Seeing some friends saying they want a text version, I整理了一版. Since it is still整理 from my video, it still lacks the last five questions. Below is整理 in the original order of the video, a total of 15 pairs of Q&A.
1. How to determine whether to persist or give up on something?
Time: 00:42—04:10
Question
The book mentions both highlight moments and many ups and downs, and how to make choices in great uncertainty. As an industry practitioner, how should one distinguish between what to persist in and what to give up?
CZ's Answer
This question consists of two parts: one is how to choose and make decisions; the other is what to persist in and what to give up. These two parts can be viewed separately.
I have a very simple decision-making model. First, determine whether the decision is a big decision or a small decision, and then judge whether it can be reversed.
More than 90% of decisions are small decisions and can be reversed. Such decisions can be made quickly, but once made, they should not be followed down a single path; they need to be continually reassessed to see if they should be modified today.
For example, six months ago I might have thought RWA was still quite far from actual development, but after a few months of seeing the momentum in this direction, we decided to support it. The entire ecosystem can provide support, YZi Labs can invest, and BNB Chain can also support it. These decisions can be reversed, allowing constant adjustments based on circumstances.
One should avoid making significant, irreversible decisions as much as possible. When faced with such a decision, one must slow down and consider it carefully, and the fewer such decisions, the better.
There's also a situation where a decision is substantial but can be reversed. Though it can be reversed, the cost of reversal is still relatively high, so this should also be minimized.
What decision to make is separate from the principles one should adhere to. Everyone should have their principles, the most fundamental being morality, and not crossing the moral bottom line.
For us, anything that harms users touches the bottom line of principles. As long as a decision conflicts with this principle, the decision is made, and there’s no need for further discussion.
As for whether a product needs to shift, whether functions need to be adjusted, whether the entrepreneurial direction needs to change, or whether trading strategies need to be modified, these can usually be reversed and thus adjusted according to the actual situation.
Trade must also manage risk control well. Mathematically, every profitable transaction does not mean it can go on indefinitely.
For example, tossing a coin, if you win I give you 3 dollars, if you lose you give me 1 dollar, this game is favorable for you and can be played repeatedly.
If the rule changes to winning the entire fortune multiplied by 3, and losing means losing everything, even if the mathematical expectation is still favorable, this game cannot be played. Because even if you win ten times in a row, losing once results in nothing.
Risk control should not just look at the return on investment from profits but must also consider whether one can withstand the worst outcome. This is the relationship between decision-making, principles, and risk control.
2. Which countries' opening to cryptocurrency will have the greatest impact?
Time: 04:20—06:42
Question
Among the countries that have not yet opened to cryptocurrency, which, once opened, would greatly boost the entire industry? If looking only at Southeast Asia, which country has the most potential?
Zhao Changpeng's Answer
We all know there is a very large country; if they reopen, it will have a very big positive impact. However, this process should still go slowly.
Many countries are concerned that cryptocurrency may threaten their sovereign currency, which is actually a misunderstanding. Every country can issue stablecoins pegged to their own currency, which can rather allow their sovereign currency to have a broader circulation globally.
This process takes time and requires ongoing education, communication, and influence.
Many people harbor fears about cryptocurrency. I used to think that industry development might adopt the approach of “encircling cities from the countryside,” first allowing small countries to gradually participate, and then expanding to larger nations.
What was unexpected was America's sudden friendliness, which is a significant boon for cryptocurrency, as reflected by the market in the past week.
The impact of a big country opening is certainly greater; the impact of small countries is relatively limited, but many small countries together can still have a considerable scale.
Southeast Asia has already seen many countries develop quite rapidly, such as Thailand and the Philippines. Binance also has a license in the Philippines now, and the fiat channel should already be open, allowing users not to rely solely on peer-to-peer trading but to transfer directly through banks.
Malaysia might be a bit slower, but progress in many areas is quite rapid. I have always been optimistic about Southeast Asia.
3. Is there a 73rd principle of "CZ's Principles"?
Time: 06:45—08:26
Question
The appendix of the book includes "CZ's Principles," noting that these principles will continue to be updated. The version in the book contains 72 principles in total; since the book was published, has a new 73rd been added?
CZ's Answer
No. There has indeed been a new version, but it adjusted the numbering system and summarized and merged many principles, rather than directly adding a 73rd principle.
When this book was published, the new version actually already existed, but I thought the old version was more suitable for inclusion in the book.
To be honest, I initially did not want to include these principles in the book. Many people suggested writing out the entrepreneurial principles and ways of doing things, to let readers understand how to start a business.
I felt that if this part was written too specifically, it would turn into a tutorial. Combining the tutorial with one’s own experiences does not create a particularly good overall feeling.
I think if this book ended directly with the sentence “If you can, you must,” it might have a better effect. Later, with the addition of principles, the ending became much longer.
These principles are just my way of doing things; they may not be the best way. At the time, summarizing the principles was mainly to help people within the company better understand my working style and thought process, so they could align their decisions with mine.
For those outside the company, there is no need to follow these principles strictly, nor do they represent the best way. My way of doing things has many stubborn aspects and places where I haven't thought clearly.
Just take a look; there's no need to overly dwell on it. Of course, I hope some of the content can help everyone.
4. When will Giggle Academy reach 10 million students?
Time: 08:29—10:11
Question
The questioner's child has been using the free educational program Giggle Academy. Based on the current growth rate, roughly when will the target of 10 million students be achieved?
CZ's Answer
I am not very confident in making an accurate estimate, but I can provide a few data points.
Last year there were only about tens of thousands of users, maybe around 20 to 30 thousand; I don't remember that number very accurately.
At the beginning of this year, there were about 100,000 users, and now after six to seven months, approximately 1.3 million are using it. The growth rate is exponential.
If this trend continues, reaching 10 million should happen quickly, possibly within a year or two, but I cannot guarantee it. Based on a timeline of two to three years, it should be achievable.
A more important indicator than total users is the duration of use. I hope a child can use it continuously for 18 years, but achieving this is still quite difficult because many children stop after using it for a while.
One reason is related to the applicable age, and another reason is that the content in the applications is not rich enough.
The current content mainly targets children aged 2 to 6. The methods to engage 2 to 6-year-old children differ from those for 6 to 10-year-old children. Content for the second age group is not yet complete.
Younger children are relatively easier to attract; just play some animations, and they will continue watching. As children grow, the educational content and presentation need to change.
10 million is a near-term goal, and 100 million users can also be set as a "small goal." Here, one hundred million refers to the number of users, not the amount.
5. How can brick-and-mortar businesses enter Web3 and avoid risks?
Time: 10:13—12:27
Question
The questioner has served 100,000 brick-and-mortar businesses. How can physical businesses mitigate risks and common traps after entering Web3? How can they achieve better development in Web3, especially within the Binance ecosystem?
CZ's Answer
Every new industry has many traps, particularly in the financial sector.
The first step in risk control is to manage the scale, which means controlling the investment amount. When facing new products, new projects, and unfamiliar directions, do not invest too much capital at once; gradually test and adapt.
The areas where significant funds are truly invested must have very high certainty, as these are major decisions. Smaller decisions can be made more lightly and quickly.
Binance has a very wide range of products, complex to the point that even I cannot clarify how many products Binance has. After leaving Binance, I am actually just a light user of Binance.
However, for traditional businesses, there are many features within Binance that can be utilized.
For instance, Binance Pay can conduct cross-border payments at a very low cost and with great efficiency. Because Binance has always been defined as a trading application, many people do not realize it can also be used for cross-border payments, and the operation may not be that intuitive.
Moreover, many users only use Binance’s finance features. By placing $20,000 in relatively high-yield annualized returns, one could earn several hundred dollars in a month. In some places, several hundred dollars can cover considerable expenses.
I am not a sophisticated user of Binance; many users on-site are likely more familiar with these products after actual use and communication.
6. The most desperate moment in founding Binance
Time: 12:34—14:24
Question
The industry has cycles. What was Zhao Changpeng’s most desperate moment in the nine years of founding Binance? What supported him through that despair?
CZ's Answer
Everyone has a different definition of despair. I seem to have never experienced particularly desperate times; I have always held onto hope.
I tend to be optimistic in nature, with strong resilience and the ability to withstand pressure. In Chinese, it can be described as a personality that is relatively "durable."
If one cannot bear pressure, it is difficult to serve so many retail investors for a long time. When facing user criticism, it is sometimes necessary to endure being scolded.
The time of greatest psychological pressure should be when Binance was just launched. At that time, BNB broke down; previously, many projects performed well after their launch, but tens of thousands of users who invested in Binance were all in a state of loss.
Those two weeks were when I felt the most psychological pressure because many investors were losing money because of us.
Later, when dealing with issues in the U.S., personal pressure was indeed also very high, but this type of pressure was more personalized.
I feel that I have not let others down; that is my own issue that I need to handle myself. I believe I have a clear conscience towards Binance's users, BNB holders, and the entire industry.
I personally may need to endure some unpleasant experiences, hence the pressure on a personal level is significant, but the psychological burden is not as heavy as when Binance first launched. These are different stages of stress.
7. Should crypto practitioners actively pursue influence?
Time: 14:31—16:32
Question
There is a saying in China: “make a fortune quietly,” but many in the crypto industry also leverage their influence to gain substantial wealth.
Zhao Changpeng is already one of the most influential figures in the crypto industry. Should crypto practitioners actively and publicly pursue influence? How should they shape and utilize their influence?
CZ's Answer
This is a difficult question; there is no unified correct answer, and everyone’s style is different.
There is usually some truth in the sayings passed down in China; especially in the Chinese context, it even applies globally. There often exists the phenomenon of “the nail that sticks out gets hammered down.” The ideal state, of course, is to make a fortune quietly.
If Satoshi Nakamoto revealed his identity, he would certainly be the first to be targeted. Keeping anonymity is a very clever choice.
If a person has the ability to make money without much influence, I highly encourage them to make a fortune quietly.
However, building influence can also be a means to gain wealth, and some people indeed enjoy having influence.
Many projects may find it hard to develop without any influence. Once someone has influence, making money can also become a bit easier.
There exists a personal choice here; there is no 100% correct or 100% wrong choice. Everyone needs to find a balance based on their own style.
8. Will stocks, forex, and other assets go on-chain?
Time: 16:34—18:42
Question
The book’s theme involves "Freedom of Money." Now forex and stocks are starting to go on-chain; will this develop into "Freedom of Capital and Assets on Chain," allowing capital and various assets to go on-chain?
CZ's Answer
Definitely, and the sequence of development is already very clear.
The first step is stocks going on-chain. Every country will want its own stocks to go on-chain.
As a company, once listed on the exchange, why should only domestic investors be allowed to purchase stocks? Why can’t people from around the world buy them? Once stocks go on-chain, they can reach global investors.
The manifestation of currency going on-chain is stablecoins. Currently, the scale of stablecoins is about $300 billion, of which roughly 90% are pegged to the US dollar.
This amounts to an increase of liquidity of $300 billion for the dollar in the cryptocurrency and global digital market, which is already quite large.
Other countries will certainly also want their currencies to enter the future Web3 market and circulate globally.
Once various countries' currencies go on-chain, forex trading will also go on-chain.
Currently, forex trading is very opaque, mainly done through Bloomberg, Reuters, and similar systems, using the request-for-quote trading model. Once it goes on-chain, the forex market can form a transparent trading method that operates round-the-clock.
Once stocks, currencies, and forex go on-chain, other assets such as artworks, intellectual property, and real estate will eventually go on-chain as well.
The trading of these assets will be more challenging since the liquidity is not as good, but in the long run, they will gradually go on-chain.
9. How to control mindset after becoming wealthy or falling into low points?
Time: 18:49—21:28
Question
Many young people have experienced overnight wealth in the crypto market and also seen their wealth diminish to zero overnight. How did Zhao Changpeng manage his mindset during moments of rapid wealth acquisition as well as life’s lows, like imprisonment?
CZ's Answer
The simplest way might be to first grow some gray hair. As age and experience increase, a person’s mindset, personality, system, and maturity will gradually take shape.
Overnight wealth is certainly something many people hope for, but this state is not healthy.
As the saying goes in China, "what comes fast, goes fast." Being able to become wealthy overnight usually indicates that the risks undertaken are very high. Money that comes too quickly is often hard to keep.
If one has already become wealthy overnight, they should try to keep the money and avoid losing it all again overnight. Especially in a volatile market, risk control is vital.
Never go all-in and do not invest all your funds in one asset. Investments that could make someone wealthy overnight can also lead to total losses overnight.
When facing high-risk investments, one should divide the funds into many small portions, making numerous small decisions, and gradually try it out.
However, if one continues to adopt a strategy of many small decisions to spread out risks, it may also be difficult to achieve overnight wealth. A balance must be found between the two.
I strongly discourage young people from making overnight wealth their goal. Young people's greatest capital is time; there is a lot of time available for gradual accumulation.
If young people set aside a few hundred or a thousand dollars each month to purchase Bitcoin and persist for ten years, through long-term accumulation and compound interest, they may not have to worry about money at all after ten years.
Young people tend to be anxious, but they don't need to rush because time is on their side.
I do not have any magical method that can ensure one can become wealthy overnight while guaranteeing they will never lose money. Such a method does not exist.
10. How should newcomers in the industry participate in the new stage of blockchain?
Time: 21:32—23:09
Question
As blockchain development has transcended the limitations of distributed ledgers, becoming real, decentralized, and verifiable productivity, will this trigger a new round of revolution in the industry? How should industry newcomers participate?
CZ's Answer
This question is quite profound. Any concept has the potential to become the next market hot spot, but it might not.
I genuinely cannot predict what the hot spot will be six months from now.
As for how to participate, that question is easier to answer. The blockchain industry might be one of the industries with the lowest barriers to entry I have seen, and precisely because participation is so easy, there are many scammers.
Many projects allow their tokens to be purchased very early on. However, before purchasing tokens, one can first enter the project community to see if the project truly has a community.
Projects without a community often find it hard to succeed. After seeing a community, one must also continue assessing whether this community is genuine, whether there are real users, or whether it's made up of bots or people creating hype.
It's not difficult for newcomers to participate in the industry, but one must practice good risk control.
11. What is the most important factor to judge whether a project can succeed?
Time: 23:09—25:43
Question
The questioner is involved in venture capital and is also a content creator in the crypto industry. Zhao Changpeng has invested in many projects, and Binance has incubated numerous projects.
From his perspective, what is the most crucial factor for a project's success or failure?
CZ's Answer
The most critical factor is still the people. No matter how advanced artificial intelligence becomes, ultimately it still depends on the team.
Currently, I do not directly lead a project team, so I need to find an incredibly capable team that can independently execute the project.
First, I look at technical能力, whether the team can truly create a product and whether the product quality is good enough.
Next, I look at emotional intelligence, whether they can understand users and what users actually need.
Even more scarce is the capacity for resilience. Whether a person can continue moving forward in adversity is something typically not evident during initial conversations but should be discovered during actual collaboration.
Additionally, it is important to see if their mindset is correct. In the crypto industry, having a proper mindset is very vital. A person with the right mindset is more likely to steadily earn long-term returns and can last longer in the industry.
A sense of mission is equally important.
In the past few months of investing, it has instead become easier for me. Many people chasing short-term profits have shifted to artificial intelligence; those who remain in the blockchain industry typically exhibit a stronger sense of mission.
During periods of hot money or bull markets, judging projects becomes quite challenging. At that time, everyone is doing projects, and every project has high valuations, making it hard to distinguish who genuinely wants to do something and who just wants to make quick money.
I actually like that hot money has shifted towards artificial intelligence. Once the speculative money leaves, those who continue to work in blockchain tend to be more composed.
The crypto industry itself relates to money, whereas artificial intelligence is about data and intelligence, primarily improving efficiency.
Artificial intelligence is currently highly centralized. If one cannot become a founder of a major company or establish a large-scale company, ordinary participants may find it challenging to make money. Established large companies also make it difficult for ordinary investors to invest early on.
From a profit-making perspective, I believe the crypto industry remains easier than the artificial intelligence sector. However, regardless of which industry one chooses, their mindset must remain stable.
12. Should young people still invest heavily in bitcoin?
Time: 25:46—29:20
Question
The questioner once undertook a challenge living solely on cryptocurrency in Hong Kong. At that time, it was tough to spend stablecoins directly in Hong Kong. When he first encountered Bitcoin, the price was about $1,000, but now many "Post-00s" and "Post-10s" find its price has reached $80,000 to $100,000.
Bitcoin has risen around 80 to 100 times; as young people continue to participate, should they adopt a heavy investment strategy or even invest everything? Will there be similar opportunities in the future? When might we see Bitcoin reach $1 million?
CZ's Answer
For the vast majority, I strongly advise against investing everything, especially in financial investments.
If you plan to invest all your funds in an asset, you must first ask yourself: what will happen next if this asset goes to zero?
If you cannot answer this question or are unsatisfied with your answer, then do not invest everything.
When I chose to invest heavily, I was already 35 or 36 years old, not freshly graduated from college. I had a clear understanding of my circumstances.
I was very clear that even if Bitcoin went to zero, my family's and children's lives would not be significantly affected. I could still work and earn money, using my salary to support my family.
Before making such a decision, one must prepare a safety net for their basic living expenses.
Never borrow money, and definitely do not borrow money only to invest it all in the market. This approach should be absolutely avoided.
Will there be future opportunities? There will definitely be more opportunities in the future than in the past.
Whether these opportunities can lead to overnight wealth is uncertain. I believe it is entirely possible for Bitcoin to rise another 8 or 10 times in the future.
But how long that will take, I do not know. This judgment does not imply that Bitcoin will not fall tomorrow.
Besides Bitcoin, there are many other cryptocurrencies to invest in. Young people who just entered the industry should establish diversified portfolios, placing 80% to 90% of their cryptocurrency allocations in several major currencies.
At the same time, do not sell your house or invest your entire fortune in cryptocurrency. Personal assets should also be allocated to different categories.
Young people often do not have much capital; older people usually have more funds and need to diversify more.
Young people can take on slightly higher risks as long as their basic living is assured. Young people's salaries may not be high; even spending 20% of their salary on cryptocurrency will not amount to a particularly large amount.
Young people's living costs are typically lower; they might not have spouses, children, or elderly relatives to care for, making their lifestyles relatively flexible.
Young people can try to reduce fixed living costs, taking on higher investment risks without affecting their basic living, but they shouldn’t risk ending up without a place to stay the next day.
Different age groups should adopt different strategies, and there will still be many opportunities in the future.
13. What will education look like in the era of artificial intelligence?
Time: 29:23—34:29
Question
The questioner had inquired about Giggle Academy two years ago in Thailand; at that time, the project had just started, and now there are over a million users.
Has Giggle’s initial vision changed? In the age of artificial intelligence, what educational model will the future adopt?
CZ's Answer
When Giggle started, ChatGPT was already quite popular. Therefore, according to my definition, Giggle is a project that emerged after artificial intelligence appeared; it is a “Post-AI Project.”
From the first day of Giggle, I believed that artificial intelligence should be pushed to its limits.
We had discussions back then about whether artificial intelligence could directly educate children in the future since it is developing.
Our judgment is that, currently, artificial intelligence still cannot provide long-term, systematic education to children, especially very young children.
Older children can ask a question, and artificial intelligence can answer. However, the current stage of artificial intelligence does not resemble a real teacher and cannot maintain a complete educational system over an extended period.
Looking from the endpoint backward, there may come a time when only one artificial intelligence will be needed to directly complete education. Perhaps AI from a major company could teach a person for many years.
Before this final state arrives, there may be specialized education companies that adjust artificial intelligence to a level very suitable for teaching, enabling it to follow a curriculum to guide students.
Moving earlier in the timeline, most courses, materials, and contents are still designed by humans but are created and implemented rapidly using numerous artificial intelligence tools. We are currently, I think, in this stage.
Artificial intelligence is advancing very quickly. If in the future artificial intelligence can educate a child from age 0 to 18 very effectively, it would be fine if Giggle ceases operations.
Giggle, after all, has no revenue; it is a project established to create positive social contributions.
It is also possible that the opposite outcome occurs: because Giggle has been utilizing artificial intelligence extensively and accumulating educational data, Giggle may be the first to develop an AI capable of lifelong education for children, adapted to different demographics.
Even if Giggle is acquired by a large company, or another company replicates our method, it doesn’t matter. I care about how to best deliver education, and it does not matter which artificial intelligence is specifically used.
Existing classroom education has many limitations. Classrooms employ an average approach to education, training everyone to become relatively average in various aspects.
A student who excels in math but is weak in English is often encouraged to spend less time on math and more on English, ultimately cultivating an individual with average ability.
Average people are suited for traditional factory systems. I harbor no bias against factory workers, but future competition belongs to extreme global competition; one needs to be among the top 0.1% in their field.
Those in the top 0.2% may earn significantly less than those in the top 0.1%; even if the difference is just 0.1%, income may differ tenfold.
Basic communication skills, computational skills, and foundational education are still essential, but intense focused training should occur in one’s area of real strength.
Education must be individually designed based on each person's traits. One-on-one real teachers are hard to popularize, as there aren’t that many teachers in the world, but one-on-one education can be achieved through technology, virtual reality, and artificial intelligence.
A person does not need to suddenly do what others have seen successful. Just because someone opens a store and makes money does not mean one should open a similar store. When facing external changes, one needs to maintain calm and understand their own strengths.
NVIDIA is making a ton of money today, but they have been around for three to four decades. Earlier, graphics cards didn't earn money without processors, and they were hard to manufacture; at that time, they didn’t seem particularly hot. It was only after AI companies began to extensively use graphics cards that NVIDIA achieved today’s scale.
Apple's development process also experienced many ups and downs. Therefore, one should not change direction just because someone else succeeded rapidly; one should understand what they truly excel at.
Entrepreneurship often requires entrepreneurs to put in all their energy, but one should first produce a product, confirming that a product-market fit has been established before committing fully.
14. How to relieve anxiety after missing out on quantitative trading?
Time: 34:32—35:24
Question
The questioner has worked in cryptocurrency quantitative trading for seven years and also trades US stocks on Binance. He experienced the crypto winter of 2019.
The market is now rising, but quantitative strategies may remain in cash, leading to anxiety over missing out. How should one adjust this mindset?
CZ's Answer
If strong anxiety arises during trading, one should typically lower their trading position.
Someone on-site pointed out that the questioner is currently in a cash position. Zhao Changpeng immediately responded that at least they can increase their position a little.
He then added that he doesn't have an answer to this question.
15. What is the most important ecological growth point for Binance in the next stage?
Time: 35:26—37:28
Question
What is the most important ecological growth point for Binance in the next phase? How will Binance help quality projects, creators, and ordinary users share the benefits brought by the overall ecological growth?
CZ's Answer
If the question refers to the centralized exchange of Binance, I no longer manage that part of the business; it is mainly taken care of by He Yi now.
From what I understand, they are currently investing a lot of effort into developing RWA. The direction of RWA development is reasonable, and the growth speed is also rapid. We hope to help more assets go on-chain.
RWA development cannot rely solely on centralized exchanges. Binance's centralized exchange itself is not the most suitable issuer of assets.
Globally, there are many regulatory bodies, securities markets, and security commissions, and every country has different securities regulatory rules.
A better approach would be for local brokers to handle the issuance of relevant assets, while Binance provides the trading platform and ecological support.
The Binance ecosystem also does not only include the centralized exchange, but also BNB Chain, PancakeSwap, Aster, Trust Wallet, and other projects. The entire ecosystem needs to collectively support a developmental direction.
As for what the next growth point after RWA is, we must wait for new directions to be demonstrated through data.
If a certain direction suddenly shows significant growth in data, proving it has genuinely developed, I believe the entire ecosystem will support it. It could be AI payments or a direction that hasn’t been thought of yet.
For the entire BNB ecosystem, the advice I've always given is to follow the trend. The ecosystem itself may not necessarily be responsible for creating trends; many trends are created by entrepreneurs within the community.
We cannot accurately predict in advance what will become popular and what will not. Trends will naturally form in the community: an entrepreneur launches a product, and others start to follow.
As long as a project excels in a certain lane, it can drive the development of the entire lane. What Binance and the BNB ecosystem need to do is to provide timely support.
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