Binance’s CEO Changpeng Zhao (CZ) is on a mission to expose the ills of traditional financial markets even as cryptos crash.
Over the last few months, numerous reports have revealed that the world is about to go into an economic recession. With this trend, the stock market has crashed hard.
The crypto market hasn’t been spared either, although there are a few more factors in play in regard to cryptos. However, some mainstream players in the traditional financial markets have long sought to bash cryptos as too volatile and unreliable. In a recent tweet, Binance’s CEO had something to show them.
CZ shared a post sent out by Yahoo Finance, in which numerous people who put their money in retirement savings are said to have lost around $3 trillion when the stock market crashed. A loss of that magnitude is huge in a market that has been long touted as strong.
Crypto Not As Bad As Stocks
By sharing this tweet, CZ had a clear point to put across. First, the entire crypto market was worth around $3 trillion before prices dropped. It’s now worth just a little under $1 trillion. This loss can’t be compared to a whole $3 trillion loss experienced by retirees.
Other than the most common criticism of crypto is that it is volatile and there are high up and downswings in a matter of hours or days. Pointing to Retriment saver’s losses of $3T, CZ is asking if crypto is volatile??? when traditional finance can lose Trillions in a few days of bear markets.
Crypto is volatile… https://t.co/4hxsDgQ7c2
— CZ 🔶 Binance (@cz_binance) June 23, 2022
Furthermore, this mentioned loss was just by one group of investors/savers. There are many more groups of investors that may have lost trillions as well. From this perspective, it’s clear that the stock market has taken a pretty huge hit as compared to the crypto market.
Cryptos Recover Faster
While both the stock and crypto markets have experienced a crash, history shows that cryptos have the power to recover much faster than stocks.
As a matter of fact, the crypto market has been studied and revealed to be functioning in a cycle. The current downturn was an expected bear cycle, with the next cycle expected to be a bull run. This isn’t the case with the stock market. The crash of the stocks is entire a result of fiat inflation and global recession.
In a recent interview, CZ said that cryptos like Bitcoin could take between a few months and 2 years to recover and hit above the ATH, while stocks will remain stuck at low levels for many years.