The last few days have been unstable for cryptocurrencies to say the least and in the wake of such devastation, the CEO of Coinbase has warned about premature excitement over Bitcoin adoption.
Whilst many investors are pinning their hopes on widespread adoption helping to stabilise the value of BTC, it may not be wise to do so.
The value of BTC is currently $6400, noting an increase from the weekly low of $5950. As the price of BTC fell, many other altcoins also suffered similar decreases, including Ether which dropped to a low of $250 and LTD which sunk to just $51. It is hoped that upcoming developments such as Microsoft, Starbucks and ICE’s integration of the technology will give a much-needed boost to the market.
But Brian Armstrong, CEO of Coinbase has said that he thinks “We are still quite far away from buying your morning Starbucks with cryptocurrency”, and he is right. Whilst it initially appeared that Starbucks was working in conjunction with ICE and Microsoft to create a BTC payment platform for their products, they recently clarified in a statement that;
“Customers will not be able to pay for Frappuccinos with Bitcoin.”
Armstrong also stated that most cryptocurrencies are only suitable for use in speculative investment and added that only around 10% of traded cryptocurrency is used to make purchases or execute financial transactions.
High levels of concern exist in the industry from those who believe that the bear market will prevail until significant developments are made in terms of regulatory clarity and widespread public adoption. This would also include a higher level of acceptance of Coinbase Commerce on popular websites, and the approval of the impending Bitcoin ETF.
“This technology is going through a series of bubbles and corrections, and each time it does that, it’s at a new plateau. People’s expectations are all over the map, but real-world adoption has been going up.” Armstrong stated.
Whilst widespread adoption of cryptocurrency is important, many industry key figures believe that it is legal certainty and clarification that will provide the best boost for prices, adoption, and popularity.