I wonder if Brian will reply to this cause I'm curious to see what the burn rate is now with the layoffs and rescinds of offers, and how the company is planning to live through a 2-3 year maybe more recession + crypto winter.
To me it seems they took in more and more money from investors who want to make a quick buck seeing this company's profits double every year. At some point you have to ask yourself if you are growing recklessly und unsustainably.
And the backups?
2. Backup key in a safe, secure, offline space.
These answers might scare you. They probably should.
This statement should not be misconstrued as anti-crypto.
Not a 'Fools Errand' but a 'Greater Fool Theory'
https://www.wsj.com/articles/bill-gates-says-cryptocurrencie...
If you don’t offload to a private wallet and Coinbase goes completely defunct, there is no protection. Coinbase’s continued existence (and thus, your coins) and the market cycle of cryptocurrencies are mutually exclusive events.
Crypto really is just speed running early banking and financial systems.
Many bank runs would destroy banks and depositors were left with nothing. Eventually the FDIC was created to make sure people wouldn't lose everything and to prevent additional bank runs.
What's also interesting to think about is if we will ever see a coin halt transactions to prevent price changes. BTC is unlikely to face this since it's based on proof of work, but maybe a proof of stake protocol might have something like this happen, or a coin that has a small number of miners.
Maybe it would be similar to the few times NYSE has halted trading: https://www.thestreet.com/markets/history-of-notable-market-...
https://help.coinbase.com/en/coinbase/other-topics/legal-pol...
$20 at most, bigger denominations aren't worth much. I wouldn't accept $100 as payment without someone to verify it, or going together to a bank to deposit it. And like the bills have to be in pristine condition, always complain if someone is trying to give you a damaged bill, that limits its spendability. Gotta know the bills well, maybe ask your bank if they can let you see for yourself the difference between real and fake bills so you can tell the difference. Banks can always get fresh bills by turning in your old ones, to keep up their condition. Plus newer bills have better copy-protection, and are therefore easier to verify.
And guess what? Your purchases will generally not be traced if you pay cash. This is important for books, stationary, electronics, medicine, and charity.
My decision had nothing to do with having cash, merely not wanting to be part of the insane volatility of Crypto and the potential loss of assets should Coinbase go bankrupt (which is a very non-zero possibility). Cash is merely the buffer to pay expenses until markets start to return to profitability at which point I'll move it all back to my usual safe index funds and Apple stock (aaaaaaahhhhh). 8-)
But I've also gotten out of shitty situations with that paranoia. Another way to describe it is "pessimistic creativity". But I am also risk-seeking, so the whole thing is being totally paranoid strictly in the situations that are actually dangerous, and apart from that, like if there's a threat go to the bunker and stay there as long as it takes without compromises and no regard for peer pressure, apart from that...roam downtown Santiago at 3 in the morning because it's no big deal. I'm no fraidy cat.
Fear what you have to fear, forget about everything else.
Nobody honest leverages as much they have without believing the diaster scenarios are either a long shot or are far out. You don't win over today-money with presentations like "well, we'll probably hit a -80% crypto winter next year but can weather our way through 5 flat years if you give us oodles of capital now"
They lost .5B last quarter I think. Not sure if that's going up or down since they're shedding costs. I have no idea if retail trading is up or down this quarter but it sounds like their NFT marketplace isn't going great?
Idk man. I would come up with some serious questions to ask them before signing on.
I'd love to know more about their game plan.
A huge wave of crypto hype and a worldwide asset price bubble (including their stock price as well as crypto currencies) fueled by central-bank money printing during Covid.
> Are we moving to a place where people are trading less and holding more?
Well, just trading less, as the crypto collapse is going to burn (has already burned) so many people that it will take some time before the next round of hype and FOMO builds, so that a new set of bag holders can be found.
Even sites that let you trade with cash and giftcards now require multiple levels of ID verification. There are some chinese companies that are not like this though. It's not so much about anonymity but reliance on government structured order and control in order to engage in commerce effectively making crypto a central bank dollar except no deposit insurance and betting on its value is much more volatile and risky.
He's too busy dunking on his employees on Twitter