Bitcoin’s 15-Year Rise ‘Against the Tide’: CZ Explains Why Crypto Is Still Undervalued
Bitcoin’s ascent from $0.05 to over $80,000 did not happen because of government support. It happened in spite of it. Former Binance CEO Changpeng Zhao, known widely as CZ, recently highlighted that the world’s largest cryptocurrency faced active resistance from governments for nearly 15 years. Only the last 18 months have marked the first real window of regulatory support for Bitcoin on a global scale.
A History of Resistance, Not Acceptance
Since its inception in 2009, Bitcoin has operated in a legal gray area. Governments in major economies, including the United States, China, and the European Union, have issued warnings, imposed bans, or created restrictive regulations. China’s 2021 crackdown on mining and trading is one of the most notable examples of direct government intervention. Despite these headwinds, Bitcoin’s price trajectory has been upward over the long term, driven by retail adoption, institutional interest, and its fixed supply cap of 21 million coins.
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What Changed in the Last 18 Months?
The shift began in late 2023 and accelerated through 2024. The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States in January 2024 marked a turning point. For the first time, a major regulatory body—the U.S. Securities and Exchange Commission—signaled a formal acceptance of Bitcoin as a legitimate asset class. Other jurisdictions, including Hong Kong and the United Arab Emirates, have since introduced clearer licensing frameworks for crypto exchanges and custodians.
This regulatory shift, while still incomplete, has opened the door for traditional financial institutions to allocate capital to Bitcoin. CZ argues that this window of support is still in its infancy, and the asset class remains undervalued relative to its potential role in the global economy.
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Why CZ Sees Crypto as Vital for AI Economies
In his commentary, CZ linked cryptocurrency to the rise of artificial intelligence. He views digital assets as foundational for AI-driven global economies, where automated systems require decentralized, programmable money for transactions, data payments, and machine-to-machine commerce. This perspective positions crypto not just as an alternative investment, but as infrastructure for the next wave of technological growth.
While this is a forward-looking thesis, it underscores why CZ and many industry leaders believe the current market capitalization of cryptocurrencies—roughly $2.5 trillion—does not reflect their long-term utility. Bitcoin alone, with a market cap of around $1.5 trillion, remains smaller than major tech stocks like Apple or Microsoft.
Implications for Investors and Regulators
The story matters for several reasons. For investors, it suggests that Bitcoin’s price history is not a reliable predictor of future resistance. If governments continue to move toward acceptance, the risk profile of crypto assets may shift. For regulators, CZ’s comments serve as a reminder that restrictive policies have historically failed to stop adoption, and that proactive frameworks may be more effective.
It is also worth noting that CZ himself has a vested interest in a positive narrative around crypto. He stepped down as Binance CEO in November 2023 as part of a settlement with U.S. authorities over anti-money laundering violations. His perspective, while informed, should be weighed against his personal and professional incentives.
Conclusion
Bitcoin’s rise from a fraction of a cent to a five-figure asset was achieved under conditions of widespread government opposition. The recent shift toward regulatory support is historically unusual for this asset class. Whether this support deepens or remains limited will likely determine the next phase of crypto’s integration into the global financial system. For now, CZ’s assessment that crypto is the most undervalued asset class remains a provocative, but not unfounded, claim.
FAQs
Q1: How long did Bitcoin face government resistance?
Bitcoin faced active government resistance for approximately 15 years, from its launch in 2009 until late 2023, when regulatory support began to emerge in key markets.
Q2: What changed in the last 18 months for Bitcoin regulation?
The approval of spot Bitcoin ETFs in the U.S. in January 2024 was the most significant change. It marked formal regulatory acceptance of Bitcoin as a legitimate asset class, followed by clearer licensing frameworks in Hong Kong and the UAE.
Q3: Why does CZ believe crypto is undervalued for AI economies?
CZ argues that AI-driven economies will require decentralized, programmable digital money for automated transactions and machine-to-machine payments. He sees crypto as foundational infrastructure for this future, a role not yet reflected in current market valuations.
