The Coinbase cryptocurrency exchange application seen on the screen of an iPhone.
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Bitcoin hit a record high of more than $ 62,000 on Tuesday as investors awaited the long-awaited stock market debut of cryptocurrency exchange Coinbase.
According to Coin Metrics data, the price of bitcoin rose more than 4% in the last 24 hours to $ 62,718. Ether, the second most valuable digital currency after Bitcoin, also set a new record, amounting to $ 2,210.
Coinbase will go public on Wednesday and could be valued at up to $ 100 billion, more than major mall operators like Intercontinental Exchange, which owns the New York Stock Exchange. Cryptographic investors celebrate the company’s stock market debut as a major milestone for the industry after years of skepticism on the part of Wall Street and regulators.
“This is really good for the industry and it’s very important for the industry at the very least,” Marcus Swanepoel, CEO and co-founder of the London-based cryptocurrency platform Luno, told CNBC. “It will increase trust and transparency in our industry.”
“There’s still a bit of mistrust in the industry and I think having a company of this size as a public will help a lot of people realize that this is not just a class of assets that needs to be taken seriously, but also a business that must be taken seriously “
Coinbase, founded in 2012, is the largest cryptocurrency exchange in the United States. This year has seen an increase in revenue thanks to an increase in the value of bitcoin and other cryptocurrencies. The company reported revenue of $ 1.8 billion in the first quarter of 2021, an increase again from the same period last year, while profits grew between $ 730 and $ 800 million.
Bitcoin has more than doubled in price since the beginning of this year, as major investors jumped on cryptocurrencies. Tesla has recently made a $ 1.5 billion bet on bitcoin and is now accepting digital currency as a payment method for its cars. Meanwhile, Wall Street giants like Goldman Sachs and Morgan Stanley are looking to offer their wealthy clients some exposure to bitcoin.
Bitcoin banknotes view cryptocurrency 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, as they consider bitcoin to be extremely volatile and a vehicle for illegal transactions.