Coinbase, a cryptocurrency exchange, is experiencing difficulties as a direct result of the bear market; nonetheless, the chief executive officer of the company, Brian Armstrong, believes the company is constructed for the long term.
During a conference call to discuss profits on Wednesday, Armstrong stated that the sector is currently experiencingone of those challenging periods that is typical of the crypto cycle.
“The dominant narrative in the cryptocurrency space tends to shift around once every two years. It’s either insane joy or hopelessness at this point. Both of these statements are false at any one time, yet we are currently experiencing one of those phases of despair.
According to the report that Coinbase presented to its shareholders for the fourth quarter and full year 2022, the largest cryptocurrency exchange based in the United States lost $2.64 billion in 2022. The company reported a net income of $3.62 billion for the year 2021.
Armstrong claims that the current situation could even be good for crypto-focused companies like Coinbase, despite the awful data that have been released.
He claims that despite the clamor and the pessimism, positive developments are taking place in the cryptocurrency field.
“Builders who are primarily focused on operating in this market, such as Coinbase, have an opportunity.It is not enough to simply consider the events of the previous year or the preceding three months.
When compared to the average price for Bitcoin in 2020, the price of Bitcoin in January of 2023 is an increase of 80%. Since 2020, the number of software developers who work in the cryptocurrency industry has doubled, and I believe that this is a terrific forecast of where the future is headed.