The announcement by America’s financial company, CME to add Bitcoin futures to its trade has sparked lots of interest globally. The largest Bitcoin exchange in the world, Coinbase, in the wake of this announcement, has added 100,000 users to its platform in just 24 hours.
Coinbase is the most popular Bitcoin exchange with over 11 million users across 32 countries around the world.
In addition, Coinbase was one of the few exchanges that supported Bitcoin trading when it was still fairly in single-digit price. Merchants were supported also by Coinbase to transact Bitcoin for their services and products by providing a safe environment.
Coinbase has grown to be the strong force to reckon with when in August 2017; a surprising $100 million was raised, making it to reach an enterprise value of about $1.6 billion.
CME’s launch of Bitcoin futures hopes to see more institutional investment into Bitcoin, thus raising its total market cap greatly. Individuals are trying as a result to acquire Bitcoin by invading Bitcoin exchanges to have their hands on the cryptocurrency before it gets out of their reach.
This is the reason given by Alistair Milner for the rush on the largest Bitcoin exchange in the world. The rising Bitcoin price has also led to the sharp rise in the number of Coinbase subscribers. Its user base has since doubled this year, 2017, to hit 11.9 million users.
Dealing with the Spike
With the thousands of new subscribers, the price and demand for Bitcoin are expected to further explore. From estimates, only less than 0.5 of the world’s population has invested in cryptocurrency.
Though Coinbase boasts of having insurance cover for cryptocurrencies saved on its platform, it is still left to ask whether the robustness of the trading platform is reliable.
A crash resulting from a large order on its GDAX exchange caused Etherium price to drop by 10 cents for a while, forcing stop loss order to be activated. With a rise in users, it is not Bitcoin alone that executes full blocks and scalability issues, other Bitcoin exchanges need to scale up as well.