This is an interesting read from Reuters, citing the Wall Street Journal reporting news that Bitcoin exchange Coinbase is seeking new funds valuing the company at USD1 billion.
Source: Bitcoin exchange Coinbase seeks new funds at $1 billion valuation: Wall Street Journal | Reuters
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.