With Bitcoin (BTC) trading above $18,500 and nearing its all-time high (ATH) of nearly $20,000, onlookers have been speculating the reason for the current bull run.
Notable crypto proponents have joined the conversation to state what they think is driving the market, with Binance CEO and founder, Changpeng Zhao, popularly known as CZ, being the latest air his opinions.
In a recent interview today with China News Asia (CNA), CZ attributed the current BTC surge to several factors.
The factors, according to CZ, include Bitcoin halving, exchanges with better UI and UX than in the past, the coronavirus (COVID-19) pandemic, China’s push for a CBDC, among others.
Interestingly, other crypto enthusiasts that have joined the debate were sure that institutional interest in Bitcoin is at the forefront of what is driving BTC’s value.
CZ affirmed this, saying that the crypto space is gradually getting clearer regulations across different parts of the world, prompting more institutional players like PayPal, MicroStrategy, among others, to venture into BTC investments.
Grayscale Investments, which mostly deals with institutional investors, also recorded a spike in the amount of interest for its Bitcoin product, which was published in its record-breaking Q3 financial report.
Grayscale’s Q3 2020 financial report showed that the firm’s Bitcoin Trust accounted for $719.3 million of the total $1.05 billion, with the firm holding more than 500,000 of the asset.
BTC Will Outperform Gold
When quizzed about whether BTC can outperform gold in the future, CZ said, “it is inevitable” that the cryptocurrency will be valued more than the “yellow metal.”
According to CZ, Bitcoin is well placed to outperform gold because the former has several advantages that make it the perfect store of value asset.
While calling Bitcoin “the future,” CZ said that the cryptocurrency’s fixed supply of 21 million coins, liquidity, easy storage, and the ease to travel with a large amount of BTC whenever necessary are the factors that would see the asset be valued over gold.
When asked about his price prediction for Bitcoin at the end of the interview, CZ disclosed that he is “always bullish and optimistic about BTC.”
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