After Bitcoin’s Drop, CZ Finally Speaks Out: “The 4-Year Cycle Is Running Like Clockwork”

Changpeng Zhao (CZ), the founder of Binance, the world’s largest cryptocurrency exchange, made striking statements on a number of critical issues, ranging from Bitcoin cycles and global regulations to the threats of artificial intelligence (AI) and the future of quantum computing, during his appearance on the Galaxy Brains podcast.

Evaluating the current state of the market, CZ stated that Bitcoin’s traditional 4-year cycle continues to work almost exactly the same, with only a day’s difference. Arguing that the price decline is a normal market movement, the renowned analyst reminded that there have been drops of up to 80% in the past, and that the current 50% correction is quite ordinary.

Zhao, who stated that his connection with cryptocurrencies is unbreakable, said, “I think very long-term. For me, there will never be an ‘exit strategy’ in crypto.”

CZ stated that the biggest difference between the current market cycle and the bear markets of 2018 or 2022 is the approach of governments and institutions, noting that there has been a 180-degree shift in US crypto policy.

Zhao stated that the US government, which waged virtually a “war” against crypto four years ago, is now in a position to support the sector, and that institutional adoption has reached its peak with Spot ETF approvals spearheaded by giants like BlackRock and BNB ETF listings.

Touching on the difference between AI and crypto regulations, CZ criticized the prohibitive stance of regulatory bodies. Stating that actions that render an industry completely dysfunctional cannot be considered regulation, Zhao said, “You can regulate an industry by killing it, but that’s not regulation, it’s just killing it.”

CZ dismissed concerns that quantum computers would cripple Bitcoin’s encryption infrastructure, stating that quantum-resistant algorithms already exist and that the Bitcoin community could coordinate this update when the time is right.

However, Zhao was much more pessimistic about artificial intelligence (AI) and issued a serious warning:

“The cryptocurrency sector, no matter what it does, doesn’t have the power to wipe out or destroy our civilization. It’s just money. However, artificial intelligence, if not used carefully, has the power to completely end human civilization. AI can hack computers, figure out how to make nuclear bombs, or program military drones. More than crypto, we need to think very deeply about how to regulate artificial intelligence on a global scale.”

CZ stated that he is not concerned about the recent shift of hot money in the market towards AI companies, predicting that these two technologies will mutually reinforce each other. Zhao predicted that in the future, AI-based autonomous bots (AI agents) will purchase plane tickets, conduct transactions, and make payments on behalf of humans, saying, “It’s impossible for AI to physically swipe a Visa card through a POS machine or show a passport for KYC (Identity Verification) in traditional banking. However, blockchain operates entirely API-driven. Therefore, AI will use blockchain and cryptocurrencies when making purchases and transferring money.”

CZ, who stated that he is dedicating more time to developers and investments after stepping down from his active CEO role at Binance, shared the new portfolio allocation of his personal investment vehicle, YZI Labs: 70% crypto, 20% artificial intelligence, and 10% biotechnology.

*This is not investment advice.