[2017-11-02] Coinbase Added 100,000 Users in a Single Day

[bomj]

One of the Biggest Bitcoin Exchanges Just Added 100,000 Users in a Single Day

The eye-popping surge in bitcoin this week is paying dividends for one of the biggest U.S.
online cryptocurrency exchanges.

Coinbase Inc. added more than 100,000 users in the last 24 hours in the wake of the CME Group Inc.’s announcement Tuesday that it plans to introduce bitcoin futures by the end of the year. That’s according to data collected by Alistair Milne, a portfolio manager at the Altana Digital Currency Fund. The number of users of the online wallet function offered by Coinbase has more than doubled since the beginning of the year, according to stats on the company’s website.

As with the more than sevenfold increase in the price of bitcoin to more than $7,000 this year, new customers may be wise to proceed with caution. Coinbase’s GDAX platform drew scrutiny from the Commodity Futures Trading Commission last month over the June 21 flash crash that erased most of the value of ether, the second-largest cryptocurrency, in a matter of milliseconds.

https://www.bloomberg.com/news/articles/2017-11-02/bitcoin-exchange-added-100-000-users-in-a-day-as-price-exploded

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[J. Cooper]

Bitcoin has gotten quite a lot of positive coverage on US television the last couple of days, inlcuding ways to buy bitcoin (coinbase was on the list of ways to buy). This publicity boost combined with Coinbase's natural user growth could've resulted in 100,000 new user. I'm not sure if this is the only reason, but it certainly was one. Good for their business.

[richardsNY]

Coinbase is the leading business in crypto terms, so I am not at all surprised about this -- their current user count is 11.8M according to their site. I am quite sure that Coinbase at some point will get an exchange listing on one of the higher tier stock exchanges. The only point of "criticism" is that they control a very large part of the market they operate in, which basically means that this market is quite centralized in a way. For that reason I am a great supporter of more similar services being set up in order to have a more balanced market.

[squatter]

Coinbase is the leading business in crypto terms, so I am not at all surprised about this -- their current user count is 11.8M according to their site. I am quite sure that Coinbase at some point will get an exchange listing on one of the higher tier stock exchanges. The only point of "criticism" is that they control a very large part of the market they operate in, which basically means that this market is quite centralized in a way. For that reason I am a great supporter of more similar services being set up in order to have a more balanced market.

This is one of the reasons why I think the #NO2X people are way too confident. Coinbase/GDAX will assign the "Bitcoin" name and "BTC" ticker to the chain with most cumulative work regarding Segwit2x. That means that if miners says so, the single biggest US exchange market (and the most convenient way for US residents to buy BTC) will facilitate a chain split that could seriously damage the Bitcoin brand and split its community. And given Brian Armstrong's history, I think we can expect this to happen.

Same goes for BitFlyer: biggest exchange in the fastest-growing market in the world (Japan). They signed the NYA but haven't provided details yet regarding what happens after the fork.

[Ankhesenamun]

Coinbase is the leading business in crypto terms, so I am not at all surprised about this -- their current user count is 11.8M according to their site. I am quite sure that Coinbase at some point will get an exchange listing on one of the higher tier stock exchanges. The only point of "criticism" is that they control a very large part of the market they operate in, which basically means that this market is quite centralized in a way. For that reason I am a great supporter of more similar services being set up in order to have a more balanced market.

This is one of the reasons why I think the #NO2X people are way too confident. Coinbase/GDAX will assign the "Bitcoin" name and "BTC" ticker to the chain with most cumulative work regarding Segwit2x. That means that if miners says so, the single biggest US exchange market (and the most convenient way for US residents to buy BTC) will facilitate a chain split that could seriously damage the Bitcoin brand and split its community. And given Brian Armstrong's history, I think we can expect this to happen.

Same goes for BitFlyer: biggest exchange in the fastest-growing market in the world (Japan). They signed the NYA but haven't provided details yet regarding what happens after the fork.

Due to the approaching scaling, bitcoin becomes very popular. And so we are now seeing how quickly the price goes up. New users take bitcoin and stay in the bitcoin community for a long time

[Samarkand]

...
This is one of the reasons why I think the #NO2X people are way too confident. Coinbase/GDAX will assign the "Bitcoin" name and "BTC" ticker to the chain with most cumulative work regarding Segwit2x. That means that if miners says so, the single biggest US exchange market (and the most convenient way for US residents to buy BTC) will facilitate a chain split that could seriously damage the Bitcoin brand and split its community. And given Brian Armstrong's history, I think we can expect this to happen.

Same goes for BitFlyer: biggest exchange in the fastest-growing market in the world (Japan). They signed the NYA but haven't provided details yet regarding what happens after the fork.

I think you are overestimating the leeway that the exchanges like Coinbase/GDAX or Bitflyer have regarding the decision to which chain
they assign the "BTC" ticker in the case of a chain split. Several investors and core developers have already announced their decision
to sue the exchanges that give the "BTC" ticker to the new Segwit2x chain.

If they were indeed to assign the "BTC" ticker to the Segwit2x chain, they would probably face a huge backslash and several expensive litigations,
because the user support for the hard fork is just not that big (keep in mind that the NYA is a kind of a backroom deal in the first place).

Besides, I think the whole scaling debate is way overblown, because network congestion actually is a feature in my opinion and not a bug.
A competitive fee market requires occasional congestion of the network/mempool, which is particularly relevant for the time in the future
when the block reward is negligible and the incentives of the miners are largely determined by the transaction fees.

It amazes me everytime how Satoshi got all the incentives right from the start. This guy (or the group of guys behind the pseudonym) is as close
to true genius as it gets.

Further reading:
https://helda.helsinki.fi/bof/bitstream/handle/123456789/14912/BoF_DP_1727.pdf;jsessionid=D762A63DC58856EF904C0C46421871BE?sequence=1

The paper stresses the argument that occasional network congestion actually is a feature and not a bug.

[iamTom123]

Bitcoin has gotten quite a lot of positive coverage on US television the last couple of days, inlcuding ways to buy bitcoin (coinbase was on the list of ways to buy). This publicity boost combined with Coinbase's natural user growth could've resulted in 100,000 new user. I'm not sure if this is the only reason, but it certainly was one. Good for their business.

Certainly, Coinbase benefited from the good media coverage for Bitcoin in the past many days. While Bitcoin is soaring high (to the moon, as they say), Coinbase attracted new users who are all excited about the opportunity to be a big part of the growth of Bitcoin at its present and future value. These are new users who can then be bringing new blood and of course money on the table for Bitcoin. Aside from September, November is shaping up as one of the most important months for Bitcoin and it is primarily because of the surge at the moment. Yet we are only seeing the tip of the iceberg here as next year can be the big banner year for Bitcoin when new markets can open and there can be more big merchants entering the Bitcoin party!

[Variogam]

Bitcoin can handle only about 300,000 transactions daily. I guess most of the Coinbase users keep the Bitcoins under their account and never withdraw it to their own wallet controlling private keys, thankfully otherwise the transaction fees would skyrocket as well.

[Carlton Banks]

Bitcoin can handle only about 300,000 transactions daily.

No, between 600,000 and 900,000, maybe slightly more. You're thinking of the daily maximum before the Segwit softfork, but that happened several weeks ago.

Bitcoin's already had blocks as large as 1.5 MB since Segwit activated.

[Lampaster]

Bitcoin can handle only about 300,000 transactions daily. I guess most of the Coinbase users keep the Bitcoins under their account and never withdraw it to their own wallet controlling private keys, thankfully otherwise the transaction fees would skyrocket as well.

It seems to me that if everyone will make transfers at the same time the existing capacity of the miners is not enough. I understand that the number of coins per transaction remains unchanged. Along with the growth of bitcoin is increasing the fee per transaction. I think at right. But it inhibits the development of bitcoin. It is possible to increase block is a way out of the situation, but around this much talk I do not believe that it will happen.

[darkangel11]

Free advertising! I've been saying it over and over.
Big pump brings media attention, people who never heard of it or weren't interested join in to catch the speeding train, fresh money starts pouring into the crypto world and the price increases again bringing another wave of media coverage. The wheel keeps spinning 

[Carlton Banks]

It seems to me that if everyone will make transfers at the same time the existing capacity of the miners is not enough. I understand that the number of coins per transaction remains unchanged. Along with the growth of bitcoin is increasing the fee per transaction. I think at right.

No, that's totally wrong.

Blocksize limit increased already. It's now 4MB.


Since it increased, biggest block was 1.5 MB. There's no space shortage in blocks at all.

I guess people must want to pay high fees, there's not really any other explanation (unless they don't know how to get cheaper fees, their responsibility if so). Miners will, of course, accept higher fees for transactions. Why not?

[squatter]

...
This is one of the reasons why I think the #NO2X people are way too confident. Coinbase/GDAX will assign the "Bitcoin" name and "BTC" ticker to the chain with most cumulative work regarding Segwit2x. That means that if miners says so, the single biggest US exchange market (and the most convenient way for US residents to buy BTC) will facilitate a chain split that could seriously damage the Bitcoin brand and split its community. And given Brian Armstrong's history, I think we can expect this to happen.

Same goes for BitFlyer: biggest exchange in the fastest-growing market in the world (Japan). They signed the NYA but haven't provided details yet regarding what happens after the fork.

I think you are overestimating the leeway that the exchanges like Coinbase/GDAX or Bitflyer have regarding the decision to which chain
they assign the "BTC" ticker in the case of a chain split. Several investors and core developers have already announced their decision
to sue the exchanges that give the "BTC" ticker to the new Segwit2x chain.

If they were indeed to assign the "BTC" ticker to the Segwit2x chain, they would probably face a huge backslash and several expensive litigations, because the user support for the hard fork is just not that big (keep in mind that the NYA is a kind of a backroom deal in the first place).

There is no legal precedent for what defines "Bitcoin." One can make the argument that "validity" in the whitepaper is informative, but it's an incredibly vague standard, legally. I think you are overestimating your armchair attorney skills.

I'm quite sure that Coinbase is expending massive amounts for legal advice on how to approach forks. They answer only to their customers, not bitcoin holders at large. As long as they provide customers full access to all assets in custody and are very clear about how those assets are defined, what damages can be claimed? It's easy to scream "I'm going to sue you!" It's harder to argue a case.

Besides, I think the whole scaling debate is way overblown, because network congestion actually is a feature in my opinion and not a bug.
A competitive fee market requires occasional congestion of the network/mempool, which is particularly relevant for the time in the future
when the block reward is negligible and the incentives of the miners are largely determined by the transaction fees.

It amazes me everytime how Satoshi got all the incentives right from the start. This guy (or the group of guys behind the pseudonym) is as close
to true genius as it gets.

Further reading:
https://helda.helsinki.fi/bof/bitstream/handle/123456789/14912/BoF_DP_1727.pdf;jsessionid=D762A63DC58856EF904C0C46421871BE?sequence=1

The paper stresses the argument that occasional network congestion actually is a feature and not a bug.

That's all well and good. I'm fine with full blocks and I think that block size should be smaller than 1MB. In fact, I opposed Segwit's block size increase. None of this is relevant to the legal arguments about forking, though.

[dreamhouse]

100K accts per day? I am wondering how many accts in total there at coinbase?

[777Bitcoin]

I do used Coinbase when it is necessary but not on every transactions. This 100000 account must be divided by two or more that most bitcoin users might have made two or more Coinbase accounts. If it is verified account then that would be accurate but I doubt it is because you can verified for a day with a 100k Members account. Just pointing this out not on to offend Coinbase team. But still I’m happy that bitcoin popularity with Coinbase is booming.