Binance CEO Changpeng Zhao recently said that almost all of his holdings are in cryptocurrencies. Bitcoin has suffered drops but analysts consider them mere setbacks preceding new all-time highs.
In recent days, Changpeng Zhao, Founder, and CEO of crypto exchange Binance, said that he hoards cryptocurrencies instead of fiat money. He highlighted that he prefers Bitcoin is one of his favorite crypto assets, which he prefers over that of goods and properties.
“I am one of those who value liquidity much more than owning something. I would rather have nothing,” Zhao said.
The executive stated that 100% of his total net worth is in various cryptocurrencies. He noted that he does not own any real estate or many fiduciary holdings. Zhao stated that he probably invests close to 100% of his net worth in crypto assets.
“I do not have any fiat [money] and the physical things that I own are probably insignificant. I am not using cryptocurrencies to buy fiat money. I am not using them to purchase houses either. I just want to keep cryptocurrencies. I do not plan to convert my crypto assets into cash,” Zhao explained.
The CEO of Binance said that it took him years to grow his portfolio of crypto assets. When he bought his first Bitcoin, he decided to sell an apartment that he had bought in 2006 to acquire more Bitcoin and quit his job. He added that it is possible to rent an apartment or stay in a hotel, which he believes brings much more liquidity.
According to the Hurun Research Institute of China, Zhao is one of the richest men in the cryptocurrency industry. His total wealth in January 2021 was around USD 8 billion.
Both Bitcoin and Other Cryptocurrencies Have Suffered Drops
The pioneering cryptocurrency has experienced bearish trends that have reached the rest of the cryptocurrencies. Bitcoin is currently trading around USD 58,000, going up by just 1.5% in 24 hours, according to data from CoinGecko.
The cause could be the settlement of orders for USD 1.8 billion in long trading positions, mainly through platforms such as Binance, Bybit, and Huobi. A large number of sales increase the available supply of Bitcoin in the market, which generates reductions in its price.
Analysts and enthusiasts consider these fluctuations to be normal in this market. Although the price may drop in the next few hours, they maintain the expectation that it could merely be a setback. They have observed that the pioneering cryptocurrency has reached all-time highs in the next weeks or months.
Bitcoin Mining Revenues Skyrocket
Although the mining industry in the West is flourishing, the vast majority of Bitcoin production still occurs in China. In that country, cheap coal-fired electricity uses a large number of mining platforms.
The scientific journal Nature.com revealed that up to 75% of Bitcoin mining takes place in the Asian nation. Kevin O’Leary, the investor of the reality show “Shark Tank”, recently classified coal-mined Bitcoin as a “blood coin.” He even said that he would only buy Bitcoin that came from the use of green and renewable energy, that is, a “clean coin”.
By Alexander Salazar