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If I were to invest $100 in some allocation of Coinbase stock and Bitcoin - what should the ratio be?

by nwhatt 6y ago

deleted 6y ago
[deleted]
wmeredith 6y ago
Crypto is the gold rush. Coinbase is selling shovels. If you believe in crypto, they're both solid bets. I'd just diversify and go 50/50. This is not financial advice.
- mathattack 6y ago
  Good analogy. Think Cloudflare (shovels for tech) versus AirBnB (end user facing bet). Either way it’s a very specific bet. Diversification is your friend.
- lemoncurd 6y ago
  it is financial advice tho?
- cblconfederate 6y ago
  I wish they were doing an ICO instead (but i guess they can't?). $BNB has been the equivalent of shovels in past years.
Tallasatree 6y ago
$100 BTC : $0 CB.
- deleted 6y ago
  [deleted]
deleted 6y ago
[deleted]
rawtxapp 6y ago
If you believe in crypto, you can't go wrong with either one, one advantage of their stock is that you can invest through traditional means.
- DamnYuppie 6y ago
  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 best option currently if you are looking at crypto from a US based brokerage account.
  - thebean11 6y ago
    Wow, I figured it always traded at a premium. 18% discount is huge, am I missing some downside of this arb opportunity (buy GBTC sell short BTC or BTC futures)?
    - ropiku 6y ago
      GBTC has no redemption mechanism, you can wrap more BTC into GBTC but not the other way around. For ETFs this is what solves the arb. You can do your arb but you still need to offload GBTC at some point and the only option is to another buyer of GBTC.
  - itsoktocry 6y ago
    >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?
    - DamnYuppie 6y ago
Consultant32452 6y ago
Just my personal opinion.... Normies will be buying their bitcoin on cash app, paypal, etc. In this way I feel CoinBase is a niche product with limited growth capabilities long term. The more CoinBase makes, the more the big names in tech/finance will expand their efforts to compete. CoinBase is a decent short to medium term play imo, whereas bitcoin itself is a longer term play.
- throw1234651234 6y ago
  This is an interesting outlook, not sure why it got downvoted.
berberous 6y ago
$80 ETH $10 BTC $10 COIN
- devmunchies 6y ago
  why is this downvoted? going all in on the ETH ecosystem seems like a decent strategy.
ball_of_lint 6y ago
$60 BTC, $20 Coinbase, and $20 ETH is what I'm considering moving to, from previously $100 BTC.
diplodocusaur 6y ago
Funny. If you believe in bitcoin, then you would already have invested. Otherwise what you (and many others, but not all) believe in as an investor is the possibility of a return from storing your dollars in bitcoin and retrieving the value later. If you think this announcement would affect the price, look at price history data for the time of the announcement up to the date of going public. That could serve as some kind of signal given some model assumptions. Avoid confirming your own biases and establish your margin of risk as damage tolerance. As I see it, betting on coinbase is betting on the volume of transactions increasing over time.

If I were to invest $100 in some allocation of Coinbase stock and Bitcoin - what should the ratio be?

by nwhatt 6y ago

If I were to invest $100 in some allocation of Coinbase stock and Bitcoin - what should the ratio be?

deleted 6y ago

[deleted]

wmeredith 6y ago

Crypto is the gold rush. Coinbase is selling shovels. If you believe in crypto, they're both solid bets. I'd just diversify and go 50/50. This is not financial advice.

mathattack 6y ago
Good analogy. Think Cloudflare (shovels for tech) versus AirBnB (end user facing bet). Either way it’s a very specific bet. Diversification is your friend.
lemoncurd 6y ago
it is financial advice tho?
cblconfederate 6y ago
I wish they were doing an ICO instead (but i guess they can't?). $BNB has been the equivalent of shovels in past years.

Tallasatree 6y ago

$100 BTC : $0 CB.

deleted 6y ago
[deleted]

deleted 6y ago

[deleted]

rawtxapp 6y ago

If you believe in crypto, you can't go wrong with either one, one advantage of their stock is that you can invest through traditional means.

DamnYuppie 6y ago
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 best option currently if you are looking at crypto from a US based brokerage account.
- thebean11 6y ago
  Wow, I figured it always traded at a premium. 18% discount is huge, am I missing some downside of this arb opportunity (buy GBTC sell short BTC or BTC futures)?
  - ropiku 6y ago
    GBTC has no redemption mechanism, you can wrap more BTC into GBTC but not the other way around. For ETFs this is what solves the arb. You can do your arb but you still need to offload GBTC at some point and the only option is to another buyer of GBTC.
- itsoktocry 6y ago
  >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?
  - DamnYuppie 6y ago

Consultant32452 6y ago

Just my personal opinion.... Normies will be buying their bitcoin on cash app, paypal, etc. In this way I feel CoinBase is a niche product with limited growth capabilities long term. The more CoinBase makes, the more the big names in tech/finance will expand their efforts to compete. CoinBase is a decent short to medium term play imo, whereas bitcoin itself is a longer term play.

throw1234651234 6y ago
This is an interesting outlook, not sure why it got downvoted.

berberous 6y ago

$80 ETH $10 BTC $10 COIN

devmunchies 6y ago
why is this downvoted? going all in on the ETH ecosystem seems like a decent strategy.

ball_of_lint 6y ago

$60 BTC, $20 Coinbase, and $20 ETH is what I'm considering moving to, from previously $100 BTC.

diplodocusaur 6y ago

Funny. If you believe in bitcoin, then you would already have invested. Otherwise what you (and many others, but not all) believe in as an investor is the possibility of a return from storing your dollars in bitcoin and retrieving the value later. If you think this announcement would affect the price, look at price history data for the time of the announcement up to the date of going public. That could serve as some kind of signal given some model assumptions. Avoid confirming your own biases and establish your margin of risk as damage tolerance. As I see it, betting on coinbase is betting on the volume of transactions increasing over time.