Firebase: An unexpected error has occurred? Basic setup not working

Ok, I don't know what I could have done wrong here but I am getting the following error just trying to setup the most basic possible Firebase web app -

What I have done is I created a folder in my home folder with index.html and some styles, basic HTML/CSS stuff. I then cd to that folder in terminal (I followed http://ift.tt/2vI3D6D ) and after installing Firebase tools, I did

firebase init

then after I logged in, selected the database from my console hit enter, I tried firebase serve

Then I got that error. I can't find why this might happen. What is wrong here?