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Bitcoin, Cryptocurrency and Blockchain Discussion Thread
- Thread starter Crowded Mind
- Start date
Xepa777
Banned
Coinbase gives you keys but if you want to take full advantage of that security like a Trezor then you need to put it in Coinbase Vault. What % of Coinbase users do that today?
Also....not your servers, not your emails. I respect the NYKNYC movement (turning your brain into a vault if you memorize your keys), but it's just not practical for most. And the entire point of crypto is to democratize the financial system. To enable the unbanked or those who live in volatile countries with a safe space to store, spend, and grow their value.
@Mo City Nothing about Coinbase is hard to replicate except the brand. But Gemini's product roadmap is killer IMO if we going by pure exchange comparison, and Celsius is the king. I'd actually argue that Celsius has a much stronger moat due to (1) its DeFi experience and (2) knowing how to generate yield on such a large AUM (where BlockFi is clearly failing at).
Mo City
Active Member
Just remember that revenue is nearly entirely from bleeding their customers with transaction fees. That revenue has nowhere to go but down once there is a lean competitor. A Robinhood type competitor would gut them. This revenue is a grift to bluff the IPO sheep.
They (and some others) are trying to build a moat out of regulation to raise the cost of a competitor entering their story.
When you enter a low friction commodity service your best friend is onerous regulation. One of the weaknesses of their story is that the first mover advantage holds so little value due to the very nature of a low friction environment. You can’t hope to hold or attract customers with an onerous exit fee. Your sheep will be gone in a day once that inevitable competitor appears.
It may be instructive to see if/how Tesla uses coin base.
Xepa777
Banned
Celsius has been live since 2018 I believe and has been earning yield. But that's the exact question that they can answer better than other players (Nexo, BlockFi, etc.) due to their expertise.
Crypto's killer use cases are cheap loans and high yield. It's yield on crypto themselves, and yield on stablecoins. Blockchain technology allows US to become the market makers and arbitragers. It allows us to earn yield for providing liquidity. We become the financial institution. The disintermediation of finance is frighteningly disruptive.
Forget crypto. No one cares about crypto. We're going to be living in a world where you can download a mobile app that gives you 20% interest rate, send money to other users Venmo style, and buy stuff with a physical debit card associated to our accounts. And take out loans for 1% interest rate. People won't know/care that blockchain tech on the back-end powers this. Everything I just said is in reality through the Luna Ecosystem and Celsius. I've been immersing myself the last few months and have seen it myself. When you abstractly hear people on CNBC talk about "DeFi" and disruption in the banks, this is the value proposition.
The problem right now is that it's a highly technical user experience to do what I said. But when UX overlays take these complex crypto concepts and turn them into simple mobile apps? Checkmate.
How the hell does Cash App / Venmo compete against that? Even if they buy these crypto companies, they have to change their whole architecture to a blockchain-based one and re-haul their business models. Are they willing to do that?
Mo City
Active Member
She expects fees to decline ~30% over time but growing volumes will more than make up for that as major institutions start acquiring huge amounts of BTC. Their plan is to be "opportunistic" with COIN (buy the dips), which is their same strategy with TSLA.
She doesn't state a target price despite the interviewer's attempt to pull a number out of her.
Xepa777
Banned
Coinbase and Anchorage will be the 2 go-to players for institutional custodianship of crypto.
TheTalkingMule
Distributed Energy Enthusiast
Most big tech plays are just software platforms. Google, Amazon, Airbnb, etc...
I'm just saying it sure seems like these days one operator owns the market. If COIN can be the google of crypto, that's pretty valuable.
I bring up Tesla because this is a Tesla board and people have been saying the same thing about TSLA forever. Hell, even the parents are open for EVs that are relatively straightforward to produce. Didn't stop Tesla from owning the market.
jhm
Well-Known Member
Dogecoin has achieved lunar supremacy!
Dogecoin: A Stunning Surge, a Crushing Blow, a Surprise Comeback | CoinMarketCap
Buckle yourselves in for the full story of DOGE, and how a cryptocurrency that was started as a joke ended up with a multibillion-dollar market cap.coinmarketcap.com
So much wow! Dogecoin may be the one, the peoples coin. I love that there are 128.7B DOGE in circulation. The supply grows arithmetically, unbound. Bounty is fix 10,000 DOGE per block. Uses lower energy mining as Litecoin. DOGE has 1 block per minute, compare with 1 block per 2.5 for Litecoin or 1 per 10 minutes for bitcoin. So fast, low cost transactions.
I have long thought that arithmetic expansion is better than halving the bounty every 4 year to put a long-term cap on supply. We live on planet with close to 7.7B people. So there are about 17 DOGE per capita. That is a big enough ratio that it can be in a meaningful denomination for the average. Bitcoin capped out at 2.1M BTC is 0.00027 BTC per capita. Tiny decimal of a unit are really hard for people to relate to in everyday life. Indeed global GDP(PPP) per capita per day is about $48. So 1 BTC at $57k is about 1200 days of income for the average human. Meanwhile, DOGE is at $0.055/DOGE. Even the global poor trying to live on $2 per day can relate to holding 500 DOGE in their hands.
Is the money supply expanding too fast? No, DOGE currently has a 24.5 stock to flow ratio. The inverse means the supply is growing 4% per year. Real global GDP growth is about 3%/y, but in emerging economies it is much higher. Emerging economies need a stable crypto with low cost to transact. So DOGE would would deflationary in most economies that need it. Moreover, in about 8 years, the stock to flow will be about 32.5, and the supply will grow about 3%, right in line with real growth in the global economy. So over the long run, dogecoin is definitely deflationary, but not sharply so that it encourages massive hoarding.
By comparison, BTC is a 57 stock to flow, just a little below 66 for gold. Moreover, the stock to flow will keep doubling every 4 years. This encourages hoarders to keep hoarding. Also bitcoin exchange rates go wild every 4 years as the supply growth contraction is shocked at each halving event. This price instability is great for speculators, but it makes bitcoin less than ideal for quoting prices products and services. Dogecoin had its last halving event in 2014 and the bounty will remain stable at 10k DOGE per block for the foreseeable future. While DOGE did get a substantial bump recently and reacted to Elon's hype, at least you can rule out halving event causing price disruptions. So I would expect that DOGE will continue to provide price stability with occasional deflationary surprises particularly as the popularity of the DOGE expands.
So piecing these details together, I think dogecoin could prove to be well suited for a growing global economy. Bitcoin is optimal for hoarding and large institutional transactions (> $1M), but dogecoin is fun and approachable for ordinary people, especially those without a bank account, for daily consumer transactions.
In conclusion, one word: Dogecoin. Such cheap. Very buy.
jhm
Well-Known Member
Wood's says that Coinbase make about 0.70% on trade in coin and expects fee compression to take this down to 0.50% in a few years. I think this expectation may be based on volume competition for other exchanges. I'd be curious how her analysts are looking at decentralized exchanges (DeX). DeFi DAOs like Uniswap and Balancer are deploying Automated Market Makers (AMMs) to do DeX, while Loopring has developed a DeFi approach to order book exchanges. Additionally, 1Inch is another DeFi solution that enable users to find the lowest cost exchange across all the decentralized exchanges. Simply put, DeFi is vigorously attacking the problem of cutting exchange fees from every conceivable angle. At 0.70% per exchange, there is a huge appetite to throw tech and capital at this problem. Centralized exchanges like Coinbase could be disrupted. I think it is conceivable that DeX will drive fees well below 0.35%, even below 0.20%. Moreover, it is critical to the crypto ecosystem that exchange fees and other kinds of friction be driven to razor thin lows. If you apply Wright's Law to crypto transaction costs, you recognize that ever declining friction is key to continued doubling of the crypto ecosystem. Coinbase could be prime for tech disruption by the very ecosystem it serves. Perhaps this is why after 10 years, it was finally IPO'd.
I just created my kraken account today and am in process of being verified.
It seems secure that a coin wallet with kraken is not entirely necessary? Also looks user friendly so far compared to coinbase which is still simple. Plus can buy doge direct.
I like Kraken - have used them since 2016. I also ended up signing up to most of the major exchanges in the 2017 madness chasing all the altcoins.
Kraken is solid - they haven't done anything poor by me. Depending on which fiat currency you use or crypto you want to purchase you might need to sign up to other exchanges too as Kraken doesn't have a huge variety of either - but for the majors it's a good exchange.
Edit - if you're new to crypto. There's a golden rule from back in the early days - don't leave your coins on any exchange - if you don't have the wallet keys you don't own the coins.
So you use a coinwallet with Kraken? I dont know how to do that, then again I am just on the cusp
JRP3
Hyperactive Member
I didn't think Kraken was allowed for NY customers.
9 Exchanges to Buy Crypto & Bitcoin in New York (2024)
This is a complete directory of New York's Bitcoin exchanges. See every exchange, broker, and ATM in New York in this in-depth post.
Maybe my verification will get declined, did not know that. Sadly Kraken looked like my preferred platform to try for dogeI didn't think Kraken was allowed for NY customers.
9 Exchanges to Buy Crypto & Bitcoin in New York (2024)
This is a complete directory of New York's Bitcoin exchanges. See every exchange, broker, and ATM in New York in this in-depth post.www.buybitcoinworldwide.com
