Coinbase has received approval from its board to make a purchase of over $500 million worth of cryptocurrencies on its balance sheet. The firm would also reinvest future profits in the new asset class.
- Coinbase continues to bet big on crypto
- Coinbase to invest profits in crypto
- Coinbase to invest profits in cryptocurrency
- Coin supply myth
- Decision time 100% of the time
- Coinbase to invest profits in cryptography
- Crypto beginnings
- Questions abound
- Cash isn’t trash
- You just don’t understand
- Coinbase chart
- Similar Posts:
Coinbase continues to bet big on crypto
As part of the company’s filing for its direct listing on the Nasdaq, the firm revealed that it was holding roughly $365 million in cryptocurrencies.
[Mish Comment: Chart 3 Below]
Coinbase to invest profits in crypto
In a tweet, Armstrong, co-founder and head of the platform, said Coinbase would also be investing 10% of all profits in crypto.
In a late-Thursday blog from Coinbase, CFO Alesia Haas expanded on Armstrong’s tweets.
“We believe in the cryptoeconomy, a future where economic transactions–buying, selling, spending, earning–will be based on crypto assets,” she wrote.
“This means we will become the first publicly traded company to hold Ethereum, Proof of Stake assets, [decentralized finance] tokens, and many other crypto assets supported for trading on our platform, in addition to bitcoin, on our balance sheet,” Haas wrote.
Coinbase (COIN), as of Dec.
Coinbase to invest profits in cryptocurrency
Coin supply myth
Contrary to popular myth, the supply of Bitcoins does not decrease when it halves,
A Bitcoin halving is when the payout for mining a new block is halved. This happens after every 210,000 blocks (approximately four years).
Halving limits the increase in the number of Bitcoins over time, but that does not decrease the supply. Instead, halving decreases the rate of increase of supply.
The supply of Bitcoin is every coin ever mined minus those with lost keys.
Every second of every day interested parties have to address a simple set of questions.
Decision time 100% of the time
- Holders: Do I hold Bitcoin or would I rather hold something else?
- Potential Buyers: Do I buy Bitcoin, something else, or nothing at all?
It’s important to understand there is nothing unique about Bitcoin.
Coinbase to invest profits in cryptography
Most of them I have never even heard of. (Pawtocol…anyone? lol) Apparently, business has been good in the coin listing business.
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.
Mish Comment: Chart 2 Below]
This strategy has been used under many different names such as ICOs, DeFi, and NFTs, but the outcome remains the same — the insiders get richer, and the outsiders lose their life savings.
The same applies to the stock market, the bond market, currency traders, even home owners.
Do I want to hold this asset or something else?
If someone is willing to sell you a Bitcoin for $30,000, ask yourself why. What is it that they think they know that you think they don’t.
Are the sellers “Bitcoin Whales” deciding to cash out? Newbie greater fools who has had enough?
I don’t know, and you don’t either. Yet, the pretending goes on: “Bitcoin always will rise.”
Anyone who makes that statement is a liar, a fool, or a charlatan hoping you are their greater fool.
Cash isn’t trash
Even in inflationary environments, cash is not trash.
- Cash is down about 10% this year to price inflation (except vs assets).
- Bitcoin is down about 56%.
- LUNA is down about 100%.
Anyone who follows me has to know that I am not a fan of crypos, including Bitcoin.
But I especially went after the obvious fraud pretenders including LUNA and DOGECOIN, the latter hyped by Elon Musk.
Perhaps Sam feels the same way that I do and have commented on many times. “I follow lots of people on Twitter I disagree with and learn more for them than I do with people echoing my thoughts.”
Hopefully, the above Tweet thread by Callahan sheds a lot of light on what is happening in the crypto space.
You just don’t understand
Coinbase chart courtesy of StockCharts.Com, annotations by Mish
Coinbase is the 8th largest position of Cathie Wood’s ARK fund.
Here’s how 10 popular ICOs have performed against BTC after being listed. [Mish Comment: Chart 4 Below]
Coinbase was quick to list & market these tokens despite the heightened operational, security, and regulatory risks that came with them. SBF was on a recent podcast explaining what DeFi was, and it led Bloomberg Journalist Matt Levine to respond with. [Mish Comment: Chart 5 Below]
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.