Changpeng Zhao (CZ), the founder and former CEO of Binance, one of the world’s largest crypto exchanges, has suggested that the price of bitcoin (BTC) could “far exceed” $850,000.
In a recent interview, CZ noted that BTC should be worth more than its $16 trillion market cap compared to gold. He further highlighted that the leading crypto asset has an advantage over gold. For instance, he explained that BTC is easier to carry, spend, and use.
Is BTC Ahead of Gold?
Following the interview, the former CEO said BTC is more scarce and affordable than gold. He pointed to Bitcoin’s fixed supply of 21 million coins as a key driver of its long-term value. Additionally, he stated that BTC could do a lot more than gold could not.
In his explanation, CZ said that gold is more challenging to transfer, carry, and send internationally, explaining that it can’t be used as a transaction currency. In comparison, BTC can be used as a transaction currency, and crypto can also carry out micro-transactions and large transactions.
Institutions Buying Big
CZ’s statement comes amid the growing institutional adoption of bitcoin. Companies like BlackRock, Fidelity, and other major asset managers are actively acquiring the digital asset. On December 13, 2024, BlackRock purchased 4,295 BTC Worth $429.5 million, further cementing the asset manager’s growing footprint in the crypto market.
Similarly, Fidelity Investments, one of the world’s largest asset management firms, added 1205 BTC, valued at over $121.5 million, to its portfolio. The purchase aligns with the firm’s long-standing commitment to the asset.
The asset giant has played a significant role in promoting the integration of crypto assets into traditional investment strategies and has steadily expanded its involvement in crypto services since its launch.
Ohio Wants To Add BTC to Reserve
Moreover, several countries and states propose adding Bitcoin to their holdings despite its recent drawbacks. At the time of publication, the leading crypto was trading at over $91,000. On December 18, 2024, an Ohio lawmaker introduced a bill that could position the state to embrace Bitcoin. The proposed legislation sought to establish a state bitcoin reserve, allowing Ohio to purchase and hold BTC as part of its financial assets.
The legislation noted the creation of a framework for the state to acquire, hold, and potentially utilize BTC in various capacities, including as a hedge against inflation and a tool for diversifying state financial reserves.
