Changes to Coinbase
coinbase logo.jpg

Coinbase is the largest digital currency exchange in the world. Headquartered in San Francisco, California, it currently services over 30 countries and 20 million users. Coinbase has been in the news recently for a series of improvements to its platform. Currently, the only cryptocurrencies you can purchase through Coinbase are Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Last Friday, they announced plans to add a fifth coin, Ethereum Classic. This shot the price of the coin up around $5 to a weekly high of $20 although it has since leveled off and returned to its price from a week ago. Full support for the coin addition should finish completion within the next couple weeks.

On Wednesday, Coinbase announced they were instituting higher purchase limits per day. US customers will be able to trade up to $25,000 per day which is a 7x increase. More importantly, you will now be able to trade immediately after a purchase. Previously, you would have to wait up to five days for the funds to settle. 

In July, a report from Bloomberg stated that Coinbase will be rolling out a new feature that will allow customers to use their cryptocurrency for digital gift cards. These gift cards can be used for over 120 different retailers. Currently, the service is only offered to select countries in Europe. With all of these changes taking place, Coinbase has reaffirmed why they are the leader among cryptocurrency exchanges.

 

Digie GoldComment
The Bit Bunker

It's been a long journey since we started mining in 2013. The first rig was built in a home in Kentucky and later expanded to a pole barn. In 2014, the market crashed and the machines were shut off. As time went on, prices increased, and a new mine emerged from the crawlspace of a home in Virginia in 2016. Other than the occasion flooding, this was the perfect spot for a small mine. 

Bit Bunker.PNG

The operation was moved to Pennsylvania in 2017 into a basement to house more rigs. Due to extenuating circumstance, the entire operation was moved once again in early 2018. This time, it was moved back to where it all started in the pole barn in Kentucky. But as the business grew, it became clear that it was time for something bigger and better.

In March of 2018, we moved down the road into our current home, which we affectionately call, "The Bit Bunker". The Bit Bunker is 5900 square feet and is home to our office as well as more than 50 rigs owned by 30+ clients. Check out the video below to see just how far we've come!

Digie GoldComment
Bitcoin Price Spikes

The price of Bitcoin spiked on Tuesday topping out at nearly $7,500. The price suddenly surged more than $600 in a 30 minute span, marking the highest the cryptocurrency has been in more than a month. Following suit were Ethereum and Bitcoin Cash, which also saw a 10% increase in value. Within an hour, the cryptocurrency market had moved from $272 billion to $292 billion, an increase of $20 billion.

July 17 chart.PNG

Speculation abounds as for the reason of the spike. Typically, volume precedes price and Bitcoin volume reached a 3-month high yesterday. There have also been several cases of institutional money entering the space.

It was reported this week that BlackRock, the world's largest asset manager, has set up a working group to look into blockchain technology and cryptocurrencies. CEO Larry Fink however, has stated that he does not see a "huge demand for cryptocurrencies." Hedge fund billionaire Steve Cohen is also moving into the space according to Fortune. His firm has invested in Autonomous Partners, which is a hedge fund that acquires cryptocurrencies. 

Last week, cryptocurrency exchange Coinbase announced they had received approval from the SEC to trade in securities. Since then, they have retracted their statement and say they have not received any regulatory endorsement. All of these things may have been contributors to the spike in BItcoin price. It remains to be seen if this was merely a price correction or if this is the beginning of a new bull market.

 

What is Bitcoin?

What is Bitcoin?

Bitcoin is a digital currency created by someone under the alias of Satoshi Nakamoto in 2009. Essentially, it is a form of electronic cash designed to work in relative anonymity without a central bank. People can send Bitcoins to each other through their phone or computer.

What is Bitcoin.jpg

How are Bitcoins created?

Bitcoins are created by a process called, "mining". This is done using specialized computer hardware to solve complex math problems. The miners are processing transactions and securing the network which then potentially rewards them with Bitcoin. As of 2016, 12.5 Bitcoins are mined about every 10 minutes.

How do I get Bitcoin?

As mentioned above, Bitcoin can be mined using specialized computer hardware.

You can also purchase Bitcoin online. The most popular exchange to buy from is Coinbase. There you can buy, sell, store, or transfer it. Bitcoin can be bought in USD at whatever the going rate is. This price is constantly fluctuating. 

You do not have to buy a whole Bitcoin. You can purchase a fraction of a Bitcoin. 

How many Bitcoins are there?

Only 21 million Bitcoins can ever be created. Currently, there are 17 million in existence. The remaining 4 million should be mined by the year 2140.

Should I buy Bitcoin?

No one knows what the future may hold. But every day, more and more people are entering the cryptocurrency industry. Always remember to only invest what you can afford to lose.