Tweeting on Monday, December 16, Binance boss Changpeng Zhao (CZ) recalled a user’s comment from his old tweet and affirmed that the largest cryptocurrency, Bitcoin has unlimited growth potential against fiat.
Further conversation on CZ’s Twitter wall revealed the actual comment which CZ was referencing. It was commented by Syed Raza Shah, who is by his Twitter profile, also known as “Crypto Doctor.” He had commented on CZ’s old tweet; “the world has an unlimited supply of fiat to buy a limited supply of Bitcoin! Let that sink in”.
Mathematically speaking, #bitcoin, given its limited supply, has unlimited growth potential against fiat.
Why? It has less to do with bitcoin, but because fiat has an unlimited supply.
(paraphrased from a comment in my tweet a few days ago, can't find it now). https://t.co/aBFi6xP6r9
— CZ Binance 🔶🔶🔶 (@cz_binance) December 16, 2019
When bitcoin was created, its creator Satoshi Nakamoto in a whitepaper revealed various details about how this digital form of money will be a unique currency in the world and how people across the globe can use this. However, one of the unique characteristics that Bitcoin holds is “its limited supply.”
Unlike fiat, which has an unlimited supply, there will only be 21 million Bitcoins in circulation for life, which keeps the BTC interest ratio on a higher graph.
Although this digital cash is highly volatile, Bitcoin has unlimited growth potential against fiat, according to Binance CEO. He says that the fact is proved by the mathematical calculation of the limited supply of Bitcoin.
In actual sense, the central banks have the authority to print national currencies at a whim, which likely disturbs the flow of funds and economic conditions within the country. However, a total of 20,999,999,9769 BTCs will be created in supply, of which over 80% of bitcoins are already in circulation.
Commenting with a similar view, Nischal Shetty, the CEO of WazirX, Binance’s newly acquired Indian exchange thumbed up and added: “It’s like Bitcoin doesn’t have to work too hard, Fiat is doing all the work to push it higher.”
Although Bitcoin holds the crown, the trading value kept on a dryer mark on the graph of coinmarketcap. Nonetheless, the entire crypto community remained to see the bash of Bitcoin price again. At the time of reporting this, Bitcoin is valued at $7106 against USD, counting the market capitalization of $128,649,929,303.
Moreover, CZ’s view on Bitcoin’s limited supply as the potential aspect of Bitcoin was criticized by a few members of the crypto community. One such user disagreed with CZ, adding, “Limited supply is irrelevant if there is no real demand.”
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.