Coinbase CEO: This Is What Will Drive Institutional Investors To Crypto!
In a recent interview with popular YouTube channel Tim Ferriss, the CEO of crypto exchange Coinbase voiced his opinions on what it is exactly that will help more institutions become interested in investing in Crypto!
Coinbase CEO, Brian Armstrong claims that a number of large institutes have already shown their interest in investing in crypto, with some having already allocated a portion of their portfolio into these digital assets.
Because of having been in contact with many institutes interested in diving into crypto, Armstrong has taken notice of some of the biggest factors which contribute to their willingness to invest in cryptocurrencies.
One of the biggest influences, he says, is regulatory clarity for crypto.
“What are the major inflection points that can cause that to happen? The biggest one I think in my mind is regulatory clarity. When I talk to institutional investors, they always bring that up,” Armstrong said.
The CEO also notes that the positive side to this is that it seems regulatory clarity is already on its way to the crypto space, with possibly more clarity coming within the coming years.
“The good news is we’re starting to finally see regulatory clarity. And we can talk about what that is if you want and I think even more regulatory clarity in the next year or two will actually drive a bunch more of that money.“
Another factor that could influence more institutes to invest in crypto, Armstrong notes, may be scalability.
He explains that improved scalability, meaning the better the ability of the blockchain to support more transactions, the more cryptocurrencies will become like other current transaction methods, which will increase investors willingness to invest in crypto.
Armstrong compares the scalability of some cryptocurrencies to those of the scalability of other transaction tools like PayPal and Visa.
“The initial blockchains, I think Bitcoin was doing about seven transactions per second, Ethereum was doing 25 transactions a second and basically PayPal does about 500 transactions a second, Visa does about 4,000 a second, so we needed a couple of orders of magnitude to get to like those more Visa levels.”
Armstrong does note however, that many new changes are being made in the crypto space, which has been helping multiple blockchains to improve their scalability. The recent Ethereum Merge in September and Solana were just some of his examples.
“The regulatory clarity, scalability to blockchains, to me that’s like we’ll probably get another order of magnitude or more out of that just those two things alone.” The CEO stated.