Coinbase CEO Brian Armstrong Thinks Bitcoin Use in Commerce Will Take Time
Brian Armstrong, the CEO of Coinbase is of the view that it will take some time before Bitcoin and other cryptocurrencies find mass adoption by merchants.
Since Bitcoin was created a decade ago, there is still a problem when it comes to giving it a proper classification. Satoshi Nakamoto created Bitcoin with the aim of disrupting traditional finance systems and fiat currencies.
The massive rise in Bitcoin price last year was what drew most people to the cryptocurrency space. Bitcoin, which was originally viewed as a currency, is now regarded by most as a store of value, similar to gold, a precious metal.
Armstrong believes it will take a while for Bitcoin to become a currency.
Brian Armstrong, the CEO of Coinbase and one of the leading proponent for cryptocurrencies is of the view that it will take some time before Bitcoin and other cryptocurrencies find mass acceptance.
“It will be quite some time before you can cross the street and buy coffee at Starbucks with crypto. The financial system in the U.S. works well for most consumers”
Coinbase is currently the largest cryptocurrency exchange in North America and one of the largest in the world. The exchange has launched several products aimed at institutional investors, including Coinbase Custody, a new institutional crypto custody solution, and is looking to become a leading player in the cryptocurrency world.
Cryptocurrencies still face problems as a medium for daily transactions
Bitcoin and other cryptocurrencies have gotten support from several retailers and businesses over the past few years.
However, the adoption of cryptos as a medium for daily transactions has been negatively affected by the absence of regulation as well as technical problems usually encountered on their networks.
The rise in Bitcoin prices led to an increased transaction activity on its network. This clogged Bitcoin’s network towards the end of last year and earlier this year. It has caused the average transaction confirmation time and fees to increase significantly.
This is a problem that has affected its chances of becoming a means of payment since it means significant delays for transaction confirmations. Bitcoin also needs the features and technology to compete with traditional payment channels, such as refunding a purchase, invoicing and much more.
Fiat currencies have developed infrastructure and systems like credit cards that allow for instant confirmation of a sale or purchase. Although not currently available to Bitcoin, the Bitcoin Lightning Network (LN) second layer protocol looks to resolve the scaling problem.
Finance dinosaurs don’t believe or understand Bitcoin
Most governments and banks all over the world have continued to be against cryptocurrencies, which has to some extent affected them. One popular critic is JPMorgan Chase CEO, Jamie Dimon who had labeled Bitcoin a fraud on numerous occasions.
Another popular figure, Warren Buffet had termed Bitcoin as “rat poison squared.”
Brian Armstrong, however, stated that both Dimon and Buffet were wrong. He believes that six years ago, nine out of ten people were crypto skeptics but that has changed. The development of use cases in the mainstream economy has changed those statistics.
He is of the view that finding Bitcoin skeptics now is even harder than before.
Coinbase lists Ethereum Classic, looking at others
Coinbase doesn’t list cryptocurrencies regularly the way other exchanges like Binance do. This is the reason why Coinbase listing is a very big deal in the crypto community. Coinbase recently listed Ethereum Classic and is now looking at others.
Ethereum Classic joins the likes of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) which have been listed on the platform for a while.