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Song My Way by Frank Sinatra, with lyrics for vocal ...
Over three months ago in November 2013, when Bitcoin’s value shot up to over $1,300, the market thought they had found the answer for one of the most crucial questions facing the crypto-currency community: Where to buy Bitcoin? But on Monday, February 18, the number of people able to take advantage of those Bitcoin buying opportunities dropped off sharply, according to Coinbase’s statistics.

That’s due to several factors, CEO Brian Armstrong said, including the company’s recent decision to ban sales from the popular BitInstant exchange.

The BitInstant controversy was part of a larger struggle between traditional financial institutions and Bitcoin traders. Back in September, Coinbase agreed to allow sellers to pay merchants via bitcoin, though not before telling merchants they’d be blocked from serving buyers through BitInstant in future.

Armstrong’s comments about the BitInstant decision follow his earlier statement that “some [BitInstant merchants] are not yet on board to support bitcoin.” At the time he said it was because of the BitInstant controversy and other concerns about the company.

Armstrong said Coinbase will try again to reach out to those merchants to “help them understand and accept bitcoin more widely.”

“We have learned a lot of valuable lessons from having to deal with this last year,” Armstrong said, in a blog post. “We are committed to serving our customers and helping them understand bitcoin’s use for commerce. That’s why we are making this decision and why we are launching our own service on January 1 with a new approach to bitcoin support.”

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