Coinbase - Regulated & Licenced US Bitcoin exchange - Good or Bad?

[kpitti]

It`s a good step in the overall adoption. I am not thinking on "huge" and "mass" now.

Negative signs as Mt Gox and Bitstamp are bed signs and they are in the memory for a long time. This is nature.

[Netnox]

Ofcourse good for bitcoin, more recognition, more adoption, more fresh money coming in. With Gemini and the ETF it gets better.

[pawel7777]

...
People are devided into different groups, when this is discussed :

1. People who says, it's a huge move for Mass adoption.
2. People who says, it's a blow for Bitcoin/crypto currency privacy.
3. People who says, "Bring it on, it will open up new legitimate channels for new buyers"
4. People who says, "They bring nothing new, we need a decentralized exchange"
...

As for 2 and 4: How is it a blow to privacy? It's not as long as no one forces you to use such exchange. Similarly, it doesn't stop anyone from creating/using decentralised exchange.

Don't know how could this be bad for bitcoin. I'm pretty happy that there are people trying to create a legit, safe and regulated businesses (Coinbase, Winklevoss) and that there are people (Amir Taaki, Cody Wilson) working on decentralised/anonymous solutions.

[Armis]

What you see that occurred with Coinbase was the first time that BTC experienced TOP down market flow, up to now it has all been about grassroots organizations and building a system up, well this time the big guys got together decided to adopt a favorite son of the CC world (coinbase) and give it their blessings.  The problem is they came far too late in the game, they came right on time to save Coinbase but not earlier enough to save the industry in the short term (1 year).   If they did this a year ago, when gox died, it would have saved the industry in the short term.

I've read a couple threads about coinbase and I'd like to clear up a couple reasonable misconceptions:

Coinbase and coinbase exchange are two different things, I don't know how the two are legally related as of yet but they are treating them as two separate entities.

Coinbase is not an exchange, however 'coinbase exchange' is an exchange, they use essentially the same name in order to build on the branding.

One of the things I've been advocating for a year now is the need for INSURANCE, to my pleasant surprise the exchange has some insurance.  And the coverage appears to guard against some of the things that occurred with Mt Gox and Moolah/mintpal -- internal thief.  Thereby raising the quality bar for the industry.

The more secure we make BTC (and the whole CC industry) the higher the value will go.  SAFETY AND SECURITY are the ONLY things keeping BTC value down.



On a totally separate note:
http://www.crowdfundingpr.org/10-cryptocurrency-communities-unite-form-powerful-crowdfunding-platform/

[BitCoinNutJob]

Ofcourse good for bitcoin, more recognition, more adoption, more fresh money coming in. With Gemini and the ETF it gets better.

Some people are want the government out of it completely but theres not much chance when they have fingers in all pies.

[Lauda]

What is up with people?
Why would one not be okay/happy about this? What needs to happen to satisfy your needs?
This is very tiring sometimes.
So having a regulated and licensed exchange which won't be shut down by the US government is a bad thing now? Sigh..

[slushee]

Very good! One million dollars soon.

Is trollbox available on Coinbase?

[Xapo]

Ofcourse good for bitcoin, more recognition, more adoption, more fresh money coming in. With Gemini and the ETF it gets better.

Some people are want the government out of it completely but theres not much chance when they have fingers in all pies.

Agreed. There is room for decentralized exchanges/anonymous users, as well as licensed exchanges/government oversight/users who sacrifice anonymity for insurance. The two are not mutually exclusive, and I think Bitcoin can only grow with contributions from both sides, so this is one of many great breakthroughs to happen to bitcoin.

[LiteCoinGuy]

good.

[coinpr0n]

I think it was a smart move on their part. Good for them seeing where Bitcoin is moving.

[JBits]

4. People who says, "They bring nothing new, we need a decentralized exchange"

We need a decentralised exchange and one that does not give in to government regulation.

[Come-In-Behind]

...
People are devided into different groups, when this is discussed :

1. People who says, it's a huge move for Mass adoption.
2. People who says, it's a blow for Bitcoin/crypto currency privacy.
3. People who says, "Bring it on, it will open up new legitimate channels for new buyers"
4. People who says, "They bring nothing new, we need a decentralized exchange"
...

As for 2 and 4: How is it a blow to privacy? It's not as long as no one forces you to use such exchange. Similarly, it doesn't stop anyone from creating/using decentralised exchange.

Don't know how could this be bad for bitcoin. I'm pretty happy that there are people trying to create a legit, safe and regulated businesses (Coinbase, Winklevoss) and that there are people (Amir Taaki, Cody Wilson) working on decentralised/anonymous solutions.

Anyone agreeing with #4 is an idiot simply because Coinbase is not an exchange in the way Cryptsy is an exchange. Coinbase lets you wire $ in and buy Bitcoin directly from your bank account, Cryptsy is where you can trade Bitcoins for other Cryptocurrencies.

With that being so, how the hell would a decentralized exchange allow you to wire $ from your bank account onto the exchange. Obviously banks wouldn't permit that, so it would never work, which means that exchanges like Coinbase are the ones likely to be the leading Cryptocurrency exchanges.

[Nagle]

The Wall Street Journal and Time have picked up on the fact that Coinbase doesn't have all the money transmitter licenses they claim to have.

Time: "Correction: A previous version of this article reported the Wall Street Journal’s claim that Coinbase had achieved regulatory approval in 24 states, including New York and California. That article has been updated to reflect that Coinbase is working to receive regulatory approval and this article has been updated to reflect that change."

[b-stock]

anything that creates demand is positive though...

[nextgencoin]

It's really good........for weeding out the people who should never of been involved in Bitcoin and those who understand regulation is why Bitcoin exists....ie to avoid it. Regulation simply mean the governmnt can take your currency that you simply wanted to use as an exchange of value between private individuals away or what most people understand as Tax. Some people will beg their masters to beat them more...it's a perverse psychology but it's true.

[HarryPotHead]

4. People who says, "They bring nothing new, we need a decentralized exchange"

We need a decentralised exchange and one that does not give in to government regulation.

I agree with our noobie friend decentralized exchange is needed to prevent the greedy stealing as they please

[tss]

you can still trade on unregulated offshore exchanges and receive the same exact bitcoins. 
a move for a united states based exchange is only an addition to the growing infrastructure, so a good thing in my book.

[Nagle]

The Wall Street Journal and Time have picked up on the fact that Coinbase doesn't have all the money transmitter licenses they claim to have.

Today, the California Department of Business Oversight issued a warning on Coinbase:

“Numerous press accounts about Coinbase’s Jan. 26 launch of Coinbase Exchange erroneously reported the Exchange has received regulatory approval from the State of California.  The California Department of Business Oversight has not decided whether to regulate virtual currency transactions, or the businesses that arrange such transactions, under the state’s Money Transmission Act.  California consumers should be aware Coinbase Exchange is not regulated or licensed by the State.”

So Coinbase is not a regulated exchange.

[mayax]

I am wondering how they operate. They are outlaw... Unlicensed Money Trasmitter

[Armis]

It's really good........for weeding out the people who should never of been involved in Bitcoin and those who understand regulation is why Bitcoin exists....ie to avoid it. Regulation simply mean the governmnt can take your currency that you simply wanted to use as an exchange of value between private individuals away or what most people understand as Tax. Some people will beg their masters to beat them more...it's a perverse psychology but it's true.

Currently thievery is the biggest tax in the CC industry, and that is followed by scams, and schemes.

Given that taxes are only charged on gains, and that losses are decuctible from the gains, seems to me most people would have no taxes owed anywhy.  For the whole year of 2014 BTC was one downward sloping line.

Based on that part in red, no one should put any money in any exchange that isn't licensed, insured, community certified, owner verified, and otherwise regulated.


On a totally separate note:
http://www.articlesbase.com/sleep-articles/the-einsteinium-foundation-awards-prize-to-science-researcher-7185107.html