9 ms·
Maybe previously they could survive off BTC alone, and it benefited them to focus on the healthiest currency, but now BTC isn't doing too hot, so they feel the
by 2bitencryption 8y ago
Maybe previously they could survive off BTC alone, and it benefited them to focus on the healthiest currency, but now BTC isn't doing too hot, so they feel the need to cast a wider net so they can get a head-start on the next craze, should it come?
- davnicwil 8y agoGenuine question, what does not too hot mean? Relative to what and/or when?
- 2bitencryption 8y agoI don't necessarily mean "market value" by that; I mean something more like "public perception". Since the public perception of Bitcoin heavily influences whether the average Joe is going to trade on Coinbase or not.
- davnicwil 8y agoSure, that makes sense. But I don't see what better indicator you could have than market value about public perception of an asset, especially one as abstract as a cryptocurrency. Does it make sense to pull the two apart and discuss them as separate things?
- JumpCrisscross 8y ago> now BTC isn't doing too hot Volatility is an exchange’s friend. Out of the entire cryptocurrency space, Coinbase is the one that makes sense—selling shovels.
- muhneesh 8y agoCrypto is a different ballgame than the stock market, given concentration of trading volumes in relatively few coins. To the extent that the investment philosophy leans more towards "HODL" as prices decrease, trading volumes will go down, and trading volumes predicate volatility.
- JumpCrisscross 8y ago> Crypto is a different ballgame than the stock market...[because] as prices decrease, trading volumes will go down This happens in all markets. Precipitous price drops scare away buyers and trigger loss aversion (and an aversion to marking down positions) in sellers. That leads to the market transitioning to an illiquid regime and non-viability for exchanges. I don’t think we’re there yet with cryptocurrencies. (Beanie Babies took over a decade to resolve.) But it may be what Coinbase is guarding against with this move.
- acjohnson55 8y agoThat doesn't work forever. At some point, the opportunity cost isn't worth it or you need to start liquidating.
- polyomino 8y agoBitcoin is doing much better than all those other scams. Coinbase has lost its credibility in the crypto space long ago, not much risk for them to go all in at this point.
- madeuptempacct 8y agoHow so?
- luke0016 8y agoWho is the main alternative to Coinbase when it comes to Bitcoin? (I've used Coinbase in the past, and would like to know for the future...)
- polyomino 8y agoThere are several options depending on where you are geographically. Bittrex and Gemini are exchanges that’re also big in the USA.