Brian Armstrong, the CEO of Coinbase, envisions a future where cryptocurrency moves beyond its current raison d’etre of price speculation or trading and is adopted into the mainstream. He aims for his company to become a leading platform for industry growth and cryptocurrency adoption.
Moving away from Trading
On 19 July 2019, Armstrong spoke in an AMA (Ask Me Anything) session explaining his vision for Coinbase during the next five years.
Thanks to the company’s user-friendly smartphone app, the company has become one of the most popular digital trading platforms in the US. But Armstrong has a mission.
He sees that in time, Coinbase will serve as a universal platform for cryptocurrency adoption. Even Coinbase’s mission statement notes that. Looking for ways to assist mainstream adoption, Coinbase has developed an education program, Coinbase Earn, which rewards users for participating in short lessons with crypto.
To date, most crypto exchanges and investors use crypto through trading only. However, with the rise of Facebook’s libra and the increasing popularity of digital assets, Armstrong boldly sees an opening to provide education on the currency and move it beyond the trading scene.
Cryptocurrency is an increasingly popular digital payment method and trading currency, using P2P (Peer-To-Peer) technology to create and manage financial transactions rather than a central body.
For you to trade in digital currencies, you need a blockchain network a platform on which to buy and sell, as well as an intermediary to communicate with your network. Many of us do not have the technological know-how to understand how to store our digital currency. At this point, we turn to a digital asset exchange company (GDAX), like Coinbase.
About Coinbase and their Mission
Coinbase, a 7-year old firm based in San Francisco, California, provides a platform to trade in digital currencies. They also send out information about those transactions to the blockchain network to verify those transactions. Coinbase stores your currency as well, acting as your digital wallet. Their website states that they have more than 30 million users and traded over $150 billion of currency.
Coinbase announced that it would move to crypto lending and offer margin trading features, thus committing to the expansion of currency adoption. It is Armstrong’s belief that the sole focus on trading would be to the firm’s detriment. Currently, the firm has benefited from early market advantage, but a surplus of crypto trading platforms could soon flood the arena.
Moving beyond trading and mainstream adoption seems a likely scenario to Armstrong, who has stated that there will be thousands of companies that will become crypto-first in 5 years’ time. Before that, he says that people will improve their crypto education and careers, later being in a position to seed crypto-first firms and thus the economy.