Started in 2012, valuing Coinbase now at USD1 Billion probably says more about the incredible demand for Bitcoin, rather than the achievements of Coinbase. The only way to justify these eye watering valuations is by making two important assumption:
- Bitcoin continues to make exponential growth and
- Coinbase will effectively leverage Bitcoin’s growth opportunities
Clearly, the investors must have been happy with the company’s projections but for the rest of us, there’s still a need to see supporting evidence.