Bitcoin (BTC) is likely to be less volatile than Apple and Tesla, says Binance CEO Chanpeng Zhao

Changpeng Zhao (CZ), CEO of Binance, the largest cryptocurrency exchange in the world, says the price of bitcoin (BTC) is likely to be less volatile than stocks of companies with a similar market capitalization such as Apple and Tesla. That says the CEO in an interview with Bloomberg TV on May 3.

Bitcoin is notorious for its volatility. According to CZ, this is mainly due to herd mentality, investors who only follow the fad but don’t care much about the underlying product. He says this is not unique to the cryptocurrency world.

“There are always guys who do the basic research and understand the underlying details. Some people understand Binance Coin (BNB) better than I do. And then there are people who just follow other people, just follow the flock. There is always a greater number of people with the herd mentality than the guys doing serious research. That’s just how our civilization is. It is not unique to crypto.

It is the case in crypto, the herd followers are less committed. Whenever there is negative news, they run away. When there is positive news, they rush in. So they cause more volatility towards the diehard fans, who understand the projects and really love them. But it’s the same in the stock markets, it’s nothing new in crypto. Volatility is everywhere. Bitcoin is likely to be less volatile than assets of a similar size, such as Apple stocks or even Tesla stocks. ”

Still, CZ was perhaps a bit too early with its statements. Although the volatility of the bitcoin price gradually decreases as the market capitalization grows, it is currently on average still higher than that of Tesla and Apple.

Most crypto fans indicate on their Twitter that they prefer volatility over a flat price. 85% of 70,000 people voted for volatility.

CZ also reports that he sees no reason to go public with Binance like Coinbase did a few weeks ago. CZ reported last month that almost 100% of its net worth is in crypto.

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