Investing in Bitcoin (BTC) Turned Out More Profitable Than COIN

Investing in Bitcoin (BTC) Turned Out More Profitable Than COIN
Investing in Bitcoin (BTC) Turned Out More Profitable Than COIN

  • COIN’s depressed projections for FY22 provide a downside risk.
  • Bitcoin is up 3.08% in the last 24 hours.

Compared to merely keeping BTC, buying Coinbase stock (COIN) has been a poor investment decision. When compared to its IPO launching pricing on April 14, 2021, COIN is down over 50 percent to roughly $186. On the other hand, Bitcoin fared better than Coinbase shares over the same period, registering more minor losses of just over 30% as it went from about $65,000 to around $41,700.

Bitcoin and Coinbase have a strong connection, suggesting that many investors see them as assets with comparable value propositions. In part, this is because of the excitement about how COIN may become a more straightforward onboarding process for investors into the crypto industry compared to purchasing Bitcoin, Ethereum (ETH), and other virtual assets.

No Longer the Go-to Asset

Many crypto-based exchange-traded products (ETP), mining stocks, and other publicly traded Wall Street index companies are putting pressure on the COIN product. As a result, it’s no longer the go-to asset for obtaining exposure to the crypto market.

Additionally, COIN’s depressed projections for FY22 provide a downside risk. According to Coinbase’s recent earnings report, if its monthly transaction users fall below the lower end of its estimate range in 2022, its adjusted EBITDA losses may total $500 million.

When opposed to the stock of a centralized corporation like Coinbase, Bitcoin is a whole different proposition. Some of the principles pushing up the price of BTC today include absolute scarcity, censorship-resistant decentralized ledger, and gold-like qualities as a possible hedge against inflation in the digital age. According to CoinMarketCap, the Bitcoin price today is $41,808.41 USD with a 24-hour trading volume of $24,293,298,782 USD. Bitcoin is up 3.08% in the last 24 hours.

The post has appeared first on thenewscrypto.com

Leave a Reply

Your email address will not be published. Required fields are marked *