Summary of Key Points
This is an in-depth interview with CZ (Zhao Changpeng), the founder of Binance, covering his investment philosophy, the underlying reasons for Binance's success, how the company has handled regulatory challenges, the interaction between AI and cryptocurrency, and his long-term outlook for Bitcoin. CZ shares his initial investment in X (the former Twitter), Binance's business philosophy of putting users first, his experience of being imprisoned in the United States, the difficulties faced with European regulation, as well as his views on the impact of AI on the crypto industry and his prediction that Bitcoin could reach a price of $1 million in the future. The interview illustrates his transition from being an operator of Binance to a promoter of the entire crypto industry, along with his confidence in the long-term value of the sector.
1. Investment in X: Laying the Groundwork for Freedom of Speech and Global Payments
CZ invested $500 million in X (now acquired by Elon Musk), primarily because he believes that "financial freedom begins with freedom of speech"—X is an important platform for expressing opinions. Although this amount is significant, it only represents 1% of Musk's $44 billion acquisition price, and CZ hopes that crypto companies can contribute to the advancement of free speech. Regarding the future of X's payment services, CZ criticizes existing payment solutions like Stripe and WeChat Pay as being "state-controlled," arguing that cryptocurrencies represent the first technology capable of breaking down national barriers. He attempted to collaborate with Musk on X Money but was told that it would only handle fiat currencies; however, he still dreams of making X a global payment platform: "Currencies should not be divided by country; people should be able to transact freely worldwide."
2. Binance's Success: Putting User Funds Safety First
CZ attributes Binance's rapid growth to a combination of strong fundamentals and a user-centric approach. A key factor was seizing niche markets during the 2017 ICO boom. More importantly, protecting users' funds has always taken precedence over short-term profits. For example, when Chinese regulations required crypto projects to withdraw their funds, Binance used its $15 million reserve to refund users $6 million (40%), resulting in a short-term loss but gaining user trust—users stayed with Binance, paying a small fee for greater long-term benefits compared to making sporadic transactions. This level of user trust is a core competitive advantage.
3. Regulatory Challenges: From Imprisonment in the US to Struggles for European Licenses
CZ has faced regulatory issues and was briefly imprisoned in the United States. His approach has always been to proactively address problems. When accused of violating regulations, he flew to the US to resolve the issue, even though he did not expect to be arrested. While in prison, he joined a community of Pacific Islanders for support and was not extorted; he also encountered jailers who offered to buy Bitcoin from him. In Europe, Binance's application for the MiCA license (the European crypto regulatory framework) was delayed due to external factors, which CZ viewed as a lose-lose situation for both Binance and Europe. However, having previously navigated regulatory hurdles in countries like Japan and Singapore, he remains confident that these issues can be overcome.
4. AI and Cryptocurrency: A Mutual Relationship with Potential Risks
CZ frequently uses AI tools such as Kimi and Claude and even tried using them to filter spam emails (with limited success). He believes AI can accelerate the development of the crypto industry by helping with tasks like coding and identifying security vulnerabilities, but it also poses risks, as hackers could use AI to find vulnerabilities in DeFi applications. To mitigate these risks, Binance adopts multiple security measures, such as hot wallets, multi-signature systems, and secure isolation. Larger platforms like Binance have the resources to invest heavily in security, which smaller ones may not; therefore, they are better equipped to withstand potential AI-driven attacks.
5. The Future of Bitcoin: Not the Only Currency but with Long-Term Potential
CZ is not a fanatical supporter of Bitcoin alone, recognizing the limitations of the Bitcoin network (for example, the shift in block size led to the rise of Ethereum and BNB). He believes that Bitcoin's long-term potential lies in its ability to evolve. He notes the following trends:
- Four-Year Cycles: The current crypto market downturn is normal, as prices have dropped by 50% from historical highs.
- Unsaturated Demand: Bitcoin accounts for less than 1% of global personal wealth, indicating potential for growth.
- Price Forecast: If prices double in the next cycle (to $50,000–$60,000), they could triple in the following cycle (by 2033), potentially reaching $1 million.
CZ also points out that Bitcoin's role extends beyond being just a currency; it could serve as a verifiable medium for property ownership and citizenship. AI will further accelerate the adoption of blockchain technologies.
6. Conclusion: CZ Asches to Be Remembered as a "Crypto Guy"
When asked what he hopes to be remembered for in the future, CZ said, "Trump called us 'Crypto Guys'; I want people to remember me as one too." He wants to be recognized as a promoter of the crypto industry. Currently, his focus is on supporting other founders, providing regulatory advice to governments, and engaging in philanthropy (such as donating $2 million to Prison Professor to help inmates reintegrate into society). He no longer works 20 hours a day managing Binance as he used to.