Chanpen Zhao spoke about the risks of bitcoin reservations

The ex-head of the largest cryptocurrency book Binance Chanpen Zhao (CZ) warned of the risks associated with the widespread creation of corporate reserves based on the first cryptocurrency.

In response to the Twit of the user X under the nickname Bering with the transfer of Bitcoin-ordering CZ created in May, he shared his view of the basics of risk management. According to him:

  • Each company accepts risk;
  • The risks are nebinar as 0 and 1 – they are ranked from 0 to 100;
  • With the right balance, you can achieve an optimal ratio of risk and profitability;
  • risks can and should be controlled;
  • Refusal of risk is also a risk.

In the comments to the post, the user under the nickname Bene asked what he puts on Kon Zhao. He answered:

“Too many. I have more fiat (stealth) than I would like. I just got more. It is necessary to reduce the risk in this part. “

Another user X – vader.bnb – asked the question of how to find the same balance in the acceptance of risks in order to achieve maximum profitability – after all, this is a whole range of aspects requiring management.

Cz answered the following:

“Think about extreme scenarios. Will you deal if one of the usual suddenly disappears? For example, if bitcoin collapses to zero. Or the revolution will happen, and your fiat currency will depreciate. ”

According to him, such scenarios are not fantasy at all and in reality “realized more often than we would like.”

Earlier, Zhao predicted the growth of bitcoin to $ 1 million already in the current market cycle.

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Source: Cryptocurrency

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