Despite skeptics' doubts, Bitcoin and other cryptocurrencies are being adopted at a much faster rate. Cryptocurrency billionaire Changpeng Zhao, also a CZ, claims the industry is not going away.
Are cryptocurrencies still a bubble?
In a tweet, the Cryptocurrency CEO said that the continued resilience of the cryptocurrency will also allow it to grow. CZ has always been bullish on bitcoin, so it's no surprise that he's fully supportive of the asset.
What doesn’t go away tends to grow. https://t.co/CNjC2nSDWA– CZ 🔶 Cryptocurrency (@cz_binance) March 9, 2022
His reflection on the market comes against the backdrop of news that Dubai has taken a bold step toward embracing cryptocurrencies. The city, known as a global financial hub, has just approved a virtual asset law that will provide clear regulation for cryptocurrencies.
The Cryptocurrency boss also slammed skeptics who believe that the rise in cryptocurrency prices constitutes a speculative bubble. CZ said that those who still think the cryptocurrency market is in a bubble are "in a bubble themselves.
A number of cryptocurrency commentators have held and will continue to hold this cryptocurrency view. These include Berkshire Hathaway founder Warren Buffett and his close associate Charlie Munger. Both legendary investors have lived through several speculative sprees, and they often compare the cryptocurrency market, and Bitcoin in particular, to the Internet bubble of the late 1990s.
Jeremy Grantham, co-founder of Grantham, Mayo, & Otterloo (GMO), and Michael Burry, hedge fund manager at Big Short, are among the skeptics who call cryptocurrencies a bubble. According to Grantham, the cryptocurrency market is ripe for a bust this year.
However, as CZ and other market participants point out, cryptocurrencies continue to defy their speculation and even win over some skeptics. Market participants point to countries such as the UAE, Singapore, Malaysia and El Salvador as increasingly confident that cryptocurrencies are here to stay.
The capital inflation of the cryptocurrency market, which reached over $3 trillion at its peak, is also not excluded from the arguments of cryptocurrency proponents.
Are other digital assets also proving not to be bubbles?
Other types of digital assets, such as NFT, have suffered the same stigma. John Hawkins, a senior lecturer at the University of Canberra in Australia, described NFT as "a speculative bubble exaggerated by pop culture and cryptocurrency mania".
Some analysts also point out that the NFT bubble may have burst. Bloomberg reporter Aaron Brown noted that trading volume in the most popular NFT pools has fallen by as much as 40% in recent weeks.
Despite this, the market remains optimistic about NFT. It has been noted that the number of unique NFT traders has been increasing.