The Coinbase cryptocurrency exchange application seen on the screen of an iPhone.
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Bitcoin hit a record high of $ 62,000 on Tuesday as investors waited for the highly anticipated debut of the Coinbase cryptocurrency exchange on the stock market.
The price of bitcoin has risen by more than 4% in the last 24 hours to reach 62,718 USD, according to Coin Metrics. Ether, the second most valuable digital currency after bitcoin, also set a new record, rising to $ 2,210.
Coinbase will go public on Wednesday and could be valued at $ 100 billion – more than major trading venue operators such as the Intercontinental Exchange, the owner of the New York Stock Exchange. Crypto investors welcome the company’s debut on the stock market as a major milestone for the industry after years of skepticism from Wall Street and regulators.
“This is very good for the industry and is very important for the industry at least,” Marcus Swanepoel, CEO and co-founder of the London-based Luno cryptocurrency platform, told CNBC. “It will increase trust and transparency in our industry.”
“There is still a bit of mistrust in the industry and I think having a company of that public size will help a lot of people realize that this is not just a class of assets to take seriously, but also a business to take seriously.”
Coinbase, founded in 2012, is the largest cryptocurrency exchange in the United States. Revenues have increased this year due to the increase in the value of bitcoin and other cryptocurrencies. The company reported revenue of $ 1.8 billion in the first quarter of 2021, a ninefold increase from the same period last year, while profits increased by $ 730 million to $ 800 million.
Bitcoin has more than doubled in price since the beginning of this year, as ordinary investors jumped into cryptocurrencies. Tesla recently made a $ 1.5 billion bet on bitcoin and now accepts digital currency as a payment method for its cars. Meanwhile, Wall Street giants like Goldman Sachs and Morgan Stanley are looking to give their wealthy customers some exposure to bitcoin.
Bitcoin bulls consider cryptocurrency as a gold-like deposit that can be used to diversify investment portfolios in times of economic crisis. But skeptical economists like Joseph Stiglitz and Nouriel Roubini are not convinced, considering bitcoin to be extremely volatile and a vehicle for illegal transactions.