Binance More Profitable Than Top German Bank – A Sign of Things to Come?
A Strong 2018 for Binance
Binance, which is still relatively new in the space, reported profits of $200 million, while Deutsche Bank underperformed expert predictions, bagging $146 million in the first quarter.
With plans to move operations from Asia to cryptocurrency haven Malta, Binance is expected to continue growing throughout 2018 and beyond.
Should the Legacy System be Afraid?
What adds further embarrassment to the long-established Deutsche Bank is that Binance is still the new kid on the block. Being open for business for less than a year, it has become the number one exchange in the cryptocurrency space, and it even has its own cryptocurrency Binance Coin!
Research conducted by Morgan Stanley on cryptocurrency exchanges reveals that the United Kingdom has the largest number of legally registered exchanges, with the bulk of trading volume going through Malta.
The report goes on to explain that the possible reason for the U.K., U.S.A., and China leading in registered exchanges is due to the fact that each country is a large financial hub, and the United States is also a leader in technology.
With crypto-friendly nations such as Malta benefiting from the growth of Binance and other blockchain-orientated start-ups, we could witness a new financial system emerge to replace the legacy system’s established dominance or a merging of the two as the central banks scramble to stay relevant.
Binance Decentralized Exchange?
As exchanges begin moving operations to friendlier locations, decentralized exchanges such as BitShares will likely become an increasingly popular route for start-ups and users alike.
Without the risk of being shut down by authorities or compromised by the exchange itself, this will provide independence for users of digital assets.
Cross-chain transactions (like atomic swaps) also eliminate the need for a central point of failure, allowing the exchange between digital assets without the need for a person to verify (and preventing the ability to manipulate) the transaction to their own desires.
What does this have to do with Binance? Binance seeks to launch its own decentralized exchange, turning it from a “company to a community,” using the Binance Coin as the native digital asset on its blockchain network.
“Binance Chain will mainly focus on the transfer and trading of blockchain assets, as well as provide new possibilities for the future flow of blockchain assets. Binance Chain will focus on performance, ease-of-use, and liquidity. Binance Coin (BNB) will be upgraded to exist on its own blockchain mainnet, becoming a native coin. At the same time, Binance will transition from being a company to a community.” – Binance Announcement
The onslaught of government regulations and fake news regarding cryptocurrencies seem to be triggering the innovative aspects of the community, and the blockchain’s capability of sending and storing value is being expanded at an accelerated rate.
Disclaimer: Only invest what you are willing to lose. Conduct your own research when considering investing in cryptocurrencies.