Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Coinbase valued above $100B, ahead of direct listing

axios.com

Post reply on HN
Print view View original

271–280 of 305 posts

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

#271

Post by tracedddd »

beaner wrote: post #268
tracedddd wrote: post #267

Earlier quoted context omitted.

I’m talking about DeFi - distributed exchanges, yield generating savings accounts, and collateralized loans. Additionally ERC20 stables so on and off ramps are significantly less important. I see Coinbase’s primary function as an exchange and a way to convert to dollars. Both are threatened now. They have low fees, low latency, and more usability... but will that last?

Could be true, but the "de" in "defi" prevents it from killing Coinbase's main purpose, which is being the fiat -> crypto gateway.

True, it is a challenge do do a decentralized on/off ramp. But it is also questionable if that’s worth $100B valuation, too, without everything else they do.

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

#272

Post by 55555 »

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…

> I mean except in the commodities markets, the housing market, the price of ammo, of course. Unless you believe those are just "bubbles" as well.

Do you have anything I can read to learn how to distinguish asset bubbles from inflation? Why does inflation sometimes take this form?

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

#273

Post by hfsp »

dragonwriter wrote: post #202
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.

> We're just at a point in the economy where it doesn't make sense to hold on to cash. One of the whole purposes of conversion to pure fiat is to eliminate any reason to hold cash other than short-term liquidity in order to encourage investment in productive assets, driving production. > It's just completely losing its value thanks to a long sustained QE. Except...it's not, the quantity of direct, utility-producing g…

Zero/negative interest rates drive capital misallocation. You are spewing MMT dogma. This is why we have zombie companies like IBM chortling around.

There is asset price inflation for the things we want to buy. Stonks. Real estate in desirable places.

If you examine the 500 most commonly bought household goods, inflation is tracking ~10%+ in major metro areas in the US. This is before covid.

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

#274

Post by hfsp »

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.

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

#275

Post by hfsp »

Ekaros wrote: post #134
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.

I'm really starting to wonder what makes sense to hold? Maybe I need to start looking into land prices. And for that I mean forest or agricultural...

hope.com

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

#276

Post by hfsp »

adventured wrote: post #118
antoniuschan99 wrote: post #115

Earlier quoted context omitted.

What’s your strategy? Because if that’s the case with the US then holding cash has its own issue too? Even Silver is being pumped. Can’t we say the reason why gold isn’t up 1000% is because its digital form of it, bitcoin, took that position? Isn’t QE inflating assets instead of monetary value hence why stocks/equity is going up? Btw very interesting take thank you!

No I don't think gold would be up 1,000% if Bitcoin didn't exist. Bitcoin is a more of a speculative investment than a store of value at this stage, because it has been producing such extraordinary returns (whereas gold is the opposite, on average far more of a store of value than a speculative investment (with some rare bursts of euphoria)). Bitcoin still isn't very widely/greatly (immense sums) held by the rich or…

Btc is the ultimate store of value. An infinite stock to flow indicates this.

If you are argument is "but the volatility" then you enjoy not winning.

Upside volatility.

Number go up.

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

#277

Post by hfsp »

antonislav wrote: post #119
adventured wrote: post #118

Earlier quoted context omitted.

No I don't think gold would be up 1,000% if Bitcoin didn't exist. Bitcoin is a more of a speculative investment than a store of value at this stage, because it has been producing such extraordinary returns (whereas gold is the opposite, on average far more of a store of value than a speculative investment (with some rare bursts of euphoria)). Bitcoin still isn't very widely/greatly (immense sums) held by the rich or…

> You can train yourself to get good at judging price vs value Could you give some guide lines on how to achieve this?

Stock to flow ratio.

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

#278

Post by rhodozelia »

crossroadsguy wrote: post #40
willyg123 wrote: post #8

No matter if you think we're in a bubble or if this valuation supports your view that we are in a bubble, at the end of the day we are all losers who have decided to spend our precious time on a Friday night glued to HN.

dang should offer us an easy way to delete account and anonymize comments. I don't know why there's no such option (other than of course dropping the email).

I think it is so that you take care with what you post - it will be readable forever and someone who goes looking for you online may be able to link your profile to your posts by the details you divulge

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

#280

Post by 01100011 »

lottin wrote: post #217
PragmaticPulp wrote: post #65

Earlier quoted context omitted.

Inflation is high, but it's nowhere near enough to explain the recent market mania. Likewise, stimulus isn't enough to explain the market mania, especially after you subtract out COVID economic losses. Personal savings rate is up, discretionary spending is down, people are stuck at home, and everyone is glued to their phones. I think a lot of people's extra money is going into crypto and the market. FOMO reigns supre…

Inflation isn't high at all. https://fred.stlouisfed.org/series/FPCPITOTLZGUSA

Latest data I saw showed factory input prices are up but not currently being passed on to consumers, possibly because businesses know it will be very poorly received by both consumers and the media.

Inflation is coming, but it seems to be inflation driven by supply disruptions and not monetary policy driven inflation. I'm still not 100% on board with the idea, but I've been reading lately that QE is basically low-velocity money and doesn't necessarily contribute to inflation. I know we didn't get much inflation after QE'08 and the velocity of money has been in the toilet since then. Combined with the USD reserve currency status I think we could actually end up with deflation but IDK. Real economists can't figure it out and I'm just some idiot on the internet.

Post reply on HN