January 31, 2015
Despite the reported price crash of Bitcoin, this crypto-currency remains strong, and there are several reasons to pay attention to it. Recently, on his Reddit’s AMA, Bill Gates stated that he supports Bitcoin, and now, Bitcoin has its own exchange.
Coinbase, the Bitcoin wallet and exchange service headquartered in San Francisco, California, has announced the inauguration of US’s first licensed exchange. This announcement came a week after the Winklevoss twins revealed their plans to do the same thing.
The project by the Winklevoss twins will be named Gemini and will have their own financial support. Still, both actions are a clear sign of a movement aiming to take financial authorities to support Bitcoin – even after all the hacking attacks, criminal cases and the fall of the Japanese exchange Mt. Gox a year ago.
This whole movement actually goes against Bitcoin’s founding philosophy, as a non-regulated and anonymous currency. But, if these latest news show us something, is that businesses seem not to care about this fact.
Coinbase founders already have regulatory approval in half of the American states, including jurisdictions like New York and California, so says the Wall Street Journal. According to the exchange API’s documentation and its website, there will be no negotiation fees during the promotional period that goes until March 30th, after which negotiation fees will become 0.25%.
Coinbase claims to have over 2.2 millions of consumers’ wallets, adoption from 38,000 businesses, and association with seven thousand industry apps. Just last week, Coinbase announced a $75 million boost from investors, including the New York Stock Exchange. This is the first time that financial institutions have made such a large investment in a Bitcoin company, which can be interpreted as a sign of their intentions to, in a short time span, “officially” recognize Bitcoin as a legitimate currency.
Gemini is also at an advanced development stage. Rumor has it that they partnered with a New York bank, which would be beneficial to the project in the sense that it gives credibility to Gemini and assures that the investors’ money will not leave the country or be used in less clear activities.
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