Changpeng Zhao is still making people talk on the internet. The Binance CEO yesterday took a jab at the global fiat currencies, and in the process attracted numerous responses from Twitter users. In the tweet, Zhao opined that with the current trend of printing fiat money by world governments, cryptos could soon achieve over a thousand times more value compared to the fiats.
— CZ Binance (@cz_binance) March 28, 2019
To drive his point home, Zhao retweeted Pompliano’s tweet that quoted the former chairman of the US Federal Reserve, Alan Greenspan, as saying that the United States has no problems whatsoever in paying its debts because the government can print as much money as it wants.
Irresponsible Monetary Policies
Of the users who came out to offer their opinions, one seemed to agree with Zhao’s insight, terming the uncontrolled printing of money by the governments as irresponsible monetary policies that have now put many countries in economic turmoil.
Going further, the user noted that Bitcoin doesn’t owe allegiance to anyone and therefore no one can manipulate its supply by creating more. As such, cryptos can be good in fostering sound economic policies and awareness because “you will never be able to create more when you get yourself into trouble.”
The same user dropped another response, this time talking of currency controls. If governments lose control of their money printing policy and see printing more like the only way to settle debts, they risk opening the flood gates of inflation, a situation that seems to have plagued so many countries of late.
Turkey, Venezuela, And Then What?
It’s a fact that some countries are now considering remodeling their economies and money circulation in favor of cryptocurrencies. Two good examples are Turkey and Venezuela, with others like Iran also following suit.
If this trend continues, more countries, as well as financial institutions, will take notice and step in too. If this doesn’t happen and governments continue printing more money, the resulting inflation levels will make cryptos much more valuable in comparison, and that’s exactly Zhao’s point.