Bitcoin

Dr. Saifedean Ammous : Bitcoin (BTC) Ledger is Transparent, in Response to Deutsche Bank Raids

Dr. Saifedean Ammous : Bitcoin (BTC) Ledger is Transparent, in Response to Deutsche Bank Raids

An official Twitter post from Deutsche Bank reads:

“It is true that the police is currently conducting an investigation at a number of our offices in Germany. The investigation has to do with the Panama Papers case. More details will be communicated as soon as these become known. We are cooperating fully with the authorities.”

According to Deutsche bank, one of Europe’s largest financial institutions, it has provided “the authorities with all the relevant information regarding Panama Papers.”

Moreover, the bank has promised to cooperate and work closely with the public prosecutor’s office in Frankfurt, Germany – as it claims that it would be in its best interest to “clarify the facts.”

Interesting Commentary From Saifedean Ammous

Interestingly, Saifedean Ammous, a prominent member of the crypto community and author of “The Bitcoin Standard”, had some unique observations related to the matter. He remarked:

“Bitcoin’s transparency, finite supply, and incorruptibility continue to give it little chance of competing with the traditional banking system & its creative money creation mechanisms for criminal activity and money laundering.”

Indeed, these are some notable characteristics of bitcoin – as its total supply has been capped at 21 million, which makes it a deflationary currency. BTC transactions can also be tracked on block explorers.

Block Explorers Make Crypto Transactions Transparent

During the US Senate Hearing on “Exploring the Cryptocurrency and Blockchain Ecosystem” (in October of 2018), there was an extensive discussion and debate between prominent economist, Dr. Nouriel Roubini, and Peter Van Valkenburgh, the director of research at CoinCenter.

As Roubini continued to find faults (using invalid arguments) with digital currencies, Valkenburgh revealed that law enforcement agencies actually preferred tracking down Bitcoin (BTC) transactions and transfers involving other cryptocurrencies. That’s because they said they were able to track them more accurately due to the transparent nature of block explorers.

It’s true that not everyone can peek into a bank’s balance sheets, and quite often, a financial institution’s ledger is altered by the select few centralized authorities that manage it.

Traditional Financial Institutions Are Highly Inefficient

Not only are the operations of centralized financial institutions opaque in nature, but they are also highly inefficient. As CryptoCoreMedia reported earlier this year, Malta-based digital asset exchange, Binance, recorded more first quarter 2018 profits than Deutsche bank.

Binance, which is working on its decentralized exchange (DEX), is also running a much more efficient operation. The exchange managed to generate $200 million while only have a few hundred employees. Meanwhile, Deutsche bank only netted $146 million during the same time period – while requiring hundreds of thousands of workers to do so.

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