Will Inclusion Of Ethereum On Coinbase Affect On Bitcoin?
As most people might have already heard about what happened to Bigcoin this week, but for those of you who didn’t hear, Ethereum was included on coinbase. From the perspective of a crypto economist, this will surely be having devastating effects on Bitcoin’s brand image as well as its utility.
Coinbase, which was founded in 2012 currently enjoys a fairly massive customer userbase consisting of around 4.1 million customers. It is also backed by some of the wealthiest. This crypto services giant has always been a big believer in Bitcoin exclusively, atleast until this week’s rollout.
As exciting as Ethereum’s community and ecosystem are, they are still some way short of the name and fame to be considered in the same league as Bitcoin, you cant move it to coinbase and then have it in your bank account as fiat currency the next day and you can’t buy it on coinbase with MasterCard’s instany buy option.
Just like every other crypto project before it, initially Ethereum was also relegated bizarrely to the secondary league where it only involves trading of bitcoins for ether on websites of third party exchange .
With ether names and the blockchain now open to millions of users and with the millions of coinbase users now able to convert Bitcoins into ether with efficiency and enough security, it will be quite interesting to see whether the recent ETH/BTC ratios of trading will be maintained given this massive increase in the freedom that has been granted to the users.
Maybe Bitcoin users are a bit too loyal as the loud thoughts of this community portray themselves. Or maybe they aren’t. Maybe they are only interested in the cryptocurrency and their loyalties might change once there is a swift climb in the exchange rate of this cryptocurrency. Only time will tell whether they are really loyal or not.
Recently there has been up and down in the price of ether, most notably going up by a stunning 17.5% over the last 24 hours. This brings the total market cap of ethereum to US $1.21 billion, which is quite low compared to Bitcoin who has a market cap of over $10.25 billion which has gone down by 2.2% over the same period of time.