BlockDown 2020 is bringing the best brains of the blockchain to the mainstage in a virtual 2-day conference. As BlockDown 2020 media partners, we will bring you a rundown of exciting stories from talks, fireside chats, panel discussions as we cover blockchain technology during and beyond COVID-19, news from the DeFI world and more. Stay tuned!
Undoubtedly, this Binance fireside chat was the most awaited event of the BlockDown 2020. On the mainstage was Changpeng Zhao (CZ), the man behind Binance. And his words of wisdom matter the most for the pandemic-imposed world. That’s because under his leadership Binance achieved the unicorn status in less than 6 months. And recently it acquired CoinMarketCap too.
Something unexpected is happening
According to CZ, 2020 has been a rocky year till now and Bitcoin facing a significant price drop adds to the agony. He adds that regardless of the price plunge, Binance and other exchanges are enjoying almost 5X trade volumes and trading activities. And that is something unusual.
CZ and the entire crypto fraternity believed that whenever the traditional markets will go down, Bitcoin will pump. But that did not happen. However, the price drop triggered unusually high trading activities and volumes on Binance. And CZ trusts that when this happens, the price of crypto does not stay low longer.
Impact of Quantitative Easing
As central banks continue to inject new money into the system, CZ expects this to give the crypto industry a boost. How? When?
Well according to CZ this new money will eventually reach people’s pockets. However, the post-pandemic world will channel a part of their money to crypto. He is so certain about this because primarily Bitcoin or any other cryptocurrency is a deflationary asset. Secondly, people’s trust in the financial systems controlled by their government bodies has been hit hard. As soon as things resume to normal, people will start looking at crypto from a more optimistic mindset.
However, he feels this will not happen within days. This new money that has been introduced to the market might take less than 2 years to crypto. And this in-turn will increase the Bitcoin price and other assets will follow along.
Future of IEO
Talking about IEO, CZ seemed pretty optimistic. Moreover, he states that IEO is just a part of the new fundraising ecosystem that has come into existence with blockchain. While he believes this is a tough time to raise funds, he adds that both traditional and crypto markets have been witness to such lows of the fundraising cycles.
Additionally, he shared an important piece of advice for budding entrepreneurs. The market currently has enough opportunity as well as chaos. This is when an entrepreneur needs to re-think and re-strategize his goals.
CZ shares the Binance team has always been work remotely. Thus the social distancing infused by pandemic did not hamper their roadmap much. Pretty soon Binance will be coming out with a big announcement about Binance Chain. And then the next big thing is going to be the Binance Debit card.
As explained by CZ, Binance Debit card will make it easy for people to get into crypto and for merchants to receive fiat. According to him, the pure crypto concept does not take off in this system because a merchant would not add a crypto PoS just to facilitate crypto payments for only 0.1% of the population. And that is why it is important that with the card the merchant must receive fiat while the customer spends crypto.
Lastly, he shared that Binance is working on projects and experiments that will ensure people stay in crypto longer. That means they would not have to worry about fiat exchange or fiat payments anymore.