25 sats \ 4 replies \ @tbonesteaks 3 May 2022 \ on: Coinbase house of cards -- they're leveraging using your BTC | IIICapital bitcoin
I agree with getting your btc off of exchanges, but couldn't these bitcoins be from people who agreed to stake their coins with Coinbase? Why would we assume they are using the bitcoin holdings like a bank?
Also, I feel like this simpsons clip fits nicely in this discussion.
I used to use Coinbase and I don't think you can stake Bitcoin. So it is definitely hypothecation.
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From the Bloomberg article in a separate reply to this post:
As of the end of last year, Coinbase held more than $566 million of cryptocurrencies including more than $183 million worth of Bitcoin, according to its 2021 annual report.
But there was no mention of the amount that Coinbase borrowed, but Goldman's first ever bitcoin loan certainly had to be less than $183M.
But Coinbase are shady and this would make me rethink using Coinbase if I still had a trading account open with them.
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context for that simpson's clip is "It's A Wonderful Life"... an excellent film if you're not familiar.
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Yes! I was hoping someone would know the original too.
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