When Bitcoin was volatile early this morning, Coinbase was down yet again...
This is becoming a common theme in crypto...
Any time things get volatile, Coinbase goes down.
The most recent one happening this morning as bitcoin was dropping by $1k in a matter of minutes...
(Source: https://www.coinbase.com/price/bitcoin)
This might not seem like that big of a deal but it has been happening a lot lately.
In fact, it's happening pretty much any time Coinbase gets volatile...
This would be the 3rd time it's happened in less than a month...
What is going on?
Is it strange to anyone else that any time bitcoin moves by plus or minus 5% in a short period of time Coinbase crashes?
Coinbase isn't just another crypto exchange...
Coinbase is the largest US based exchange by a significant margin.
And the majority of its users are of the retail variety.
Which may have something to do with why this is happening...
There were some rumors put out that Coinbase has a circuit breaker for its users of sorts.
Meaning that any time bitcoin gets volatile it locks people out from trading so they don't do something stupid.
This hasn't been verified by Coinbase but with all the outages every time bitcoin gets volatile it would make a lot of sense.
What do you think, should Coinbase be 'protecting' their users every time bitcoin gets volatile or should they people decide for themselves?
It seems like a pretty clear answer to me...
Oh and btw the official word from Coinbase is that they basically have a system overload every time the price gets volatile, which I think is highly unlikely at this stage in their development.
Stay informed my friends.
-Doc
I think this may be right:
While I know it’s possible that it’s a bandwidth problem; where usage spikes above their prepaid limits and they don’t want to pay for more bandwidth everyday when they only use the extremely high bandwidth on days with volatility. But it is a very cynical posture to take to suggests that to save money they only pay for enough bandwidth to cover their customers needs the majority of the time and then just put up that error on those rare days that customer trading usage exceeds their limits to save money. And I am not that cynical yet........🤨
Hmmm.....
Posted Using LeoFinance
This is not a question.
Absurd.
Their service is to trade crypto.
People can search out mothers, babysitters, knowledge, or guns if they want to be protected. That's not Coinbase's job.
Agreed 100%.
This is like when I was working as an electrician... 10 years without blowing up a single fuse and when I did finally blow up a fuse, it wasn't just a single fuse... damn fuse box had to be rebuilt... lol... It arced all three phases...
This one seems a little more deliberate. I mean we aren't seeing thousands of new users sign up every day like we did in 2017 when they kept crashing. Plus they have beefed up servers now I would imagine. No reason they should be crashing every time bitcoin moves more than 5% in short amount of time.
My point is that no matter how many new servers they add, they still run out of bandwidth as they have absolutely no clue how much over bandwidth they were...
They can't just quadruple the amount of servers because on one day they need that much computing power and bandwidth...
Sure they can... they literally were printing money back in 2017 and 2018, literally printing it. They made over a billion dollars in a year during that stretch while many of the top brokerages in the world were struggling to make a couple hundred million... Coinbase had money coming out of their ears and they stated several times how they were pouring that back into their product, which included beefed up servers. And now today, with new/active users being a fraction of what they were at that time, there is no reason they should be going down due to bandwidth issues... none.
Don't you think the component shortage also reflects big companies when they buy in bulk.
Even if they can get enough servers eventually, they also need more fiber connections and routers so the existing ones can't get congested.
After that they can run in to cooling problems, unless they add the new servers to another facility.
A billion dollars fixes a lot of problems that may come up...
A lot is not same as everything... If normal person needs to wait 3 weeks, Scrooge McDuck might still need to wait one week...
Not forgetting Coinbase uses CloudFlare so it might be CloudFlare that is limiting factor, not Coinbase itself... That error page might be just custom error page displayed by CloudFlare's reverse proxy...
I wouldn't be surprised if you were correct... and I think I agree with the opinion that you didn't state. We live and learn.
Which one?
You alluded to Coinbase shutting down trading during times of volatility to keep people safe from losing large amounts of money. The 'we live and learn' part probably should have been replaced with 'you play, you pay'. :P
Or, "big brother knows best".
LOL. Ya. That sounds about right. ;P
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