Changpeng Zhao, founder and former CEO of Binance, urged businesses We employ Bitcoin as a financial asset to fully understand the risks associated with top encryption.
In a June 3rd post on X, Zhao acknowledged that risk is an inevitable part of doing business, but emphasized the importance of properly assessing and managing it.
According to him:
“Every company takes risks. Risk is not binary, like 0 or 1. Risks range from 0 to 100.”
He adds that failing to take risks may be as dangerous as taking too much, suggesting that avoidance can lead to future shock opportunities and unpreparedness.
Zhao, on the other hand, emphasized that risks are not inherently negative when approaching wise.
“If you balance the right amount, you can achieve the best risk/ROI ratio that’s right for you.”
When asked how companies can prepare for the worst-case scenario, Zhao pointed to potential financial collapses, such as currency that loses all its value, or currency that will reach zero as the event business needs to be prepared to withstand.
He pointed out:
“The extreme cases aren’t that extreme (in real life). They happen.”
Zhao’s comments follow a wave of companies adopting Bitcoin as a financial asset.
More than 200 companies own Bitcoin, with notable additions like Trump Media and Gamestop recently joining the ranks, according to data from Bitcoin Treasuries.
According to data compiled by HODL15CAPITAL, the top 100 holders collectively control over 814,000 BTC. The Strategy (formerly MicroStrategy) continues to be the largest institutional owner, managing over 580,000 BTC.
Why Bitcoin’s Treasury Ministry is so popular
Market Observers explain that this shift is driven by Donald Trump’s Pro-Bitcoin administration and the belief that the best crypto provides protection against counterparty risk and currency instability.
Crypto Firm River explained that holding Bitcoin can help businesses minimize their reliance on third parties. Particularly when working with custodians who choose to be independent, lend assets, or issue only excessive loans.
The company also noted that Bitcoin is a valuable tool for multinational companies operating in a variety of currencies. According to River, Bitcoin Treasury will act as an asset for the bridge, reducing friction and costs for cross-border transactions.
At the same time, River said that BTC can function as a defensive asset during low interest rates or periods of inflation. The company noted that Bitcoin cap supply and predictable issuance offer unique benefits in maintaining long-term value, unlike Fiat currency, which is vulnerable to decline.
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