I think Coinbase may still be overvalued but don't think it is directly comparable to NYSE or other major exchanges.
I would agree; Coinbase is competing against traditional brokerages and fintech (PayPal, Cash app), who can run their own nodes and key/wallet infra (as the network is the global exchange). Traditional brokerages can even identity proof their customers IRL with their branches and provide an appropriate level of customer service.
Alternatively, it would be somewhat humorous if Coinbase becomes the DTC and Cede & Co of digital assets (for brokerages who would rather pay and plug in vs build their own custody systems). What is old is new again.
That's a good point. So a fairer comparison would be to compare Coinbase to the market cap of NYSE ($66B) + a stock broker who has roughly the same userbase as Coinbase. For example Schwab ($127B) has about half as many accounts as Coinbase. So NYSE+Schwab = $193B. Suddenly Coinbase valued at $100B while having twice as many accounts and trading fees per dollar transacted ten-fold higher than NYSE+Schwab seems like a bargain... !
If Coinbase has network effects, they're incredibly weak. I'll drop my Coinbase account tomorrow if I find a cheaper, safe place to buy coins. Schwab on the other hand has inarguably the best checking account out there, incredible customer service, and a great brokerage.
Coinbase is in a race to the bottom and they're gonna get smashed against the floor by established, defensible financial services. Grandma ain't making a Coinbase checking account. That's my thinking anyways.
90%+ of industries are. It's what capitalism is all about. It's not unique to Coinbase.
«Grandma ain't making a Coinbase checking account»
She already did. They have 56 million verified user accounts. Twice more than Schwab. A lot of grandmas in this user base :)
This is a very simple understanding of economics that's ~100 years outdated. Most of the world's largest companies sell goods and services with relatively inelastic demand and/or significant barriers to market entry. What IP does Coinbase have that makes their service/good inelastic? Tomorrow when all coins are supported on Robinhood, Cash app, and Venmo, why use Coinbase? COIN investors haven't given me a good answer here. It just comes off delusional to me.
> They have 56 million verified user accounts.
This is a deceptive number. Coinbase has ~6M monthly active users at a time when crypto grew in value 10x. Average account duration is, I'm sure, very low. Schwab has ~30M active brokerage accounts. These are actual, comparable numbers. 56M is pretty much anyone that made an account with a linked email, no?
I don't see how that is sustainable at all.
How many dotcom era companies had net income of $800mil in a single quarter?
Man, almost forgot how it's spelled it's been so long.
Only MSFT outperformed from dot com heights. Valuation matters.
Dotcom bubble was unique among other market crashes, because the main prediciton that fueled the dotcom bubble — that internet is the future and internet-based companies will be worth a lot of money — turned out to be completely right.
Probably at least 10x that
I mean it’s not really like any of these things, the comparisons are totally arbitrary.
I don't see Coinbase having a future in payment processing. Not unless cryptocurrencies become drastically more stable and energy efficient. Even then, you're hoping for the goodwill of the government not to implement serious restriction.
Yeah, what a shame, that Internet thing never really took off.
If you add up all the brokers/investment banks, clearing companies that are related to ICE you get to a way larger number.
I think it's pretty clear by now that they are.
We just hope that the stupidity on the buy and sell sides more or less balances out, and what's left to determine the price is people with some real insight.
https://www.coingecko.com/en/global_charts
Roughly 1Tn of that from 01/01/2021.
where can I buy things with my beenz and flooz?
I looked at the NYSE daily volumes...unless I'm reading them wrong, they did $800m USD worth of trades today. Coinbase did $5b USD worth of trades today. So if you compare a company that's almost 200 years olds volume against a 9 year old company, and find that the startup is doing more than 5 times the volume of the incumbent (with zero lock in, since clients are free to trade cryptos on any exchange), then I'd say your comparison is actually a ringing endorsement for Coinbase.
https://www.nasdaqtrader.com/trader.aspx?id=FullVolumeSummar...
You are orders of magnitude off here. If you really think the stock market is that small you probably shouldn't be here commenting about it
Trading fees in the crypto-world are getting more competitive as more established players support crypto. I don't see a defensible market position here, let alone established track record or strong potential for growth in future earnings.
This is all feeling very dotcom bubble 2.0.