Bitcoin Forum

Binance CEO: Bitcoin Price Drop is Business as Usual

Changpeng Zhao, CEO of Binance, the world’s largest cryptocurrency exchange by means of trading volumes, said that the recent decline in Bitcoin’s price is historically normal.

http://bitcoinist.com/bitcoin-price-drop-is-historically-normal-according-to-binance-ceo/

I think he's right, there's nothing special about this dip, there were countless crashes like this throughout the history of Bitcoin. In fact, Bitcoin has seen way bigger dips and I feel like the volatility (measured in percentages and not absolute values) tends to decrease with the time. So, it's really unlikely that we'll see any big crashes during this time, that $5,000 that is so often being mentioned today is probably the pessimistic scenario rather than optimistic as it is claimed.

Of course, in itself a decline in the price of the currency for the past weekend on average by 10 percent is nothing special for the crypto currency. Simply interesting is the reason for such a sharp drop in the price of both bitcoin and the rest of the crypto currency. If this is due to the theft of tokens from private wallets on the little-known exchanger Coinrail in South Korea, it turns out that the crypto currency is very vulnerable to negative news information. Information about hacker attacks and theft of crypto currency will appear regularly. Is it because of this that the crypto currency will not grow in value?

This is why I invested in Binance. If anyone is going to profit from the volatility, it will be Binance.

Crypto prices go up, Binance makes money.
Crypto prices go down, Binance makes money.
Crypto prices go up again, Binance makes money.

From My observation, there are certain months in which the price of bitcoin plunges. June and july being amongst them. Bitcoin will surely gain in coming days and so will the market.

You have to take into account that exchanges fall from grace from time to time.
If you take a look at the altcoin exchanges that were the biggest exchanges 2 years ago,
you will see that nearly all of them have lost popularity.

If another competitor manages to gain the top position, BNB might
not be the best investment.

There is a major difference though. If we look at all the altcoin exchanges of the past that went from nothing to something and back to nothing, they inherently have proven to destroy themselves at some point. If your inner core represents a shitcoin exchange, you will never be able to run a professional and compliant exchange properly. Binance is the difference here since it has never been a shitcoin exchange by start. It has been operated in a very consistent manner that keeps pleasing people, even during high volume usage.

As long as Binance manages to keep that up and don't make the same mistake as Poloniex and Bittrex, they will be able to grow further.

The only thing that will be able to somewhat damage Binance is faul play from OKEx and Huobi with their *likely* high positioned government officials in their board.