In early September, Coinbase CEO Brian Armstrong appeared on US broadcaster CNBC to discuss his company’s handling of the crypto winter, his thoughts on certain cryptocurrencies, and where the market should go in the future. the coming months.
Armstrong has been the head of Coinbase since he founded the company in 2012. Since then, the cryptocurrency market has gone through many boom and bust cycles. When Brian Armstrong started his company, bitcoin was trading at less than $15. Today, it hovers around $20,000, and Armstrong’s fortune is said to be around $2 billion.
A difficult time, but there is reason for hope
Just because Armstrong is the CEO of one of the most popular cryptocurrency exchanges, doesn’t mean he knows exactly what’s going to happen in the cryptocurrency market. But he’s been around since pretty much the beginning of cryptocurrencies and has managed to keep his business afloat no matter the economic conditions. So when he shares his thoughts on the market today, people inevitably listen.
In the CNBC interview, Armstrong was asked about the current cryptocurrency environment and what it might look like when it returns to healthier levels. He notably mentioned the transition between the investment of individuals in crypto-currencies and the arrival of large institutions.
Brian Armstrong thinks one particular sector will drive the next wave of crypto adoption: big tech. He cited the agreement between Coinbase and the world’s largest asset manager, BlackRock. As part of the deal, the latter’s investment software will integrate directly with Coinbase so that BlackRock customers can seamlessly buy bitcoin. Armstrong believes that more companies will follow this business model in the future. As these big companies typically have more cash on hand than retail investors, it is optimistic that this influx of capital entering the crypto market could send it to heights we have yet to see.
But until then, Armstrong’s business faces an uphill battle as investors shy away from risky assets like cryptocurrencies due to poor macro conditions. Coinbase primarily generates profit through the transaction fees it charges for exchanges. With the decrease in trading volume, Coinbase’s profits are severely affected.
He was asked when he sees the end of the current crypto winter. He replied that this one is a bit different from other crypto winters of the past, because it “coincides with the decline in the general macroeconomic environment.“He was mainly referring to rising inflation and rising interest rates.
Brian Armstrong hopes that the macroeconomic environment will improve over the next 12-18 months, which will allow the crypto to experience a “nice recovery.”
Brian Armstrong believes there are cycles when it comes to cryptocurrencies, just like the stock market. The incredible growth the industry saw from 2020 to 2021 was not sustainable, and some sort of correction was inevitable.
If Brian Armstrong is right, and the market sees a lackluster performance over the next year and a half. In this case, it means that now may be the time for investors to take advantage of incredibly discounted prices in anticipation of a return to a healthier market.
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Here’s what one billionaire thinks of cryptocurrencies right now.
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