Let's call a spade a spade.
This market is a bust, and there's no value-driven economic model to justify cryptos collectively being worth $50B-$100B.
With any startup, there is an expected future value of the company discounted back to the present. It then just becomes a risk-weighted probability question of whether that startup will achieve that expected future value in the expected timeframe.
Conversely, the valuations of the crypto market are driven mostly by momentum and prayers. It's ultimately a case study of what happens when you mix unsophisticated investors, no regulation, frictionless market entry, memes as an investment philosophy ("HODL") and the psychological highs of winning a lot of money. It's gambling, not investing.
In terms of Coinbase - sure, they're selling pickaxes during a gold rush, but gold rushes end and the pickaxe salesmen go out of business too.
This market is a bust, and there's no value-driven economic model to justify cryptos collectively being worth $50B-$100B.
With any startup, there is an expected future value of the company discounted back to the present. It then just becomes a risk-weighted probability question of whether that startup will achieve that expected future value in the expected timeframe.
Conversely, the valuations of the crypto market are driven mostly by momentum and prayers. It's ultimately a case study of what happens when you mix unsophisticated investors, no regulation, frictionless market entry, memes as an investment philosophy ("HODL") and the psychological highs of winning a lot of money. It's gambling, not investing.
In terms of Coinbase - sure, they're selling pickaxes during a gold rush, but gold rushes end and the pickaxe salesmen go out of business too.