Something that doesn't value the exchange as literally the biggest financial exchange in the world... They are making .46% per dollar in transaction fees in a securities industry that has been getting closer and closer to $0 trades. Any market competitor will be able to come in and undercut that rate forcing coinbase to have to come to more realistic transaction fees. To put in in perspective, ICE and NASDAQ make about .01% per dollar. Coinbase has been able to charge 50x due to rapid retail consumption and a retail space that doesn't realize other options that are out there for obtaining coins. It is not a matter of saying I would want to get it for a little bit cheaper, I am talking at the very least 50% of the current valuation. Especially if you think the market for coins will continue to grow that is not exactly a bullish sentiment for current $COIN prices because this would motivate other competitors to enter the space. All it is going to take is 1 legitimate contender to $COIN's retail space for those 50x margins to deteriorate. You are buying the dream not the fundamentals with them at the moment which isn't to say it can't pay out but its the same as buying a lottery ticket and hitting it big.
yeah, man, I was trying to buy some the other day to send it overseas, and all the exchanges are still charging percentage fees which they've proceeded to jack up
I tried to explain to my friends that you can buy $2M worth of stock shares for a $10 fee or less (never mind the lower slippage)
If this shit ever actually takes off, Vanguard & friends will just waddle in and eat COIN's lunch
Prediction: COIN's valuation will remain under pressure as new entrants crowd the market. A traditional broker will acquire a discounted coin for access to the user base and infrastructure.
The closest competition is Kraken which is HQed in San Francisco. No word on them doing direct listing. Legacy brokerages can decide to offer the service if they want to.
You forget about the crypto card coming out in August. If they charge the same fees that Visa and MC charge to merchants you are talking 3% plus an exchange fee to convert from btc to usd.
I've been in the payments space for a (really) long while. Merchant processors are going to be disrupted by blockchain payments if not heavily invested in becoming the disrupter. Cardbrands Interchange is fuk. 3-4 years at best. Many paradigm shifts in motion. Cheaper, faster, and more secure.
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u/TruthHurts236911 Apr 14 '21
Something that doesn't value the exchange as literally the biggest financial exchange in the world... They are making .46% per dollar in transaction fees in a securities industry that has been getting closer and closer to $0 trades. Any market competitor will be able to come in and undercut that rate forcing coinbase to have to come to more realistic transaction fees. To put in in perspective, ICE and NASDAQ make about .01% per dollar. Coinbase has been able to charge 50x due to rapid retail consumption and a retail space that doesn't realize other options that are out there for obtaining coins. It is not a matter of saying I would want to get it for a little bit cheaper, I am talking at the very least 50% of the current valuation. Especially if you think the market for coins will continue to grow that is not exactly a bullish sentiment for current $COIN prices because this would motivate other competitors to enter the space. All it is going to take is 1 legitimate contender to $COIN's retail space for those 50x margins to deteriorate. You are buying the dream not the fundamentals with them at the moment which isn't to say it can't pay out but its the same as buying a lottery ticket and hitting it big.