Bitcoin News

Coinbase Records 100,000 New Users in 3 Days as Investors Rush into Bitcoin

Coinbase Records 100,000 New Users in 3 Days as Investors Rush into Bitcoin

Coinbase Records 100,000 New Users in 3 Days as Investors Rush into Bitcoin

On July 21. Bitcoin Improvement Proposal (BIP 91) was officially locked in, confirming the activation of the Bitcoin Core development team’s transaction malleability fix and scaling solution Segregated Witness (Segwit).

Prior to the lock-in of BIP 91, its 80 percent activation threshold was achieved on July 16 and since then, the market has been reacting optimistically to the future of bitcoin and its scalability moving forward. Within a 5-day period, bitcoin price increased from $1,850 to $2,750, recording a $900 increase.

Bitcoin wallet service providers and trading platforms including Coinbase experienced a rapid increase in user growth, as Coinbase recorded 100,000 new users in the past three days. Trading volumes of bitcoin trading platforms also increased, as investors and traders regained trust in bitcoin and its upward momentum.

Altana Digital Currency Fund’s investor Alistair Milne revealed:

“Coinbase has added ~100,000 users within the last 3 days. The same rate it was adding users in June.”

In June, bitcoin price achieved its new all-time high at $3,095 and as bitcoin price increased exponentially, new investors emerged on platforms such as Coinbase to purchase bitcoin. However, as bitcoin and the entire cryptocurrency market endured a major market correction, many traders panic sold, due to the fear of an upcoming hard fork.

With Segwit activation in sight, in the foreseeable future, the execution of a hard fork and chain split, or the creation of another bitcoin blockchain, is highly unlikely. Bitmain, the most influential bitcoin mining equipment manufacturer and parent company behind the market’s largest bitcoin mining pool Antpool, threatened to execute a hard fork and create a new bitcoin called Bitcoin Cash earlier last month.

As of now, Bitmain remains as a strong supporter of BIP 91 and the Digital Currency Group-led Segwit2x. It is likely that the mining community will encourage a hard fork execution to increase the bitcoin block size by 2 MB in the upcoming months but depending on the Bitcoin Core development team and the industry, the hard fork could result in a secure, safe and clean protocol update.

Still, despite the rising demand toward bitcoin and the confidence from traders and investors, Bitcoin Core developer Peter Todd told the community that BIP 91 lock-in does not guarantee the activation of Segwit.

“A majority of miners can renegotiate on BIP-91, fail to activate segwit, and get away without any long-term consequences because the BIP-91 invalid blocks they would be producing are considered to be perfectly valid by the vast majority of users' nodes. Will this happen? It's notable that even though BIP-91 just activated - something which is supposed to signal clear intent to activate segwit - a bit less than a majority of miners are actually signaling segwit,” said Todd.

Author : Joseph Young

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

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