A senior executive at cryptocurrency exchange Binance attributes its growing user base to rising inflation across the globe.
What Happened: "Now that we are seeing inflation ramping up worldwide, we are seeing that more and more people are seeking cryptocurrency, like bitcoin, as a way to protect themselves from inflation," said Maximiliano Hinz, head of Binance Latin America in an interview with Reuters on Wednesday.
Hinz named Argentina as an example of this phenomenon. While the country’s annual inflation rate is 90%, it has grown into one of Binance’s top markets, along with Brazil and Mexico, the Binance executive said.
"Regulation is a framework, but it's not always negative that something isn't regulated. If something isn't banned, then it's legal,” he said.
Binance is the world’s largest crypto exchange by a significant margin with a trading volume of over $19 billion. FTX and Coinbase (NASDAQ:COIN) Global Inc (NASDAQ: COIN) come in second and third with daily trading volumes of $2.5 billion each.
The cryptocurrency exchange’s CEO Changpeng Zhao (CZ) said in a recent interview that the bear market is the best time to invest in the cryptocurrency industry.
“We did this four years ago during the bottom of the bear market, the last cycle. It worked out extremely well. We invested a couple of a hundred million dollars, and now our portfolio is worth $7 billion,” said Zhao.
Price Action: At press time, Bitcoin (CRYPTO: BTC) was trading at $24,146, up 5% in 24 hours and Ethereum (CRYPTO: ETH) was trading at $1,871, up 11% over the same period.
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