Changpeng Zhao, the co-founder of Binance, is still optimistic about Bitcoin and digital currencies in the long term, but he warned investors against “betting everything they have” on it.
Not “all-in,” but dollar-cost averaging
During a Q&A session (AMA) at the “Bali Clubhouse 2026” event on Sunday, Zhao was asked what could be considered the equivalent in 2026 of his 2014 decision to sell his apartment and buy Bitcoin.
Zhao replied: "I wouldn’t advise anyone to sell their apartment to bet everything," especially if the property represents most of their wealth.
Instead, Zhao recommended a "Dollar-Cost Averaging" strategy, suggesting that investors set aside a small portion of their income—without affecting their lifestyle—to buy established digital currencies.
Bitcoin "deflationary asset"
Zhao said he is still confident that "Bitcoin will continue to grow," alongside BNB and other strong digital-currency projects, emphasizing the significant volatility involved in investing in them.
When asked whether the traditional four-year Bitcoin cycle was starting to unravel, Zhao rejected the idea, saying: "I believe the four-year cycle is still very strong," noting that the current market environment resembles the bear-market phase we saw four years ago.
That said, Zhao did not offer an exact prediction of what would ignite the next crypto bull cycle. Given that the total Bitcoin supply is limited, and the amount available for use continues to decrease as some coins are permanently lost, Zhao considered Bitcoin "a deflationary asset".
What is the next main catalyst?
Although Zhao is still uncertain whether AI, tokenized real-world assets (RWA), or decentralized finance (DeFi) will provide the next main catalyst for digital currencies, his broader thesis remains bullish by nature.
Zhao is particularly optimistic about real-world asset (RWA) tokenization, but he admitted it is hard to know whether these assets, tokenized stocks, decentralized trading platforms, or another innovation will drive digital currencies to new record levels.
Zhao cited the emergence of decentralized finance (DeFi) in 2020 as an example of how quickly new narratives evolve in this sector, expecting both DeFi and perpetual DEXs and blockchains to remain essential parts of the industry.
He concluded: "The best way not to feel threatened by digital currencies is simply to adopt them," citing a comparison with AI tools that are expected to become widely available to investors and developers.