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For reference, BP the number five global oil behemoth with 200B in revenues in 2020, has a market cap of 85B. Coinbase that sells pumped speculation for a fee h
by whatever1 6y ago
For reference, BP the number five global oil behemoth with 200B in revenues in 2020, has a market cap of 85B. Coinbase that sells pumped speculation for a fee has a market cap of 100B.
Markets are efficient.
- staplers 6y agosells pumped speculation Probably the same type of person to criticize biased journalism.
- HNfriend234 6y agoThere is lots of speculation now but I think eventually real-world applications will be made with crypto. At the very least, it will be likely that the bigger cryptos will start to be accepted by major companies to buy goods/services.
- rgifford 6y agoCrypto doesn't make a good currency for average consumers due to its instability. Who would do day to day purchases w/ funds that fluctuate +/- 10 percent? This is why you want centralization. Store of wealth? Aight, you got me. Solid arguments to be made for it as a new anti-fiat. Its recent divergence from gold concerns me though. That seems bubbly. As a settlement protocol between nations and financial institutions? Already well proven out and in use. No argument to be made.
- rgifford 6y agoLiterally compare COIN to any other market maker or financial institution. I would love to hear some justification here.
- rednerrus 6y agoWorth $1B tops.
- s8s8discourse 6y agoHow do you justify your $100m valuation of a company that generated $700m of PROFIT in a single quarter?
- s8s8discourse 6y agoNice edit. How do you justify your $1000m valuation of a company that generated $700m of PROFIT in a single quarter?
- rednerrus 6y agoq4 2020 and q1 2021 were anomalies. The government put $900B in stimulus money into individuals pockets. There is probably no single company that got more benefit from those payments than Coinbase. The fear of inflation from unfettered spending drove investors into crypto with the idea that it was a hedge against inflation. I don't buy that value proposition for crypto but it did drive prices higher. The stimulus also put money directly into individuals pockets many of whom were hoping to cash in on the boom. Coinbase did $1.28B revenue in 2020 with something like half of it coming in q4. This was before Venmo, Cashapp, Paypal, etc. started selling crypto. The cost for customer acquisition is about to skyrocket at the same time fees are about to plummet. There's a reason Coinbase is rushing to DPO right now. The stars are perfectly aligned for them to get out while the getting is good.
- pjc50 6y agohttps://www.advratings.com/banking/worlds-top-banks-by-market-cap https://www.advratings.com/banking/worlds-top-banks-by-marke... : it's in the top 10-20. Does anyone know what the value of assets under management by Coinbase is?
- ROARosen 6y agoSo if their business model is raking it in by selling pumped-up speculation, and the pumped-up speculation market is a growing sector, then that's what is called an efficient business model which has nothing to do with the fact that markets are 'efficient'. Also, since when does anyone care if casino's business is based on pumped up gambling. As long as there are millions of transactions going on, the business model will stay 'efficient'.
- rgifford 6y ago> As long as there are millions of transactions going on, the business model will stay 'efficient'. I have a timeshare to sell you.
- ROARosen 6y agoLast time I checked timeshares were a shrinking sector. My advice to you is: consider pivoting your biz model to crypto brokerage.
- J5892 6y agoThat's a saturated market. The real money is in crypto-timeshares. We have all the advantages of a timeshare business, and also blockchain.
- fosk 6y agoI mean, re-read that 2-3 times. With the emergence of a new group of people that have massive crypto reserves at their disposal, paying for a timeshare in crypto would make that asset accessible to them natively. It’s not a bad idea. If crypto is a new paradigm, the world will need crypto-XYZ to appeal to that crowd. Cars (Tesla), and timeshares are among them.
- narrator 6y agoTo Predict the Future: Think of the dorkiest idea you can. In the 2000s this was: * Completely made up digital money with no government backing that you have to convince some sucker to take so they give you two free pizzas. In the 90s this would be: * Keeping track of your friends on your computer! * Carrying a computer around that you use to take pictures of yourself and send them to friends! In the 80s this was * Electronic music without words. * Reading books on your computer
- sandworm101 6y ago>> Markets are efficient. They are certainly great at turning air into gold. Maybe that was always their true purpose.
- omgJustTest 6y agoNo they are turning gold into bitcoin. :)
- AbrahamParangi 6y agoWould you rather own crude or DOGE, the official currency of Mars?
- dylkil 6y agothe salt on this board when it comes to crypto only gets worse as time goes on
- staplers 6y agoI have distanced myself from hn GREATLY over the last year. The decline is seemingly exponential.
- jeremyjh 6y agoYes, perhaps this is correlated with the fact that the successive number of years that crypto has been hyped and failed to deliver anything of value only grows as time goes on.
- chrisco255 6y agoI would reply to you and describe the burgeoning ecosystem of economic activity and the speed at which the entire sector is growing, but I have a feeling that convo will not go anywhere. Crypto is eating finance. It's going to eat everything else too. The longer you fight that, the harder the 21st century is going to be for you.
- randomopining 6y agoYeah but how does Crypto make stuff happen in the real world? Like a bank can repossess people's houses and stuff and have the law applied. Crypto only has power over what's on that specific blockchains contracts.
- chrisco255 6y agoOn blockchain, the code is the law, for better or worse. It brings a lot of powerful advantages but certainly comes with some tradeoffs. Loans on DeFi today, tend to be overcollateralized, so that a loan's collateral can be liquidated by a "watcher" if the loan goes into default or is at risk of becoming undercollateralized. Arbitration, insurance, etc. can also be recreated on-chain and already exist to some extent although it is quite early days still.
- o_p 6y agoOk no-coiner.
- splithalf 6y agoYour definition of efficient is anything but?
- SilasX 6y agoBP, being an oil extractor, might have higher expenses and so a comparison purely by revenues might provide less insight than desired.
- pvarangot 6y agoYeah it sucks that the valuation for a company that inefficiently mines a resource that's going to be stored forever and mostly used to speculate, with only a small part of it ever put to productive use has such a high valuation. But yeah the valuation for Coinbase is also insane!
- staplers 6y agoa company that inefficiently mines a resource that's going to be stored forever and mostly used to speculate I've never heard the Nasdaq described like this. Interesting though.
- Grustaf 6y agoOil is "mined" very efficiently, and I bet most of the production each year is used pretty quickly.
- pvarangot 6y agoOil is mined super inefficiently except for shallow wells, it has tight margins. Some operations, specially fracking, actually shut down pretty often when the barrel price goes down near 60 which is were we are now. If you look at production vs. consumption in the world there's usually a bit more consumption than production. If you look per country on the US there's more production than consumption. That's because "extraction" is heavily played with to speculate with the price.
- Aunche 6y agoThe efficient market hypothesis means that valuation of Coinbase reflects all available information. I'd wager that this is true. It doesn't mean that the services Coinbase provides actually are actually worth that much or will ever be in the future.
- ObserverNeutral 6y ago> Fee for speculation Well first of all everything is speculation, it goes both ways, you mentioned BP, well people use barrels of oil today because they think it won't be worth more tomorrow Coinbase takes a fee for every transaction in the assets traded on the platform. The asset in question is the one which people choose as the asset to hold on to express their fears of inflation This is not unlike 2010 when people like Stanley Druckenmiller and libertarians alike predicted hyperinflation due to QE. Normies are where Druckenmiller was back in 2010, they have an irrational fear of inflation and they express it by buying BTC. Coinbase is perfectly positioned to gain from this movement which emerged, and it will only continue given that like anything the more authorities tell humans what to do (in this case to spend) the more they rebel by doing the opposite