The Coinbase cryptocurrency exchange application is displayed on the iPhone screen.
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Bitcoin rose to a new record high of more than $ 62,000 on Tuesday as investors awaited the highly anticipated stock market debut of the currency exchange Coinbase.
The price of bitcoin has risen more than 4% in the past 24 hours to reach $ 62,718, according to data from Coin Metrics. Ether, the second most valuable digital currency after bitcoin, also set a fresh record, rising to $ 2,210.
Coinbase will be announced on Wednesday and can be valued at as much as $ 100 billion – more than large trading companies such as Intercontinental Exchange, owner of the New York Stock Exchange. Crypto investors view the stock market debut as a major milestone for the industry after years of skepticism from Wall Street and regulators.
“This is really good for the industry and very important for the industry,” Marcus Swanepoel, CEO and co-founder of London’s cryptocurrency platform Luno, told CNBC. “It’s going to increase trust and transparency in our industry.”
“There’s still a bit of mistrust in the industry and I think having a business of this size will help a lot of people realize that it’s not just an asset class to take seriously, but also an undertaking to take seriously. “
Coinbase, founded in 2012, is the largest exchange in the United States. The increase in revenue this year is due to an increase in the value of bitcoin and other cryptocurrencies. The company reported $ 1.8 billion in revenue in the first quarter of 2021, a nine-fold increase over the same period a year earlier, while profits grew to between $ 730 million and $ 800 million.
Bitcoin has more than doubled since the beginning of this year as mainstream investors have jumped into cryptocurrencies. Tesla recently made a $ 1.5 billion bet on bitcoin and now accepts the digital currency as a payment method for its cars. Meanwhile, Wall Street giants like Goldman Sachs and Morgan Stanley want to offer their wealthy customers exposure to bitcoin.
Bitcoin bulls view the crypto-currency as a store of value similar to gold 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 extremely volatile and a vehicle for illegal transactions.