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Being Bitcoin [BTC]-centric did not prove viable for us, says Coinbase CEO Brian Armstrong

Akash Anand

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Being Bitcoin [BTC]-centric did not prove viable for us, says Coinbase CEO Brian Armstrong
Source: Unsplash

The end-of-the-year cryptocurrency market behavior has been quite surprising, with an extended bear run being overturned by rapid price surge. The recent bullish run caused a lot of cryptocurrencies to increase in value and protect their support levels as well. The major highlight of the surge was Bitcoin [BTC]’s breach above the $4000 mark, a phenomenon that also resulted in rank changes on the cryptocurrency charts.

During this time period, Brian Armstrong, the Chief Executive Officer of Coinbase spoke to Chris Dixon, a Coinbase board member and serial entrepreneur about Coinbase’s inception and the company’s ideology of branching out to other cryptocurrencies.

Armstrong started by saying that the cryptocurrency market always goes through big run-ups that are enormous and the market automatically corrects the prices back by 50%-60%. He stated that there is a new price plateau every time a correction occurs and this pattern has been repeated several times in the cryptocurrency market. The CEO spoke about how Coinbase, during its inception was understaffed and the company’s only motto was to play the long game.

The Coinbase official said that when the company began, Bitcoin was considered as the only legitimate digital asset drawing an analogy with the existence of the TCP/IP as a strong foundation. He further added that the scaling debate on Bitcoin was the spark that made Coinbase realize that the focus has to be shifted to other cryptocurrencies like Ethereum [ETH]. In his words:

“The emergence of factions during the Bitcoin debate was the one that surprised me the most. The scaling debate and Bitcoin’s fork talk made us realize that we need to be more than a Bitcoin-centric company.”

The head of the largest cryptocurrency exchange in the US was frank in admitting that the ‘one protocol to rule them all’ could not be applied to the cryptocurrency industry, which is what forced Coinbase to venture into other cryptocurrencies.

Coinbase was also in the news recently when Asiff Hirji, the COO of the company, spoke about the exchange’s trading volume being affected due to the bear market. Speaking about the price slump, Hirji stated:

“We had a number of institutions come in and practically invest in us, we basically took money for a rainy day. None of those investors were betting on the price of Bitcoin today, tomorrow, or even a year from now… But if you have a long-term constructive view of where crypto is going, we are the best-leveraged bet on crypto you can find.”





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Bitcoin

Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021

Priya

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Bitcoin [BTC] will likely reach $100,000 with a market cap of over $2 trillion before the end of 2021
Source: Unsplash

The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.

According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.

Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,

“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”

Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,

“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”

Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,

“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”





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