Interest in Bitcoin is intensifying. People wishing to purchase Bitcoin and other cryptocurrencies are flocking to digital currency exchanges, such as Coinbase. In effect, on November 2, 2017, as Bitcoin hit all-time highs for the third week in a row, Coinbase added more than 100,000 customers in just a 24-hour period.
Many Are Now Jumping on the Bitcoin Bandwagon
The number of people wishing to participate in the cryptocurrency ecosystem is increasing exponentially. For example, data collected by Alistair Milne shows the extraordinary growth of Coinbase’s customer base.
Coinbase, the online cryptocurrency exchange, now has more than 11.9 million customers, in 32 countries. The amount of digital currency Coinbase has exchanged has reached $40 billion USD, according to the company’s website.
— Alistair Milne (@alistairmilne) November 2, 2017
Based in San Francisco, California, Coinbase allows customers to instantly purchase Bitcoin, Ethereum, and Litecoin using a US bank account.
Launching of Bitcoin Futures Contracts
Bitcoin’s value continues to increase dramatically. As of this writing, Bitcoin’s price has surpassed $7,300 USD. Thus, the cryptocurrency is poised for its fifth consecutive quarter of impressive growth in value.
Financial experts suggest various reasons to explain Bitcoin’s recent increase in value. For example, many experts attribute the latest spike to the CME Group’s announcement that it plans to launch Bitcoin futures contracts in the fourth quarter of this year, contingent upon regulatory approval. This announcement has aroused investors’ interest. The CME Group is one of the largest derivative marketplaces.
Other experts propose that the Bitcoin’s recent price spike is due to the upcoming Segwit2x blockchain hard-fork. Blockchain is the technology behind Bitcoin. On November 16, 2017, blockchain is scheduled to undergo a hard-fork, or split, known as Segwit2x. Consequently, there will be two Bitcoin blockchains and two types of coins: Bitcoin and Bitcoin2x.
The Segwit2x hard-fork might significantly benefit those holding Bitcoin because they will receive an equal amount of Bitcoin2x for each bitcoin they possess.
Specifically, as detailed by Coinbase, “Any user storing Bitcoin on Coinbase at the time of the fork will be credited with an equal amount of the new Bitcoin2x asset on the Bitcoin2x blockchain. No action is required – we will automatically credit your account. If you have 5 Bitcoin stored on Coinbase before the fork, you will have 5 Bitcoin and 5 Bitcoin2x following the event.”
But even before the CME Group’s Bitcoin futures announcement and the Segwit2x hard-fork, Bitcoin’s adoption rate had been increasing. As we can see by the striking number of new Coinbase customers now subscribing in a single day, this trend seems likely to strengthen.
Do you think Bitcoin’s adoption rate is just scratching the surface? Let us know in the comments below.
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