Coinbase CEO Warns Against "Irresponsible" Bitcoin Investments


"We also wanted to remind customers of some of the risks associated with trading digital currency", CEO Brian Armstrong wrote.

On Coinbase's GDAX exchange, for example, the price of bitcoin is trading above $18,400.00 as of press time.

At the same time, it's a considerable amount less than the prevailing price on Bithumb, South Korea's most voluminous exchange, and local exchanges Coinone and Korbit, all of which seeing prices above $19,000 (denominated in the won, the country's national currency). One bitcoin was worth $1,000 in January.

Now, bitcoin may only appeal to someone willing to dive into the digital world of cryptocurrencies, or someone with a lot of disposable income, but that enthusiasm was strong enough to push Coinbase's app to the No. 1 spot on the free app chart for Apple's App Store on Thursday. That was before the recent Bitcoin rally, however, which sent values soaring this week. The company said it has increased the number of transactions it's able to handle at peak hours by 40 times, and has scaled up its support team 640 percent while adding features like phone support. The venue temporarily crashed and continued to suffer from service delays.

The blog also reminded customers that it's important to protect their Coinbase account with two-factor authentication, and that trading volumes are so high that there are times Coinbase might not be available due to technical reasons.

Sensor Tower compared the rise of the top ten Bitcoin wallet apps with the average price of Bitcoin and found that the two track almost identically since the start of the year.