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Coinbase valued above $100B, ahead of direct listing

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Re: Coinbase valued above $100B, ahead of direct listing

#151

Post by hiq »

linsurance wrote: post #126
adventured wrote: post #88

Earlier quoted context omitted.

> We're just at a point in the economy where it doesn't make sense to hold on to cash. We're not at that point, and I'm speaking as someone that supports a gold standard or equivalent to prevent rampant fiat debasement. I take it you didn't live through the 1970s. There have been numerous times in the past century where currency in major economies was prominently debased far worse, far faster than what we're seeing t…

> Yet it takes an extraordinary move of adding ~$2 trillion in market cap for Bitcoin to get there. The risk vs reward in Bitcoin at these levels is like a lot of absurdly overvalued stocks presently. Bitcoin is not a stock, it's a deflationary asset. There are not just a limited amount of bitcoin, but a constantly decreasing amount and a constantly increasing amount of people wishing to use them. People sounded very…

> a constantly increasing amount of people wishing to use them

I find this hard to believe, at least not to the extent you're implying. People don't actually use Bitcoins that much, they mostly speculate on it.

Bitcoin was created after the last financial crisis. I'm genuinely curious to see what will happen when the next one hits.

Re: Coinbase valued above $100B, ahead of direct listing

#152

Post by louloulou »

linsurance wrote: post #126
adventured wrote: post #88

Earlier quoted context omitted.

> We're just at a point in the economy where it doesn't make sense to hold on to cash. We're not at that point, and I'm speaking as someone that supports a gold standard or equivalent to prevent rampant fiat debasement. I take it you didn't live through the 1970s. There have been numerous times in the past century where currency in major economies was prominently debased far worse, far faster than what we're seeing t…

> Yet it takes an extraordinary move of adding ~$2 trillion in market cap for Bitcoin to get there. The risk vs reward in Bitcoin at these levels is like a lot of absurdly overvalued stocks presently. Bitcoin is not a stock, it's a deflationary asset. There are not just a limited amount of bitcoin, but a constantly decreasing amount and a constantly increasing amount of people wishing to use them. People sounded very…

Yeah, people call it the everything bubble, when the obvious explanation is the money is being massively debased to pay debt that can't be serviced otherwise.

In all historical episodes of hyperinflation, at the start, everyone holding assets just thinks they are getting rich.

Re: Coinbase valued above $100B, ahead of direct listing

#153

Post by [deleted] »

adventured wrote: post #128
55555 wrote: post #122

Earlier quoted context omitted.

Along these lines, any reading recommendations other than https://www.amazon.com/dp/B000FC12C8/ ?

I don't generally recommend the Intelligent Investor. I think it's almost always a mistake for ... 99% of new investors to bother with Benjamin Graham. His material is far too dense and often advanced for anyone that isn't quite an experienced investor. I'm sure there are exceptions, however I've found it's a huge turn-off for most new or newish investors, it delays / stunts their learning process, it's an obnoxious…

[deleted]

Re: Coinbase valued above $100B, ahead of direct listing

#154

Post by Aunche »

chillacy wrote: post #45
eloff wrote: post #30

Earlier quoted context omitted.

All bubbles pop eventually. I think there's little doubt crypto is a bubble right now. Maybe it pops tomorrow, maybe it goes on for years. I don't know, nobody really does.

If you value stocks based on book value + dividends and discounted cash flow, this bubble's been going on for almost a hundred years by now. We've just gotten used to the new multiples.

You also have to factor in growth into the equation as well. That's the most subjective part of a company's valuation.

Re: Coinbase valued above $100B, ahead of direct listing

#156

Post by programmertote »

1helloworld1 wrote: post #48

I am afraid that we might be on the verge of another dot com level bubble. It's interesting to see how one inflated asset is propping up another. Tesla - which rose by 1000% in 2020, bought bitcoin. Ark Invest Etfs - some of the biggest actively managed etfs, hold significant amount of Tesla, and with the profit generated from Tesla's phenomenal rise, they are investing more on bitcoin. I believe in the future of cry…

I started paying attention to ARK funds lately because of seeing it here and there online. Then I subscribed to their YouTube channel last month and listened to this month's update from their fund principal manager (Cathie Wood). I have to say I learned some new stuff about Macro econ from listening to her video, BUT her talk about AI innovation [https://youtu.be/uwajUw4RFVk?t=1207], just convinced me that she is overestimating the potential of the AI's impact at least in the near term.

Re: Coinbase valued above $100B, ahead of direct listing

#157

Post by Sparkle-san »

tedfernau wrote: post #146
redact207 wrote: post #59

We're just at a point in the economy where it doesn't make sense to hold on to cash. It's just completely losing its value thanks to a long sustained QE. People are just putting their money into anything as a hedge - real estate, stocks, crypto, gold. Until the value of the at can be sustained and inflation comes back, it's unlikely much else will change.

Isn’t cash losing value the definition of inflation?

Yes, and it's been sitting around or below 2% for some time which economists generally consider a good level for spurring spending.

Re: Coinbase valued above $100B, ahead of direct listing

#158

Post by willio58 »

emehex wrote: post #155

Perhaps a dumb question: why is Coinbase even entertaining an IPO? Give away shares for fiat money? Isn't that antithetical to what they're trying to do?

I don’t think it’s antithetical, going public is a natural step for many companies. It makes the people at the top of the company that much richer. Also in a weird way going public is sort of decentralization because suddenly the people running the company are answering to the shareholders instead of a few key stakeholders.

Re: Coinbase valued above $100B, ahead of direct listing

#159

Post by Proziam »

emehex wrote: post #155

Perhaps a dumb question: why is Coinbase even entertaining an IPO? Give away shares for fiat money? Isn't that antithetical to what they're trying to do?

I'm someone who used crypto to buy my current residence. Until you and your staff can pay their rent and taxes in BTC, fiat money is the only real money.

That said, I have my doubts about the 'purity' of any crypto company.

Re: Coinbase valued above $100B, ahead of direct listing

#160

Post by hnrodey »

raiyu wrote: post #98

One important thing to note is that these are secondary transactions and not where the stock may potentially trade. Secondly, Coinbase doesn’t allow any secondary transactions, this was a company sponsored (approved) secondary. As a result this created immense scarcity so you can see how much the price changes just in these limited sales. Third, as we saw with the last bull run of Bitcoin everything with blockchain i…

>Fourth, there is no Bitcoin tracking security on public markets.

$MARA and $RIOT are publicly traded companies in the US that professionally mine for Bitcoin. Their stocks ride the same wave as that of Bitcoin.

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