At the first quarter of 2018, Deutsche Bank, Germany’s biggest banking and a few of the leading financial institutions of Europe, listed a gain of $146 million. The world’s biggest cryptocurrency exchange, Binance, listed a profit of about $ 200 million.
Binance Vs. Deutsche Bank
Binance surpassed certainly one of the biggest banks of Europe and Germany in profitability. Binance, a cryptocurrency startup which was non-existent 8 months ago beat a major bank which was established 148 years ago. A startup with 200 personnel beat a banking giant with 100,000 employees .
Changpeng Zhao, the CEO at Binance, who is better known to the cryptocurrency space as CZ, wrote on March 3:
“Binance is the world’s largest cryptocurrency exchange. In the first 3 months from inception, profits amounted to $7,500,000 USD. In the 2nd quarter, profits amounted to $200,000,000 USD. The 3rd quarter is still in progress, and is expected to have further growth. Any country that can attract Binance to open a branch in their location will receive a handsome tax income revenue.”
For Malta, the relocation of Binance from Taiwan to the European country is a larger move than Deutsche Bank permanently relocating its headquarters and operations from Malta to Germany. Given the exponential growth rate of Binance and the rapid movement of the cryptocurrency market, the motivation of the government of Malta in embracing the cryptocurrency industry and startups within it is quite evident.
Christian Sewing, who was appointed as the new CEO at Deutsche Bank, stated that the bank will move away from hedge fund investment and focus on stabilizing on a few areas the bank where the bank is still dominant. With an $800 million restructuring plan and a massive cut of employees, the bank aims to generate profits by the end of 2018.
“Deutsche Bank is deeply rooted in Europe – here we want to provide our clients access to global financing and treasury solutions. This is what we will focus on more decisively,” Sewing told Reuters.
Future of Cryptocurrency Industry
Cryptocurrency marketplace is presently hovering about $400 billion, which is less compared to the market caps of JPMorgan and HSBC. The cryptocurrency market is still at its early stage and considering that only bitcoin has been around from 2009 to 2015 until the creation of Ethereum and the tokenized ecosystem, the cryptocurrency industry is really less than five years old.
The fact startups with roughly 200 employees have reached enormous greenback valuations and overcome out main banks including Deutsche Bank in profitability reveal a strong long-term development of the cryptocurrency market.
As long as the demand for the cryptocurrency market could be continued and institutional traders proceed to go into the distance, very similar to the way Binance has been able to surpass Germany’s biggest bank within just 8 months of existence, it is likely that cryptocurrency companies consider the worldwide fund industry within the next decade or two.
The exponential growth rate of the market shows the possibility of million-dollar bitcoin price predictions by experts like Tim Draper and Peter Thiel.
