Did the people who invested in Coinbase have any idea how much $100B really is compared to well-established and profitable companies worth a fraction of this? The stock market has been a fantasy market for a while. I only wonder hong long can this nonsense continue.
If Coinbase starts getting included in broad market ETFs, leading to significant holdings in mutual funds and retirement accounts, it will greatly de-risk the chance of US gov killing bitcoin: nuking grandma's investments is political suicide.
I think we just witnessed a significant step in the process of bitcoin becoming too big to fail.
Even the biggest companies like AAPL make up single-digit percentages of large cap ETFs or the S&P 500 index. Even if Coinbase disappeared overnight, it would be lost in the noise of the broader market. Nothing like “nuking grandma’s investments”
Also, there’s a lot of middle ground in the regulatory space before banning Bitcoin outright. The government doesn’t have to make a binary choice between free for alls and outright banning something.
Oh bitcoin can certainly still fall precipitously, but over the past decade of following Bitcoin, I've often told people to "invest like it could drop to zero at any moment" and that scenario seems much less possible as institutional investment in bitcoin grows.
The governement could still 'kneecap' bitcoin, but 'killing' bitcoin is approaching being a political impossibility.
Compare it to the Forex, for example, which has trillions of dollars per day. And those are real transactions. I'm not sure about the transactions of the foreign crypto exchanges - they've been caught so many times to fake volume and transactions.
