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There is negligible transaction volume in cryptocurrencies. If no one is transacting in them, then they are a solution in search of a problem. Why exactly is C

by rmk 4y ago

There is negligible transaction volume in cryptocurrencies. If no one is transacting in them, then they are a solution in search of a problem. Why exactly is Coinbase your 'dream company'? If they are basically a brokerage that deals with a particular asset type, then what about Coinbase differentiates them from e-trade, Charles Schwab, Robinhood or any other brokerage? Working at a brokerage was not my idea of a dream when I was looking for an internship many years ago. I'm curious to know why it's your dream.

xtracto 4y ago
>There is negligible transaction volume in cryptocurrencies. This is something I dont understand. If cryptos are falling like they are, it surely is bc people are selling and selling at cheaper prices. Isn't that transaction volume that coinbase and similares charge for?
- rmk 4y ago
  Sure, but I'm referring to transactions that currencies are used for: goods and services. Coinbase's wellbeing depends on transaction volume and on the asset itself being desirable / a 'solid' asset class. For example, penny stocks are an asset class, but are not in the same class as blue-chip stocks or stocks on any major index. Most brokerages would prefer to be in the middle of transactions in the latter, not the former.
  - cellis 4y ago
    Not a crypto maximalist, but Zillow and Redfin ( and lots of other "collectible" marketplaces ) are just fine, even though we don't exactly "transact using houses".
    - rmk 4y ago
      Houses are not intended to be a medium of exchange, and neither are they collectible... But they fulfill an fundamental need in society, so they are going to be assets that will have some value in and of themselves. At the end of the day, people find utility even with some of the collectibles you allude to, like art works, whereas in crypto there is nothing tangible, and the buyers seem to be buying on the greater fool theory for the most part. It's not as if the money is growing because of value being added and part of it being captured as a result of the investment, e.g., a stock investment, C.D., or a money market account. People seem to be more interested in it as a store of value than as a medium of exchange...

by rmk 4y ago

xtracto 4y ago

>There is negligible transaction volume in cryptocurrencies. This is something I dont understand. If cryptos are falling like they are, it surely is bc people are selling and selling at cheaper prices. Isn't that transaction volume that coinbase and similares charge for?

rmk 4y ago
Sure, but I'm referring to transactions that currencies are used for: goods and services. Coinbase's wellbeing depends on transaction volume and on the asset itself being desirable / a 'solid' asset class. For example, penny stocks are an asset class, but are not in the same class as blue-chip stocks or stocks on any major index. Most brokerages would prefer to be in the middle of transactions in the latter, not the former.
- cellis 4y ago
  Not a crypto maximalist, but Zillow and Redfin ( and lots of other "collectible" marketplaces ) are just fine, even though we don't exactly "transact using houses".
  - rmk 4y ago
    Houses are not intended to be a medium of exchange, and neither are they collectible... But they fulfill an fundamental need in society, so they are going to be assets that will have some value in and of themselves. At the end of the day, people find utility even with some of the collectibles you allude to, like art works, whereas in crypto there is nothing tangible, and the buyers seem to be buying on the greater fool theory for the most part. It's not as if the money is growing because of value being added and part of it being captured as a result of the investment, e.g., a stock investment, C.D., or a money market account. People seem to be more interested in it as a store of value than as a medium of exchange...