Cryptocurrencies/Coinbase: The income is increasing, but Bitcoin's risky wealth status hurts

crypto evangelists sometimes claim that digital assets such as Bitcoin are investment protection, the performance of which is decoupled from other asset prices. Russia's invasion in Ukraine has torn a new hole in this theory. Fear has driven the gold price to the highest level since last summer. However, Bitcoin is traded like any other.

On Thursday, Coinbase reported praiseworthy results for the fourth quarter that already looks out of date. The crypto exchange listed in the USA exceeded expectations and reported sales of $ 2.5 billion-compared to less than $ 500 million in the same period of 2020.

But Coinbase is a recording indicator of cryptoma markets. Falling prices in the current quarter mean that the company expects the transaction volume to decrease, which pulls the subscription and service fees down. The number of active dealers, in the last count of 11 million, drops.

The reflex -like retreat from the risk in all markets shows that crypto was no different than it became a center for pure speculation. There are fears that the combination of inflation and war could trigger another crypto winter. Bitcoin reached $ 69,000 in November. It is now being traded below $ 39,000.

Coinbase boss Brian Armstrong rejects these long-term fears. He may be right. There is reason to assume that the downturn will not be as serious or long -lasting as the cold of 2017. More institutions keep cryptocurrencies and there is greater integration with common financial services. Billions of risk capital financing are available for investments in the ecosystem.

For Coinbase, the drop in price should be an incentive to accelerate other services. The competition is already exposed to the competition through Robinhood's zero commission fees for crypto trades and is still looking for a common basis with the regulatory authorities. Last year there were plans for a crypto-lending product after the Securities and Exchange Commission warned of legal steps.

alternatives are required. In October, Coinbase announced that it would open a marketplace for non -fungible tokens - NFTS. This still has to appear so that the field for OpenSea remains free. Coinbase remains dependent on crypto trade fees for 92 percent of the income. Until this changes, the share will continue to fluctuate with crypto prices.