Changpeng “CZ” Zhao, founder and CEO of Binance, the world’s largest cryptocurrency exchange, believes that cryptocurrencies are generally more secure than fiat as analytics data shows that the percentage of criminal adoption is extremely low. Is.
Incredibly low percentage of total volume involving invalid addresses
CZ sharp Citing data from blockchain-based analytics platform Chainalysis, last year the number of illegal transactions in the crypto sector accounted for 0.15 percent of the total volume of transactions during the full year. This is in contrast to the conviction of most anti-crypto proponents that cryptocurrencies are used for more criminal activities.
Regarding Chainalysis informationCryptocurrency-related crimes hit an all-time high of $14 billion last year, a 79% increase from 2020’s $7.8 billion. However, these figures do not reveal everything.
It turns out that in relation to the huge increase in crypto transactions last year, totaling $15.8 trillion (a 567% increase from the 2020 figure), the proportion that includes illegal addresses is incredibly low, accounting for 0.15 percent of all transactions. Is. In fact, less than 0.62 percent in 2020.
Within the chart, 2019 seems to be the highest percentage with 3.38%, mainly due to the PlusToken Ponzi scheme involving Chinese and South Korean investors.
Regardless, it is clear that financial crimes related to cryptocurrencies are decreasing in relation to overall transaction volume. The same cannot be said for fiat, as the United Nations reports that there is estimated to be around $800 billion – $2 trillion per year of laundering, a figure representing 2 – 5% of global GDP.
Cryptocurrencies have also proved to be the perfect hedge against inflation.
Apart from being safe in case of illegal transactions, cryptocurrencies have proven to be the perfect hedge against inflation. More recently, the Federal Reserve raised the benchmark interest rate by 0.5 percent—the highest it’s seen since 2000. This comes a month after consumer goods prices rose by 8.5% in March.
With prices and interest rates rising, it seems the world is caught in a post-Covid rising global inflation, with cryptocurrencies offering themselves as a shelter against the impending rain.
In late 2021, billionaire hedge fund manager Paul Tudor Jones noted He believes that bitcoin is a better hedge against inflation than gold. Within the same time the US investment firm, JP Morgan, told its clients how institutional investors were transitioning. Bitcoin As a better hedge against inflation than gold.
The material presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication has no responsibility for your personal financial loss.