CZ TALK INVESTMENT: 70% ENCRYPTION, 20% AI, 10% BIOTECHNOLOGIES HAVE BEEN INVESTED IN ARTIFICIAL UTERUS AND KNEE REGENERATION

Original link:CZ on the Future of Crypto

This post is part of our special coverage Libya Protests 2011@LeoAndCryptoI'm not sure

Editor: It's been a long time since you've seen the ring talking about money. The interview, CZ on the Future of Crypto, is based on the current market cycle, the integration of tradition and encryption, forecasting of markets, AI development, investment philosophy, and perhaps some inspiration for you who still have hope for money during Bear City. The full text is reproduced below:

Q: WHAT DO YOU THINK ABOUT THE FOUR-YEAR CYCLE OF ENCRYPTION WHEN I DID SOME CALCULATIONS AND FOUND IT WAS REALLY ACCURATE, ALMOST ACCURATE

CZ:I think the four-year cycle of encrypted money is accurate. It's a normal cycle, and now it's worth about 50%. In the previous cycle, there was even a retreat of 80%. For example, in 2022, after the fall of luna, there was a FTX storm, when the encrypted currency fell to a low point of bitcoin to $16,000. Now it's four or five times the value of that time, and every cycle is going up。

Compared to previous years, there are countries that are supporting bitcoin, many countries that accept encrypted currencies, and the regulation and discussion of encrypted currencies are moving towards nationalization, as well as institutional adoptions (Beled), including BNB ETF listings. We really see more real development, more developers return to the United States, and some countries are issuing more stabilization coins. And RWA, for example, you can buy SAPX/preIPO coins on a monet or other trading platform。

While we speak of cycles, they do not end in the same place. The starting point for each cycle is much higher than in the previous cycle and is a cycle at the bottom that is rising。

I don't know where the bottom of the cycle is/how long it's going to last, I don't like predictions, but earlier heights were usually the future anchors, like $600,000, which was four or five years agoIn technical analysis, the previous high point will always underpin the next low point。There are many theories behind this, and I don't know if they're right. I'm not a great tech analyst, but that's what it looks like。

Q:There's always a big thunderstorm in the encrypted currency cycle, and the ring has dropped from a high point to a low point

CZ:It's a very interesting question, and I'm curious, probably six months ago. In the past six months, however, no institution has disclosed close to bankruptcy, and the whole industry has done better in terms of leverage, perhaps with some shocks within the industry, but no one has gone bankrupt。

I don't know muchI do not see many highly leveraged products, although some of the stable currencies provide high returns, similar to revolving lending. Overall, however, the relatively small size of these products relative to the size of the current industry is a good thing。

Q:Traditional finance is making its own chain, and encrypted money is introduced into tokenized securities, RWA. What do you think of the boundaries between centralization and decentrization of traditional finance and encryption? Will TradFi make encrypted money more central, or will encrypted money make Tradfi more central

CZ:I think both will happen, because we have seen this convergence. And in theoryEncryption money is not an independent industry, but a new technology and tool that enables financial transactions to take place at high speed, low cost and more transparent。Just as there are no purely Internet companies, there are Internet infrastructure companies like Cisco。

Traditional finance companies can use block chains, technology is open to anyone, and they can develop their own chains, with a variety of technologies, most of them open-source. For encrypted money companies, they can provide services very similar to traditional financial services, and now they can provide such services as loans, savings, stock exchanges, etc. Transfers, payments, all of which can be done by encrypted money companies, are not limited to encrypted money, but also deal with similar operations in French currency, in addition to stabilizing currency and the channel of French currency。

Encryption and traditional finance should not be divided, and that was a financial technology industry, so that integration would certainly take place. With regard to centralization and de-centreization, I believe that any platform or company in the industry in essence is part of centralization, and even any team, project, as long as there are many people involved, is part of centralization。

HUMANS HAVE A NETWORK EFFECT, WE LIKE TEAMWORK, AND FEW PEOPLE CAN WORK WITH AI ALONE. BUT TECHNOLOGY IS CONSTANTLY EVOLVING AND BECOMING LESS CENTRAL. SO I THINK BOTH THE ASPECTS OF DECENTRALISATION AND THE ASPECTS OF CENTRALIZATION WILL HAPPEN. THE DICHOTOMY BETWEEN CENTRALIZATION AND CENTRALIZATION CAN IN FACT BE UNDERSTOOD AS MEANING THAT IN A DECENTRALIZED WORLD, EVERYONE CAN WORK TOGETHER. A DECENTRIZED WORLD SHOULD BE ABLE TO ACCOMMODATE CENTRALIZED PARTICIPANTS。

Centralized participants can provide truly high quality and safe services at low cost, and they will attract a growing number of users, the network effect。

This, of course, leads to a small degree of centralization, even monopolies, with both advantages and disadvantages, and firms that abuse monopoly power often lose their monopoly position over time, providing only opportunities for new market participants. So, to some extent, centralization and decentrization will coexist forever, but I am a strong supporter of decentrization, technology will continue to drive decentrization, and more and more tools will become less central。

Q:Banks and credit card giants are also building their own chains or encryption operations, such as the MasterCard announcement of a testing platform, MTN, and why are they not developing business on BNB, Ether, Solana

CZ:AND THAT'S THE SPIRIT OF DE-CENTREIZATION, AND YOU CAN BUILD YOUR OWN BLOCK CHAIN, WITHOUT HAVING TO TRADE ON ETH, BNB. THE GREATER THE DIFFERENCE BETWEEN BLOCK CHAINS, THE BETTER FOR USERS, THE BETTER FOR US. OVER TIME, USERS WILL KNOW WHICH BLOCK CHAINS ARE USEFUL AND IT IS NOT CLEAR WHETHER MOST PEOPLE ARE CONCERNED ONLY WITH CENTRALIZATION OR DECENTRIZATION。

I think most people are concerned with the basic aspects of low-cost, safe, easy to use. Those large traditional financial players are to be commended if they want to develop their own exclusive block chains and if they try to get people to use it. But I think that more and more people will be demanding more freedom, a truly decentrified and encrypted world, having more freedom and lower costs, and so on, depending on the choice of consumers。

Moreover, many countries are not fully adapted to purely open block chains, and they want to have their own national block chains. I have discussed with leaders from many different countries who want to have their own national block chains, but they need time to convince themselves that “we need to give up control of the currency or we need to give up control of the national financial sector”

This could be a transition phase. Over time, for a large country like the United StatesIf all Wall Street giants use one or two private block chains and there are trillions of dollars flowing through these networks, the bulkers may be excluded, and, like the corporate Internet, there are enough activities on the corporate Internet that are meaningful, and that is fine。

Decentrization is not the same as having to use an open-source single block chain for everyone。If we force everyone to use bitcoin, that is not really decentrization。

Q: THE MONEY PLATFORM CAN TRADE FOR A PERMANENT CONTRACTBitMEX was one of the first exchanges to offer sustainable contracts, a very important, efficient and excellent financial instrument. Now, when encryption is legalized in the future, there will be more platforms like CME that can also trade in encrypted money. What does that have to do with the encryption exchange? And what is the impact of encrypted trading in stocks and so on traditional exchanges

CZ:First, contracts were not invented in the area of encrypted currency, and they existed in the traditional financial sphere. The renewal goods first appeared in encryption in 2014 and were launched by BitMEX, and the coins were later than 2019. There are other exchanges that offer different types of futures, but do not renew futures, but deliver futures. Every Friday, you have to settle and renew。

MONEY ANN OFFERS THESE PRODUCTS BECAUSE IT HAS THE LARGEST USER BASE, SO LIQUIDITY, VOLUME AND PRICES, SLIDE POINTS, ETC. ARE OF THE HIGHEST QUALITY. NOW THE TRADITIONAL BIG FUTURES EXCHANGES LIKE CME ARE STARTING TO LAUNCH FUTURES, AND I THINK THAT'S GOOD, BECAUSE THE MARKET FOR THEIR SERVICES IS NEVER SERVED BY A COIN. BIAN HAS NEVER SERVED THOSE AGENCIES IN THE UNITED STATES。

IF CME OR ANY OTHER AGENCY IN THE UNITED STATES WERE ABLE TO FACILITATE ALL AGENCY TRANSACTIONS IN ENCRYPTED CURRENCY FUTURES, THERE WOULD BE MORE LIQUIDITY. THE LIQUIDITY GAP WILL BE FILLED AND THE LIQUIDITY OF ENCRYPTED MONEY TRANSACTIONS WILL INCREASE, AND I THINK IT'S REALLY GOOD。

I don't care who gets stronger。The more people have access to encrypted money and trade, the better mobility. The better mobility, in fact, is the best consumer protection。When you're mobile, you see less crashes。

I predict that future foreign exchange transactions will also be moved to the block chain。

But then again, it's a very dispersed user base. For example, it is not easy for most people abroad to buy United States stocks, but which country does not want them to be bought by everyone in the worldLike when you're on the market, SpaceX. Why don't you let everyone in the world buy their shares? Which company, which stock exchange, which country does not want people around the world to buy their own government bonds? Why do you stop people from buying their own government bonds

It's deep downIf a country buys a lot of your government bonds, there will actually be no conflict between you。So you have to negotiate on trade rather than attacking each other, so the world is becoming smaller and smaller, despite geopolitical tensions, the encryption of currency exchanges, which provide those who are not in that country with the means to buy your shares, which does not undermine the country's existing stock exchanges, but actually helps to increase liquidity, demand, etc., which is my point。

Q:Hyperliquid is a large and evolving platform, and I think it goes more centrally than a coin, but it's better than Uniswap, in between, you know, Jeff? What do you think of Hyperliquid

CZ:We thought Hyperliquid was interesting, especially about Jeff, and I've never seen him in person. But he was actually involved in the first group of Yzi Labs incubators, so I guess he was a very smart young man and very capable。

Hyperliquid demonstrates a new, previously non-existent market segment. It's something nobody's ever done before. Their team is small, but they occupy a sub-market where money cannot compete. They don't have KYC, they claim they're decentralisedBased on the technology we see, they have considerable control over Hyperliquid, using smart contracts to make deposits and withdrawals, claiming that this is decentralised。Anyway, Hyperliquid has some technological innovations, quite good。

Q:What do you think of the forecast market? Many jurisdictions in the United States are outraged at predicting markets (sport spinach), but they also seem to have considerable practicality, especially in some cases where you need to trade the agent of an event, not the event itself. What do you think about predicting markets, both from a regulatory and a product-concept point of view

CZ:I also think it's a good invention that predicts the market already exists for some time, such as the event futures forecast market. There are different regulations for different regions of the forecast market. But the CFTC Chairman supported the attitude of the forecast market, and many important figures in the United States government expressed support for Polymarket. This is good, allowing people to provide prices and liquidity。

I created an exchange, so I like to see anything that provides price discovery and liquidity. I believe Polymarket Kalshi has a license in America, so I don't know if some of the states you mentioned might not like it. I am far removed from any kind of jurisdictional struggle. But I think that this is a good thing for consumers and for the global encrypted money industry, just like any new technology, new platform, which works very well. Of course, there will always be ways to do it badly. But I thinkToday's forecasted top-market projects do well. In addition, there will be many emerging forecast markets in the future。

It's probably as many as the forecast market projects in encrypted currency, about 100 to 1,000. I therefore hope that all these projects will be implemented responsibly。

Q:BNB, WHAT'S THE CHAIN GOT TO FOCUS ON NOW

CZ:I AM NO LONGER IN CHARGE OF THE OPERATION OF THE EXCHANGE AND HAVE MORE TIME TO COMMUNICATE WITH COMMUNITY DEVELOPERS. I'M REALLY EXCITED ABOUT SOME OF THE NEW FEATURES THEY'RE DEVELOPING ON THE BNB CHAIN. ONE OF MY SUGGESTIONS TO THE DEVELOPERS ISINSTEAD OF LARGE-SCALE UPGRADING DURING CATTLE MARKETS, LARGE-SCALE UPGRADING OCCURS WHEN MARKETS ARE CALMER DURING BEAR MARKETS. OF COURSE, I SUGGEST THAT EACH BLOCK CHAIN PROJECT DO THAT, NOT JUST THE DEVELOPERS OF THE BNB CHAIN。

Now they're developing the next version, which is faster and cheaper, and provides users with more privacy control options, the next version of the list of functionality is quite long, and I'm not responsible for promoting it, but when I see the list of all the functionality they're developing, I think it's great。

Q:Now the hub and spoke model of the Taifeng has become a little more urgent because L1 is highly decentralised. So they launched L2, but the current L2, which is mainly an OP single-sequencer rollup, is not really centralized, and I think they have not reached the second stage that I think is really decentrized. What do you think of that argument? I know Vitalik seems to say that perhaps more research is needed, L1

CZ:Yeah, I did feel Vitalik's attitude changed, and I remember about four or five years ago, the ETA community focused on L2 technology。OVER THE PAST FEW YEARS, THEY SEEM TO HAVE TURNED BACK A LITTLE AND STOPPED MOVING FORWARD. I THINK THE MAIN REASON IS THAT L2 CONTRIBUTED TO L1。

AND WE CALCULATED THAT BASE PAID MORE LICENSE FEES TO CHOOSE OP THAN THEY ACTUALLY PAID L1。

Vitalik seemed to realize that L2 did not help L1, and then it went down with the Taifeng and Vitalic had to deal with the pressure of falling prices, all of which combined to make him realize that he still needed to work on L1. So now he's a little distracted. It's normal。

THERE ARE STILL SOME POWERFUL L2 SOLUTIONSBUT I THINK THAT THE FUTURE IS ALSO L1, LIKE L1, WHICH IS GOING TO INCREASE, BUT THEN THE DEMAND IS GOING TO INCREASE, AND L1 CANNOT EXPAND QUICKLY, AND THERE MAY BE OTHER L2 SOLUTIONS IN THE FUTURE, LIKE A L1-L2。

Q:Yzi Labs was formerly known as Binance Labs. It's your core investment tool. What are you focusing on now

CZ: I gave Yzi a broad guideline for investment, roughly 70 percent of the encrypted currency, 20 percent of artificial intelligence, 10 percent of biotechnology。I believe that these three areas are large industries that will continue to grow rapidly and that there are many new innovations in all three areas that are waiting to be discovered, implemented and built, and which are likely to have a positive impact on our civilization。

Our idea is to hope that Yzi invests in influence, not necessarily in return for investment. Let me give you an example of a scenario where we invest a billion dollars in a pharmaceutical research company that treats common diseases, such as cancer, and treats them very cheaply, and companies may not make any money, but it cures one million, 10 million, 100 million people. I'd rather lose the billions or even the billions. It will make me very happy because we have gained influence。

Many early projects are a little crazy, and we expect a very high failure rate. We have, of course, invested in some very good projects. There's a lot of encrypted money companies in there, and I don't want to talk about it, because many of them have tokens and they're going to be seen as popular。

In addition to encryption, we have invested in an artificial uterus company, where you can have children in the machine, so that you can free the woman from pregnancy, which is now being tested in rats during pregnancy, and in humans there may be between 5 and 10 years。

RECENTLY, THERE IS ALSO A KNEE-CAPACITATING REGENERATIVE TECHNIQUE, WHICH PROMOTES THE GROWTH OF KNEE-CAPTURE CARTILAGE BY PUTTING 3D-PRINTED RACKS INTO YOUR KNEE-CAPTURE CARTILAGE, AND MANY OLDER PEOPLE HAVE KNEE PROBLEMS。

The project was also relatively early, and I forgot at what stage they were at, perhaps just beginning the next stage of human clinical trials. We're also investing a lot of people in smart robotics, but what really turns me on is biotechnology companies。

Q:WHAT'S YOUR PERSONAL FAVORITE MODEL? WHICH CELL PHONE IS OF PARTICULAR INTEREST TO YOU? AND WHAT DO YOU THINK OF AI

CZ:I almost installed all the phone AI, and I'll use different AI for different things. OpenAI is the first to be installed, Anthropic, Claude is better for programming, and answers are pretty good. I travel a lot and find different AIs that are sometimes unusable in different countries, and just turn on this application and it says, "Sorry, I can't serve this country."。

For example, when I'm going on a trip to Hong Kong, American AI doesn't work, it uses Deepseek, Kimi。

On the whole, I think that the large United States language model is more precise and that China is good, but sometimes not comprehensive。

I'M NOT AN AI EXPERT. BUT I THINK THERE'S GONNA BE AN AI COMPETITION BETWEEN COUNTRIES, AND CHINA IS DEFINITELY DEVELOPING ITS OWN CHIP, BUILDING ITS OWN DATA CENTRE, AND THE UNITED STATES IS TRYING TO BUILD IT. COMPETITION CAN BE HEALTHY AND CONTRIBUTE TO GROWTH. BUT I BELIEVE THAT IN THE AREA OF ARTIFICIAL INTELLIGENCE WE MUST BE CAREFUL ABOUT GROWTH, BECAUSE ARTIFICIAL INTELLIGENCE IS SO POWERFUL THAT IT CAN BE DANGEROUS。

WHILE MANY PEOPLE ARE NOW FOCUSING ON ENCRYPTED CURRENCY REGULATION, FEW TALK ABOUT ARTIFICIAL INTELLIGENCE REGULATION. WHAT YOU CAN DO, WHAT YOU CAN'T DO, WHAT YOU CAN'T DO, WHAT YOU CAN'T DO, WHAT YOU CAN'T DO, WHAT YOU CAN'T DO, WHAT YOU CAN'T DO, WHAT YOU CAN'T DO。

BUT ARTIFICIAL INTELLIGENCE IS DIFFERENT, AND AI CAN DO A LOT MORE THAN HACK YOUR COMPUTER. WE CAN FIGURE OUT HOW TO MAKE A NUCLEAR BOMB. ARTIFICIAL INTELLIGENCE IS WIDELY USED, BUT I DON'T THINK ANYONE REALLY HAS THOUGHT DEEPLY AND COMPREHENSIVELY ABOUT HOW TO REGULATE ARTIFICIAL INTELLIGENCE。

Of course regulation is not strangulation, regulation of the industry means you want to promote its use. But regulation of artificial intelligence is difficult. Many did not think deeply or discuss the issue. When you think about it, you realize how important they are to our civilization。

Encrypted money, however it develops, cannot destroy our civilization; it helps global trade, promotes our economic development, etc., but it threatens to destroy our civilization if we inadvertently use artificial intelligence。

Q:Is there a belief that you're still still, or even stronger, since you were founded in 17 years

CZ:Encryption will not disappear, and encryption will become a huge industry, which has remained unchanged and even stronger than ever before。

A lot of hot money is now flowing into the realm of artificial intelligence, they're chasing shares associated with artificial intelligence, but now people are trading artificial intelligence stocks in encrypted currency, which is actually contributing to the volume of encrypted money transactions。

IMAGINE IF THERE WAS AN AGENT WHO COULD BUY YOU A TICKET, DEAL, OR DO ANYTHING YOU COULD DO, IT COULD INTEGRATE PAYMENT SYSTEMS COUNTRY BY COUNTRY, OR IT COULD ACTIVATE ENCRYPTED CURRENCY, BECAUSE THE CURRENT PAYMENT SYSTEM DOES NOT SUPPORT ARTIFICIAL INTELLIGENCE, AI CANNOT USE YOUR CREDIT CARD, AND MANY FORMS OF PAYMENT REQUIRE 2FAS, LIKE THE KYC NEEDS TO PRODUCE A PASSPORT, AND AI CANNOT DO THAT. AND THE BLOCK CHAINS ARE API-DRIVEN, MUCH EASIER FOR ARTIFICIAL INTELLIGENCE。

We need to update the current financial system, and when we have artificial intelligence, block chains and the Internet, they will work together to build better financial systems. A lot of people ask me, do you worry that all the money goes to AI? I replied:

Some of the money goes through, but it's okay, there's enough money around, and what we're facing is the entire financial system, and even the money going there will eventually flow along the block chain。