Do you think the following two options have the same financial risk/reward? 1. Work at coinbase for equity 2. Work at FANG and convert all your RSUs to bitcoin Which would have a better potential payout? I’m assuming that for coinbase to takeoff, bitcoin would be to keep growing. If bitcoin dies, coinbase probably wouldn’t be worth much anyways.
Coinbase profits from the volume of trades of crypto coins, not the price of them. Just like a stock exchange. They don’t lose money even bitcoin price crashes. They only lose when no one wants to trade bitcoins anymore.
One would argue in the long run if BTC becomes unpopular, fewer people would trade on it, meaning volume goes down
I thought they charged a percentage of each trade? Thus the value of bitcoin directly affects their per-trade profit
2 is my vote if you want to focus on financial upside. Even if Bitcoin goes up, it does not mean Coinbase will succeed financially. There is a lot of competition from exchanges. Look at the last 3 years. Compare how much Coinbase increased in valuation to how much bitcoin increased. Which was a better investment?
or you can work at Coinbase and let them pay you using BTC, and they can
Or get paid cash and just buy BTC
Or you could be more sensible with your investments.
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