Coinbase: International Users Became Majority in 2015

Bitcoin wallet and merchant services provider Coinbase reports that 2015 was a successful year, both for bitcoin and for the company.

In a blog post, the company noted how the daily transaction count over the Bitcoin network more than doubled to over 200,000 during 2015.

One of the more notable highlights is Coinbase's successful expansion beyond the US. The startup moved into Europe not much more than a year ago. Now, the company reports, a majority of its users reside outside of the US. The proportion of international users grew from 44% to 51% during 2015. The fastest growing markets are Brazil, Philippines, and Indonesia.

Also mentioned was how bitcoin's price increased, yet volatility declined- a seemingly healthy sign for a currency whose obituary was written every time in crashed. The Bitcoin developer ecosystem grew by roughly 35% as well.

Not mentioned in the post were two of Coinbase's biggest accomplishments in 2015: its securing a then-record $75 million in funding, and the opening of its bitcoin exchange.

The latter may be the most financially significant for the company. The masses have yet to start using bitcoin for everyday shopping, and even if they did, Coinbase's fee structure for merchants does not bring in significant revenues. However, volumes on Coinbase's exchange have been solid and the commissions earned are adding up.

Bitcoin's struggles to evolve into an everyday currency may be well-reflected in the following statement by Coinbase: "Despite the strong growth in transactions, no single use case has broken out to the mainstream. This is something to keep an eye on in 2016 and beyond."

Bitcoin or Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term?

One also can't help but wonder about Coinbase's position on the whole blockchain technology thing. Bitcoin's blockchain technology and distributed ledger systems inspired by it are envisioned to revolutionize the way stocks and fiat Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term are settled, among a plethora of other applications.

Coinbase has until now been a 'purist' Bitcoin company, in a sense, remaining faithful to the most popular digital currency and resisting what once was the popular trend of expanding into altcoins. Similarly, the company has yet to join the bandwagon of startups moving into various "blockchain" offerings or rebranding as blockchain companies while continuing to offer the same services.

"While much of the industry shifted to focus on blockchain technology this year, we remained focused on bitcoin and saw the ecosystem grow nicely," the company said in its announcement.

Coinbase's business development manager, Nick Tomaino, argues that bitcoin currency itself is a fine application of blockchain technology. He told Finance Magnates:

"Coinbase is in the blockchain technology race — bitcoin is the first application of blockchain technology with clear traction. There are a lot of non-payments applications of the blockchain that are exciting, but we remain most excited about Bitcoin."