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Coinbase to go public on 4/14

decrypt.co

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Re: Coinbase to go public on 4/14

#31

Post by DamnYuppie »

itsoktocry wrote: post #15
DamnYuppie wrote: post #12

Earlier quoted context omitted.

The best way to get into Crypto from a traditional brokerage account is GBTC. It tracks mainly BTC and Ethereum. It is not a perfect match though, sometimes you pay a premium and sometimes you get a discount to the underlying cryptos. Currently it is at nearly a 18% discount where earlier in the year it was at a 10% premium (GBTC is currently 50.87, BTC is $59,515). This is by no means a GREAT way to do it, just the…

> The best way to get into Crypto from a traditional brokerage account is GBTC So this is basically 100% speculation, because you can't even use the crypto you "purchase"? You're just hoping for prices to go up. How does that make sense for a purported currency? If people aren't using it, what is the value?

That isn't a very good argument. You might as well ask why do people invest in ETF's and mutual funds. The answer is because they view them as assets that will increase in value.

Re: Coinbase to go public on 4/14

#32

Post by berberous »

endisneigh wrote: post #28
lacker wrote: post #26

Earlier quoted context omitted.

There are plenty of possible outcomes that would be better for Coinbase than for Bitcoin. Popularity of Ethereum, any other coins, or other sorts of crypto-based financial instruments. So far Bitcoin has done well but past performance does not necessarily predict future results. Also, anyone who holds index funds and no cryptocurrency, that strategy essentially ends up in them holding some Coinbase but no Bitcoin.

I don't understand that. Can you spell out the circumstances in which Coinbase increases in price faster than any of the underlying? For the sake of discussion let's say you can either own some amount of Coinbase or a weighted average of the top 5 coins offered on Coinbase itself. In my view any instrument or tool that leverages a coin with a fixed supply means more popularity which means higher price for the coin. I…

If crypto crashes or stabilized, Coinbase is still (for the time being) making monster spreads/fees on trades.

A basket of the top coins also includes garbage like ADA and XRP. Crypto is not the place to market weight IMO given the frequent disconnect between price and quality of projects.

Re: Coinbase to go public on 4/14

#35

Post by modeless »

endisneigh wrote: post #21

Under what circumstances would it make sense to invest in Coinbase compared to Bitcoin/underlying? Doesn't really make sense if you're bullish on crypto. Even seed investors who invested in Coinbase when it was founded would've been financially better off just buying Bitcoin/underlying. The situation here is unique because all of the popular coins have fixed supplies so any increase of popularity will have the commen…

You could see an investment in Coinbase as more diversified. It's an investment in the entire cryptocurrency space.

If you buy a specific cryptocurrency and that particular one is hacked or whatever, you lose. But Coinbase won't be sunk by any one cryptocurrency failing. It will be approximately as successful as the most successful cryptocurrency regardless of which one it is, because they all eventually need some kind of connection to the banking system and the US dollar.

Re: Coinbase to go public on 4/14

#36

Post by rvz »

blhack wrote: post #25

Absolutely fantastic news. Congratulations to the entire coinbase team! (Now please do better at customer service <3)`

> Congratulations to the entire coinbase team!

Yeah congratulations to the Coinbase founders, employees, VCs, investors and institutions who have a stake in Coinbase. They are the real winners in this IPO.

The losers will be the foolish late retail investor who buys on IPO day. (Since it will dump due to the institutions selling off) and the past employees who walked out due to Coinbase's stance during the woke revolt of 2020.

Surely they will now tell you that it was all worth it. /s For them, they can now buy it again for >$200 a share on IPO day with a smile on their face like the rest of us. :)

Downvoters: So you want to buy Coinbase stock at over $200 a share on IPO day and be holding the bag when it drops when the founders, investors and employees start selling 10% of their shares? Sounds like a FOMO investor mindset to have.

Re: Coinbase to go public on 4/14

#37

Post by xenihn »

endisneigh wrote: post #21

Under what circumstances would it make sense to invest in Coinbase compared to Bitcoin/underlying? Doesn't really make sense if you're bullish on crypto. Even seed investors who invested in Coinbase when it was founded would've been financially better off just buying Bitcoin/underlying. The situation here is unique because all of the popular coins have fixed supplies so any increase of popularity will have the commen…

Coinbase would still be around if current cryptos devalued significantly but maintained high trade volumes.

Re: Coinbase to go public on 4/14

#38

Post by weird-eye-issue »

endisneigh wrote: post #28
lacker wrote: post #26

Earlier quoted context omitted.

There are plenty of possible outcomes that would be better for Coinbase than for Bitcoin. Popularity of Ethereum, any other coins, or other sorts of crypto-based financial instruments. So far Bitcoin has done well but past performance does not necessarily predict future results. Also, anyone who holds index funds and no cryptocurrency, that strategy essentially ends up in them holding some Coinbase but no Bitcoin.

I don't understand that. Can you spell out the circumstances in which Coinbase increases in price faster than any of the underlying? For the sake of discussion let's say you can either own some amount of Coinbase or a weighted average of the top 5 coins offered on Coinbase itself. In my view any instrument or tool that leverages a coin with a fixed supply means more popularity which means higher price for the coin. I…

It isn't just about "price increasing faster". That isn't how you look at investing.

Re: Coinbase to go public on 4/14

#39

Post by xiphias2 »

endisneigh wrote: post #21

Under what circumstances would it make sense to invest in Coinbase compared to Bitcoin/underlying? Doesn't really make sense if you're bullish on crypto. Even seed investors who invested in Coinbase when it was founded would've been financially better off just buying Bitcoin/underlying. The situation here is unique because all of the popular coins have fixed supplies so any increase of popularity will have the commen…

Most people don't understand Bitcoin, and they get their references from the gold rush.

Here the situation is different: in the gold rush gold circulation went up, and gold was devalued, so mining that was even worse business than mining Bitcoin.

The problem with Coinbase is the Coinbase vs Coinbase Pro distinction and the huge margins for the Coinbase product that I expect to go down when people realize it.

Re: Coinbase to go public on 4/14

#40

Post by endisneigh »

weird-eye-issue wrote: post #38
endisneigh wrote: post #28

Earlier quoted context omitted.

I don't understand that. Can you spell out the circumstances in which Coinbase increases in price faster than any of the underlying? For the sake of discussion let's say you can either own some amount of Coinbase or a weighted average of the top 5 coins offered on Coinbase itself. In my view any instrument or tool that leverages a coin with a fixed supply means more popularity which means higher price for the coin. I…

It isn't just about "price increasing faster". That isn't how you look at investing.

How do you look at it then?
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