Is Now the Perfect Time to Buy Coinbase?
In this video I will be talking about why now is the perfect time to buy Coinbase (NASDAQ: COIN) despite the recent crypto crash. Since its IPO, Coinbase is down 30% and is now valued at $46 billion, and based on recent earnings that would mean that the company trades at a P/E ratio of just 16. Which in this market is pretty cheap.
For starters, Coinbase has never been hacked. There's nothing more important in the asset world than security. Coinbase already has approximately 10% crypto market share based on its last earnings report. It had $223 billion in assets under management, which is very impressive considering there are thousands of exchanges out there. The custody part of Coinbase will be very important for its future. If big institutions start offering crypto assets and services to their clients, Coinbase would be the obvious choice.
Coinbase's fees are often criticized, and rightly so. They are unsustainable. But if you believe that blockchain is inevitable, then exchange volumes are going to go up significantly because of additional volumes stimulated by the market's adoption of new trading instruments. This should be enough to outpace the "damage" that fee reduction would have on the business. Keep in mind that Coinbase has been cutting fees for years while simultaneously increasing revenue.
Source Fool.com
