Cryptocurrencies have long had a reputation for being fertile ground for scams of all kinds. However, over the years, it has become clear that the proportion of fraudulent projects and transactions in the crypto world is minimal. Which is why Binance CEO Changpeng Zhao comments on the Tweet of the day that there are more frauds in fiat money than in cryptocurrencies.
Frauds in cryptocurrencies and fiat money
For someone who has lived his whole life under the scheme imposed by fiat money, cryptocurrencies look like a fraudulent scheme. And it is that, the idea of digital money managed in a decentralized way, is not easy for everyone to accept. Which is why many commentators have accused Bitcoin and other crypto assets of being tools for scammers of all kinds.
However, over time it has been demonstrated not only the reduced number of operations with cryptocurrencies related to crime. But also that fraudulent schemes that are attempted with crypto assets do not represent a significant part of the crypto community.
In fact, when the ecosystems created around traditional fiat money and cryptocurrencies are directly compared. It is obvious that the bulk of the world’s criminal activity is not concentrated in the crypto market. Rather, it is found overwhelmingly in the world of traditional finance. As stated by Changpeng Zhao through his Twitter account:
Honestly, after dealing with fiat, we learned that there are a lot more scams, chargebacks, and scams in fiat than there are in #crypto. The way forward is clear.
With these words, Changpeng Zhao tries to combat the false beliefs that exist around Bitcoin and cryptocurrencies. Noting that despite their decentralized operation, virtual currencies have a negligible amount of fraud and criminal schemes when compared to traditional fiat money.