Binance founder, CZ, emphasizes that the opportunity to buy Bitcoin at low prices will continue to appear during future market corrections due to the limited supply of Bitcoin, while fiat currency can be printed without limit.
According to CZ, although the cryptocurrency market is in a correction phase, Bitcoin remains a scarce asset with a limited supply, in contrast to the relentless increase in fiat currency, creating conditions for BTC's value to recover in the long term.
MAIN CONTENT
Bitcoin has a limited supply and cannot be printed more.
Fiat currency can be printed infinitely, putting pressure on the value of the currency.
Opportunities to buy Bitcoin at low prices will continue to appear through market corrections.
Is Bitcoin really a scarce asset with potential value?
Advice from CZ, the founder of Binance, confirms that Bitcoin is designed with a limited amount of 21 million coins, which cannot be exceeded. This increases scarcity and potential long-term value.
This conclusion is reinforced by reports from the Blockchain Research Institute in 2023 showing that scarcity consistently drives Bitcoin's value to rise more sustainably than fiat currencies like USD or EUR, which can be issued according to central bank monetary policy.
"Bitcoin is the only scarce digital asset that cannot be faked or have its supply infinitely increased, which creates long-lasting strength and credibility."
Changpeng Zhao, CEO of Binance, 11/07/2023
Why does the unlimited printing of fiat currency affect asset values?
According to CZ, fiat currency (like USD) is unlimited in quantity based on national monetary policy, which can easily lead to inflation and long-term depreciation of the currency.
The analysis from the International Monetary Fund (IMF) in 2023 indicates that expansionary monetary policy can devalue fiat currency, while Bitcoin protects investors from this risk due to its inherent scarcity.
How to take advantage of the correction phase to achieve good profits when investing in Bitcoin?
The market correction phase is not the end but an opportunity to buy at low prices. CZ stated that price drops are just steps in the development cycle of the cryptocurrency market, creating a reasonable time for strategic buyers.
Statistics from over 10 years of Bitcoin's rising and falling cycles show that corrections often come with high-profit buying opportunities when the market rebounds later.
"Corrections create new opportunities for strategic investors to access Bitcoin at attractive prices; this is a moment not to be missed."
Changpeng Zhao, CEO of Binance, 11/07/2023
Comparing Bitcoin's supply with the amount of fiat currency in the market
Bitcoin Criteria Fiat Currency (USD, EUR…) Supply Limited to 21 million BTC Unlimited, can be printed according to policy Management Decentralized, cryptographically protected Controlled by central banks and governments Risk of depreciation Limited, low inflation risk High due to inflation and credit expansion policies Potential for long-term value increase High, based on scarcity and market demand Often decreases in value due to increased money supply
Frequently asked questions about Bitcoin and market corrections
1. Why does the price of Bitcoin often decrease during corrections?
Bitcoin's price decreases due to market volatility, investor sentiment, and macroeconomic factors. This is a normal rule and does not mean long-term depreciation.
2. How to identify opportunities to buy Bitcoin at a low price?
It is necessary to monitor technical indicators, analyze market cycles, and news to determine reasonable buying points during corrections.
3. Is Bitcoin safer than fiat currency?
Bitcoin has a decentralized structure with limited supply that helps reduce inflation risk but still carries the risk of high price volatility.
4. How does excessive printing of fiat currency have negative impacts?
Excessive printing of fiat currency leads to inflation, reducing purchasing power, causing the value of assets and currency to decline.
5. Will the market correction phase still occur in the future?
Experts agree that the correction phase is an inevitable part of the cryptocurrency market cycle and will continue to occur.
Source: https://tintucbitcoin.com/bitcoin-sap-co-co-hoi-gia-thap/
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