What does the Coinbase exchange mean for bitcoin?
Coinbase's newest Bitcoin Exchange is regulated and based in the United States. Investment capital for the project came from such conservative institutions such as the NYSE and the USAA. The coinbase exchange is the latest confirmation that Bitcoin is here to stay, and will add increased depth and liquidity to the Bitcoin asset class.
What's up, party people? Chris DeRose here, Community Director of the Counterparty Foundation and in today's video I wanted to address the question, "What does the Coinbase exchange mean for Bitcoin?" So this is a big thing. If you didn't see it, I think early January of 2015, yeah mid January of 2015, Coinbase received about $75 million worth of funding and announced the availability of the Coinbase exchange. This is the first very regulated, I believe. insured American Bitcoin exchange. And it is one that we've needed for a while. With Bitcoin it's very hard, at least, it has been very hard to buy Bitcoin, to store Bitcoin somewhere.
We've had scandal after scandal. Mt. Gox, certainly being the biggest of those scandals. And, you know, none of these scandals were ever a Bitcoin problem. Bitcoin was always fine. The problem was that really we just didn't have a good source of, I guess, regulated and managed liquidity or exchange points.
So when you see that the Coinbase exchange has opened, we now have something that investors can trust. We have the ability for investors with larger pools of money in. And to feel secure and to know that it is backed by, at least, some semblance of reasonable fiscal oversight. And, you know, that's probably or certainly the biggest thing. I think being an American company to release signals to the rest of the world that America is gonna take charge here. We're going to be a big player and it's not going to be some fringe movement anymore.
It's not gonna be something that you have to wire money through some crazy bank account system over to Japan, or maybe you had to do some hooky check in the mail or God knows what we had to do before we had anything reasonable like Coinbase and now its exchange. I think also what's really, really important about the Coinbase exchange is who's invested in Coinbase now. We saw certainly the New York Stock Exchange which is no small investor. It is a very important investor. We saw the USAA which is a very conservative investment group. It's not the kind of thing that would start a typical dot com enterprise without a lot of due diligence and a great understanding of the hacknology [SP].
So we see people involved in this space now that we just have never seen before. And it really signals, I think, to the more traditional investors that this is a big important movement and it's not going anywhere. Bitcoin is here to stay. And it's only gonna grow from here. These are the things that I see when I think about what the Coinbase exchange is and what it means for Bitcoin going forward. And, you know, summed up it's more liquidity, more reliability, and greater access to Americans.
So these are all good things, and I think that we can really bring in a new moment here in the Bitcoin history. [Bell sound] Later, party people [laughs] That was so bad. I think I'm gonna keep that "that's so bad" part in. Perfect.