The CEO of Coinbase, Brian Armstrong, shared his opinion about different problems with Bloomberg, projecting a mostly positive sentiment, including concerning the ETF developments from recently.
Brian Armstrong, one of the most famous names in the crypto space
The CEO of Coinbase, named Brian Armstrong, who is actually one of the best-known names in the cryptocurrency space, is not concerned about the decision of the US Securities and Exchange Commission or SEC to postpone its ruling on a proposed Bitcoin exchange-traded fund or ETF. This has been one of the topics which Armstrong discussed in an extensive interview with Bloomberg, touching also on ICOs or Initial Coin Offerings, the price swings of Bitcoin, altcoins, as well as regulatory issues.
The most popular topics currently
Armstrong offered a slightly positive view when he was asked about the latest Bitcoin ETF developments. As he said, the SEC was doing its job at creating a safe market, as well as protecting consumers, working together with Coinbase and with some other stakeholders. It would be absurd to expect a swift conclusion on a problem like this. The challenge that follows would be defining what an acceptable cryptocurrency is, as well as how digital coins should be classified.
He also expressed some skepticism about most of the altcoins, while reiterating that his platform was exploring the possibility of listing some. Also, Armstrong was somewhat negative on ICOS but acknowledged the concept was positive for entrepreneurs with no other means of securing capital.
The topic about the adoption of cryptocurrency made its way into the conversation too, with Armstrong estimating about 90% of the current activity to be fueled by speculators, as well as investors in different projects. The rest is left for real-world use, which still happens mostly online, and it is going to take some time before Starbucks starts accepting crypto.
Coinbase, then and now
Armstrong also drew a lot of comparisons between the current state of affairs in the cryptocurrency space and the early days of the Internet. Coinbase begins as a hosted wallet for the average user. As Armstrong stated, nobody wants to run their own e-mail server, and the exchange came much later because of the popular demand. However, this is a controversial problem for crypto purists, which want to keep control of their wallets, as well as their private keys.
The comparison was also a frequent topic throughout the interviews, as he thinks that a few good coin or companies are going to emerge once the dust settles. So, the growth of Coinbase is still correlated with the changes in the price of Bitcoin.
Armstrong said that this technology is actually going through a series of bubbles and corrections, so they have been through four or five of them, where Bitcoin made a big run up in price and also corrected back 60-70%. Every time when it does that, it is at a new plateau, and it has also matched the growth of the company. He also added that in 2012-13, when they started, they had maybe 500 people a day signing-up and after the next bubble and correction they had about 5,000 people a day and now it is more like 50,000.