Bitcoin will grow, inflation will help it, says the manager of the Binance crypto exchange

How high will the price of Bitcoin go if a new growth cycle really begins – or perhaps has already started – soon?

I personally work with a price of one bitcoin for one bitcoin.

Now for potential newcomers to hear these words, which you definitely want to attract to the world of Bitcoin and crypto.

I don’t dare to estimate the price that Bitcoin could reach, but I see it as a positive. I see the price of bitcoin as a certain mirror of how the financial system works, or rather, doesn’t work. In the long term, I believe that the cryptocurrency rate will rise. A period of high inflation can also have a positive effect on its direction. In short, the price of bitcoin depends on a lot of factors. In addition to inflation, it is the level of interest rates, the amount of daily generated bitcoins, which will be halved after the spring halving.

After all, over the past two years, the price of cryptocurrencies has gone in the exact opposite direction to the price of everything else. That is, sharply down.

I agree that you can’t look at it that way in the short term. You can’t say: “If inflation is seven percent per year, Bitcoin will grow by that much.” I’ve done analyzes on this topic before and I didn’t see such a connection anywhere. But in the long run, the declining purchasing power of the regular currency is something that will help Bitcoin.

Is the Czech Republic a cryptopower from Binance’s point of view?

The Czech Republic is a powerhouse in the field of innovation. We have a number of companies here that have achieved global success. As for the number of Czech Binance users, we are definitely not at the end, rather in the first part. At the same time, the Czech market has potential. A lot of people have not yet learned to take advantage of cryptocurrencies. The Czechs, with their do-it-yourself skills, are the ideal nation for that.

How many Czech users does Binance have?

Globally, we register more than 150 million of them, we do not want to give the numbers for the Czech Republic because of the competition.

How are you preparing for Bitcoin’s next bull run?

For most newbies, having a user-friendly product is absolutely essential. Education is also very important to us. We are therefore striving for localization with everything, that means not only having the exchange itself in Czech, but all the content related to it. That is, educational videos or articles. But this is a long-term strategy, not only related to preparations for a possible rise in the price of Bitcoin.

So now you don’t have any significant news and you’re on the path of gradual improvement?

We always publish a lot of news. We recently launched the Binance Square platform, which previously operated under the name Binance Feed. It is basically a social network for Binance users and cryptocurrency fans. Now we’ve significantly improved it and added several new features, including the ability to share user-generated content and then monetize it.

Binance is now attracting attention for its problems rather than its new features – especially in the US. The local branch of Binance is being sued by the US Securities and Exchange Commission for allegedly offering unregistered securities, and is also being investigated by the Department of Justice. Binance US was supposed to help circumvent sanctions or money laundering. Are the troubles of the American branch of Binance affecting the operation of the company elsewhere in the world?

Of course, these are things that always have some effect. Personally, I can’t comment more on this, what Binance said in the official statement is valid. (In it, the company declares that Binance US is a separate legal entity that shares its name with the global Binance only on the basis of a branding agreement, editor’s note.)

Even in Europe, not everything is developing ideally for Binance. Some prominent features of this exchange are ending. Visa and Mastercard companies have stopped working with you. In cooperation with them, you issued a card where you could load cryptocurrencies and spend them wherever they accept regular payment cards. I just paid this way recently, it seems practical. Will you have a refund?

I use it a lot too. However, as of December 20, the Binance card provided by Visa will no longer work in the countries of the European Economic Area (EU plus Norway, Iceland and Liechtenstein, editor’s note). The decision of both companies is not something that would make us happy. We are trying to get a replacement, we have several options and we are deciding which of them will suit our users the most.

Deposits or withdrawals in euros have not worked on Binance in recent months. At the same time, the use of so-called SEPA payments, relatively fast foreign transfers in euros, is generally quite popular among users of crypto exchanges.

At Binance, we have already managed to find new partners who will provide services in euros to users in Europe. We have signed agreements with a number of new regulated and authorized partners who will provide our community with various services related to transfers of standard currency to and from the world of cryptocurrencies. Our users are already switching to the new services. I can’t say what kind of partners these are.

Are you somehow trying to convince potential clients of Binance that your platform is trustworthy, safe and not threatened by any major problems not only from the side of the regulators?

There is a lot of information noise on these topics, which in the crypto world is referred to by the acronym FUD (fear, uncertainty, doubt). We try to answer it with educational texts. When someone writes an article that says something bad about Binance, I look at it and usually try to send a response in the form of a link to an already published text. In short, convey the other point of view.