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Changpeng ‘CZ’ Zhao, the co-founder of cryptocurrency exchange Binance, says that <a href="https://cryptoz7.com/unstoppable-domains-drops-crypto-and-bitcoin-plans/” title=”Unstoppable Domains Drops .crypto and .bitcoin Plans”>Bitcoin (CRYPTO: $BTC) could surpass gold in importance moving forward.
Specifically, CZ, a Canadian-born crypto billionaire, told attendees at a conference in Hong Kong that Bitcoin could overtake gold in market value in the next bull cycle.
Zhao said gold’s market capitalization is still about 10 times larger than Bitcoin’s. But he argued that closing the gap would be part of a broader shift in how investors’ view reserve assets.
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“Major countries have built complete valuation, reserve, and trading systems around gold, so a shift to Bitcoin will not happen overnight,” he said.
However, CZ added that he’s confident sovereign reserve allocations will eventually shift to digital assets, with Bitcoin representing more than 50% of strategic crypto holdings.
His comments come after a big rebound in Bitcoin’s price. Over the past week, BTC’s price has risen 25% to cross above the key level of $80,000 U.S.
Gold has also been on a tear lately and risen nearly 15% in August to trade above $4,600 U.S.
Both Bitcoin and gold have seen their prices rise sharply amid growing concerns about America’s debt that just hit $40 trillion U.S. and rising bond yields.
CZ is one of several crypto leaders and analysts who see Bitcoin benefitting as more investors see the largest cryptocurrency as a store of value similar to gold bullion.
Bitcoin is trading at $79,500 U.S. on Aug. 27.
Binance is a privately held company and its stock does not trade on a public exchange.
