Tag - Internet Bubble

Coinbase CEO Draws Parallel with CRYPTOCURRENCY and Internet Bubble

The largest digital currency trading platform, Coinbase co-founder, and CEO, Brian Armstrong, has shared his experience of the virtual asset market with media recently. He termed his experience as “organizational chaos” while seeing it as a crazy journey from the entrepreneur point of view. He also drew parallel the cryptocurrency bubble with that of the Internet bubble of 2001. The CEO indicated that he has already witnessed 4 or 5 bubbles in the virtual currency market until now.

A New Skill Set

The six-year-old firm’s CEO told the media that there is a lot more to learn every year like a skill set. This included fundraising exercises or understanding to learn as to how to manage more effectively as the company has six or seven offices around the globe, ambcrypto.com reported. He pointed out that he is learning on the flight so that he could communicate with the international workforce on everything. Though he talked about digital coins, his primary focus was on the bitcoin price.

That is mainly because the virtual asset price has plunged to around $6,000 level currently from a lifetime high price of $19,700 seen in December last year. He thinks that the digital coin markets are going through a series of bubbles currently with a bias towards correction. The co-founder has already been a witness to 4 – 5 bubbles in which price of the cryptocurrency has increased in an irrational way. After that, the price has corrected by about 60 or 70 percent.

He termed it as a new plateau every time the cycle repeats referring to the ups and downs of bitcoin price. At the same time, he thinks that it matched with Coinbase growth. He pointed out that there were only about 500 users signing up every day during the period 2012 – 13 when the company was established. However, it has increased gradually to 5,000 and then shot up to 50,000 due to correction bubble.

Brian has drawn parallel the existing digital coin bubble with that of the Internet bubble in 2001. He pointed out that everybody’s expectation was well ahead of the realistic value when the Internet went through the bubble. Though the bubble has led to a crash, a number of enterprises have also started off well. As a result, firms such as Facebook became a big one. He thinks that in the cryptocurrency market too, the same thing is happening.

Steady Increase In Usage

The co-founder of Coinbase also referred about the SEC stand on bitcoin ETF and the rejection. As far as he is concerned, he is positive on bitcoin since Brian does not see any scope for an instant blessing from the regulator for the new asset class. His contention is that the regulator is only doing its job, which is to ensure the consumer protection and safe market and there is no scope for fraud.

Therefore, Brian said, “So, I think rightfully so, they [SEC] are looking at a lot of scrutinies especially as there are so many new coins coming out there [cryptocurrency market] that are you know have questionable value.”