Changpeng 'CZ' Zhao, the co-founder of cryptocurrency exchange Binance, stated that Bitcoin could surpass gold in market value during the next bull cycle. The Canadian-born billionaire made these remarks to attendees at a conference in Hong Kong, arguing that a shift in how investors view reserve assets is underway.
Zhao acknowledged that gold currently holds a significant advantage, with its market capitalization remaining about 10 times larger than Bitcoin's. However, he expressed confidence that sovereign reserve allocations will eventually move toward digital assets. In his view, Bitcoin is positioned to represent more than 50% of strategic crypto holdings in the future.
The co-founder cautioned that the transition would not occur immediately because major countries have established complete valuation, reserve, and trading systems around gold. He noted that this infrastructure creates a barrier to rapid adoption of Bitcoin as a primary reserve asset.
Zhao's comments follow a recent surge in Bitcoin's price. Over the past week, the cryptocurrency rose 25%, crossing above the $80,000 U.S. level. As of August 27, Bitcoin was trading at $79,500 U.S. Gold has also experienced strong performance recently, rising nearly 15% in August to trade above $4,600 U.S.
Both assets have seen sharp price increases amid growing concerns about America's debt, which has reached $40 trillion U.S., and rising bond yields. Zhao is among several crypto leaders and analysts who believe Bitcoin will benefit as more investors regard the largest cryptocurrency as a store of value similar to gold bullion. Binance is a privately held company, and its stock does not trade on a public exchange.