Undoubtedly, the financial and cryptocurrency news will be approached from different angles following the Coinbase listing. However, the summary of the whole story has the following impacts on Bitcoin.
As we’re all aware, Bitcoin is one of the points of interest for Coinbase. However, most governments including the USA, India, and recently Turkey have always been uncomfortable with Bitcoin since it dawned.
It’s understandable that governments like working with what they can control and regulate, legal tender and fiat currencies being some of the best examples.
Governments, via the Central Banks, use monetary policies to influence the economy, and that’s why legal tender and fiat currencies are preferred.
Control is certainly lost when cryptocurrencies come into play considering that they’re decentralized assets, and that’s why most jurisdictions have been crusading for an outlaw.
A cordial relationship was witnessed when the USA government purchased a Blockchain analysis tool from Coinbase.
Considering that Coinbase has strong Bitcoin roots, Bitcoiners have always wondered why Coinbase markets altcoins more than Bitcoin. Additionally, the relatively minimal Bitcoin stash in their balance sheet could also be an indication of disinterest in holding Bitcoin.
However, Bitcoin has been responding positively, following the Coinbase listing. This means that, in the short-term, a positive Coinbase stock performance could have a positive impact on the price of Bitcoin, and vice versa. This relationship may cause Coinbase to increase its Bitcoin holdings, ultimately popularising Bitcoin.
It’s speculated that potential investors may shy away, awaiting the long-term performance of Bitcoin. They also think that investing in Bitcoin may not be prudent, thanks to the expected uncertainty as BTC tries to find balance.