Binance Coin Surges Above $270 And CZ Reacts To Musk’s Dogecoin Comments

0

Last Updated on 19 February 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
View all posts

As Binance Coin is shattering records and surged 43% higher, CEO Changpeng Zhao, known as CZ in the cryptosphere, was interviewed by Bloomberg a few hours ago.

Binance Coin has now overtaken both Cardano and Polkadot and sits on the fourth place in CoinMarketCap’s top 10. Currently, the Binance Coin price is trading around $258 and reached $276 a couple of hours ago.

The main reason BNB is surging, is the popularity of the Binance exchange (traders are stimulated to hold BNB) and the success of PancakeSwap on the Binance Smart Chain (BSC). BSC is directly competing with other DeFi platforms, and allows transactions with extremely low fees in comparison to Ethereum. The high gas fees of Ethereum is holding the platform back and people are looking for alternatives.

Advertentie.

Gung-Ho

Changpeng Zhao, who’s highly respected in the cryptosphere by his peers (even Cardano founder Charles Hoskinson gave him compliments for the way he’s built Binance, during a recent AMA) was asked by Bloomberg about Tesla’s Bitcoin investment and also referred to Elon Musk’s Dogecoin fangirling.

CZ said:

I’m surprised that Elon’s so gung-ho on Doge coin, but I think this is the free decentralized world right, anybody can like anything. He can like Dogecoin for any reason he likes and I strongly believe that he’s not really associated with Dogecoin.

Gung-ho is an English term derived from Chinese, with means overly enthusiastic. It was highly popular in the ’80s and ’90s, when Ron Howard made a movie with the same name.

Negative interest

Musk reacted to the segment via Twitter, stating:

Tesla’s action is not directly reflective of my opinion. Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company.

To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla. However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere.

As such, Musk explains that Tesla invested in Bitcoin for the same reason Paul Tudor Jones, the famous hedge fund manager, already did a year ago: as a hedge against inflation.

If the Biden Administration indeed gets their planned stimulus program through the US congress, the Federal Reserve will once again have to turn on the money printers and we can only guess how high Bitcoin will go then.

At the time of writing, Dogecoin meanwhile was trading 8% higher, still refusing to go under $0,050.