If crypto crashes or stabilized, Coinbase is still (for the time being) making monster spreads/fees on trades.
A basket of the top coins also includes garbage like ADA and XRP. Crypto is not the place to market weight IMO given the frequent disconnect between price and quality of projects.
Re:Coinbase to go public on 4/14
by endisneigh on Friday April 02, 2021 @04:34PM
(#26675675)
why wouldn't Coinbase crash if crypto crashed? crypto cashing would mean decline in crypto in general, no?
Crypto crashing means a lot of people selling, hence a lot of trades, hence lots of money for CB.
Re:Coinbase to go public on 4/14
by endisneigh on Saturday April 03, 2021 @11:56AM
(#26682031)
Yes but it also means lowered future demand for crypto, which means less money for CB in the future, which means a lowered stock price.
Re:Coinbase to go public on 4/14
by weird-eye-issue on Friday April 02, 2021 @12:46PM
(#26673121)
It isn't just about "price increasing faster". That isn't how you look at investing.
Re:Coinbase to go public on 4/14
by endisneigh on Friday April 02, 2021 @12:58PM
(#26673256)
How do you look at it then?
Re:Coinbase to go public on 4/14
by weird-eye-issue on Friday April 02, 2021 @01:25PM
(#26673592)
It is about risk adjusted returns.
For the sake of discussion let's say you can either own some amount of Coinbase or a weighted average of the top 5 coins offered on Coinbase itself.
In my view any instrument or tool that leverages a coin with a fixed supply means more popularity which means higher price for the coin. In the end Coinbase absorbs much of the benefit as it has expenses. I don't see any scenario in which Coinbase is more successful than a basket of the underlying.
Now if coins were inflationary I could understand, but they're not. Seems dumb to buy Coinbase IMHO.