Coinbase is arguably one of the largest and most popular cryptocurrency exchanges in the western hemisphere. The company has become the first and only crypto exchange as of late to be listed publicly, and it is estimated that the firm has a valuation of approximately $70 billion or more. However, it looks like the company is experiencing some solid competition in the form of bitcoin payments firm Strike.
Strike Is Bringing the Heat to Coinbase
Over the years, Coinbase – despite its popularity – has taken some guff for the fees it charges. Coinbase earns millions of dollars in transaction fees alone, and traders are not too happy that the exchange is garnering tons of “commission” through their activities. Strike has entered the mix and is ready to challenge the likes of Coinbase by claiming that it provides bitcoin and cryptocurrencies to its customers for nearly zero fees.
Jack Mallers – the chief executive of the firm – recently explained in a blog post that the fees Coinbase charges is simply a way to ensure customers keep the rest of its crypto services subsidized. He threw criticism at the exchange, saying it was wrong for Coinbase to charge its clients as much as it does. In the blog, he explained:
It is unclear if Coinbase can attempt to compete on fees, even if they wanted to… Make no mistake. When you buy bitcoin on Coinbase, you are supporting sh*t coins.
Among Strike’s major accomplishments as of late is its stance working with the government of El Salvador. Recently, the Latin American nation announced that it would permit bitcoin payments and elect the cryptocurrency as the country’s latest example of legal tender, meaning it would operate along the same lines as the U.S. dollar, which El Salvador has relied on heavily for the past several years.
Strike is working with El Salvador to bring bitcoin to the masses and establish payment processing abilities throughout the country.
Comparing both Strike and Coinbase, one can easily see which company puts less emphasis on its ability to earn revenue through transaction fees. Strike, for example, only charges about 0.3 percent for each bitcoin trade that occurs through its site. By contrast, Coinbase charges as much as four percent depending on the size of the transaction.
Maller has stated several times in the past that his company will not make money through excessive fees, and that he is looking to outdo all other bitcoin payment processors – such as PayPal, Venmo, Swan Bitcoin and Square – by ensuring customers always receive the lowest fees through his firm.
Refusing to Charge Heavy Fees
We just ripped the pin out of the grenade and tossed it into the crowd. Buying bitcoin will not cost more than it takes to acquire. Buying bitcoin will not subsidize sh*t coin casinos.