Coinbase Adds A Record 100,000 Bitcoin Traders In One Day

Back in the summer of 2015, one tracked the euphoria of the Chinese stock market bubble by the number, usually in the hundreds of thousands, of new brokerage accounts that were opened on any one given day.

And while that bubble has long since burst, the tradition of measuring new account openings has remained, and nowhere more so than in the biggest momentum instruement of the day, bitcoin.

Following a 7x increase in the price of bitcoin this year alone, which earlier today topped $7,000 for the first time ever (before sliding as much as $600) the broader public is now truly on board, and as one of the world's biggest US cryptocurrency exchanges reports in its daily usage update, there were 11.9 million Coinbase users as of November 1, shortly after the CME announced it would introduce bitcoin futures by the end of 2017.

This number is notable because according to data collected by Alistair Milne, an investor in the Atlanta Digital Currency fund...

... the number of users was 11.8 million yesterady, meaning that in one day Coinbase added a record 100,000 users, i.e., bitcoin traders.

Such a parabolic shift into bitcoin will likely raise some eyebrows, not least because as Bloomberg reports, Coinbase’s GDAX platform drew scrutiny from the CFTC 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.

Another consideration: Fundstrat’s Tom Lee, who has previously called for bitcoin to hit $6,000 by the middle of 2018 and $25,000 by 2022, today turned cautious after the recent rally "on contemporaneous fundamentals." The uberbitcoinbull says the 60% surge in the past month to over $7,000 is a result of multiple factors, including the CME announcement to offer bitcoin futures and Amazon acquiring crypto domains. As a result he recommends waiting for a pullback, and buying bitcoin in the $5,500 range. He is less concerned about the long-run, however, and sees the cryptocurrency hitting $25,000 by 2022.

Ironically, it was none other than Lloyd Blankfein who had some interesting observations on the value of bitcoin. Speaking to Bloomberg today, the Goldman CEO said that he while he doesn’t hold any investments in the digital coin, he can see a world in which bitcoin is a form of currency.

“I read a lot of history, and I know that once upon a time, a coin was worth $5 if it had $5 worth of gold in it,” Blankfein said in an interview Thursday with Bloomberg TV. “Now we have paper that is just backed by fiat...Maybe in the new world, something gets backed by consensus.”

 

“I’ve learned over the years that there’s a lot of things that workout pretty well that I don’t love,” he said today. Bitcoin certainly has been doing well in 2017, rising more than 600 percent since the start of the year and surpassing $7,000 for the first time.

“I don’t have an investment in it, but I’m not willing to pooh-pooh it and that’s why I say I’m open to it,” he concluded.

Comments

NugginFuts TedFarr Thu, 11/02/2017 - 16:33 Permalink

They create a BTC wallet address for you, secured by 2 Factor authentication and protected against DDOS. They also have a BTC mining operation on the side. You get fractions of BTC by playing their little dice game for free once an hour - every roll wins a small amount, and some higher rolls win a lot more. This is to entice you to play their game more, this time with the potential to lose. My advice: don't play the game, just take the free roll/BTC and let the BTC stack up. Also, you don't have to throw any of your own BTC at it if you don't want. You can slowly build it up until you hit the threshold to start getting the 4.08% interest. I threw $20 a few weeks ago just to see if it would work. I've been paid daily in BTC ever since, compounding it daily.You can withdraw any time you like. I've tested sending money in and cashing it out. Works like a charm. Or go open an account on Coinbase. Personally, I kinda hate them.

In reply to by TedFarr

VD LawsofPhysics Thu, 11/02/2017 - 16:26 Permalink

crypt0-muppetz piling in! that "s-curve", more at LOL-curve. buy now! you can't lose! it's a once-in-lifetime opportunity! don't sleep! all in baby to infinity! soon, according to tomoron (who dollar cost averaged silver from $42 to 59 and then sold at 18 but hey he's learned his lesson now), they'll pay you to use energy it'll be so cheap, and we'll have all the gold in the universe from mining asteroidz. you don't agree peanautz well itz ur cognineetave dizzonanz and go kill urself loser poor person i tomoron am filthy rich (my mom gave me her retirement savings and we eat alpo) you idiotz peanutz foooooolz!  

In reply to by LawsofPhysics

btClunker LawsofPhysics Thu, 11/02/2017 - 16:28 Permalink

I think your missing the point as to how it can function as a currency.  Say for example you had the best fake silver coin. If it circulated all it's life as a medium of exchange undetected no one would be the wiser. If however it was found out as a fake, would all of the previous exchanges be reversed or no longer apply? Sure the last guy in line gets screwed but the first one is fine as is the second and so on. Bitcoin isn't the value, it performs a service and that service is the value. 

In reply to by LawsofPhysics

shamus001 Tegrat Thu, 11/02/2017 - 16:26 Permalink

Well then, youve been FORCED to watch your investment rise in value, albeit you cannot cash out for profit?  I think it's really going to get your goat when you see the CME crime syndicate "futures" SHORT the HELL out of BTC. (and you couldn't sell when it was on top)  The only reason it has risen is because it is an investment which could NOT be shorted.  You put your $ in and you pull your $ out.  But if JP MORGAN dumped 1 million in BTC, and 100,000 people joined, then JP Morgan pulled out 1 million hoping for a scare, I don't think they got as many people to sell as they had hoped.Fear not! A GOOD HUNDRED MILLION SHORT POSITION WILL CLEAN NEWBI INVESTOR HOUSE, DESTROYING BTC VALUE AND MAKING MONEY ALL THE WAY DOWN!

In reply to by Tegrat

marysimmons shamus001 Thu, 11/02/2017 - 17:00 Permalink

Actually, BTC can be shorted on all the major exchanges that allow margin accounts.  Just can't be naked shorted.  CME futures are not good news for BTC, IMO, but hard to tell if price can be manipulated - over 100 exchanges globally that trade BTC.  But even if BTC can be successfully middlemanned and un-decentralized by Segwit2X, and even if the price can be controled by CME futures, there are many other high quality decentralized digital currencies that will fill the role of BTC.  None of these attempts at controlling BTC will matter in the long run - decentralized digital currencies are here to stay and they are an existential threat to the financial status quo 

In reply to by shamus001

11b40 shamus001 Thu, 11/02/2017 - 18:49 Permalink

You do not even have a clue what you are talking about.  Not one clue.  You can short BTC now, but you can't use naked shorts.  You can even lend your BTC to others for a fee.  Short away, if you want to commit financial suicide.  Without naked shorts, you have to really corner a market with real cash if you want to short it.

In reply to by shamus001