That makes it sounds as if it's a bad thing. Instead read it like “HSBC bans customers from buying pyramid-scheme-backer MicroStrategy shares”.
HSBC bans customers from buying Bitcoin-backer MicroStrategy shares
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Re: HSBC bans customers from buying Bitcoin-backer MicroStrategy shares
#52> “HSBC has no appetite for direct exposure to virtual currencies and limited appetite to facilitate products or securities that derive their value from VCs (virtual currencies),” HSBC said in a statement. But you wouldn't be? This is a product literally called "InvestDirect" where private individuals are buying stocks and assuming all the risk. If you don't want to offer margin on virtual currency products, more pow…
They already have a version of Net Neutrality for brokers: reg NMS. HSBC are well within their rights to refuse to accept bad orders. HSBC are exposed to specific regulatory risk not shared by US banks. Having a ton of customers go bust because a regulatory change nuked some meme stocks seems undesirable to me. If you don't like it you can always find another broker.
> If you don't like it you can find another broker
It's like saying that net neutrality exists, because "if you don't like throttling you can find another ISP"
Re: HSBC bans customers from buying Bitcoin-backer MicroStrategy shares
#53It’s a great signal for potential buyers to just leave HSBC and find a better broker.
"Better" like Robinhood, which, instead of firmly stating a position in advance, changes its mind day-by-day about which stocks its customers can buy or sell? And which was pretty damn close to going bankrupt earlier this year because it didn't have a sufficient risk management policy?
Re: HSBC bans customers from buying Bitcoin-backer MicroStrategy shares
#54That makes it sounds as if it's a bad thing. Instead read it like “HSBC bans customers from buying pyramid-scheme-backer MicroStrategy shares”.
It's not HSBC's role to decide which things are pyramid schemes. SEC is for that, and they have made it very clear that neither Bitcoin or Ethereum are one.
Re: HSBC bans customers from buying Bitcoin-backer MicroStrategy shares
#55> “HSBC has no appetite for direct exposure to virtual currencies and limited appetite to facilitate products or securities that derive their value from VCs (virtual currencies),” HSBC said in a statement. But you wouldn't be? This is a product literally called "InvestDirect" where private individuals are buying stocks and assuming all the risk. If you don't want to offer margin on virtual currency products, more pow…
They already have a version of Net Neutrality for brokers: reg NMS. HSBC are well within their rights to refuse to accept bad orders. HSBC are exposed to specific regulatory risk not shared by US banks. Having a ton of customers go bust because a regulatory change nuked some meme stocks seems undesirable to me. If you don't like it you can always find another broker.
Why would an exchange allow a "meme stock"?
Re: HSBC bans customers from buying Bitcoin-backer MicroStrategy shares
#56> “HSBC has no appetite for direct exposure to virtual currencies and limited appetite to facilitate products or securities that derive their value from VCs (virtual currencies),” HSBC said in a statement. But you wouldn't be? This is a product literally called "InvestDirect" where private individuals are buying stocks and assuming all the risk. If you don't want to offer margin on virtual currency products, more pow…
If they're concerned about exposure, they could simply set the margin trading leverage below 1 (e.g. offering 0.1x leverage so that customers have to post $10 in margin to buy $1 in MicroStrategy shares).
Are you saying someone would need to post more than the value of the share?
Re: HSBC bans customers from buying Bitcoin-backer MicroStrategy shares
#57Earlier quoted context omitted.
Which is a problem in itself. Tesla with a 2% market share in the US, is valued more than Toyota, Volkswagen, Daimler, General Motors, and BMW combined (40% of the domestic market). Toyota makes about $2,500 profit for every car sold. Tesla would need to make $50,000 per unit sold on average, or basically 100% profit on a Model 3, to justify the market cap.
Personally, I'm with you, I just don't see how Tesla's valuation is justified. Their cars have QC issues and they have very formidable competitors. If I had to buy a car, I'd pick the Porsche Taycan over any Tesla any time of the day (except maybe the Roadster, but it's not out yet). That said, I have a few friends who bought it's shares and their rationale is that it's a "clean energy play", far bigger than cars and…
Price is a function of supply and demand.
Re: HSBC bans customers from buying Bitcoin-backer MicroStrategy shares
#58Earlier quoted context omitted.
Tesla has a market cap of 673.80B at the moment. Their BTC holdings are barely a rounding error.
Which is a problem in itself. Tesla with a 2% market share in the US, is valued more than Toyota, Volkswagen, Daimler, General Motors, and BMW combined (40% of the domestic market). Toyota makes about $2,500 profit for every car sold. Tesla would need to make $50,000 per unit sold on average, or basically 100% profit on a Model 3, to justify the market cap.
Overvalued, maybe. But comparing last year production of cars is in my opinion a bad metrics to compare Tesla to other automakers.
First Tesla is growing fast so that $50k will drastically go down in the coming years.
Tesla is more vertically integrated so you have to include the valuation of all the dealerships, parts of their suppliers, the charging network, ...
And third there are the “other” businesses like the battery storage, solar roofs, software revenue, ...
So overall the numbers of cars produced is probably too simplistic to compare them.
Re: HSBC bans customers from buying Bitcoin-backer MicroStrategy shares
#59It’s a great signal for potential buyers to just leave HSBC and find a better broker.
"Better" like Robinhood, which, instead of firmly stating a position in advance, changes its mind day-by-day about which stocks its customers can buy or sell? And which was pretty damn close to going bankrupt earlier this year because it didn't have a sufficient risk management policy?
Interactive Brokers and Saxo are good options for example in UK. I think RobinHood is US only, but US has more professional brokers as well.
Re: HSBC bans customers from buying Bitcoin-backer MicroStrategy shares
#60Earlier quoted context omitted.
Tesla has a market cap of 673.80B at the moment. Their BTC holdings are barely a rounding error.
Which is a problem in itself. Tesla with a 2% market share in the US, is valued more than Toyota, Volkswagen, Daimler, General Motors, and BMW combined (40% of the domestic market). Toyota makes about $2,500 profit for every car sold. Tesla would need to make $50,000 per unit sold on average, or basically 100% profit on a Model 3, to justify the market cap.
I agree that the valuation is silly.
I don't agree that it's a problem. Why do you think that a silly valuation is a problem?