Changpeng Zhao, the CEO of Binance, the world’s largest cryptocurrency exchange, recently shared his thoughts on inflation. In a statement, he acknowledged the inevitability of inflation but emphasized that individuals have choices and tools to mitigate its impact.
You won’t be able to escape inflation completely, but there are many tools you can use to shield yourself from it to a large extent. You have choices.
— CZ 🔶 Binance (@cz_binance) October 16, 2023
A significant concern of investors
Zhao, also known as CZ, is a Chinese-Canadian coder who founded Binance in July 2017. Despite facing regulatory scrutiny and investigations across Europe, Asia, and the U.S., Binance has grown to facilitate spot trades worth $5.3 trillion in 2022.
Inflation is a significant concern worldwide, eroding the purchasing power of money over time. However, Zhao believes that individuals can shield themselves from it to a large extent. While he did not specify these tools in his statement, it’s likely he was referring to investment options that can potentially offer returns that outpace inflation.
A hedge against inflation
Cryptocurrencies, like those traded on Binance, are often touted as one such tool. They have been gaining popularity as a hedge against inflation, especially in economies experiencing hyperinflation. However, they come with their own risks and volatility.
Zhao’s statement comes at a time when the global economy is grappling with inflation due to factors like supply chain disruptions and increased government spending in response to the COVID-19 pandemic. His words serve as a reminder that while inflation is a complex issue with no easy solutions, individuals are not entirely powerless.