While the price of Bitcoin has been nothing more than incredible over the past year and completely blown me away, (and certainly proven me wrong a number of times when I have in the past stated that I did not think Bitcoin or any cryptocurrency was a "wise" investment), a new warning sign has made waves in the cryptocurrency industry and markets.
The warning comes from Coinbase prior to its upcoming initial direct listing, a different version of an initial public offering. In the report released by Coinbase for potential investors, the company listed several potential risks to its business. This is very common with public companies, even well past the time they have gone public. However, this is the first time we have seen these warnings from Coinbase, which generates the vast majority of its revenue from the trading of Bitcoin and Ethereum.
These risk factors include "disruptions, hacks, splits in the underlying network also known as 'forks,'" as well as developments in quantum computing and regulation that affect cryptocurrencies.
"The future development and growth of crypto is subject to a variety of factors that are difficult to predict and evaluate," the filing read.
Furthermore, the filing also mentioned "the identification of Satoshi Nakamoto, the pseudonymous person or persons who developed bitcoin," as a potential risk factor. It mentioned the transfer of Nakamoto's bitcoins, which some believe is worth around $30 billion. Bitcoin bulls fear that if Nakamoto is identified, it could harm bitcoin's decentralized nature, reputation, and overall security. Continue reading "Coinbase IPO Raises Concern About Bitcoin Long-Term"