Here’s how 10 popular ICOs have performed against BTC after being listed. [Mish Comment: Chart 4 Below]
If Bitcoin is always in the first place, then Ethereum is always in second place in the crypto sphere. The market capitalization of Ethereum is currently over $560 billion.
The Ethereum system came in 2015 as an open-source software based on the blockchain, and Ethereum is the digital currency that empowers the whole system.
This year, the price of Ethereum has increased by more than 500% and has even broken the record. Investors believe that Ethereum will be the key to the decentralized finance sector including smart contracts, NFTs, and the next expected big thing: Metaverse.
The Ethereum system was created to extend the functionality of blockchain technology away from Bitcoin so that the underlying technology offers wider applications than just a virtual currency.
Unlike Bitcoin, Ethereum’s supply is unlimited.
- Coinbase invest all profits in crypto
- The Race to Market
- Coinbase invest all profits in cryptocurrency
- Coinbase invest all profits in cryptography
- Crypto beginnings
- Top idea of the month: What needs to happen before stocks bottom?
- Bitcoin margin calls, waterfall events, and people pretending to know the unknowable
- Tweet charts
- A learning experience
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Coinbase invest all profits in crypto
The first was to invest $500 million of our cash and cash equivalents into crypto…And second, we’re allocating 10% of quarterly net income into crypto investments. We’ve invested upwards of $180 million year-to-date as measured at cost.”
Coinbase has invested $540 million in Bitcoin, Ethereum, and other crypto-assets.
The Race to Market
From the very beginning, Bitcoin has been the coin of other coins. Coinmarketcap.com reported that Bitcoin currently has a market capitalization of around $1.246 trillion.
The key difference between Bitcoin and traditional fiat currencies like the USD or Euro – all of which are under the control of a central bank, is that Bitcoin is totally decentralized.
Many Bitcoin advocates refer to the virtual currency as a “store of value” – a status often attributed to traditional safe-haven investments like gold.
Coinbase invest all profits in cryptocurrency
The platform could also face new tax-reporting requirements under the roughly $1 trillion infrastructure bill in Congress.
The exchange platform listed on the Nasdaq in mid-April and is roughly flat based on its $250 reference price established before its first trade and its $342 closing peak on April 16.
Coinbase held a direct listing instead of a standard initial public offering, meaning that the company didn’t raise money through the process of going public and doesn’t have a traditional IPO price against which to measure the stock’s first-day rally.
Earlier this month, Coinbase posted net revenue of $2 billion in the second quarter, up from $178 million a year earlier and $1.6 billion in the first quarter.
Coinbase invest all profits in cryptography
If a customer of Coinbase heeded their advice, they would have lost money on these sh*tcoins instead of simply saving in the less risky asset, Bitcoin, for the long term. [Mish Comment: Chart 1 Below]
Fast forward to today, and Coinbase offers 161 cryptocurrencies.
The subject came up again today.
“Once Ethereum becomes proof of stake officially and risk is mostly eliminated ….“
AND risk is mostly eliminated!?
Sorry, that’s either ignorance or a lie. I see similar statements about Bitcoin all the time.
Bitcoin launched in January of 2009. It has never seen any environment than endless Fed pumping, low interest rates, and extreme QE liquidity supporting all asset prices.
Liquidity also explains the rise of hundreds if not thousands of altcoins, all inherently worthless.
Even if we give Bitcoin and Ethereum first mover advantage, no one can possibly know how either will perform in an inflationary environment in which the Fed is hiking and for the first time stating an aggressive QT (Quantitative Tightening) policy.
Top idea of the month: What needs to happen before stocks bottom?
Please consider Top Idea of the Month: What Needs to Happen Before Stocks Bottom?
History suggests markets bottom after the yield on the 10-year treasury note drops significantly.
That has ominous implications for all asset classes, especially the riskiest of asset classes.
And Bitcoin has generally been following the Nasdaq. There is no reason to believe that stops, nor any reason to believe we are close to a bottom in anything.
Bitcoin margin calls, waterfall events, and people pretending to know the unknowable
“You just don’t understand”.
Crypto advocates certainly understand the inner workings of cryptos far better than me.
Most ETH holders didn’t hold their ETH long term, but instead traded their holdings for other cryptos that were spawned on Ethereum during these various speculative crazes.
Ethereum’s Ether , the second-largest crypto by market value; and $34 million of other crypto assets, according to public filings.
Some of the largest publicly traded companies now include digital assets on their balance sheet, a growing trend in 2021, include MicroStrategy (MSTR), which holds bitcoin valued at nearly $5 billion, as well as Tesla Inc. (TSLA), which owns some $2 billion in bitcoin. Galaxy Digital Holdings holds nearly $800 million in bitcoin.
Recently, Coinbase said that it had built a $4 billion cash stockpile, as it prepares for closer scrutiny from the likes of the Securities and Exchange Commission’s Gary Gensler and others.
Don’t believe me? Let’s dig into it
[Mish Comment: Chart 3 Below]
Coinbase CEO, Brian Armstrong, announced that the company’s board had approved the crypto spending spree in an August 20 tweet, adding that Coinbase also plans to invest 10% of all profits generated into digital assets moving forward.
Armstrong also indicated the company hopes to increase the percentage of profit it allocates to cryptocurrency purchases over time.
A blog post published by Coinbase on the same day announces that the move will establish the exchange as the first publicly-traded company to hold Ether, DeFi tokens and Proof-of-Stake assets on its balance sheet.
The announcement emphasizes Coinbase’s commitment to making long-term investments in the crypto sector, stating:
“Our investments will be continually deployed over a multi-year window using a dollar cost averaging strategy.
They need to be saving in Bitcoin to preserve their wealth — not gambling on unregulated digital penny stocks using bucket shops like Coinbase.
Charts and images from Sam Callahan Tweet thread
A learning experience
Hopefully, readers will appreciate your insights. I appreciate the fact that Sam follows me (I just found that out today after deciding to post the above Tweet thread).