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> 1.14bn in revenue on 193bn in trading volume: thats 60bps on every dollar traded. These are insane fees ripe for disruption. They know really well, that best
by justapassenger 6y ago
> 1.14bn in revenue on 193bn in trading volume: thats 60bps on every dollar traded. These are insane fees ripe for disruption.
They know really well, that best business during gold rush is to sell shovels.
- missedthecue 6y agoWouldn't that be more applicable to the GPU manufacturers? Coinbase is basically a bank.
- Cthulhu_ 6y agoThose too, but Coinbase will generate pretty constant revenue (depending on trading volume) while GPU manufacturers have the additional expense and risk of R&D, production and distribution. Not to diminish Coinbase's work of course, they're dealing with a ton of international regulation. Their trade is probably more a legal one than a software engineering one.
- justapassenger 6y agoMining is a small, niche part of crypto craziness. Real action is in trading.
- cco 6y ago"Sell shovels or be the bank that the miner sells their gold to" is a bit wordy, but yes, you're correct.