Binance CEO: “Individual investors determine the growth of bitcoin (BTC) in 2019”

Binance CEO: "Individual investors determine the growth of bitcoin (BTC) in 2019"

Binance CEO: "Individual investors determine the growth of bitcoin (BTC) in 2019"

The growth of bitcoin (BTC) is also still attributable to private investors in crypto coins. That is what Zhao “CZ” Changpeng, CEO of Binance, says in an interview with Bloomberg.

Bitcoin (BTC) rate and retail investors

Bitcoin is experiencing a renaissance in 2019 after the crypto winter in 2018 (see graph below). A number of market followers designate institutional parties such as hedge and pension funds as the deciding factor in 2019. “CZ” disagrees.

bitcoin btc rate

“CZ” refutes that theory. According to him, private investors are still dominant in the cryptomarket.

We see no faster adoption among institutions than among retail investors. The number of active institutions in 2019 has not really risen sharply in 2019.

From private research by Binance Research, private investors would account for 60% of the trading volume on the market.

Binance has recently introduced trading with borrowed money (‘margin trading’). According to “CZ” about 10,000 traders registered at the launch on July 11, accounting for $ 15 million in borrowed money. He says:

We think that the majority of our customers will use this to a certain extent. It’s safe. The result is more trade volume and potentially more volatility.

Margin trading is not for newcomers: it is trading with borrowed money from the exchange. That makes it an investment with a higher risk.

Due to the volatility, investing in crypto coins is already a lot more risky compared to shares or bonds.

Tokenburn BNB

Binance was in the news this week by destroying part of its own BNB in ​​a ‘burn’ . Ultimately, all Binance Coins (BNB) they own were destroyed.

At the moment that is $ 2.5 billion (!) in tokens. That is quite something. By destroying it, inflation of the crypto currency is prevented because the supply is shrinking.

Bitcoin volume

Binance is then the largest crypto exchange when it comes to ​​smaller and less well-known crypto coins. Stock exchanges such as Bitfinex, Coinbase and Kraken are dominant when it comes to the BTC / USD trading pair.

These are volume figures for the past 6 months. Coinbase accounted for 2.95 million BTC in volume over the past six months.

btc volume

About Shawn Morrison 266 Articles
One of the founders of BitzArena. Active with crypto currency since the rise of the bitcoin. Loves the innovative character of crypto and blockchain technology, and follows developments in the market closely. Likes to connect technology with business, and likes to make difficult concepts accessible to a wide audience.

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