A traditional equity analyst might try to value Coinbase’s business by looking at their future cash flows and applying a discount rate based on current Fed guidance.
They would perform all the calculations in dollar terms, and might not even consider valuing the business as a fraction of BTC supply (or as a fraction of the entire crypto market cap).
I’d love to hear from stackers how you might approach the task of valuing Coinbase’s business (i picked them because they are the largest public exchange with lots of historical financial data) assuming the world is transitioning to a Bitcoin standard.
A few questions…
  • How many Bitcoin do you think Coinbase’s business is worth today?
  • Do you think traditional equity analysts are over-estimating or under-estimating Coinbase’s potential as a business?
  • Can you come up with a general framework for thinking about how other Bitcoin businesses should be valued on a Bitcoin standard?
  • What discount rate will we apply to cash flow/sats flow on a Bitcoin standard? Will we continue to use the Fed’s benchmark interest rates?
Who will do that evaluation must know also WHO is Conbase... the enemies of Bitcoin #78930
IMHO they worth a wheelbarrow full of goat shit.
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20 sats \ 2 replies \ @Asara 13 Mar
I refuse to use CB since the Hacking Group debacle.
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10 sats \ 1 reply \ @doofus 13 Mar
What happened with that?
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They at some point hired engineers who had worked as state sponsored terrorists (Hacking Team, not hacking group sorry), caught backlash and fired them.
If you look into who hacking team targeted, it was a wide net including some engineers I personally know.
The fact that CB hired them in the first place was enough to take my business elsewhere.
Coinbase released another statement blaming the hirings on “a gap in our diligence process.”
  1. Coinbase is worth nothing less than shit.
  2. Traditional Equity Analysts are slaves of cage mentality.
  3. Coinbase has nothing to do with Bitcoin Standard.
  4. Well, TBH we Bitcoiners don't need to think on such frivolous aspects like interest rates. On Bitcoin Standard, they are invisible. Thanks for asking.
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why are interest rates invisible on a bitcoin standard? you think all credit will completely disappear?
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No, but it won't be like today. It will be replaced by a barter system and people will be accepting the same amount that they would lend. No interest rates at all. Currently why everyone wants interest on their money because their money or their mindset simply relates with inflation.
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why would you bet on a barter system that basically has zero historical precedent at scale?
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Not a barter system that happened in history. The new barter system should be based on Bitcoin. In this new system, we should barter only Bitcoin, not one thing for the other.
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how is that different from the way people “barter” dollars today?
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That's all we have been talking for years now. Excessive printing, centralized and devaluing and corruption agent.
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Coinbase is worth somewhere around zero to less than one bitcoin or 0 < coinbase < 1bitcoin
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1,000 BTC
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0 sats \ 1 reply \ @kr OP 13 Mar
why 1,000?
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An uneducated guess
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Too many.
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Building group church here