Brian Armstrong Says Cryptocurrency Bubble is Similar to the Internet Bubble
Brian Armstrong, the Co-Founder and CEO of Coinbase, the largest cryptocurrency exchange platform, spoke about his experience and the cryptocurrency market during an interview with Bloomberg. The CEO of Coinbase exclaimed his experience in the cryptocurrency space as an “organizational chaos” and as an entrepreneur, it has been a “crazy journey”. He said that, at the moment, there are about 1000 employees in the firm, which is six years old.
Brian said: Each year there’s another thing to understand, a new skill set whether it’s like fundraising or learning how to manage … better or even now we have several offices all over the world, six or seven. So just communication over the global workforce and all these things. I’m definitely learning on the flight.
Brian further spoke about the cryptocurrency price, mainly the price of Bitcoin which was around $19700 in the month of December 2017 and now valued at around $6000. According to him, cryptocurrencies are currently going through a series of bubbles in correction. He stated that there has already been 4 to 5 bubbles where Bitcoin’s price has shot up and there was an “irrational exuberance” and then the price corrected back by 60-70%. He continued to say that each time the cycle repeats, it is at a “new plateau” which matches the development of the business.
During the initiation of the company back in 2012-2013, the business had around 500 users signing up each day which steadily increased to 5000 and then 50000 because of the bubble correction. Brian further relates the cryptocurrency bubble to the 2001 Internet bubble.
Brian said: The internet went through this crazy bubble where everybody’s expectation was way ahead of the actual value and it crashed down but a lot of companies got began as well … companies like Facebook which later turned out to be an extremely big company. So the same thing is going on, like people’s expectations are all over the map but I think the real world adoption usage is quite steadily increasing.
Furthermore, Brian spoke about the U.S Securities and Exchanges stance on Bitcoin and the rejection of the number of Bitcoin ETFs. In his point of view, the SEC has been positive on Bitcoin. However, Brian does not expect the SEC to “take some brand new technology and instantly bless it”. The reason is that SEC’s job is to ensure that there is a safe market for the consumers and that they don’t end up being defrauded.
Brian stated: So, I think rightfully so, they [SEC] are looking at a lot of scrutiny especially as there are so many new coins developing there [cryptocurrency market] that are you know have questionable value. Furthermore, the CEO of Coinbase stated that the SEC is good to work with and that another challenge they have with the SEC is to jointly define the standard of what is an acceptable cryptocurrency.