Cryptocurrency leader Changpeng Zhao, who is commonly known as CZ, has refuted the notion that one can print Bitcoin (BTC) out of “thin air,” following the U.S. Federal Reserve’s decision to inject $300 billion into the economy by way of quantitative easing.
On March 23, CZ, the founder and CEO of Binance, a leading cryptocurrency exchange, tweeted: “No one can print #Bitcoin out of thin air. Why? Because it is not fiat.”
The statement comes in response to news that the U.S. Federal Reserve had announced that it would buy $300 billion in Treasury securities over the next month in an effort to prop up the economy amidst the coronavirus pandemic.
CZ’s tweet implies that, unlike fiat money, which can be printed by central banks, Bitcoin is not capable of being printed out of thin air. In fact, Bitcoin is a decentralized digital asset, meaning that it is not issued by any central authority and its supply is limited to the amount that is mined, which is currently around 18.4 million BTC.
In addition, CZ’s tweet also suggests that Bitcoin may be a better store of value than fiat currencies, which can be printed out at will. This is because Bitcoin’s supply is limited and it is programmed to become harder to mine over time, meaning that its inflation rate is gradually decreasing. This could make it a better option for long-term investors who are looking for a way to preserve their wealth.
Although CZ’s tweet does not directly refer to the Fed’s decision to print $300 billion, it could be interpreted as a reminder to investors that Bitcoin may be a better option for protecting their wealth in the long term. The statement also comes at a time when Bitcoin is experiencing its highest ever price, having recently reached an all-time high of over $10,000.
Overall, CZ’s statement serves as a reminder that Bitcoin is not a fiat currency and cannot be printed out of thin air, making it a potentially better store of value than fiat currencies.