We have all seen the news, about Coinbase being the first regulated and licensed US Bitcoin exchange.
People are devided into different groups, when this is discussed :
1. People who says, it's a huge move for Mass adoption.
2. People who says, it's a blow for Bitcoin/crypto currency privacy.
3. People who says, "Bring it on, it will open up new legitimate channels for new buyers"
4. People who says, "They bring nothing new, we need a decentralized exchange"
Where do you stand on this issue, and what do you think would be the 100% solution to all exchange issues, to prevent another MtGox fiasco?
People are devided into different groups, when this is discussed :
1. People who says, it's a huge move for Mass adoption.
2. People who says, it's a blow for Bitcoin/crypto currency privacy.
3. People who says, "Bring it on, it will open up new legitimate channels for new buyers"
4. People who says, "They bring nothing new, we need a decentralized exchange"
Where do you stand on this issue, and what do you think would be the 100% solution to all exchange issues, to prevent another MtGox fiasco?
1. This will be helpful for adoption. It is another +1 for BTC and each time we get a plus, we get closer. This will by no means be the tipping point. We still need an "Amazon" level announcement for that.
2. It is not a blow at all. People that are using Bitcoin for privacy can continue on using the same channels they were already using which wasn't Coinbase to begin with.
3. This is by far the strongest argument here. Do you know that basically 95% of BTC volume is traded in China (Even Coinbase's coins are currently processed out of HongKong). The exchanges aren't regulated and carry a definite risk of Goxxing us. Few very rich people will be willing to buy 10's of millions of dollars on a Chinese exchange. You are just about as likely to see that same person on the bad side of town shooting dice. The just want touch it. But with Coinbase and the future ETF from the Winklevii, the whole picture will change. Coinbase will become the #1 exchange for volume and the ETF for futures. Both will be in the US and both will be regulated. Right now China is faking numbers, colluding, squeezing people out for a cheap buck, and just generally playing games. And they can do so with no consequences because they are the market leader, but with these developments legit and honest operations will become the market leader which will to some extent force China to be honest too.
4. We also need a decentralized exchange, but look, the reason why we need a decentralized exchange is for "trust", but trust need not always be achieved through decentralization. Until we get there, the level of trust by a regulated and insured Coinbase with best practices can allow people to feel safe. This is the best 2nd case scenerio and the fears of getting Goxxed are gone except for people that keep their funds on shady exchanges.
