Does Coinbase make money by speculating in the bitcoin purchase/sell interval?
For instance, when I buy 1BTC at $600 they have ~4 days to get it to me. I assume that if they believe Bitcoin is trending down, they will wait to buy at $550 or lower and then give me the "cheaper" Bitcoin and take home the spread. I haven't heard any confirmation of this but I'd assume they are doing this. Does anyone know for sure?
Brian Armstrong said "no" in a talk he did with Kevin Rose. He basically said they make money on that as often as they lose money on it, so not counting it as a profit center and assuming in the end it will all even out.
For instance, when I buy 1BTC at $600 they have ~4 days to get it to me. I assume that if they believe Bitcoin is trending down, they will wait to buy at $550 or lower and then give me the "cheaper" Bitcoin and take home the spread. I haven't heard any confirmation of this but I'd assume they are doing this. Does anyone know for sure?