Bitcoin (BTC) has passed $ 19,000 mark: bad news for Coinbase customers? The exchange has a sad record of crashes every time Bitcoin experiences big bullish or bearish moves.
An off button at Coinbase?
Since March 2020, Coinbase has undergone numerous shutdowns that coincide with periods of volatility in Bitcoin.
It would appear that the exchange’s capacity is insufficient to withstand large price fluctuations that are accompanied by an increase in the volume of transactions – On 4 occasions, these problems would have been linked to strong fluctuations in the prices of the Bitcoin.
These interruptions particularly affect traders, who can then neither buy nor sell.
Between March 2020 and November 2020, the platform recorded 9 outages of varying degrees of complexity with an error message stating that ” Coinbase is currently experiencing connectivity issues ”.
Coinbase would like to forget these dates
April 29, 2020 Coinbase had notified the public of a connection incident when the price of Bitcoin increased by 4.54%.
On May 9, 2020, the same incident happened again when the price recorded a variation of 15.26%.
On June 1, 2020, users were having difficulty accessing the platform as the price of Bitcoin varied by 6.94%.
A few days later, many customers left Coinbase judging by the flows of Bitcoin exiting the platform.
On July 28, 2020, when prices fluctuated by 3.82%, the interface of Coinbase was again inaccessible.
Coinbase is not the only exchange to have encountered this type of problem. BitMEX has also been the victim of numerous shutdowns in the past.
The CEO of Coinbase, Brian armstrong, tweeted on Nov. 18, 2020, that the exchange is working to increase its processing capacity, both for servers and customer support.
Should we expect an explosion in trading volume once Bitcoin crosses the $ 20,000 mark? Would a Coinbase outage then be welcome to prevent a massive BTC liquidation? DeFi relies on Ethereum 2.0 to solve ETH network congestion problems as the industry explodes – DeFi experts do not believe that ETH 2.0 is the solution to support the growth of the sector. Coinbase faces the same problem when Bitcoin experiences large swings. Towards a more scalable Coinbase 2.0?
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