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: The percentage of total volume containing illegal addresses is unbelievably low
CZ cites statistics from Blockchain-based analytics platform Chainalysis that the number of illegal transactions in crypto last year was the total over the year. He pointed out that it constitutes 0.15% of the transaction volume. This is in contrast to the firm belief among the majority of anti-crypto advocates that cryptocurrencies are being used for more criminal activity.
related to Chainalysis data, cryptocurrencies related crimes, 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 that includes 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 decrease 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 we quoted as Kriptokoin.com, the Fed recently increased the interest rate by 0.5 percentage points, the highest rate seen 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.
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