Bitcoin Could Surpass Gold's Market Cap in Next Cycle
Changpeng 'CZ' Zhao, co-founder of cryptocurrency exchange Binance, believes that Bitcoin could surpass gold's market capitalization in the next bull cycle. Speaking at a Hong Kong conference, CZ noted that gold's market cap is currently around 10 times larger than Bitcoin's, but argued that this gap will narrow as investors reassess their reserve assets.
CZ pointed out that sovereign reserves are likely to shift towards digital assets like Bitcoin, which already account for over 50% of strategic crypto holdings in some countries. However, he cautioned that this transition won't be immediate, given the existing infrastructure built around gold.
The increasing demand for safe-haven assets amid rising concerns over America's national debt and climbing bond yields has contributed to Bitcoin's surge, with its price rising 25% over the past week to above $80,000. Gold has also climbed nearly 15% in August, trading above $4,600.
CZ is among several prominent figures who see Bitcoin benefiting as more investors treat it as a store of value comparable to gold bullion.