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So I'm a crypto non-believer. I see it as the ultimate solution looking for a problem. But that doesn't apply to Coinbase because, at its core, Coinbase should
by jmyeet 5y ago
So I'm a crypto non-believer. I see it as the ultimate solution looking for a problem.
But that doesn't apply to Coinbase because, at its core, Coinbase should be a transactional business that is a proxy for the size of the crypto market (or, more specifically, the crypto trading volume).
I don't know enough about the financials of Coinbase however. It could be they have risks unrelated to their transaction business. For example, Robinhood was almost made insolvent by excessive exposure to GameStop. Does Coinbase engage in some weird margin business where they're exposing themselves to proprietary risk? If no, it seems like a good buy.
- acchow 5y agoWouldn't it be a problem for Coinbase if the crypto market all but evaporates?
- jmyeet 5y agoIn the short term? Sure. That's why it's 75% off the peak. If you think the entire crypto market is going to go under then (again) yes. But as ridiculous as I think crypto generally is, I don't think it's going anywhere. YMMV.
- outside1234 5y agoThe crypto market won't all evaporate because it is a very useful tool for money laundry, illegal transactions, and bribes. But this is hopefully a much smaller market than the current one.
- tmp_anon_22 5y ago> money laundry, illegal transactions, and bribes. Is it good for those things if you have to launder it AGAIN (with fees) just to get it back to a practical fiat currency?
- eftychis 5y agoI mean cash is better for strictly better for illegal activities. That misconception has stuck and just stays there. One leaves way to many crumps with non-private digital assets. And private ones are treated like the plague. Plus KYC and compliance checks for any exchange in the USA and EU (dunno about the rest of the world) practically bans anything iffy. Compliance requirements have been stricter in Coinbase from my point of view than my banks...
- throwaway48375 5y agoKinda hard to do ransomware with cash.
- eftychis 5y agoWell the OP did not mention ransomware, so my comment is not addressing that case. Here is a fun article as a counter point: https://www.coindesk.com/markets/2021/07/13/dont-blame-bitcoin-for-ransomware/ https://www.coindesk.com/markets/2021/07/13/dont-blame-bitco... And my comment: Piracy and kidnapping of property existed long before cryptocurrency -- just google Somalian pirates. I don't have to reason about person kidnapping I assume. Also: https://en.wikipedia.org/wiki/Ransomware#Encrypting_ransomware https://en.wikipedia.org/wiki/Ransomware#Encrypting_ransomwa... please read the history of ransomware. I guess all the criminals of the past since 1989 need to use time machines because they could not possibly do ransomware pre-cryptocurrency... /s P.S. Downvoting because you disagree with a comment that addresses another comment is not really polite.
- throwaway48375 5y agoI don't even have the ability to downvote on HN.
- acchow 5y agoHow does one order drugs in the dark web using cash?
- koolba 5y agoThey make money from people transacting. Every buy or sell on their platform nets them a commission so their total revenue is directly proportional to how frothy the market is feeling. A major crash like we’ve been seeing in both the traditional market and crypto space means there is less money coming in, less money moving around, and less fees for Coinbase. And with a persistent recession you’re not going to see people coming back in for a while.
- rabuse 5y agoThey generate a lot of their revenue from a fee percentage for every transaction, so it really shouldn't affect them on crypto price swings, as long as people are still purchasing crypto.
- deleted 5y ago[deleted]
- rossjudson 5y agoHuh. I see crypto as a problem looking for worse problems...and not really finding any.
- 10amxn10 5y ago