Binance’s CZ on Selling His Apartment for Bitcoin and If Crypto Can Be Truly
Free
This interview is the second in the series, featuring Changpeng
“CZ” Zhao, the founder and CEO of cryptocurrency exchange Binance. CZ
launched Binance in July 2017 following a $15 million ICO, and the exchange has
since been consistently one of the top exchanges globally. CZ himself is a well-
known public figure in crypto, with a February 2018 Forbes cover, wearing
a black hoodie with the hood raised, like a regular guy who looks nothing like
someone worth $1.4 billion. What got you first interested in cryptocurrencies? I
first learned about Bitcoin from a friend in 2013, and I was fascinated
by it. Right after that I did two things: a. Sold my apartment to buy Bitcoin
(and it soon dropped from $600 to $200); b. Quit my job then and switched my
career to the crypto industry. That sounds crazy to many
people. But I believe in crypto’s trustless, transparent
and decentralized nature and its impact on the entire economic system. How has a
failure in crypto set you up for better decision-making? Do you
have a favorite failure? There were many challenges along the way. The above
mentioned price drop was mentally challenging. I always believed in the future
of crypto, but at the back of your head, you have to sometimes wonder,
what if I am wrong and Bitcoin goes to zero? After going through the cycle once,
you learn to adopt a longer view. So today, I rarely worry about short-term
price fluctuations. I just focus on building for the long-term. In the last year
or so, has your philosophy or belief about crypto changed? I am bullish
on crypto and always believe crypto will bring more financial
freedom to people. This has not changed at all. If anything, I am
more confident about it than ever before. What advice would you give to
someone who’s looking to enter the world of crypto — be it an investment
or a new job? What advice should they ignore? My advice would be: do
both. For those who are looking to invest in crypto: For those who are
seeking a career in crypto: Do you think the industry at large
should embrace regulation, or champion freedom and deregulation?
Regulation is becoming a part of the industry and will eventually
play a fundamental role in fostering innovation and healthy industry growth in
the long run. In 2019, we have seen more regulators researching digital assets
and building relevant regulatory framework. To me, regulation doesn’t
necessarily stand at the opposite side of freedom, and should allow for
higher degrees of freedom. Some people may neglect that regulation is
also a key driver of mass crypto adoption. We need to understand that
regulation is not just one thing though. It’s not that regulations are
good or bad. There are good regulations that protect users and foster
innovation. There are also bad regulations that don’t protect anyone and
limit freedom. We obviously want to help regulators establish more good
regulations and less the bad ones. The devil is in the details. It’s not a
blanket “like” or “don’t like.” Overall though, I do think some rules are
required at this time. I believe our species is not quite advanced enough to
live in a completely no-rule society just yet. With better education, I do think
we can become more advanced over time and rely less on regulations. What is your
vision for what the crypto industry could become in the future? At
Binance, we hold the mission of “increasing the freedom of money,” that is to
say, everyone on this planet can freely choose and use money (in whether
crypto or fiat) for payment, transaction or investment. Debunk a common
myth in crypto. Sure, I got one. Myth: “don’t spend crypto, hold
it for value gains.” Cuz if you spend it, and the value goes up, you lose the
gains. Debunk: This is a typical “bucket of money” thinking fallacy. People put
their money into different buckets and are inflexible to move them around. All
you have to do is to buy more crypto with the fiat that you otherwise
would have spent, then your crypto balance stays the same. In practice,
just convert a bit more of your spending money into crypto and spend it
from there. The more we transact in crypto, the better it is for the
overall ecosystem, and hence for the rest of your crypto holdings. This
interview has been edited and condensed. Enjoyed reading our Crypto Titan
series? Catch our first interview with Brandon Chez, CEO and founder of
CoinMarketCap.com! Or check out the full list here.
Free
This interview is the second in the series, featuring Changpeng
“CZ” Zhao, the founder and CEO of cryptocurrency exchange Binance. CZ
launched Binance in July 2017 following a $15 million ICO, and the exchange has
since been consistently one of the top exchanges globally. CZ himself is a well-
known public figure in crypto, with a February 2018 Forbes cover, wearing
a black hoodie with the hood raised, like a regular guy who looks nothing like
someone worth $1.4 billion. What got you first interested in cryptocurrencies? I
first learned about Bitcoin from a friend in 2013, and I was fascinated
by it. Right after that I did two things: a. Sold my apartment to buy Bitcoin
(and it soon dropped from $600 to $200); b. Quit my job then and switched my
career to the crypto industry. That sounds crazy to many
people. But I believe in crypto’s trustless, transparent
and decentralized nature and its impact on the entire economic system. How has a
failure in crypto set you up for better decision-making? Do you
have a favorite failure? There were many challenges along the way. The above
mentioned price drop was mentally challenging. I always believed in the future
of crypto, but at the back of your head, you have to sometimes wonder,
what if I am wrong and Bitcoin goes to zero? After going through the cycle once,
you learn to adopt a longer view. So today, I rarely worry about short-term
price fluctuations. I just focus on building for the long-term. In the last year
or so, has your philosophy or belief about crypto changed? I am bullish
on crypto and always believe crypto will bring more financial
freedom to people. This has not changed at all. If anything, I am
more confident about it than ever before. What advice would you give to
someone who’s looking to enter the world of crypto — be it an investment
or a new job? What advice should they ignore? My advice would be: do
both. For those who are looking to invest in crypto: For those who are
seeking a career in crypto: Do you think the industry at large
should embrace regulation, or champion freedom and deregulation?
Regulation is becoming a part of the industry and will eventually
play a fundamental role in fostering innovation and healthy industry growth in
the long run. In 2019, we have seen more regulators researching digital assets
and building relevant regulatory framework. To me, regulation doesn’t
necessarily stand at the opposite side of freedom, and should allow for
higher degrees of freedom. Some people may neglect that regulation is
also a key driver of mass crypto adoption. We need to understand that
regulation is not just one thing though. It’s not that regulations are
good or bad. There are good regulations that protect users and foster
innovation. There are also bad regulations that don’t protect anyone and
limit freedom. We obviously want to help regulators establish more good
regulations and less the bad ones. The devil is in the details. It’s not a
blanket “like” or “don’t like.” Overall though, I do think some rules are
required at this time. I believe our species is not quite advanced enough to
live in a completely no-rule society just yet. With better education, I do think
we can become more advanced over time and rely less on regulations. What is your
vision for what the crypto industry could become in the future? At
Binance, we hold the mission of “increasing the freedom of money,” that is to
say, everyone on this planet can freely choose and use money (in whether
crypto or fiat) for payment, transaction or investment. Debunk a common
myth in crypto. Sure, I got one. Myth: “don’t spend crypto, hold
it for value gains.” Cuz if you spend it, and the value goes up, you lose the
gains. Debunk: This is a typical “bucket of money” thinking fallacy. People put
their money into different buckets and are inflexible to move them around. All
you have to do is to buy more crypto with the fiat that you otherwise
would have spent, then your crypto balance stays the same. In practice,
just convert a bit more of your spending money into crypto and spend it
from there. The more we transact in crypto, the better it is for the
overall ecosystem, and hence for the rest of your crypto holdings. This
interview has been edited and condensed. Enjoyed reading our Crypto Titan
series? Catch our first interview with Brandon Chez, CEO and founder of
CoinMarketCap.com! Or check out the full list here.