Binance founder and CEO Changpeng “CZ” Zhao thinks cryptocurrencies are generally safer than fiat currencies, as their analytics data reveals an extremely low crime adoption percentage.
Binance CEO: Incredibly low percentage of total volume containing illegal addresses
CZ, citing statistics from Blockchain-based analytics platform Chainalysis, the law in the crypto space last year He pointed out that the number of non-exchange transactions accounted for 0.15% of the total transaction volume throughout the year. This is in contrast to the firm belief among the majority of anti-crypto advocates that cryptocurrencies are being used for more criminal activity.
Crypto is safer than fiat.
Chainalysis: Transactions involving illicit addresses represented just 0.15% of cryptocurrency transaction volume in 2021.
United Nations: estimated money laundered globally in one year is 2-5% of global GDP, or $800B – $2 trillion in USD.
Sources 👇
— CZ 🔶 Binance (@cz_binance) May 6, 2022
Cryptocurrency related crimes, regarding Chainalysis data, 2020′ It reached an all-time high of $14 billion last year, a 79% increase from $7.8 billion in the previous year. However, these numbers do not reveal everything.
Concerning the massive growth in crypto transactions last year with a total of $15.8 trillion (a 567% increase from 2020), the rate of containing illegal addresses is incredibly low, and all It turned out that it made up 0.15% of the transactions. It’s even lower than 0.62% in 2020.
On the chart, 2019 appears to have the highest rate of 3.38%, largely due to the PlusToken Ponzi Program which includes Chinese and South Korean investors.
Financial crimes related to cryptocurrencies appear to have decreased relative to the overall transaction volume
However, the same cannot be said for fiat currencies, according to experts. According to reports, the United Nations estimates that around 800 billion dollars are laundered annually, totaling $2 trillion, representing 2–5% of global GDP.
In addition to being safer in terms of illegal transactions, cryptocurrencies are considered an excellent protection against inflation. As quoted by Kriptokoin.com , the Fed recently increased the interest rate by 0.5 percentage points, the highest rate since 2000.
In late 2021, billionaire hedge fund manager Paul Tudor Jones stated why he believes Bitcoin is a better hedge against inflation than gold. At the same time, American investment firm JP Morgan informed its clients that institutional investors are switching to Bitcoin as a better hedge against inflation rather than gold.
