While most Bitcoin fortunes were made by early believers, many were also made in trading the cryptocurrency as exemplified by Coinbase, one of the largest digital currency brokers in the world. The San Francisco-based company saw revenues top $1 billion last year thanks to the explosive rise in cryptocurrency market.
“The company’s valuation has likely at least doubled since its last valuation of $1.6 billion in August,” a recent Recode report said. “Coinbase was only expected to do about $600 million in yearly revenue as of September 30, according to people with knowledge of the figures, but bitcoin’s run between Thanksgiving and Christmas boosted the company’s 2017 revenue to over $1 billion.”
Bitcoin currently commands the highest market capitalization of any cryptocurrency, worth around $175 billion in today’s valuation. However, it is far from being the only cryptocurrency out there suggesting that Coinbase’s $1 billion in revenue suggests it has become the most-used broker for bitcoin transactions.
Exchanges make their money from trading volume, taking a cut every time coins change hands between investors. Market-wide, trading volumes have held steady above $25 billion a day since late November after Bitcoin’s meteoric rise caught the attention of Wall Street veterans and Average Joes alike. Just recently, the company added 100,000 users in a span of three days.
The company usually charges both buyers and sellers a fee…
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