Coinbase after the crypto economy crash
Will you be still consider joining companies like coinbase after the crypto economy went down. Also what will be their RSU growth look like ?
Their business model doesn’t depend on crypto always going up. They’re just a market maker …
But if crypto exonomy is low and so will be the trading of such currencies inturn low commisions for the them right ?
In general OP u r right ... i think what coinbase is doing is what robinhood did for stocks. For the millions of regular traders who have no clue about how or why crypto is valuable Coinbase might help get their foot in the door. These people will find trading crypto like any other asset class. A simple app + prices , automatic buys etc. they dont need to understand whats going on under the hood. Their bet is - crypto will become a stock market on its own. We already saw so many newbies joining crypto trading this season. There is still a billion more people out there who have never traded crypto. Coinbase wants to be the ubiquitous everyone knows their name app for when that happens. So yes - volumes will go down n up a bit with cycles - but they r betting on acquiring so many users that it wont matter
People will always want to trade, once the greed/craze catches you, it is difficult to leave. If some go others will come and replace them. These companies make a lot of $$ in commissions and hence will always be a good place to be in, until the time when everyone discards crypto
Why use coinbase when Robinhood offers crypto?
You don’t actually own crypto in Robinhood, only derivatives of it. In Coinbase, you can transfer your crypto to a hardware wallet, stake with it if the currency supports it, and in the future will be able to use all the features of whatever particular crypto currency you buy. In Robinhood all of that is not true. Robinhood is only good if you don’t plan to utilize the crypto and simply want to take your money on a ride.
>simply want to take your money on a ride That describes everyone I know who bought crypto recently.
Yeah Bitcoin "crashed" from 20k to 40k.
60k to 40k
11k to 64k