By Bill Taylor, Managing Editor
While pundits, investors and just about everybody on the planet debate the merits (or non-merits) of bitcoin and cryptocurrencies, huge things are happening in the trading sector. Coinbase, the go-to exchange for crypto traders, is gearing up for explosive growth. The leading U.S. marketplace for all things crypto is doubling the number of full time engineers to make sure Coinbase’s platform has all the right coding to prepare for a flock of new traders.
Prompted by the New York Attorney General, who is looking into crypto exchanges, Coinbase increased its transaction capacity by 1000% (year over year) and is expecting to double THAT capacity over the next few months. The next wave of investors and traders may not be the traditional smaller “retail” customers but rather institutions. With more credibility and regulations on cryptocurrencies the door is swinging open for hedge funds, fund of funds, family offices and even proprietary trading firms to become clients. Just the other day Goldman Sachs announced a new bitcoin trading desk. GS may not use Coinbase BUT certainly increased trading is arriving quickly.
So, while the established exchanges (CME Group, NYSE, Cboe, etc) continue to “evaluate” the crypto landscape, a whole new flock of exchanges are ramping up just as Coinbase is doing. These new exchanges are not household names yet but all of them see the very same thing – monster growth in a new asset sector. Coinbase and others have a very distinct advantage in that they can build out their business models to fully conform and cater to the fast changing crypto landscape. The established exchanges have to modify their existing regulatory structure (and platforms) which is like trying to turn a super tanker around in a river. Not easy.
With daily comments on bitcoin running both good and bad (note: ever notice the older the “expert”, the more they bash bitcoin? Just saying…), the awareness and explosive growth will continue. The new exchanges (Coinbase) better keep gearing up. That monster trading volume is coming.