Binance is Now More Profitable Than Germany’s Biggest Bank Deutsche
Competing with the Banks
The comparison between cryptocurrency and banks will continue for a long time. In the first quarter on 2018 Germany’s biggest bank, Deutsche which is also a leading financial institution in Europe recorded a profit of 146 million dollars while the world’s biggest cryptocurrency exchange Binance recorded a profit of 200 million dollars over the same period.
Binance is barely 8 months old, yet it has already overtaken one of Europe’s biggest banks in profitability. Deutsche was started 148 years ago and has 100,000 employees while Binance was launched last year and has 200 employees.
According to Binance CEO Changpeng Zhao famously known as CZ: “Currently Binance is the largest exchange in the world. After its inception, we recorded a profit of 7.5 million dollars in the first quarter, and then we grew to record a profit of 200 million dollars in the 2nd quarter. We are currently in our third quarter, and we expect further growth. All the countries that will attract Binance to start operations will get a handsome tax income revenue.”
The relocation of Binance from Taiwan to Malta is a better move than Deutsche Bank relocating permanently from its headquarters in Germany to Malta. Following the massive growth rate of Binance and also the general growth of the cryptocurrency sector motivated Malta government to embrace cryptocurrency which is evident because of the number of startups launching operations in the country.
The newly appointed Deutsche Bank CEO Christian Sewing said that the Bank would shift focus from hedge fund investment to focus on stabilizing the areas where the bank is dominant. The bank has an 800 million restructuring plan and also is planning to massively reduce the number of employees in order to increase its profitability in 2018.
Sewing told reporters that: “Deutsche is well established in Europe and we want to give our clients access to global financing solutions, and this will be our main focus.”
Currently, the cryptocurrency market is valued over 400 billion dollars which are less than the caps of HSBC and JP Morgan combined. However, the industry is still very young bearing in mind that the first digital currency was created only 8 years ago. This means that crypto future is very bright bearing in mind that startups with 200 employees have reached a multi-billion dollar valuations beating major and well-established banks in profitability.
If the demand for digital currencies is sustained and more institutional investors join the space, it’s possible that the cryptocurrency business will take over the global finance industry with a few decades. This massive growth rate of the market shows the possibility of a million dollars Bitcoin value as it was predicted by Tim Draper.