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In 2018 we’re starting to see how viral cryptocurrency exchanges have become and what Governments are going to do about it.
South Korea will tax cryptocurrency exchanges 24.2%. This amounts to 22 percent corporate tax and a 2.2 percent local income tax from the country’s cryptocurrency exchanges.
Coinbase’s popularity in the app store, also means it could easily get acquired in 2018. In information released to shareholders this week, Coinbase revealed that it recorded turnover of $1 billion last year, which works out at an astonishing $2.74 million a day or $2,000 a minute.
However one must ask the question, are transaction and add-on fees in the spirit of crypto decentralization?
Bitcoin broker Coinbase booked $1 billion in revenue last year — so the company has told hovering VCs to back off.
If you are America’s largest Bitcoin broker, what you do influences the entire world of how we see and relate to altcoins and whatever they do end up becoming.
Coinbase has in the vicinity of 13.5 million users. Coinbase charges trading fees, that are between 0.25% and 1% but at the scale they are operating; that’s centralization and banking all over again; not much in the spirit of what cryptocurrencies were supposed to become. We don’t invest in digital gold and crypto assets for more banking fees.
How Coinbase scales could make or break the future of crypto assets in the U.S. We saw the cryptocurrency market be very much in line with new regulations in Asia.
Coinbase is likely to go the IPO route, but if you want to work with fiat to crypto and are forced to pay trading fees, what does the spirit of decentralization even mean?
Coinbase made nearly 2x what was expected of it in yearly revenue, but in telling shareholders to back off is getting a bit self-important. Bitcoin has after all, experienced a 50% drop from just one month ago.
“As a private company, Coinbase does not allow trading of stock on secondary markets for a variety of reasons, including the fact that there is not full and equal information available to the market,” the company said. “We will take appropriate action if we find people have sold Coinbase shares in violation of our agreements not to do so.”
Founded in 2012 and raising $100 million six months ago, Coinbase has significant VC backers such as Union Square Ventures, Andreessen Horowitz and DFJ.
If cryptocurrency exchanges keep hacking the top app charts, it doesn’t even really matter how volatile these speculative crypto assets are; because everyone is trying to game the system and trading volume will remain high.
Correct me if I’m wrong?
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.