Coinbase CEO Brian Armstrong claims that daily signup frequency for Coinbase this time last year was about 50,000. In an interview with Bloomberg about the Future of crypto, the founder and CEO of Coinbase, Brian Armstrong, correlated the price of bitcoin with the daily signup rate for Coinbase. A surge in the former caused a significant boost in the latter.
This technology is going through a series of bubbles and corrections, and each time it does that, it’s at a new plateau.
As of Feb 2018, Coinbase offered buy/sell trading functionality in 32 countries, while the cryptocurrency wallet was available in 190 countries worldwide.
Bitcoin, since its inception, has seen four major upheavals. A ‘bull run’ as crypto investors and enthusiasts like to call it. Bitcoin, like other successful stock markets, followed a modified S-curve — a pattern of growth in which the stock value increases slowly initially, in a positive acceleration phase; then increases rapidly, approaching an exponential growth rate, but then declines in a negative acceleration phase until at the zero growth rate the population stabilizes.
What happens is that at the start of this curve, the prices go up a little, news spread out, investors are hit with the realization of the potential ‘jackpot’ the stock promises causing mad investments. It’s here that the overlord of basic human instincts kicks in — fear. Fear of losing the money when the returns cross the ‘too high’ barrier. Safe bets are cashed out. The curve starts the downfall. As cashing out progresses, more and more fear punches the investors to lose their patience and the flood gates are run over. The downfall is imminent. Stock goes down, gets stable for some time until the next ‘hype’ injection tickles the investor’s adrenaline glands.
From stock investments 101, let’s get back to Armstrong. In his interview at the Bloomberg Players Technology Summit held in San Francisco, he also claimed that Coinbase has served around 25 million customers worldwide and facilitated the buying, selling, and trading of over 150 billion dollars worth of cryptocurrency on its exchange in the past year, while Coinbase itself holds around $10-20 billion of customers’ cryptocurrency assets.
Remember reading the name blockchain in the title? This is where it comes in.
Bloomberg tweeted a slightly misled tweet that claimed 50,000 daily user signups by Coinbase even in the downtime of cryptocurrency:
This mistake was gunned down by CEO and co-founder of blockchain Peter Smith on his official twitter account:
CORRECTION: It’s actually *Blockchain* signing up over 50,000 per day in the midst of this crypto downturn. It’s delightful to see new entrants actually interested in *using* crypto. (Hi @crypto ???? ) pic.twitter.com/NKFDKMdSRk
— Peter Smith (@OneMorePeter) August 15, 2018
Bloomberg has since then tweeted the correction.
— Bloomberg Crypto (@crypto) August 15, 2018
We’ll have to side with Peter on this one. Blockchain currently enjoys the prime position in the crypto world with 27 million plus wallets and combined transactions of more than 200 billion dollars across 140 countries.
Regardless of this show of strength, Coinbase continues growing, averaging more than 500 employees. Armstrong is confident about crypto future but doubts that it will cast an overall shadow anytime soon.
His confidence can be encapsulated in one sentence that reflects a promise to a better future:
Now it’s getting harder and harder to be a crypto skeptic.