Bitcoin.com intends to develop or purchase its own exchange, according to its CEO, Roger Ver. The website will likely court the respectable amount of traffic it gets from news and downloads of its wallet solution to garner support for its exchange.
Roger Ver Looks Into Expanding Bitcoin.com
Roger Ver acknowledges that deciding to develop an exchange from the ground up or purchasing an established one come with their own benefits and drawbacks. Building an exchange from scratch will be less expensive, but may be vulnerable to the million-dollar hacks and theft that have plagued crypto exchanges for years on end. The exchange will reportedly reside on the Bitcoin.com domain when completed.
If completed, the Bitcoin.com-based platform will use Bitcoin Cash (BCH) as a base pair in a likely attempt to boost the adoption of the crypto asset. Roger Ver made the leap from Bitcoin to the more-controversial Bitcoin Cash, saying that the fork is much closer to Satoshi Nakamoto’s original vision than what the original Bitcoin chain has developed into. The popular crypto asset has faced its own issues, which include a rift in the community and a potential hard fork in November.
Could The Exchange Market Be Saturated?
Roger Ver’s planned exchange is likely to find a wide audience due to the high levels of traffic that Bitcoin.com already receives. However, that does not mean that the new exchange won’t face stiff competition from established exchanges like Coinbase, Bitfinex, and Binance. To successfully compete with these exchanges, the Bitcoin.com exchange will have to do a few things better than its competitors already do.
Deposits and withdrawals are likely to be one major issue. Bitfinex is especially notorious for the difficulties that users have in withdrawing fiat currencies, so users usually prefer to withdraw cryptocurrencies instead. This challenge may incidentally be related to the issues that Bitfinex has had in obtaining and maintaining a bank account. If the Bitcoin.com exchange does handle fiat deposits and withdrawals, then it will have to make this function as smooth and pain-free as possible, considering that it will be dealing with a mainstream financial system that is notoriously finicky about dealing with cryptocurrencies.
Ease of KYC/AML procedures will be essential if the exchange wants to abide by regulations and still be useful to the average crypto citizen. If given a choice between two or three exchanges, users are likely to choose the platform that doesn’t require the needless KYC hoop jumping. Bonus points can even be given if the exchange can partner with a service like Civic, which would theoretically only make it necessary for users to prove their identities once, in order to join multiple platforms that require KYC submissions.
Low fees and lots of trading options would be preferable. While the new exchange will use BCH as a base currency, users are more likely to be impressed if the fees are competitive, with the platform offering more than just the top 10 cryptocurrencies by market cap.
Bug-free operation and security will be vital. Users might forgive a few bugs if the exchange is still in beta, but it had better be bug-free and trustworthy as soon as its full version goes live. They might also be nervous about using a new exchange with no established security track record.
Could Roger Ver pull off running his own exchange, considering these challenges and a market that may already be saturated? It might not be such a wild idea with his influence and the exchange’s future integration with an established cryptocurrency website. Roger Ver will just have to do it better than all the other exchanges in existence.