Connect with us

Bitcoin

“I don’t care about wealth,” CZ says on being one of the richest men in the world

Published

on

  • Binance is generating tens of billions of dollars a year, and CZ owns a significant portion of the exchange, making him one of the richest men in the world.
  • He says that he doesn’t care about wealth, though, and that he doesn’t even know how much money he’s worth.

Cryptocurrencies have made a lot of people wealthy, with hodlers, traders, startup founders and exchanges taking a fair chunk of profits from the $2.5 trillion-dollar market. However, few have made more money than Changpeng Zhao, the founder and CEO of Binance, the world’s largest exchange. CZ doesn’t care about wealth, he says in an interview today, and that his goal is to spread the gospel of cryptocurrencies.

CZ was speaking to Bloomberg’s Erik Schatzker at the Bloomberg New Economy Forum. He talked about several facets of the cryptocurrency industry, including regulations, Binance US, why Bitcoin has yet to take off as a payment system and what the future holds.

Advertisement

On how much money Binance makes, he revealed that this varies depending on the values of the tokens trading in the market. Binance doesn’t cash in on its cryptocurrencies. As such, its profits would be much higher now with most tokens at all-time high levels than they were two years ago, but only on paper as it hodls them all.

Regardless, for a company that processes about $50 billion on a bad day and over $150 billion on good days, Binance is bringing in quite a chunk of money. While he darted around the question and refused to give a specific number, CZ claims that it’s about tens of billions of dollars a year.

As Bloomberg’s Schatzker observed, with CZ owning the majority of the business, he’s “one of the richest people in the world.”

Advertisement

CZ: I don’t care about wealth

For all his wealth, CZ goes under the radar often when people look at the list of the richest cryptocurrency entrepreneurs. Forbes, for instance, put his wealth at just $1.9 billion this year. This was below Ripple’s Chris Larsen at $3.4 billion, Coinbase founder Brian Armstrong at $6.5 billion and Gemini’s Winklevoss twins at $3 billion each.

A revised list put Sam Bankman-Fried, the founder of FTX exchange and Alameda Research as the richest cryptocurrency billionaire at $23 billion.

However, Binance is way bigger than FTX. In the past 24 hours, while FTX did $4.7 billion, Binance was at $41 billion, nearly 10x.

Advertisement

CZ is reported to own at least 30 percent of Binance. The exchange has been said to be valued at $200 billion, which would put CZ’s value at $60 billion, making him the richest man in cryptocurrencies and in the top 20 globally, higher than Michael Bloomberg and Michael Dell.

But CZ isn’t too concerned about rankings, he told Schatzker.

I don’t really care about wealth, money and rankings. As I said in a recent Forbes interview, I’m committed to donating 99% of my wealth away before I leave this world. Any time people pay too much attention to that [the wealth], they tend to lose focus.

For CZ, what matters most is “building tools for people to access crypto.”

Advertisement

One of the ways he intends to bring in more people to cryptocurrencies is by charging lower fees on his platform. Already, Binance charges way lower than its competitors including Coinbase, Kraken and FTX. CZ believes that these fees can go even lower as the exchange is already quite profitable as it is.

“I don’t believe in maximizing profits or shareholder value in the short term. I believe in growing the industry, providing the best value for our users and then we’ll grow,” he told the audience.

Advertisement

Smart regulations, Bitcoin payments, crypto manifesto

Binance recently published a manifesto detailing what the cryptocurrency owners are owed by their exchanges. This manifesto was intended for everybody, from regulators and users to competitors, CZ revealed. He believes that there is too much misinformation about cryptocurrencies and it’s his duty, and that of Binance, to change this.

And while everyone calls for regulations, the former Coinbase engineer believes that they need to be ‘smart regulations.’

Dumb regulations are from regulators who have a single metric, aimed at reducing risk. […] The smart regulations look at multiple metrics, such as the reduction of risk while growing the economy. If people have that kind of mindset, they will be pro-business and pro-regulations.

Weighing in on the “Bitcoin will replace the U.S dollar” debate, CZ believes this is a bit premature. In addition, replacing the dollar at once wouldn’t be prudent, he believes. Rather, a slow integration of Bitcoin into the financial system would do the world a lot of good. This way, we can monitor the effect it has on the economy and the monetary policies before we dive all in.

Advertisement

Still on this, he pointed out that the current financial systems are doing quite well in some aspects. For instance, paying for your coffee with a credit card is convenient, easy and cheap. This is why Bitcoin hasn’t cornered this market. However, global inter-country payments are still slow and expensive, and this is what Bitcoin is most suited for.

News Source

Advertisement

Bitcoin

Solana set to be the ‘Bitcoin Killer’?

Published

on

A blockchain with the ability to perform thousands of transactions per second must be the next Bitcoin. Sam Bankman-Fried believes SOL has the potential to become the next Bitcoin since the Solana blockchain can execute 50,000 transactions per second. 

Sam Bankman-Fried (SBF), in a recent interview with Kitco, praised Solana for its potential to expand to millions of transactions per second. According to the FTX CEO, this makes Solana a critical component of cryptocurrency acceptance and the next Bitcoin.

The scalability of Solana could aid its evolution into a new Ethereum or Bitcoin. 

Advertisement

“I am optimistic about Solana. She has every chance of doing this, which is very interesting, I think.’

Analyst bullish on SOL

Influential investors are positive on Solana, which is helping altcoin gain traction. 

With a growth in institutional acceptance, venturefounder, a cryptocurrency analyst, feels that Solana could end up competing with Ethereum. 

Advertisement

“More Crypto Online” cryptocurrency analysts are positive on Solana. As the cryptocurrency price trend reverses, analysts forecast a price rise to a new all-time high of $305. 

During the crypto massacre on Black Friday, the price of Solana fell below $200. The price of the altcoin has recovered and is now trading near $200 at the time of writing. Over the last two months, there has been a surge in institutional intake and capital rotation into Solana.

At the time of writing, SOL is trading at $196.63, up 0.6% in the last 24 hours.the resistance on the upside is at $199.94. However in case of a decline, the support on the downside is at $190.68.  

Advertisement

News Source

Continue Reading

Bitcoin

El Salvador’s President Has A few Words For Bank Of England’s Chief

Published

on

El Salvador’s President has a few words for Bank of England’s chief who recently expressed worries about the country’s Bitcoin adoption.

Check out his relevant tweet below.

Advertisement

A commenter said: “Before bitcoin nobody around the world cared about El Salvador now there are competing interests either supporting or attacking El Salvador. El Salvador is now relevant.”

Someone else posted this: “Exactly what i been saying! My family is from el salvador, and my whole life not a single soul i ever met here in the U.S even knew about the country, and if they did, they only heard of it because of gang affiliation… nothing else. Bukele is making waves!!!”

On the other hand, a follower said: “The Bank of England’s Point of Concern: “….It concerns me that a country would choose it as its national currency. What would worry me most of all is, do the citizens of El Salvador understand the nature and volatility of the currency they have.” Seems a legitimate worry.”

Advertisement

Bitcoin adoption concerning?

CryptoSlate notes the fact that Bailey said the move to adopt Bitcoin within a dual currency system was concerning, while also adding that volatility would impact most detrimentally.

This isn’t the first time that Bailey warned of the “dangers” of crypto.

Back in May, Bailey said cryptos have no intrinsic value and that investors should be prepared to lose all their money.

Advertisement

At the moment of writing this article, BTC is trading in the red and the king coin is priced at $54,667.

News Source

Advertisement
Continue Reading

Bitcoin

Bitcoin skeptic Saule Omarova to be rejected as Biden’s nominee for OCC in win for crypto

Published

on

  • Saule Omarova was nominated to head OCC and it looked bleak for the future of cryptocurrencies as she is an outspoken critic of Bitcoin.
  • New reports reveal that some Democratic senators in U.S Congress will reject her, and with all Republicans united against her, she will most likely not assume office.

Saule Omarova, a Bitcoin critic who was nominated for one of the most important financial regulatory jobs in the U.S, is looking unlikely to go through Senate confirmation. According to new reports, some Democratic Senators have rejected the Biden pick, particularly opposing her hardline stance against big banks. With Republican Senators all against her, she looks unlikely to be the next Comptroller of the Currency.

Omarova was nominated by the White House in September to take over from the Acting OCC, Michael Hsu. As CNF reported at the time, the cryptocurrency community joined the banking fraternity to ask questions of what would be of her reign. Omarova is an outspoken critic of the big banks, having consistently criticized government bailouts. She has also suggested that the Federal Reserve should be allowed to serve Americans, effectively wiping out the commercial banks.

For cryptocurrencies, the future looked just as bleak. She has previously stated that she believes they “benefit mainly the dysfunctional financial system we already have.”

In her Senate grilling two weeks ago, she held on to her anti-Bitcoin views. Responding to crypto-friendly Senator Cynthia Lummis‘ question on whether Bitcoin threatens national security, she stated:

Advertisement

I’m not an expert on Bitcoin but I’d worry if all our financial transactions were up to some blockchain system where various actors who might actually be located in other countries, not particularly friendly to us, control the functioning of the system.

Omarova to be rejected

According to reports in Washington, Omarova is set to be rejected in Senate. Already, virtually all Republican senators have said they will reject her. Many of them have even attacked her on personal terms, as well as her ‘socialist-leaning’ beliefs.

Axios reports that five Democratic Senators have joined the anti-Omarova bandwagon as well. The five told Ohio Senator Sherrod Brown, who heads the Senate Banking Committee of their dissent. If they vote against her, the Kazakhstan-born academic will stand virtually no chance as the house is almost divided in half between Republicans and Democrats.

However, despite the opposition, the White House continues to back her publicly. A White House official told Axios:

Advertisement

The White House continues to strongly support her historic nomination. Saule Omarova is eminently qualified for this position. She has been treated unfairly since her nomination with unacceptable red-baiting from Republicans like it’s the McCarthy era.

News Source

Continue Reading