A big risk with Bitcoin trading
Coinbase CEO Brian Armstrong has warned that during times of extreme volatility and high trading volumes, their systems may struggle to cope. This means that if the price of Bitcoin drops quickly, and users want to get out, they may struggle to sell their Bitcoin. “More people are engaging with our platform than ever and that bodes well for the future of the digital currency,” said Armstrong.
“At the same time, it does create extreme volatility and stress on our systems. We take this very seriously.” Coindesk said its has invested significant resources to increase trading capacity on its platform and maintain availability of its service.
Despite these improvements, Armstrong warned customers that access to Coinbase may become degraded or unavailable during times of significant volatility or volume.
“This could result in the inability to buy or sell for periods of time.”
- ^ has warned (blog.coinbase.com)
- ^ Bitcoin will go up 20-times more – Winklevoss (mybroadband.co.za)