Facebook Buying Coinbase? Thoughts Needed!


#1

Hey guys!
Trying something new here.
Tomorrow’s GMC is going to be all about the rumour that Facebook is buying Coinbase.


Before the show, I’m curious about your thoughts.
Why do you think Facebook would consider this?
Do you have any questions you want me to answer during the stream?
Do you have concerns?

Would love to hear your thoughts!

Going to bed now, good night!


#2
  1. Exchanges are extremely profitable, even when the market is red.
  2. Facebook & ads. It’s what they do. They’re the equivalent of Westworld when it comes to pidgeon holing people, and targeting promos at users.
  3. They’ll make crypto mainstream. Get ready for a new influx of noob money.

#3

Hi Ivan,

I’ve been trying to wrap my head around this one.

Facebook is worth around $577B currently. I couldn’t find any solid numbers for Coinbase, but I’m going to ballpark them at worth 1-2% of Facebook. Facebook could easily buy them.

Coinbase generated $1B in sales last year and even though the market is down, no one doubts that blockchain is the future (the doubt is weather everyone can become rich from crypto). Coinbase is the main onramp for fiat to crypto exchange in the U.S. This is a no brainer for Facebook to increase their revenues through a symbiotic relationship between their huge user base and growing interest in blockchain and cryptocurrency.

Pros:

More people getting into crypto, crypto becomes more mainstream and accepted/legitimized–mass adoption!

Prices go up!

Prices go up short term, then prices become less volatile when enough money is invested in the crypto market.

Concerns:

Further consolidates and centralizes power and access to money in all forms.

Privacy can be further compromised through consolidation of personal and financial information of individuals.

Questions:

What about decentralized exchanges?
Can they still have an impact?
Will they still be able to save us all from the tyranny that comes from large corporations/banks and governments controlling money?


#4

Money, Money, Money! Maybe he knows they’re about to get regulated pretty significantly and hurt his revenue numbers dramatically. Here in the States anyway. When it is all said and done I think we are starting to find out that they were selling lots of our info through nefarious means. Like not just your data but your links to everything even if you didn’t say it was ok.
I’m not saying they will go bust just that they have certain expectations and this situation may hurt them a bit.