.