Binance Founder CZ Discusses Long-Term Belief in Bitcoin at Token2049 Conference
On May 3rd, CZ, the founder of Binance, held a discussion at the Token2049 conference in Dubai, where he elaborated on his long-term faith in Bitcoin, the potential of blockchain, and the future of AI Crypto. He also pointed out that what is currently lacking in the entrepreneurial circle is “executive leaders with a sense of mission.” He emphasized that he has always been optimistic about blockchain development, regardless of market cycles.
Market is Hard to Predict, But We Are Still Early in the Long Run
CZ was the first to state that whether during the cryptocurrency winter of 2019 or the volatile periods of 2022 and 2023, he has always maintained a bullish outlook. He believes that while the market generally follows a “four-year cycle,” no one can accurately judge whether this round will be long or short. However, looking at a ten-year horizon, the overall market is still in its early stages, not just Bitcoin, but Ethereum as well.
“Many people talk about various coins, but the truth is that very few will long-term outperform Bitcoin, and most of them start from a very small market cap,” he stressed.
ETF Funds Boost Bitcoin, Institutional Migration Takes Time
He pointed out that the primary driving force behind this bull market comes from the “ETF fund surge,” with these funds largely flowing into Bitcoin, resulting in relatively smaller gains for Ethereum and other altcoins.
“Once money enters the crypto space, it will eventually spread out,” CZ emphasized. Meanwhile, the speed at which institutions shift from Bitcoin (BTC) to Ethereum and other assets is usually slow, but the direction will be consistent.
Local Regulations and Infrastructure Limit Globalization Efficiency
When discussing regulations, CZ candidly admitted that many governments remain fixated on “localization” solutions, including:
- Custody
- Order books
- Operating teams
However, he warned that this approach is very inefficient, especially since cold wallet designs require globally distributed individuals with trustworthiness to sign, which cannot be replicated in every country.
“It’s already difficult for us to set up a globally secure custody solution, let alone establish 200 of them,” CZ said with a wry smile.
Countries Entering the Market, the U.S. and Bhutan Holding Reserves
Interestingly, he revealed that Bhutan, some developing countries, and even the United States have actually included Bitcoin in their national asset reserves. Bhutan even started mining using clean energy several years ago and has since increased its holdings of Ethereum (ETH) and BNB.
“Once major countries start accumulating cryptocurrencies, smaller nations are forced to follow suit, because the later you enter the market, the higher the costs will be,” CZ emphasized.
Encouraging Smaller Nations to Use Third-Party Custody, Larger Nations to Build Private Cold Wallets
CZ disclosed that he is assisting several countries in designing “cryptocurrency strategic reserves” and providing practical advice.
“Countries with fewer assets can first use multi-signature third-party custody and build their own cold wallets once their reserves reach a certain scale, to avoid excessive risks,” CZ emphasized.
Startup Fundraising Too Easy, Sense of Mission Becoming Scarce
He lamented that fundraising has become too easy, from ICOs to NFTs and meme coins; as long as there is a picture and a story, projects can go live, which has caused some project leaders to “relax as soon as they receive funding.”
“What we lack is not money, but founders with a sense of mission, execution ability, and persistence,” CZ stressed.
Real Blockchain Applications Have Yet to Begin, Land and Identity Verification as Breakthroughs
Beyond financial uses, he believes that true non-financial blockchain applications should focus on:
- Land ownership registration
- Digital identity verification
For instance, in regions like Africa or Japan, land registration still relies on paper documents, which are difficult to remedy if lost, presenting a problem that blockchain can solve.
AI and Blockchain Integration Just Beginning, Data Sovereignty is Key
When it comes to AI, he believes the next phase should focus on “AI using cryptocurrencies,” since AI cannot swipe cards or receive SMS verification; its settlement method can only be cryptocurrencies.
“The currency of AI will be cryptocurrencies, and AI requires massive data for training. If this data is extracted through blockchain, privacy and sovereignty can be maintained,” he stated.
Market May Lose Precision, Trends Will Not Change, Blockchain and AI Are the Future
Finally, CZ admitted that he has made many incorrect predictions in the past, such as underestimating the impact of stablecoins and not anticipating the popularity of meme coins. However, he emphasized:
“I never predict market trends in the short term, but the long-term direction is very clear. And AI and blockchain will definitely become key technologies of the future.”
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and their prices may be extremely volatile; you may lose all your principal. Please assess the risks carefully.