CEO of Binance makes serious warning about bitcoin and crypto

[ad_1]

<div _ngcontent-c14 = "" innerhtml = "

Bitcoin has been growing strongly since the beginning of the year, stimulated both by The world's largest technology companies are interested in bitcoin and crypto-currencies and the vague assumption that the institutional demand for bitcoin has arrived and exceeds the demand of retailers.

The price of bitcoin has risen by more than 200% so far this yearfrom about $ 3,500 per bitcoin at the beginning of the year to highs of nearly $ 14,000 like bitcoin fever and cryptocurrency returns after sweeping the world at the end of 2017.

However, the managing director of Binance, the world's largest exchange of bitcoins and crypto-currencies in the world, has warned that the institutional demand for bitcoins may not be the driving force behind the last rally as much as some have conceived.-and the already extreme volatility could be on the verge of becoming even worse. & nbsp;

"We have not seen any institutions grow faster," said Binance general manager Changpeng Zhao, often nicknamed simply CZ. Bloomberg, a financial press wire. "What we have seen is a pickup in both places.The number of institutions entering this industry has not yet increased significantly in 2019."

According to CZ, retail investors still account for about 60% of trading volume on Binance, about the same percentage as last year, although both increased.

Margin trading, where & nbsp;Traders can borrow against their stock market deposits, but they can also affect the price of bitcoin because investors have more money to speculate. Earlier this month, Binance, a Malta-based company, allowed traders to borrow up to three times their deposit, while BitFinex, its rival in exchange for bitcoins, allowed loans of a certain amount. equal to 100 times that of deposits. & Nbsp;

"I would say that the majority of people by the end of the year will use the margin to a certain extent," CZ who was compared to Facebook's founder, Mark Zuckerbergsaid Bloomberg. "To be honest, its use is pretty safe, there will be more transaction volume and potentially greater volatility."

The 2013 Bitcoin epic, which saw the price of bitcoin rise from less than $ 1,000 per bitcoin to nearly $ 20,000 in less than 12 months, would have been largely driven by retail investors, the latter rising being a little more mature.

Those who have called this year's bull to be different from 2017 pointed to& nbsp; bitcoin and crypto & nbsp;interest of the likes of the social media giant Facebook& nbsp; and & nbsp;Apple iPhone manufacturerand the institutional adoption of the Bakkt platform, backed by Bitcoin and the crypto-currency backed by the owner on the New York Stock Exchange, and by Fidelity Investments, one of the world's largest asset managers. assets in the world.

Others have suggested that the next halving of bitcoin is imminent, where the number of Bitcoin tokens allocated to minors will be halved, could result in & nbsp;"supply shock" in the market.

">

Since the beginning of the year, bitcoin has been backed by the world's largest technology companies interested in bitcoin and cryptocurrencies and by the vague assumption that institutional demand for bitcoin has arrived and exceeds the demand of the retail trade.

The price of bitcoin has risen more than 200 percent since the beginning of the year, from about $ 3,500 per bitcoin at the beginning of the year to a high of nearly $ 14,000, while Cryptocurrency and cryptocurrency returns after sweeping the world at the end of 2017.

However, the managing director of Binance, the world's largest exchange of bitcoins and crypto-currencies in the world, warned that the institutional demand for bitcoins may not be at the origin of the last rally, contrary to what some thought.– and already extreme volatility could be about to worsen.

"We have not seen any institutions grow faster," Bloomberg, director of the financial press, told Changpeng Zhao, managing director of Binance. "We have seen a recovery in both cities.The number of establishments entering this industry has not yet increased as much in 2019".

According to CZ, retail investors still account for about 60% of trading volume on Binance, about the same percentage as last year, although both increased.

Margin trading, where traders can borrow against their stock market deposits, but they can also affect the bitcoin price because investors have more funds to speculate. Earlier this month, Binance, a Malta-based company, had allowed merchants to borrow up to three times their deposit, while BitFinex, its rival in exchange for bitcoins, allowed loans 100 times higher.

"I would say the majority of people will use their margin at the end of the year," said CZ, compared to Facebook founder Mark Zuckerberg at Bloomberg. "To be honest, its use is very safe, there will be more transaction volume and potentially greater volatility."

The 2013 Bitcoin epic, which saw the price of bitcoin rise from less than $ 1,000 per bitcoin to nearly $ 20,000 in less than 12 months, would have been largely driven by retail investors, the latter rising being a little more mature.

Those who have described this year's bull as different from 2017 have emphasized Bitcoin and crypto interest of the likes of the social media giant Facebook and Apple iPhone manufacturerand the institutional adoption of the Bakkt platform, backed by Bitcoin and the crypto-currency backed by the owner on the New York Stock Exchange, and by Fidelity Investments, one of the world's largest asset managers. assets in the world.

Others have suggested that the next halving of bitcoin is imminent, where the number of bitcoin chips awarded to minors will be halved, could lead to "supply shock" in the market.