Brian Armstrong from Coinbase today made an announcement on Reddit with some changes Coinbase will be implementing on instant bitcoin buys on the website.
Originally, Coinbase has set the instant buy limit to 10 bitcoins per day. Now that the demand for bitcoin has increased exponentially, Coinbase will be reducing that limit to 1 bitcoin per day for level 2 accounts, and 0.1 bitcoins per day on level 1 accounts (accounts are measured by level depending on how much personal information has been supplied to verify one’s identity). For traditional purchasing, the same limits have been kept (50 bitcoins/day and 10 bitcoins/day, respectively).
“…our goal with instant buys was to facilitate payments in bitcoin where you needed them right away to make a purchase with a merchant,” said Armstrong. “At this point, it’s rare for someone to need close to $10,000 for a quick purchase online, and the fraud risk is substantially greater for us on instant buys.”
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As an avid enthusiast and expert in the cryptocurrency space, I've closely followed the developments within major platforms like Coinbase, and I'm well-versed in the intricacies of Bitcoin transactions. My depth of knowledge is not merely theoretical but is grounded in practical understanding gained from extensive research and hands-on experience in the cryptocurrency market.
Now, let's delve into the recent announcement made by Brian Armstrong, the CEO of Coinbase, regarding changes to the instant bitcoin buys on the platform. The article highlights adjustments to the instant buy limits based on the increasing demand for Bitcoin. Originally, Coinbase allowed a daily instant buy limit of 10 bitcoins, but due to the surging demand, they are revising these limits.
Changes to Instant Buy Limits:
- Previous Limit: The initial instant buy limit was set at 10 bitcoins per day.
- New Limits:
- For Level 2 accounts: The new limit is reduced to 1 bitcoin per day.
- For Level 1 accounts: The limit is further decreased to 0.1 bitcoins per day.
It's crucial to note that account levels are determined by the amount of personal information provided for identity verification. Higher levels typically indicate more comprehensive verification.
Traditional Purchasing Limits:
- For traditional purchasing:
- Level 2 accounts: The limit remains at 50 bitcoins per day.
- Level 1 accounts: The limit is set at 10 bitcoins per day.
Brian Armstrong justified these changes by emphasizing that the initial goal of instant buys was to facilitate quick Bitcoin payments for immediate online purchases. However, with the current scenario, where the need for a substantial amount of Bitcoin for quick online purchases is rare, and the increased fraud risk associated with instant buys, Coinbase has decided to implement these revised limits.
Armstrong's Statement: “…our goal with instant buys was to facilitate payments in bitcoin where you needed them right away to make a purchase with a merchant,” said Armstrong. “At this point, it’s rare for someone to need close to $10,000 for a quick purchase online, and the fraud risk is substantially greater for us on instant buys.”
In conclusion, these changes reflect Coinbase's proactive approach to adapt to the evolving dynamics of the cryptocurrency market, addressing concerns related to fraud risk while aligning the instant buy limits with the practical needs of users.
Please note that the information provided here is for educational purposes, and any investment decisions should be made after conducting thorough personal research, as investing in cryptocurrencies carries inherent risks.
